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87) Which of the following is the third step in the marketing planning process?
A) define the business mission
B) identify and evaluate opportunities
C) evaluate using a matrix
D) implement marketing mix and allocate resources
E) perform situation analysis
88) In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing Inc., a
manufacturer of personal devices and smartphones. Before deciding to acquire the company,
strategic planners at HP spent time thinking about how Palm and HP would "fit" together, and
how the acquisition might change HP's core goals and objectives. The strategic planners were
engaged in the ________ step of the marketing planning process.
A) perform situation analysis
B) implement marketing mix and allocate resources
C) identify and evaluate opportunities
D) evaluate performance
E) define the business mission
89) After defining the business mission, what should a firm do next to develop a marketing plan?
A) conduct an STP analysis
B) perform a situation analysis
C) develop a positioning strategy
D) select a target market
E) implement the four Ps
90) In a SWOT analysis, increasing gasoline prices would represent a potential ________ for
manufacturers of electric cars.
A) internal weakness
B) external threat
C) external opportunity
D) operational advantage
E) marketing mix
91) A former advertising campaign for GEICO Insurance used the slogan "So easy, even a
caveman could do it" to emphasize the ease of buying insurance on GEICO's website. This
campaign was part of GEICO's
A) mission statement.
B) market segmentation plan.
C) product strategy.
D) customer excellence strategy.
E) positioning strategy.
92) Abercrombie & Fitch, a clothing retailer, includes a "SHARE" link on the product pages of
its website. This link encourages an Abercrombie customer to post a link (perhaps showing a
new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer's
friends (who are probably very much like current customers) will click the link, visit the page,
and make purchases. This is an example of a ________ growth strategy.
A) product proliferation
B) market development
C) market penetration
D) diversification
E) product development
93) Sodexo is a food services corporation that caters to school cafeterias, university dining halls,
mess halls at military bases, and other large-scale food service facilities. If Sodexo were to begin
selling individual frozen meals in supermarkets, it would be pursuing a ________ growth
strategy.
A) product development
B) market development
C) market penetration
D) diversification
E) product proliferation
94) Singapore Airlines seeks to differentiate itself from competing airlines, in part through
innovative design of its airplane seats and in-flight entertainment systems. Through continuous
innovation in these areas, Singapore Airlines is pursuing a(n) ________ macro strategy.
A) customer excellence
B) global excellence
C) locational excellence
D) operational excellence
E) product excellence
95) 3M involves its customers in the process of developing new products. In this way, it can
benefit from current customers' insights and develop new products that will meet these
customers' needs. 3M is pursuing a ________ growth strategy.
A) diversification
B) market development
C) market penetration
D) product development
E) product penetration
96) Over the last few months, Juan and his colleagues have analyzed the current business
situation and identified target markets for his firm's personal care products. Finally, they
developed the products, prices, distribution, and promotion that should appeal to each of those
target markets. In doing so, Juan has also identified what he believes is an advantage his
competitors cannot match. Juan and his colleagues have been developing
A) a business mission statement.
B) a strategic vision.
C) team-building exercises.
D) a marketing strategy.
E) competitive assessments.
97) Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to its
customers. To retain customer loyalty, it provides fast, courteous service in a clean, professional-
looking environment. Gerald's has used this strategy for over 40 years, expanding to 15 outlets.
Gerald's Tire Store uses a ________ macro strategy.
A) supply chain excellence
B) locational excellence
C) product excellence
D) diversification excellence
E) customer excellence
98) Which of the following is the best way to build a sustainable competitive advantage using
product excellence?
A) being the first to offer customers desired features, even if competitors can copy them easily
B) positioning the product using a clear, distinctive brand image
C) having the most features on each model
D) focusing on being cutting edge and continually eliminating older features that are still in use
by customers
E) copying the market leader's features, but at a lower cost
99) A competitive advantage based on location is often sustainable because
A) mobile marketing has not yet proven its value for most customers.
B) real estate prices have been dropping.
C) few marketers are aware of its importance yet.
E) the Internet has diminished the importance of brick-and-mortar stores.
100) Four companies dominate the cereal industry. These firms produce in large volumes,
promote heavily, and control access to the supermarket shelves through "slotting allowances,"
which are payments to retailers in return for shelf space. These combined factors have allowed
these four firms to create ________ over the competition.
A) identical marketing mixes
B) customer excellence
C) a sustainable competitive advantage
D) product excellence
E) locational excellence
101) Creating value for a consumer product via place decisions involves
A) putting the product in the front of the store.
B) designing creative displays to capture consumers' attention.
C) pricing products differently at different stores.
D) making sure the product is available where and when customers will want it.
E) focusing exclusively on Internet sales to reduce supply chain costs.
102) In recent years, cellular (mobile) service providers have worked hard to eliminate "dead
zones," providing customers with service wherever they traveled. By working to make the
network available in more locations, cellular service companies were focusing on ________
value creation.
A) product
B) price
C) promotion
D) place
E) financial
103) When firms successfully implement poor strategies (perhaps due to good luck) or do a poor
job of implementing good strategies, it can be difficult to
A) generate cost-based performance ratios.
B) evaluate performance and make adjustments.
C) increase product excellence without reducing customer excellence.
D) develop segmentation strategies.
E) choose a business mission.
104) In 2007, Apple first introduced to its customers the iPhone, which combined a cellular
telephone, a camera, and Internet access. By doing this, the company had pursued a(n) ________
growth strategy.
A) market development
B) market penetration
C) operational excellence
D) customer excellence
E) product development
105) In which of the following situations can a firm's human resources department contribute to
a firm's operational excellence?
A) hire and train exceptional employees that are willing to go the extra mile for customers
B) position the firm's product or service using a clear, distinctive brand image
C) establish a high concentration of stores in heavily trafficked areas
D) build customer loyalty through the use of loyalty programs
E) reinforce brand image through merchandise, service, and promotion
106) Which of the following actions would be the most likely to support and enhance an
operational excellence macro strategy?
A) Singapore Airlines installing more comfortable seats in the economy-class cabins of its
airplanes
B) 3M Corporation implementing new software to improve communication with its suppliers
C) Adidas inviting customer suggestions to guide the design of the next generation of shoes
D) Nike opening hundreds of new company stores in high-traffic shopping areas
E) McDonald's lowering prices on its coffee drinks
107) Which of the following factors, listed in a situation analysis for a major U.S. auto
manufacturer, is the best example of a threat?
A) The factory that manufactures a new, popular car cannot build enough vehicles to meet the
demand, while other factories have excess capacity.
B) Recent consumer studies have indicated that Chinese consumers prefer American cars.
C) A New York law firm has filed a $10 million class action suit against the company on behalf
of car owners whose gas tanks exploded.
D) Due to outdated engine technology, the company's cars get lower gas mileage than those of
major competitors.
E) The company has lower manufacturing costs than its key competitors, allowing it to sell its
cars at low prices.
108) Which of the following factors, listed in a situation analysis for a major U.S. auto
manufacturer, is the best example of an opportunity?
A) The factory that manufactures a new, popular car cannot build enough vehicles to meet the
demand, while other factories have excess capacity.
B) Recent consumer studies have indicated that Chinese consumers prefer American cars.
C) A New York law firm has filed a $10 million class action suit against the company on behalf
of car owners whose gas tanks exploded.
D) Due to outdated engine technology, the company's cars get lower gas mileage than those of
major competitors.
E) The company has lower manufacturing costs than its key competitors, allowing it to sell its
cars at low prices.
109) The global athletic footwear market is expected to experience only very slow growth over
the next several years. Nike is the market leader. According to Boston Consulting Group
portfolio analysis, how should Nike treat its athletic shoe business?
A) Nike will probably have to invest heavily in the athletic shoe business, including extensive
promotions and new production facilities.
B) Nike should consider exiting the athletic shoe market.
C) Nike should stop investing in its athletic shoe business; it has already reaped all the benefits it
is likely to receive.
D) Nike's athletic shoe business still requires some investment, but it is likely to produce excess
resources that can be invested in other divisions of the company.
E) Nike should invest in the athletic shoe market only if it helps boost the sales of other products
in fast-growing markets.
110) The growth rate for the iMac desktop, which has a small relative market share in the
desktop market, has slowed down in recent years. Although sales have dropped by
approximately 3 percent, it remains popular among graphic designers. Given these conditions, in
which quadrant of the BCG matrix would the iMac most likely fall?
A) upper left quadrant because although its growth rate has dropped, it still remains popular
among graphic designers
B) upper right quadrant because although it has a small relative market share, it is part of a high-
growth market
C) lower left quadrant because although its sales have dropped, it still has high market share
among graphic designers
D) upper left quadrant because it is a heavy resource investment
E) lower right quadrant because it is in a low-growth market and has a relatively low market
share
111) Coca-Cola sells two different zero-calorie versions of Coke: Diet Coke and Coke Zero (now
known as Coca-Cola Zero Sugar). It has chosen to attempt to appeal to men with Coke Zero. In
addition to launching an ad campaign featuring men enjoying Coke Zero, Coca-Cola also
designed a masculine-looking can for Coke Zero, with bold red lettering on a black background.
This specially designed can is an example of
A) positioning.
B) targeting.
C) segmentation.
D) a market segment.
E) market penetration.
112) Delta Airlines is among the companies experimenting with selling products and services on
their Facebook pages. The idea is to make purchasing even easier for customers who may spend
large portions of the day with Facebook active on their computers or mobile devices. There is no
need even to navigate to Delta's website—users can book a trip in Delta's "Ticket Agent"
application without ever leaving Facebook. Which element of the marketing mix does this
represent?
A) product and value creation
B) price and value capture
C) place and value delivery
D) promotion and value communication
E) positioning and value promotion
113) Because it was able to deliver merchandise overnight, in the required quantities and at a
lower delivery cost than its competitors, Joe's Sports Shack was given exclusive rights to sell
clothing with school logos for the school district. Joe's demonstrates ________ excellence.
A) product
B) place
C) customer
D) operational
E) locational
