SDSU Marketing 370 Ch. 2 HW Review

– Management allocates its resources to products with the greatest potential to be profitable.
– Firms typically perform it at the SBU or product line level of the firm.
– Management evaluates the firm’s various products and businesses
portfolio analysis
_____ is achieved through efficient operations, excellent supply chain, and human resources management.
Operational excellence
When a company such as Singapore Airlines positions itself as a leader in technology, innovation, quality, and _______ service it ensures that its competition will have difficulty meeting its standards. these strategies have helped singapore airlines to remain profitable even as other airlines struggle to survive.
customer
What’s true regarding Market share?
it’s the % of a market accounted for by a specific entity.
it defines a product’s strength in a particular market.
Four components of SWOT analysis
strengths, weaknesses, opportunities, threats
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.
STP
When a firm focuses on having high perceived value and effective branding and positioning.
product excellence
Firms are starting to report corporate social responsibility metrics in an effort to
1. strengthen their relationship with both local and global suppliers
2. be proactive along socially responsible dimensions
and:
3. help customers feel better about their buying experience
What do “threats” represent in SWOT analysis?
the negative aspects of the company’s external environment
A firm needs a marketing plan:
to explain how overall objectives will be met and to clearly state its overall objectives
An advantage over the competition that is not easily coupled and can be maintained over a long period of time
sustainable competitive advantage
Customer excellence example
loyalty programs and superior service
Operational excellence example
excellent supply chain management, strong supplier relations, and human resource management
Product excellence example
effective branding and positioning
Locational excellence example
high density of stores and closer proximity to customers
Pricing is the only marketing activity that:
brings in money
When a company focuses on having ______ excellence it may also focus on having good internet presence.
locational
After a firm has identified a group of market segments, it:
determines which segments to pursue, uses a process known as targeting, evaluates each segments attractiveness. it does not re-assign the segments
Commonly used financial performance metrics include:
profits and sales revenue
Primary question a mission statement should answer:
What type of business are we?
____ is the element of the 4 Ps communicating value
promotion
Step 4 of the 5 step marketing planning process:
implementation phase and when a firm implements the 4Ps
A firm can build sustainable competitive advantage through:
through some business activities over a long period of time and when it outperforms competition
In a SWOT analysis, _____ pertain to the positive aspects of the external environment.
opportunities
A marketing strategy identifies:
the bases upon which the firm plans to build a sustainable competitive advantage, a related marketing mix, and a firm’s target market
Efficient operations and supply chain management are strategies for achieving operational excellence. T or F?
True
When conducting a SWOT analysis, adverse economic conditions and intense competition are examples of potential ______ for firms.
threats
Focuses on retaining loyal buyers and offering excellent service.
Customer excellence, as a competitive advantage
A written document that includes the current marketing situation, specified objectives and strategies, action programs, and projected income statements.
marketing plan
Locational excellence is particularly important for retailers? T or F
True
A strategy that employs the existing marketing mix and focuses on the firm’s efforts on increasing sales to current customers is called:
market penetration
In step 1 of the planning phase, a firm:
defines the mission and/or vision of the business.
Which are examples of how firms use information from loyalty programs?
analyzing buying habits of customers, identifying customers in advance who might stop doing business with the company, and tailor their offering to meet the needs of customers
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 of a company that has established:
competitive advantage
A market development strategy employs the existing marketing offering to:
reach new market segments
Which of the following are true regarding price?
should be based on the value that the customer perceives, may result in lower than necessary margins and profits if it is too low, and will not generate much volume if it is too high
What does “strengths” refer to in SWOT analysis?
the positive internal attributes of a firm
Why do firms use metrics?
to project the future, to explain why things happen, and to make it possible to compare results across regions, product lines, and time periods
In step 3 of the 5 step marketing planning process, marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning.
True
These give firms the opportunity to learn more about their customers.
loyalty programs
Once a marketer has earned a good service reputation, it can sustain this advantage for a long time because:
a competitor is hard pressed to develop a comparable reputation
Negative attributes internal to the firm
Weaknesses (SWOT)
The product development strategy incorporates a _____ product or service to a firm’s ______ market
new product; current market
A division of the firm itself that can be managed and operated independently from other divisions.
Strategic business unit (SBU)
Marketers strive for efficient operations to provide their customers with:
the correct quantity, the merchandise they want, and a lower delivered cost than their competitors
A metric is a ______ that quantifies a trend, dynamic, or characteristic
measuring system
Step 1 of the marketing plan is focused on:
the business mission and objectives
A strategy that employes the existing marketing offering to reach new market segments is called
market development
Step 5 of the marketing plan involves
evaluating the results of the strategy and implementation program
A market segment consists of ______ who respond similarly to a firm’s marketing efforts.
customers
In step 2 of the five step marketing planning process, a firm
assesses how various players, both in and outside the organization, affect the firm’s potential for success
In step 5 of the marketing plan, a firm:
evaluates its performance using marketing metrics.
3 major phases of the marketing plan are:
planning, implementation, and control
The process of dividing the market into groups of customers according to their needs, wants, or characteristics
market segmentation
A _____ ______ is a group of products that consumers may use together or perceive as similar in some way and that he firm regards as group.
product line
Firms that maintain their sustainable competitive advantage through ______ excellence have often done so by investing in heir brand and constantly reinforcing their image through their merchandise.
product
Introduces a new product or service to a new market segment, one that currently the firm has not targeted.
diversification
Place
delivers value
Outlines what a firm plans to do to appeal to potential customers.
marketing strategy
Market positioning involves the process of defining the marketing mix variables so that target customers:
clearly understand the product’s unique benefits in comparison with competing products
Market Analysis is one of the 4 major growth strategies. T or F?
False
General electric sells a broad array of products for both businesses and consumers, from jet engines to light bulbs. GE’s kitchen appliances would be considered:
a product line
_____ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.
market positioning
In portfolio analysis, the _____ measures how attractive a particular market is
market growth rate
Firms can achieve operational efficiencies by developing which of the following?
strong relationships with vendors
When a firm decides which segments to pursue, it must determine how it wants to be _____ within those segments.
positioned
Value creation means that firms attempt to develop products or services that customers perceive as _____ enough to buy.
valueable
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 Market penetration strategy, as one of the possible growth options, may be achieved by which of the following?
encouraging current customers to patronize the firm and the brand more often
Green marketing efforts and expansion outside the US are potential opportunities for a firm
true
Relative market share is used to provide managers with a products
relative strength
A market _____ growth strategy focusses on increasing sales of the firm’s current products to its current target markets
penetration
One key to long-term financial performance is to establish a _______
sustainable competitive advantage
Assessing relative levels of sales and profits can be used for:
testing how sensitive profit is to price changes, to compare a firm’s growth relative to other companies, as an addition to assessing absolute levels of sales and profits.
_____ holds the primary responsibility of enhancing the value of the company’s products for its customers and other constituents.
Marketing
A firm can begin to implement the marketing mix (4Ps) IMMEDIATELY after which of the following steps:
it has finished segmentation, targeting, and positioning
Market positioning involves the process of defining the marketing mix variables so that target customers:
clearly understand the product’s unique benefits in comparison with competing products.
Vendor relations help firms maintain or gain a competitive advantage by:
gaining exclusive rights to sell merchandise in a particular region, obtaining special terms of purchase not available to competitors, and receiving popular merchandise that might be in short supply
A competitive advantage based on location is sustainable when:
when real estate is difficult or expensive to obtain
_____ evaluations are used to pinpoint problem areas
Performance evaluations
The statement about strategic planning is true or false: the process can move back and forth between steps, depending on the situation
true
A firm, particularly a small privately owned business, may set a variety of goals – for example, achieving positive social change, being the most innovative among the competitors, and avoiding high risk levels because
not all objective are profit driven
True or false: stakeholders, such as investors and potential investors, would not utilize a marketing plan
false
STP works through each of the following steps:
determining which subgroups should be pursued, defining the marketing vmix variables to meet the subgroups’ needs, dividing the marketplace into subgroups
True or false: it is a mistake for a firm to try to use multiple approaches to build a sustainable competitive advantage
false
STP works through the step of planning a marketing strategy.
false