Chapter 01 – New Challenges for Market-Driven Strategy
Chapter 01
New Challenges for Market-Driven Strategy
1. The underlying logic of market-driven strategy is that production needs are the starting
point in business strategy.
2. Customer linking is an example of an outside-in process.
3. The outside-in organizational processes connect the organization to the external
environment, providing market feedback and forging external relationships.
4. Pricing is an example of an outside-in process.
5. The inside-out processes play a key role in offering direction for the spanning and outside–
in capabilities, which respond to the customer needs and requirements identified by the
inside-out processes.
6. The organizational process view of distinctive capabilities requires shifting away from the
traditional specialization of business functions toward a cross-functional process perspective.
7. Superior customer value results from a very favorable use experience of the customer
compared to expectations of the customer and the value offerings of competitors.
8. Corporate objectives are concerned with resolving questions about the business the firm
Chapter 01 – New Challenges for Market-Driven Strategy
should be in, where it should focus, and its enduring strategic purpose.
9. Synergies highlight competencies, resources, and capabilities that drive efficiency and
effectiveness in the business.
10. The purpose of strategic positioning is to locate the people (or organizations) that
management wishes to serve in the product-market.
11. _____ is a business perspective that makes the customer the focal point of a company’s
total operations.
A. Market orientation
B. Competitive parity
C. Value chain integration
D. Business scaffolding
12. Getting all business functions working together to provide superior customer value is
referred to as _____.
A. customer relationship management
B. competitor intelligence
C. cross-functional coordination
D. centralization
13. _____ are complex bundles of skills and accumulated knowledge, excised through
organizational processes, that enables firms to coordinate activities and make use of their
assets.
A. Business clusters
B. Competitor faculties
C. Cross functions
D. Distinctive capabilities
Chapter 01 – New Challenges for Market-Driven Strategy
14. _____ consist(s) of the benefits and costs resulting from the purchase and use of products
as perceived by the buyer.
A. Customer value
B. Distinctive capabilities
C. Spanning process
D. Market sensing
15. _____ consist(s) of deciding the scope and purpose of the business, the objectives, and the
resources necessary to achieve the objectives.
A. Marketing strategy
B. Corporate strategy
C. Market sensing
D. Channel bonding
16. With regard to corporate strategy, _____ is/are concerned with resolving questions about
the business the firm should be in, where it should focus, and its enduring strategic purpose.
A. corporate objectives
B. synergies
C. scope
D. resource allocation
17. With regard to a corporate strategy framework, _____ define(s) what the corporation is
and what it does and provides important guidelines for managing and improving the
corporation.
A. resource allocation
B. synergies
C. objectives
D. management’s vision
18. In a corporate strategy, _____ indicate(s) the dimensions of performance upon which to
focus and the levels of achievement required.
A. corporate objectives
Chapter 01 – New Challenges for Market-Driven Strategy
B. synergies
C. vision
D. scope
19. Which of the following is the final component of the corporate strategy?
A. Scope
B. Synergy
C. Corporate objective
D. benchmarking
20. A _____ is a single product or brand, a line of products, or a mix of related products that
meets a common or a group of related market needs, and its management is responsible for
the basic unctions.
A. market section
B. strategic business unit
C. business segment
D. marginal piece
21. Which of the following is the first step in a marketing strategy process?
A. Market-driven program development
B. Designing market-driven strategy
C. Identifying and evaluating markets, segments, and customer value
D. Implementing and managing market-driven strategy
22. Which of the following stages of marketing strategy process consists of brand, value-
chain, pricing, and promotion and selling strategies designed and implemented to meet the
value requirements of targeted buyers?
A. Implementing and managing market-driven strategy
B. Designing market-driven strategy
C. Identifying and evaluating markets, segments, and customer value
D. Market-driven program development
Chapter 01 – New Challenges for Market-Driven Strategy
23. Which of the following stages of marketing strategy process considers organizational
design and marketing strategy implementation and control?
A. Implementing and managing market-driven strategy
B. Designing market-driven strategy
C. Identifying and evaluating markets, segments, and customer value
D. Market-driven program development
24. _____ offer(s) a company the opportunity to focus its business on the requirements of one
or more groups of buyers.
A. Corporate resources
B. Market segmentation
C. Business composition
D. Distinctive capabilities
25. _____ are described by different characteristics of customers, the reasons that they buy or
use certain products, and their preferences for certain brands of products.
A. Market shares
B. Strategic marketing objectives
C. Market segments
D. Corporate capabilities
26. _____ examines customer targeting and positioning strategies, marketing relationship
strategies, and innovation and new product strategy.
A. Identifying markets, segments, and customer value
B. Implementing and managing market-driven strategy
C. Designing market-driven strategy
D. Market-driven program development
27. The purpose of _____ is to select the people (or organizations) that management wishes to
serve in the product-market.
A. strategic positioning
B. benchmarking
Chapter 01 – New Challenges for Market-Driven Strategy
C. customer linking
D. market targeting strategy
28. _____ is the combination of the product, value chain, price, and promotion strategies a
firm uses to place itself against its key competitors in meeting the needs and wants of the
buyers in the market target.
A. Positioning strategy
B. Customer relationship management
C. Customer linking
D. Market targeting strategy
29. _____ seeks to place the brand in the eyes and mind of the buyer and distinguish the
product from those in competition.
A. Customer relationship strategy
B. Positioning strategy
C. Benchmarking
D. Value-chain strategy
30. Which of the following activities is an example of promotion strategy?
A. Distinctive capabilities
B. Benchmarking
C. Public relations
D. Product positioning
31. What does becoming market-oriented mean from a business perspective? What are its
features?
Chapter 01 – New Challenges for Market-Driven Strategy
32. Describe the characteristics of market-driven strategies.
33. Discuss how customers perceive value and how companies deliver customer value.
Chapter 01 – New Challenges for Market-Driven Strategy
34. Describe the components of corporate strategy.
35. Discuss the steps involved in implementing marketing strategies.