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77. Maryam phoned her auto insurance agent to renew her policy. The agent told her about new types of insurance now available—to cover her
apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ________________ growth strategy.
78. Introducing newly developed products or services to a market segment the company is not currently serving is called
79. Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a "quick response" system that
allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system,
making it difficult for competitors like The Gap to duplicate. Zara has established
80. Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value
Fourteenth National's superior service, the bank creates and delivers value through
81. Anita has gone to the same hair salon for the past ten years. She believes that her stylist, the salon owner, does a better job of cutting and styling her
hair than anyone else could. Other salons have opened closer to Anita's home, some offering more plush facilities or lower prices, but she isn't tempted
to switch. Anita's attitude toward the salon is an example of
82. Customer retention programs are based on what concept?
83. Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually
results in
84. Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These
online programs are most likely pursuing which macro strategy?
85. When a pharmaceutical company develops a new medication, it typically applies for a patent in order to prevent competitors from developing
copycat products for several years. Pharmaceutical companies apply for patents to establish
86. One example of a customer loyalty program is
87. Which of the following is the third step in the marketing planning process?
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.
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89. After defining the business mission, what should a firm do next to develop a marketing plan?
90. In a SWOT analysis, increasing gasoline prices would represent a potential __________ for manufacturers of electric cars.
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
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.
93. Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and
other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a __________
growth strategy.
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.
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.
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
97. Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to retaining loyal customers by providing 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 has created
a ___________ macro strategy to create and deliver value and to develop a sustainable competitive advantage.
98. Which of the following is the best way to build a sustainable competitive advantage using product excellence?
99. A competitive advantage based on location is often sustainable because
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. Combined, these four firms have
101. Value creation through place decisions for a consumer product involves
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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.
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
104. In 2007, Apple Computer introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was
pursuing a(n) __________ strategy.
105. Allen is in the marketing department of a midsized firm that develops and sells communications systems. He is proud of the human resource area
in the company that provides the firm with excellent employees. Allen himself really enjoys his work, but he knows the work of HR helps create an
operational advantage for the firm because of all the following except
106. Which of the following actions would be the most likely to support and enhance an operational excellence macro strategy?
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?
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?
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?
110. Subway is a large chain of franchise sandwich shops. Marcia owns three Subway stores in a large city. At the end of the year, she notes that sales
rose from 2 to 5 percent over last year's sales at Stores 1 and 2, but fell 2 percent at Store 3. Based on this information, which of the following is the best
course of action as to how Marcia should reward (or punish) her store managers?
111. Coca-Cola sells two different zero-calorie versions of Coke: Diet Coke and Coke Zero. 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
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?
113. Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivered 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.
114. During which phase of the marketing planning process does a firm engage in segmentation, targeting, and positioning?
115. During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several factors, given
116. The process of dividing the market into groups of customers with different needs, wants, or characteristics is called
117. ________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of
what the product does or represents in comparison with competing products.
E. Value capture
118. All of the following statements regarding marketing metrics are true except
119. A product that is in a high-growth market but has a low market share would be classified as a ________ on the BCG matrix.
Essay Questions
120. Of what use is a sustainable competitive advantage to a firm?
121. The text states, "Viewing customers with a lifetime value perspective rather than on a transaction-by-transaction basis is key to modern customer
retention programs." Create an example demonstrating a lifetime value perspective. Why is customer retention almost always a profitable marketing
strategy?
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122. Although most people do not have a personal marketing plan, when would one be appropriate?
123. One of the benefits of taking marketing courses is the opportunity to apply marketing concepts to marketing yourself. When selling yourself, you
are a product including all the skills, aptitudes, and attitudes you bring to the market. What is a sustainable competitive advantage? What can you do to
give yourself a sustainable competitive advantage in the marketplace?
124. Your marketing professor, Dr. Wilson, has been asked to participate in the university's strategic marketing planning process. During the planning
phase of the process, what questions will Dr. Wilson likely ask? Be specific to the university's strategic marketing planning process.
125. The text describes Southwest Airlines, which operates in a competitive market but successfully differentiates itself from the competition. This
gives Southwest a sustainable competitive advantage. What is a sustainable competitive advantage? Describe an example of a product or business you
have encountered that has developed a sustainable competitive advantage. Why is that product's or firm's advantage sustainable?
126. Your marketing professor, Dr. Murphy, has been asked to participate in the university's strategic marketing planning process. After completing the
planning phase of the process, Dr. Murphy has been asked to assist with the STP analysis. What questions will Dr. Murphy ask during the STP analysis?
Be specific to the university's strategic marketing planning process.
127. Explain how Marvel, the superhero entertainment giant, employed a market penetration strategy using its existing marketing mix and focusing its
efforts on existing customers.
128. Your marketing professor, Dr. Sullivan, has been asked to participate in the university's strategic marketing planning process. After completing the
first three steps of the process, Dr. Sullivan has been asked to assist with implementing the marketing mix and allocating resources. What questions will
Dr. Sullivan ask? Be specific to the university's strategic marketing planning process.
129. Jamie, a sales manager for an industrial materials company, reviews each sales representative's performance quarterly. She knows business has
been good, but is surprised to see some reps are selling much more than their goals while others are not meeting their goals. What should Jamie do?
130. You and your friend Alison work in different parts of a large firm. In a recent analysis, your area was labeled a "cash cow" and hers was labeled a
"question mark." What things would you do differently in your area than Alison would do in hers?
131. Boston Consulting Group's portfolio analysis classifies a company's products or product lines into a two-by-two matrix. What are the bases of
classification and what are the products or product lines in each of the four quadrants called? What marketing strategies are usually considered for each
of the four classifications?
132. Your new sales manager, who previously worked for Boston Consulting Group, directs each sales rep to "toss out the dogs," "exploit the stars," and
"milk the cows." Translate this into everyday English: What is the sales manager asking the sales reps to do?
133. After finishing his marketing degree, Ryan inherited the family Shrimp Shack restaurant. The restaurant is a small, local institution that beach
visitors have been coming to for decades. Ryan wants to make his business grow and is considering either a market penetration or market development
strategy. Describe what Ryan will likely do if he pursues either strategy.
134. Garden Gate is a one-location nursery business, selling plants and flowers for home gardeners. The new owners want to grow through either a
product development or diversification strategy. What will the owners likely do if they pursue either strategy?
135. Southwest Airlines is known for being the low-cost provider in the U.S. airline industry. What type of macro strategy has Southwest pursued?
136. Every summer, university administrators attempt to estimate how many students will show up in the fall. When August arrives, they hire part-time
instructors and reassign faculty to teach the courses students want. In the spring, administrators often go on a retreat to consider how to do things
differently next year. What phase of the strategic planning process do they engage in during each of the three seasons (summer, fall, and spring)?
137. When catalog companies send sale catalogs to their current customers, which type of growth strategy are they pursuing?
138. When musicians and their concert promoters began offering CDs of a live concert immediately after the concert ended, what type of growth
strategy were they pursuing?
139. Several years ago, the Florida Orange Juice Growers Association ran a promotional campaign with the slogan "Orange juice. It isn't just for
breakfast anymore." Based on this slogan, which of the four growth strategies was the association pursuing? Briefly explain your reasoning.
140. Suppose that you and a friend decide to turn your favorite sports activity—inline skating—into a business. You plan to design a line of fashionable
clothing that integrates elbow and kneepads. For each of the four macro strategies, briefly describe the most important thing your company should do if
you intend to focus on that strategy. Your answers should be specific to the inline skating business.
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141. Conduct a brief SWOT analysis of your prospects of finding a good job related to your major when you graduate (if you already have such a job,
think about finding a job with more responsibility). Be sure to include at least one factor representing each of the four major sections of a SWOT
analysis, and be sure to label each factor to indicate which of those four sections it belongs in.
142. In July 2010, Microsoft discontinued the Kin, its social networking phone, after just six weeks of disappointing sales. During what step of the
strategic marketing planning process would Microsoft have made the decision to stop offering the product?
143. Nike, the prominent athletic shoe manufacturer, relies heavily on athlete sponsorships to build demand for its products. Spectators at major
sporting events—both those attending in person and those watching at home—frequently see the Nike "swoosh" logo worn by elite athletes. Given the
vast worldwide audience for Olympics broadcasts, an Olympic year gives Nike increased exposure. On a Nike situation analysis in an Olympic year,
would you consider this exposure to be a strength or an opportunity? Explain your reasoning; be specific.
Category # of Questions
AACSB: Analytical Thinking 92
AACSB: Knowledge Application 47
AACSB: Reflective Thinking 2
AACSB: Teamwork 1
AACSB: Technology 1
Accessibility: Keyboard Navigation 119
Blooms: Analyze 7
Blooms: Apply 50
Blooms: Create 1
Blooms: Evaluate 5
Blooms: Remember 30
Blooms: Understand 50
Difficulty: 1 Easy 31
Difficulty: 2 Medium 50
Difficulty: 3 Hard 62
Learning Objective: 02-01 Define a marketing strategy. 39
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Learning Objective: 02-02 Describe the elements of a marketing plan. 11
Learning Objective: 02-03 Analyze a marketing situation using SWOT analyses. 13
Learning Objective: 02-04 Describe how a firm chooses which consumer group(s) to pursue with its marketing efforts. 17
Learning Objective: 02-05 Outline the implementation of the marketing mix as a means to increase customer value. 21
Learning Objective: 02-06 Summarize portfolio analysis and its use to evaluate marketing performance. 19
Learning Objective: 02-07 Describe how firms grow their business. 23
Topic: Business Portfolio Analysis 2
Topic: Developing a Competitive Strategy 56
Topic: Elements of a Marketing Strategy 5
Topic: Elements of the Marketing Plan 13
Topic: IMC 1
Topic: Marketing Metrics 4
Topic: Positioning 8
Topic: Pricing Strategy 1
Topic: Product Line 1
Topic: Product Value Creation 1
Topic: Role of Promotion 2
Topic: Setting Prices 1
Topic: Steps in Market Segmentation 4
Topic: Strategic Marketing Planning 7
Topic: Supply Chain Management 2
Topic: SWOT Analysis 14
Topic: Target Markets 3
Topic: The BCG Matrix 11
Topic: The Four Ps 5
Topic: The Marketing Plan 1
Topic: The Mission Statement 1
