In some labor-intensive industries, a business can achieve a cost advantage, at least in
the short term, by gaining access to inexpensive labor. This is an example of the _____
method used to obtain a sustainable cost advantage.
A. no-frills product
B. cheaper raw materials
C. low-cost distribution
D. innovative production processes
A(n) _____ strategy involves targeting several smaller untapped or underdeveloped
segments in the market simultaneously.
A.encirclement
B.guerrilla attack
C.flank attack
D.leapfrog
Marketers of consumer services such as health care and life insurance are capitalizing
on the general trend of an aging population, thereby developing and implementing
marketing strategies accordingly. Which macroenvironmental trend is acting as a
catalyst here?
A.Technological
B.Economic
C.Sociocultural
D.Demographic
According to the first-mover advantage, success of a firm depends on being the first to:
A.provide alternatives to an established product.
B.establish a significant presence in each market niche.
C.outsource labor in order to cut production costs.
D.launch a frontal attack of competitors to gain market share.
Which of the following businesses tends to operate in a stable domain where both the
product technology and the customer segments are mature?
A.Prospector
B.Reactor
C.Low-cost defender
D.Analyzer
Which of the following is true of surveys?
A. A survey of buyer’s intention helps in forecasting sales of a prototype.
B. A survey of salesforce opinion is conducted for buyers to forecast sales.
C. A survey method is superior to a statistical or observational method.
D. A survey has the limitation that whoever is surveyed is knowledgeable.
Defending a current market-share position is an appropriate strategic objective for:
A.repositionings.
B.new product lines.
C.new-to-the-world products.
D.improvements or revisions to existing products.
The executive summary in an annual marketing plan:
A.describes actions to be taken if specific threats or opportunities materialize during the
planning period.
B.specifies the goals to be accomplished in terms of sales volume, market share, and
profit.
C.examines the past performance of the product and the elements of its marketing
program, such as distribution and promotion.
D.presents a short overview of the issues, objectives, strategy, and actions incorporated
in the plan and their expected outcomes for quick management review.
Which of the following provides a measure of performance expectations for
profitability?
A.Return on equity
B.Market share
C.Customer satisfaction
D.Productivity
_____ involves companies carefully considering which burdens they can remove from
the customer, using digital technologies, and which customers can perform, assessing
costs and benefits to both parties.
A.Benchmarking
B.Paid inclusion
C.Coproduction
D.Affiliate schemes
Which of the following statements is true of distribution policies?
A.Prospectors rely more heavily on independent channel members than defenders to
distribute their products.
B.Maintaining tight control over the behavior of channel members is an appropriate
policy for prospectors.
C.Defender businesses are likely to devote a larger percentage of sales to trade
promotions than prospector businesses.
D.Defenders rely on trade promotion tools and other incentives to induce support from
their independent channel members.
Which of the following forces increases industry attractiveness?
A. Higher threat of substitute products
B. Lesser threat of new entrants
C. Greater bargaining power for suppliers
D. Lower buying power for customers
Stepan Cleansers Inc. successfully introduced a variety of detergents for washing
clothes, dishes, and carpets. Each variety of detergent capitalized on the use of baking
soda as an effective deodorizer. The new detergents were promoted in existing markets
where consumers had a high level of recognition of the brand. This example illustrates
the use of a:
A.market penetration strategy.
B.diversification strategy.
C.product development strategy.
D.market development strategy.
Which of the following is a possible marketing action that can encourage extended use
of products?
A. Enhancing product’s value by including it in the design of integrated systems
B. Producing for private labels
C. Developing line extensions suitable for additional uses or applications
D. Entering global markets where product category is in an earlier stage of its life cycle
A distinct subset of people with similar needs, circumstances, and characteristics that
lead them to respond in a similar way to a particular product or service offering is
known as a_____.
A.market segment
B.set-aside
C.penetrated market
D.market mix
Which of the following performance criteria is assessed using the measures of market
share, brand awareness, and brand preference?
A. Profitability
B. Contribution to owners
C. Competitive strength
D. Growth
What are the causes of market decline?
Briefly explain the adoption process and the rate of adoption.
Explain the characteristics of strategic business units.
Explain the significance of critical success factors.
What are positioning statements and value propositions? Briefly explain their features.
What are the steps in a market segmentation process?
What is syndication of information? List the types of syndication and explain briefly
how syndication of information helps marketers.
How can customer equity be used to estimate the value of alternative marketing
actions?
Compare and contrast the frontal attack and leapfrog strategy.