Question 1

A cost leadership strategy refers to one of Porter's generic business strategies that

Accepted Answer

A)  involves controlling expenses and,in turn,lowering product prices targeted at a narrow range of markets segments.
B)  focuses on reducing expenses and,in turn,lowers product prices,while targeting a broad array of market segments.
C)  requires products to have significant points of difference to target one or only a few market segments.
D)  requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments.
E)  seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.F) A) and B)
G) C) and E)

Question 2

The launch of a new cereal typically costs up to $30 million and usually involves

Accepted Answer

A)  replacing one of more than 300 competing breakfast cereals already on a supermarket shelf.
B)  a minimum of three attempts before it is successfully launched.
C)  a tie-in promotion with a major motion picture or toy.
D)  steps to counteract the promotional efforts of competitor's new cereal.
E)  obtaining FDA approval for its convenience claims.F) B) and D)
G) A) and D)

Question 3

Ideally,in effective marketing planning,goals should be __________ in terms of what is to be accomplished and by when.

Accepted Answer

A)  consistent and straightforward
B)  general and somewhat flexible
C)  easily adaptive to changes in the environment
D)  very specific and unwavering
E)  quantified and measurableF) None of the above
G) C) and D)

Question 4

There are five alternative marketing strategies that can be identified by market-product grids: market-product concentration,market specialization,product specialization,__________,and full coverage.

Accepted Answer

A)  selective distribution
B)  market specialization
C)  product reorientation
D)  new product specialization
E)  selective specializationF) D) and E)
G) A) and B)

Question 5

How is management by exception used in the evaluation phase of the strategic marketing process?

Accepted Answer

Goals are specified in the planning phas...

Question 6

Office Max provides low product prices for products strictly classified as office supplies.In terms of Porter's generic business strategy,Office Max is MOST LIKELY using a __________ strategy.

Accepted Answer

A)  differentiation focus
B)  cost focus
C)  differentiation
D)  revenue leadership
E)  profit enhancementF) C) and D)
G) A) and B)

Question 7

The marketing manager looks for two kinds of deviations,each triggering a different kind of action: (1) actual results exceed goals and (2) __________.

Accepted Answer

A)  deviations that result from major shifts in customer needs
B)  there are no deviations but there should be
C)  deviations that result from executive mandates
D)  actual results fall short of goals
E)  deviations that are blamed on insufficient marketing support (personnel or funding) F) A) and D)
G) A) and B)

Question 8

The actions taken during the implementation phase of the strategic marketing process include: (1) __________; (2) design the marketing organization; (3) develop schedules;and (4) execute the marketing program.

Accepted Answer

A)  obtain resources
B)  select target markets
C)  position the product
D)  find points of difference
E)  develop the budget by estimating revenues,expenses,and profitsF) B) and D)
G) B) and E)

Question 9

Organizational groupings in which sales territories are subdivided according to location are referred to as __________.

Accepted Answer

A)  functional groupings
B)  reseller groupings
C)  geographical groupings
D)  product line groupings
E)  market-based groupingsF) None of the above
G) D) and E)

Question 10

One of Porter's generic business strategies that focuses on reducing expenses and,in turn,lowers product prices while targeting a broad array of market segments,is referred to as a __________.

Accepted Answer

A)  differentiation focus strategy
B)  cost focus strategy
C)  differentiation strategy
D)  cost leadership strategy
E)  supply focus strategyF) B) and C)
G) B) and E)

Question 11

Volkswagen achieved spectacular success in the late 1990s by targeting the "nostalgia" segment,35- to 54-year-old baby boomers,with its technology-laden New Beetle.Which of Porter's generic business strategies did Volkswagen MOST LIKELY use to launch the New Beetle?

Accepted Answer

A)  differentiation focus
B)  cost leadership
C)  differentiation
D)  cost focus
E)  marketing focusF) C) and D)
G) A) and E)

Question 12

The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources; (2) design the marketing organization; (3) __________;and (4) execute the marketing program.

Accepted Answer

A)  position the product
B)  select target markets
C)  develop schedules
D)  find points of difference
E)  develop the budget by estimating revenues,expenses,and profitsF) A) and B)
G) A) and C)

Question 13

The actions taken in the development of the marketing program,Step 3 of the planning phase,include: (1) develop the program's marketing mix actions and (2) __________.

Accepted Answer

A)  select target markets
B)  identify industry trends
C)  position the product
D)  find points of difference
E)  develop the budget by estimating revenues,expenses,and profitsF) All of the above
G) A) and B)

Question 14

Based on a market-product grid framework,which marketing strategy focuses on a single market segment but adds additional product lines?

Accepted Answer

A)  full coverage
B)  market specialization
C)  product specialization
D)  selective specialization
E)  market-product concentrationF) A) and C)
G) A) and E)

Question 15

What are the advantages and disadvantages of the product manager system?

Accepted Answer

There are both benefits and dangers to t...

Question 16

A firm following a cost leadership strategy shown in Figure 22-3 above would be found in __________.

Accepted Answer

A)  "A"
B)  "B"
C)  "C"
D)  "D"
E)  both "A" and "C"F) A) and E)
G) C) and E)

Question 17

Porter's four generic business strategies involve combinations of (1) competitive scope or the breadth of the target markets and (2) __________.

Accepted Answer

A)  organizational structure
B)  degree of geographical distribution
C)  investment in research and development
D)  a stress on costs versus product differentiation
E)  relative number of products in a product lineF) A) and D)
G) C) and D)

Question 18

Disruptive innovations cause havoc for an organization's __________.

Accepted Answer

A)  short-term marketing plans
B)  marketing research plans
C)  SWOT analysis
D)  long-range marketing plans
E)  environmental scanningF) B) and D)
G) C) and D)

Question 19

According to the textbook,the key to mobile game start-up Supercell's success was to

Accepted Answer

A)  create a work environment that stressed open communications.
B)  have a program champion for each game product.
C)  delayer the organization by making it flatter.
D)  not punish failures but to learn from them.
E)  use time-based agendas in meetings.F) D) and E)
G) B) and C)

Question 20

Porter's four generic business strategies involve combinations of (1) __________ and (2) a stress on costs versus product differentiation.

Accepted Answer

A)  organizational structure
B)  degree of geographical distribution
C)  investment in research and development
D)  relative number of products in a product line
E)  competitive scope or the breadth of the target marketsF) C) and E)
G) B) and D)

Exam 22: Pulling It All Together: the Strategic Marketing Process

Disruptive innovations cause havoc for an organization's __________.

Correct AnswerverifiedShow Answer

Volkswagen achieved spectacular success in the late 1990s by targeting the "nostalgia" segment,35- to 54-year-old baby boomers,with its technology-laden New Beetle.Which of Porter's generic business strategies did Volkswagen MOST LIKELY use to launch the New Beetle?

Correct AnswerverifiedShow Answer

Porter's four generic business strategies involve combinations of (1) __________ and (2) a stress on costs versus product differentiation.

Correct AnswerverifiedShow Answer

The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources; (2) design the marketing organization; (3) __________;and (4) execute the marketing program.

Correct AnswerverifiedShow Answer

What are the advantages and disadvantages of the product manager system?

Correct AnswerverifiedThere are both benefits and dangers to t...View AnswerShow Answer

The marketing manager looks for two kinds of deviations,each triggering a different kind of action: (1) actual results exceed goals and (2) __________.

Correct AnswerverifiedShow Answer

How is management by exception used in the evaluation phase of the strategic marketing process?

Correct AnswerverifiedGoals are specified in the planning phas...View AnswerShow Answer

The launch of a new cereal typically costs up to $30 million and usually involves

Correct AnswerverifiedShow Answer

The actions taken during the implementation phase of the strategic marketing process include: (1) __________; (2) design the marketing organization; (3) develop schedules;and (4) execute the marketing program.

Correct AnswerverifiedShow Answer

A cost leadership strategy refers to one of Porter's generic business strategies that

Correct AnswerverifiedShow Answer

According to the textbook,the key to mobile game start-up Supercell's success was to

Correct AnswerverifiedShow Answer

Office Max provides low product prices for products strictly classified as office supplies.In terms of Porter's generic business strategy,Office Max is MOST LIKELY using a __________ strategy.

Correct AnswerverifiedShow Answer

Ideally,in effective marketing planning,goals should be __________ in terms of what is to be accomplished and by when.

Correct AnswerverifiedShow Answer

The actions taken in the development of the marketing program,Step 3 of the planning phase,include: (1) develop the program's marketing mix actions and (2) __________.

Correct AnswerverifiedShow Answer

Organizational groupings in which sales territories are subdivided according to location are referred to as __________.

Correct AnswerverifiedShow Answer

There are five alternative marketing strategies that can be identified by market-product grids: market-product concentration,market specialization,product specialization,__________,and full coverage.

Correct AnswerverifiedShow Answer

A firm following a cost leadership strategy shown in Figure 22-3 above would be found in __________.

Correct AnswerverifiedShow Answer

One of Porter's generic business strategies that focuses on reducing expenses and,in turn,lowers product prices while targeting a broad array of market segments,is referred to as a __________.

Correct AnswerverifiedShow Answer

Porter's four generic business strategies involve combinations of (1) competitive scope or the breadth of the target markets and (2) __________.

Correct AnswerverifiedShow Answer

Based on a market-product grid framework,which marketing strategy focuses on a single market segment but adds additional product lines?

Correct AnswerverifiedShow Answer

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There are both benefits and dangers to t...
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Goals are specified in the planning phas...
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