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76) One of Porter's generic business strategies that requires a product to have significant points
of difference to charge a higher price while targeting a broad array of market segments is
referred to as a
A) differentiation focus strategy.
B) cost focus strategy.
C) cost leadership strategy.
D) differentiation strategy.
E) supply focus strategy.
77) A differentiation strategy refers to one of Porter's generic business strategies that
A) involves controlling expenses and, in turn, lowering product prices targeted at a narrow range
of markets segments.
B) requires products to have significant points of difference to charge a higher price while
targeting a broad array of market segments.
C) focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad
array of market segments.
D) requires products to have significant points of difference to target one or only a few market
segments.
E) seeks opportunities by finding the optimum balance between marketing efficiencies versus
R&D-manufacturing efficiencies.
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78) Delphi Automobile Systems manufactures and sells satellite communications systems for
automobiles that connect you and your car to 24-hour-a-day emergency service, direct you to a
destination, and enable you to order a movie while on the road. Delphi Automobile Systems
most likely uses
A) a cost leadership strategy.
B) a cost focus strategy.
C) a differentiation focus strategy.
D) an innovation strategy.
E) a differentiation strategy.
79) Many people are concerned about eating healthy, but many of these same people still grab
lunch at fast-food restaurants because the restaurants are convenient and they like cheeseburgers.
Burger King has created a veggie burger that "tastes like the real thing without all the fat."
Burger King is most likely using a ________ to attract this large market that encompasses many
different segments.
A) cost leadership strategy
B) cost focus strategy
C) differentiation strategy
D) differentiation focus strategy
E) service focus strategy
80) One of Porter's generic business strategies that involves controlling expenses and, in turn,
lowering product prices targeted at a narrow range of markets segments is referred to as a
________ strategy.
A) cost focus
B) cost leadership focus
C) differentiation focus
D) differentiation
E) profit enhancement
81) A cost focus strategy refers to one of Porter's generic business strategies that
A) focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad
array of market segments.
B) requires products to have significant points of difference to target one or only a few market
segments.
C) requires products to have significant points of difference to charge a higher price while
targeting a broad array of market segments.
D) involves controlling expenses and, in turn, lowering product prices targeted at a narrow range
of market segments.
E) seeks opportunities by finding the optimum balance between marketing efficiencies versus
R&D-manufacturing efficiencies.
82) 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.
A) differentiation focus
B) cost focus
C) differentiation
D) revenue leadership
E) profit enhancement
83) One of Porter's four generic business strategies that requires products to have significant
points of difference to target one or only a few market segments is referred to as a ________
strategy.
A) cost focus
B) differentiation
C) cost leadership
D) profit enhancement
E) differentiation focus
84) A differentiation focus strategy refers to one of Porter's generic business strategies that
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.
85) Hard Candy is a cosmetics company that markets the Palm Palette—all the makeup a "girl-
on-the-go" needs without a cumbersome makeup bag. It comes in three shades—glam, funky,
and girlies. Hard Candy targets women who are 20-somethings. Which one of Porter's generic
business strategies is Hard Candy most likely using?
A) differentiation focus
B) cost focus
C) differentiation
D) cost leadership
E) profit enhancement
86) Hyundai Motor America (HMA) became the first automaker to offer consumers an Internet
parts ordering system. The system was targeted only to current Hyundai owners and gave
Hyundai the ability to collect a vast amount of customer data about people who buy its cars.
Which of Porter's generic business strategies did Hyundai most likely use when it launched its
Internet parts website?
A) cost leadership
B) differentiation focus
C) differentiation
D) cost focus
E) marketing focus
87) 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?
A) differentiation focus
B) cost leadership
C) differentiation
D) cost focus
E) marketing focus
88) Seeking opportunities by finding the optimum balance between marketing efficiencies versus
R&D-manufacturing efficiencies is referred to as
A) differentiation analysis.
B) synergy analysis.
C) SWOT analysis.
D) sales response analysis.
E) competitive grid analysis.
89) Synergy analysis refers to
A) identifying a company's potential strengths, weaknesses, opportunities, and threats.
B) relating the expense of marketing effort to the marketing results obtained.
C) using percentage points of market share as the common basis of comparison to allocate
marketing resources effectively for different product lines within the same firm.
D) using a framework to relate the market segments of potential buyers to products offered or
potential marketing actions by an organization.
E) seeking opportunities by finding the optimum balance between marketing efficiencies versus
R&D-manufacturing efficiencies.
90) Synergy analysis seeks opportunities by finding the optimum balance between
A) the needs of the manufacturer versus the needs of the consumer.
B) the desire for profit versus responsibility to society as a whole.
C) the expense of marketing effort versus the marketing results obtained.
D) a firm's market segments and its product groupings.
E) marketing efficiencies versus R&D-manufacturing efficiencies.
91) Synergy analysis incorporates two business analysis tools, which are diversification analysis
and
A) Porter's generic business strategy framework.
B) the market-product grid framework.
C) SWOT analysis.
D) Porter's competitive advantage.
E) share point analysis.
92) The five alternative marketing strategies that can be identified by market-product grids
include which of the following?
A) diversification
B) selective distribution
C) product reorientation
D) full coverage
E) new-product introduction
93) All of the following are among the five alternative marketing strategies that can be identified
by market-product grids except which?
A) diversification
B) selective specialization
C) market-product concentration
D) full coverage
E) product specialization
94) In Figure 22-4 above, the market-product grid labeled A illustrates which of the following
market-product strategies?
A) market specialization
B) selective specialization
C) market-product concentration
D) full coverage
E) product specialization
95) In Figure 22-4 above, the market-product grid labeled B illustrates which of the following
market-product strategies?
A) market specialization
B) selective specialization
C) market-product concentration
D) full coverage
E) product specialization
96) In Figure 22-4 above, the market-product grid labeled C illustrates which of the following
market-product strategies?
A) market specialization
B) selective specialization
C) market-product concentration
D) full coverage
E) product specialization
97) In Figure 22-4 above, the market-product grid labeled D illustrates which of the following
market-product strategies?
A) market specialization
B) selective specialization
C) market-product concentration
D) full coverage
E) product specialization
98) In Figure 22-4 above, the market-product grid labeled E illustrates which of the following
market-product strategies?
A) market specialization
B) selective specialization
C) market-product concentration
D) full coverage
E) product specialization
99) Based on a market-product grid framework, which marketing strategy involves developing a
single product for a single market?
A) full coverage
B) market-product concentration
C) market specialization
D) product specialization
E) selective specialization
100) Loving Care Pets manufactures dog food specifically created for puppies under three
months of age. In terms of the market-product grid framework, Loving Care Pets is a small firm
without sustainable comparative advantages in marketing or production efficiencies. Loving
Care Pets is using a ________ strategy.
A) market-product concentration
B) market specialization
C) product specialization
D) selective specialization
E) full coverage
101) Based on a market-product grid framework, which marketing strategy focuses on a single
market segment but adds additional product lines?
A) full coverage
B) market specialization
C) product specialization
D) selective specialization
E) market-product concentration
102) Based on a market-product grid framework, which marketing strategy would most likely
offer the greatest marketing synergies or efficiencies?
A) market-product concentration
B) product specialization
C) market specialization
D) selective specialization
E) universal concentration
103) What is the primary disadvantage of employing a market specialization strategy?
A) Gaining market distribution will be costly.
B) The organization may be spread too thin.
C) The organization achieves neither marketing nor manufacturing synergies.
D) R&D-manufacturing has the difficulty of producing multiple products.
E) There are too many product substitutes over which a firm would not have control.
104) Loving Care Pets manufactures food for dogs, cats, rabbits, and gerbils specifically created
for pets under three months of age. Assuming it is marketing a variety of offerings to a single
segment of "young-pet owners," in terms of the market-product grid framework, Loving Care
Pets is using a ________ strategy.
A) market-product concentration
B) market specialization
C) product specialization
D) selective specialization
E) full coverage
105) What is the primary disadvantage of employing a product specialization strategy?
A) The organization may be spread too thin.
B) The organization achieves neither marketing nor manufacturing synergies.
C) R&D-manufacturing has the difficulty of producing multiple new lines.
D) There are too many product substitutes over which a firm would not have control.
E) Gaining market distribution will be costly.
106) What is the primary disadvantage of employing a selective specialization strategy?
A) Gaining market distribution will be costly.
B) The organization may be spread too thin.
C) The organization achieves neither marketing nor manufacturing synergies.
D) R&D-manufacturing has the difficulty of producing multiple new lines.
E) It is too risky for a company to put all its eggs in one basket.
107) Based on a market-product grid framework, which marketing strategy offers all product
lines to all market segments?
A) full coverage
B) market specialization
C) product specialization
D) selective specialization
E) market-product concentration
108) What is the primary disadvantage of employing a full coverage strategy?
A) Gaining market distribution will be costly.
B) The organization may be spread too thin because of the resource requirements needed to
reach all market-product combinations.
C) The organization achieves neither marketing nor manufacturing synergies.
D) R&D-manufacturing has the difficulty of producing multiple new lines.
E) The organization cannot take advantage of marketing or manufacturing synergies available to
it through market or product specialization.
109) Ideally, in effective marketing planning, goals should be ________ in terms of what is to be
accomplished and by when.
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 measurable
110) The more a marketing plan is based on ________, the less uncertainty and fewer risks are
associated with executing it.
A) opinions
B) intuition
C) facts and valid assumptions
D) past historical data
E) alternative contingencies
111) Marketing plans must enable results to be compared with planned targets, which allows
________, the flexibility to update original plans based on recent results.
A) replanning
B) contingency planning
C) recursive planning
D) dynamic planning
E) proactive change
112) Which of the following statements best reflects the guideline of using a base of facts and
valid assumptions for marketing plans?
A) The firm insists on having good marketing research.
B) To motivate people, the firm sets achievable goals.
C) The firm ensures that people at all levels in the firm understand what, when, and how they are
to accomplish their tasks.
D) The firm's marketing plan has all the key marketing mix factors and are supported by
resources.
E) The firm's marketing plan enables results to be compared with planned targets, using precise
marketing metrics.
113) Which of the following statements best reflects the guideline for having complete and
feasible marketing plans?
A) The firm insists on having good marketing research.
B) To motivate people, the firm sets achievable goals.
C) The firm ensures that people at all levels in the firm understand what, when, and how they are
to accomplish their tasks.
D) The firm's marketing plan has all the key marketing mix factors and is supported by
resources.
E) The firm's marketing plan enables results to be compared with planned targets, using precise
marketing metrics.
114) Which of the following statements best reflects the guideline for making marketing plans
controllable and flexible?
A) The firm ensures that people at all levels in the firm understand what, when, and how they are
to accomplish their tasks.
B) The firm's marketing plan has all the key marketing mix factors and is supported by
resources.
C) The firm's marketing plan enables results to be compared with planned targets, using precise
marketing metrics.
D) The firm insists on ownership of the marketing plan by team members and stakeholders.
E) The firms ensures that the right person to implement plans is heavily involved in making the
plans.
