Marketing for Hospitality and Tourism, 8e, Global Edition (Kotler)
Chapter 3 Marketing Strategy: Partnering to Build Customer Engagement, Value, and
Relationships
1) A well worked-out ________ provides company employees with a shared sense of purpose,
direction, and opportunity.
A) Mission statement
B) Company profile
C) Set of objectives
D) Strategic plan
2) The principle objective of a market-oriented mission statement is to:
A) Satisfy basic partnership needs
B) Satisfy basic supplier needs
C) Satisfy basic stockholder needs
D) Satisfy basic customer needs
3) Studies have shown that a well-crafted mission statement aids a firm’s performance as the
mission statement serves as a statement of:
A) Fact
B) Financial goals
C) Purpose
D) Values
4) According to the Ansoff product-market expansion grid, management should first consider
whether:
A) It should develop new markets for its current products
B) It should find or develop new products for its current market
C) It should find new products for a new market
D) It should gain more market share with its current products in their current market
5) When hotel chains enter such markets as the retirement home industry, they are practicing
which type of strategy?
A) Differential diversification
B) Concentric diversification
C) Horizontal diversification
D) Conglomerate diversification
6) If a hotel chain buys one of its suppliers, it is engaging in what type of growth?
A) Backward integration
B) Vertical integration
C) Forward integration
D) Horizontal integration
7) The ideal target market for a firm is the one in which it can profitably generate the greatest
customer ________ and ________ it over time.
A) Sales; sustain
B) Value; sustain and grow
C) Loyalty; grow
D) Satisfaction; spread
8) Market definitions of a business are ________ to product definitions.
A) Superior
B) Inferior
C) Parallel
D) Equivalent
9) ________ growth makes sense when good opportunities can be found outside the present
businesses.
A) Diversification
B) Multi-lateral
C) Bi-lateral
D) Product development
10) Companies that diversify too broadly into unfamiliar products or industries can ________
their market focus.
A) Capitalize
B) Enhance
C) Sustain
D) Lose
11) A hotel company acquiring a tour operator is an example of:
A) Backward integration
B) Forward integration
C) Horizontal integration
D) Vertical integration
12) A hotel company acquiring a food distributor is an example of:
A) Backward integration
B) Forward integration
C) Horizontal integration
D) Vertical integration
13) A hotel company acquiring one or more of its competitors is an example of:
A) Backward integration
B) Forward integration
C) Horizontal integration
D) Vertical integration
14) A company may discover additional sources of ________, by investigating possible
integration moves.
A) Sales volume
B) Guest loyalty
C) Employee satisfaction
D) Customer satisfaction
15) ________ is the marketing logic by which the company hopes to create customer value and
achieve profitable relationships.
A) Marketing alignment
B) Marketing integration
C) Marketing diversification
D) Marketing strategy
16) The process of dividing a market into distinct groups of buyers who have different needs,
characteristics, or behavior who might require separate products or marketing programs is called:
A) Market segmentation
B) Market targeting
C) Market differentiation
D) Market positioning
17) Selecting one or more market segments to enter is part of:
A) Market segmentation
B) Market targeting
C) Market differentiation
D) Market positioning
18) Which of the following is one of the four Ps of the marketing mix?
A) People
B) Profits
C) Propaganda
D) Place
19) Which of the following is NOT part of the four Ps of the marketing mix?
A) Product
B) Price
C) Promotion
D) Profits
20) ________ is the net return from a marketing investment divided by the costs of the marketing
investment.
A) Net return
B) Marketing POS
C) Marketing ROI
D) Investment cycle
21) ________ involves deciding on marketing strategies that will help the company attain its
overall strategic objective.
A) Marketing planning
B) Implementation
C) Goal formulation
D) Marketing analysis
22) Which of the following is NOT one of the three generic types of strategies proposed by
Porter for a good starting point for strategic thinking?
A) Focus
B) Cost leadership
C) Differentiation
D) Growth
23) All of the following are examples of important tradeoffs during goal formulation EXCEPT:
A) High growth versus low risk
B) Deep penetration of existing markets versus developing new markets
C) Profit goals versus nonprofit goals
D) Competitive advantage versus market position
24) Marketers see return on marketing investment as the second biggest issue after economy.
25) The hotel-resort industry, like other hospitality industries such as airlines and cruise lines,
may approach strategic planning in much the same manner as a manufacturing company.
26) A company starts the strategic planning process at the customer level by defining its values
statement and mission.
27) Mission statements should be realistic and general in nature.
28) A business portfolio is the collection of businesses and products that make up the company.
29) Market penetration refers to the strategy of creating new products to sell to small niche
markets.
30) Critics of strategic alliances point out the high failure rate of such alliances, which is
probably unfair, since short-term objectives may have been met.
31) One of the major effects of the marketing plan process is that it forces marketing managers to
objectively review all steps in the marketing process.
32) A critical and sometimes overlooked stakeholder group is that of owners of hotels managed
by a hotel management company.
33) A company’s mission statement should provide direction for the company for no more than
five years at a time.
34) Companies should use performance measures such as brand awareness and sales to assess
return on investment instead of customer-centered measures like customer experience.
35) An internal environmental analysis is essentially a strengths and weaknesses analysis.
36) Briefly discuss the components of a strategic plan.
37) Discuss the differences in approach between the traditional four Ps and the current four Cs.
38) Explain the role of the target market as the marketer attempts to build the marketing mix.
39) What role does the marketing mix play in target marketing?
40) Define a strategic business unit (SBU). What is contained in one?