Principles of Marketing – MKTG350 Chapter 2

A mission statement _______.
Defines the scope of activities a firm plans to undertake.
Which of the following are the primary strategies used to achieve product excellence?
1 Investing in your brand
2 Strong supplier relations
3 Effective positioning
4 Loyalty programs
1 & 3
With _____, the firm first divides the marketplace into subgroups, determines which of those subgroups it should pursue, and finally decides how it should best position its product or service.
1 SWOT
2 The marketing mix
3 STP
4 The Four P’s
3
Firms achieve operational excellence through which of the following?
1 Efficient operations
2 Excellent supply chain management
3 Focusing on Human Resources as little as possible
4 Strong relationships with suppliers
1 & 2 & 4
______ is the element of the 4 P’s responsible for communicating value to customers.
Promotion
What are the actions organizations have take ignorer to achieve these macro strategies?
1 Operational Excellence
2 Product Excellence
3 Locational Excellence
1 – Excellent supply chain management, strong supplier relations, and human resource management
2 – Effective branding and positioning
3 – High density of stores and closer proximity to customer
Some commonly used financial performance metrics include which of the following:
1 Mission Statements
2 Loyalty programs
3 Profits
4 Sales Revenue
3 & 4
When a company focuses on having _______ excellence it may also focus on having good Internet presence.
Locational
A(n) ______ competitive advantage is an advantage over the competition that is not easily copied and can be maintained over a long period of time.
Sustainable
Licensing of the brand, a reputation for quality, and a large number of retail stores are examples of potential _____. These refer to internal attributes during a SWOT analysis.
Strengths
Identify the following terms included in a SWOT analysis:
1 Sustainability
2 Threats
3 Opportunities
4 Weaknesses
2 & 3 & 4
________ is the quantity of a market comprised by a specific entity.
Market Share
Loyalty programs _______.
1 Are part of the locational excellence element of the marketing strategy
2 Are offered only by airlines
3 Give firms the opportunity to learn more about their customers
4 Create little or no emotional attachment toward a certain firm
3
Step 5 in the marketing plan process is when a firm ______ the results of the strategy and implementation process.
Evaluates
A company that has successfully built a wall around its position in the market, making it hard for competitors outside the wall to enter the market and compete, is an example a company that has established _______.
Competitive Advantage
Brand ______ means that customers are reluctant to patronize competing firms.
Loyalty
A _________ is a written document that includes the current marketing situation, specified objective and strategies action programs, and projected income statements.
Marketing Plan
A market penetration strategy employs the existing marketing mix and focuses the firm’s efforts on __________.
1 Diversifying
2 Increasing sales to current customers
3 Developing a new market
4 Reaching new focus group I a new area
2
True or False? Organization is one of the three major phases of the marketing plan.
False. The three phases are:
– Planning
– Control
– Implementation
What does “weaknesses” refer to in SWOT analysis?
Negative attributes internal to the firm.
Why do firms use metrics?
1 To explain why things happen
2 To help stakeholders understand their mission statement
3 To make it possible to compare results across regions, product liens, and time periods
4 To make appropriate adjustments to performance
1 & 3 & 4
Step 5 of the marketing plan is part of which phase?
Control Phase
A ______ strategy introduces a new product or service to a new market segment, one that currently the firm has not targeted.
Diversification
Which of the following are true regarding price?
1 It should be based on the value that the customer perceives.
2 It will not generate much volume if it is too high
3 It should always be based on competitors’ prices.
4 It may result in higher-than-necessary margins and profits if it is too low
1 & 2
In a SWOT analysis, _______ refer to the positive internal attributes of the firm.
Strengths
Step 3 in the marketing planning process ________.
Involves segmentation, targeting, and positioning (STP).
Some commonly used financial performance metrics include _______.
Sales revenue and profits.
In Step 2 of the marketing planning process, a firm ____________.
Assesses how various players, both in and outside the organization, affect the firm’s potential for success.
Marketers strive for official operations to provide their customers with all of the following EXCEPT _________.
1 A lower delivered cost than their competitors
2 The merchandise they want
3 The correct quantity
4 Low-quality products
4
When conducting a SWOT analysis, adverse economic conditions and intense competition are examples of potential _______ for firms.
Threats
A market segment consists of ______ who respond similarly to a firm’s marketing efforts.
Customers
Step 4 of the marketing planning process ________.
is the point at which a firm implements the four P’s.
Market ________ is the process of diving the market into groups of customers according to their needs, wants, or characteristics.
Segmentation
In a SWOT analysis, _________ pertain to positive aspects of the external environment.
Opportunities
A firm needs a marketing plan _________.
1 To implement the marketing mix
2 To explain how overall objectives will be met
3 To clearly state its overall objectives
4 To explain past financial objectives
1 & 2 & 3
After a firm has identified a group of market segments, it does all of the following EXCEPT __________.
1 Evaluating each segment’s attractiveness
2 Determining which segments to pursue
3 Re-assigning the segments
4 Using a process known as targeting
3
A _________ is a measuring system that quantifies a trend, dynamic, or characteristic.
Metric
A ______ strategy introduces a new product or service to a new market segment, one that currently the firm has not targeted.
Diversification
STP works through each of the following except ______.
1 Planning a marketing strategy
2 Determining which subgroups should be pursued
3 Dividing the marketplace into subgroups
4 Position its products and services to meet the needs of the chosen targets
1
In Step 1 of the planning phase, a firm ________.
Defines the mission and/or vision of the business.
At each level of an organization, the ______ should be held accountable only for the revenues, expenses, and profits they can control.
Business Unit Managers
A firm can begin to implement the marketing mix immediately after which of the following steps?
It has finished segmentation, targeting, and positioning (STP).
A diversification strategy introduces a ______ product or service to a new market segment.
New
A strategy that employs the existing marketing mix and focuses the firm’s efforts on increasing sales to current customers is called _______.
Market Penetration
True or False: Using multiple strategies to build a sustainable competitive advantage is rarely employed of enduring success.
False
In portfolio analysis, the _______ measures how attractive a particular market is.
Market Growth Rate
A market development strategy employs the existing product offering to ______.
Reach new market segments
______ is the only marketing activity that actually brings in money.
Pricing
Product excellence _______.
Occurs by having products with high perceived value and effective branding and positioning.
A ______ ________ is a group of products that consumers perceive as similar in some way and that the firm regards as group.
Product Line