OBJECTIVE QUESTIONS
Note – These objective questions cover the material from the book. In general, a false answer is markedly
at odds with material in the book. However, it may not be at odds with other written material. Therefore, it is
important to position these questions as a test of a student’s competence with the book material.
Chapter 1 – Strategic Market Management: An Overview
.
1.1
Five management tasks used to develop strategic competencies do not include the following:
a. Strategic analysis
b. Manage multiple business units
c. Identify competitors
d. Develop a sustainable advantage
e. Develop a growth platform
1.2
The book suggests that many markets are dynamic and require new strategic models.
1.3
To develop a sustainable competitive advantage (SCA) in dynamic markets, a company must create
multiple business units.
1.4
A business is generally an organizational unit that has a distinct business strategy and a manager with
sales and profit responsibility.
1.5
Synergy occurs when two businesses can reduce costs by sharing some asset such as a sales force or
logistics system.
1.6
A strategy should only involve one value proposition – otherwise chaos will occur.
1.7
A strategic market management system will have more value for an organization that is not engaged in
complex markets with multiple channels and regional variation in channels and products.
1.8
The elements of strategy can be capsulated into four core elements—the product-market investment
decision, functional area strategies, the customer value proposition, and the sustainable competitive
advantage.
1.9
A strategic competency is what a business unit does exceptionally well, such a manufacturing, promotion,
distribution, etc. which has strategic importance to the business.
1.10
According to the book, strategic marketing management has six objectives which include all except one of
the following:
(a) Precipitate the consideration of strategic choices.
(b) Contribute to the bottom line success of the firm.
(c) Force a long-range view.
(d) Make visible the resource allocation decision.
(e) Provide methods to aid in strategic analysis and decision-making.
1.11
The four elements of a business strategy for a firm are the product–market investment decision, the
functional strategies and program, the customer value proposition, and the __________ and _________.
1.12
The scope of a business is defined by the products it offers and chooses not to offer, by the markets it does
and does not seek to serve, by the competitors it chooses to compete with or to avoid, and by its level of
vertical integration.
1.13
Strategic marketing is involved in making decisions, some of which include investment decisions. Of the
following which is not an investment decision:
(a) Invest for growth
(b) Milk
(c) Maintain
(d) Liquidate
(e) Innovation
1.14
An external analysis includes the analysis of the customers, the competitors, the markets/submarkets and
the environment.
1.15
According to the book, customer analysis involves identifying the organization’s customer segments and
each segment’s motivations and priority needs.
1.16
Strategic market management is a system designed to help management both precipitate and make
strategic decisions, as well as create strategic visions.
1.17
Marketing’s role in strategy includes being the primary driver of strategic analysis.
1.18
The strategic plan should be developed annually.