Problem 1: Why do IRR and PI have problems with ranking projects?
Multiple Choice Questions
Problem 2: Dunkin' Donuts and Starbucks have transformed and lead the branded coffee market by:
A. using fresher ingredients than competitors do.
B. employing different but focused marketing strategies.
C. relying on quick responses to each others' moves instead of working through detailed plans and strategies.
D. locating exclusively near college campuses and high-density downtown offices.
E. All of the above.
Problem 3: Over the last few months, John and his colleagues have been identifying the target markets for his firm's personal care products and then developing the products, prices, distribution and promotion that will appeal to each of those target markets. In doing so, he has also identified what he believes is an advantage his competitors cannot match. John has been working on:
A. strategic planning
B. vision development
C. team-building exercises
D. a marketing strategy
E. competitive assessments
Problem 4: Companies seek to develop a sustainable competitive advantage that can be maintained over a long period of time and:
A. is difficult for competitors to copy.
B. can be patented or registered to protect it as intellectual property.
C. will appeal to financial analysts and potential shareholders.
D. will be easy for employees to use and remember.
E. cannot be discovered through marketing research.
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 5: Dale's Appliance Repair Service has created a scheduling system using cellular communications and routing software to guide the work of each of its highly trained and wellequipped technicians. As a result, Dale's can make and keep exact appointments with customers. Other repair services in the area can only promise technicians will be there within a four- to six-hour block. As a result, Dale's has developed a loyal customer following and the business continues to grow through referrals. Dale's has developed:
A. a marketing plan.
B. a customer-service specialization
C. a referral development system.
D. a sustainable competitive advantage
E. All of the above.
Problem 6: If a firm wants to develop a sustainable competitive advantage, it should:
A. begin an aggressive campaign to buy up competitors.
B. copy the innovative features of other firms that are attractive to customers.
C. examine its own operations and relations with its customers to identify significant things competitors cannot copy.
D. begin recruiting as many recent graduating marketing students as it can afford.
E. arrange to meet with competitors to discuss with them how to avoid direct competition in agreed to market segments.
Problem 7: Which of the following is not one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantages?
A. Locational excellence
B. Customer excellence
C. Operational excellence
D. Product excellence
E. Planning excellence
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 8: Gerald's Tire Store offers all the major brands but pays extra attention to providing fast, courteous, and friendly service in a clean, professional looking environment. Gerald's has used this strategy for over 40 years and expanded to 15 outlets. Gerald's Tire store has created a ___________________ to create and deliver value and to develop sustainable competitive advantages.
A. product development
B. market development
C. market penetration
D. diversification
E. macro, or overarching, strategy
Problem 9: When Ron, the keynote speaker at a major business leader conference, arrived in the middle of the night at the Ritz-Carlton, he was exhausted and his suit disheveled from being on an airplane for 17 hours. The night clerk found someone to dry clean Ron's suit and have it ready for his 9 AM presentation. Ron has been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton demonstrated the macro strategy of:
A. customer excellence
B. operational excellence
C. product excellence
D. promotional excellence
E. global excellence
Problem 10: Almost every banker thinks his or her firm provides better service than their competitors. If this is accurate, and customers recognize it, the bank creates and delivers value through:
A. customer excellence
B. operational excellence
C. product excellence
D. promotional excellence
E. global excellence
Problem 11: Customer excellence results in loyal customers. Customer loyalty can be developed through:
A. having a strong brand
B. unique merchandise
C. superior customer service
D. all of the above
E. none of the above
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 12: Customer loyalty is an important method of:
A. creating new products.
B. promoting efficiency.
C. sustaining an advantage over competitors.
D. promotional pricing strategies.
E. all of the above.
Problem 13: Whenever Harry goes down on Bay Street to have something to drink, he goes to Luther's Pharmacy. There are many other "watering holes" on Bay Street but Harry will only go to them if Luther's is closed. Luther's has achieved __________________ from Harry.
A. customer loyalty
B. strategic acceptance
C. relative market share
D. value-based penetration
E. operational excellence
Problem 14: Banks have begun offering special accounts designed to attract junior high school children. These kids save in very small amounts creating more work than the account is probably worth to the bank but bankers know consumers are creatures of habit and young people they service now will likely become adult customers. These banks recognize:
A. operational excellence as a macro strategy.
B. the life-time value of customers.
C. product excellence leads to loyal customers.
D. segmentation, targeting, and positioning strategy.
E. diversification demographics.
Problem 15: The key to modern customer retention programs is:
A. operational excellence as a macro strategy.
B. viewing customers with the life-time value perspective.
C. product excellence leads to transactional customers.
D. segmentation, targeting, and positioning strategy.
E. situational ethics.
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 16: Most marketers spend heavily on customer retention programs, recognizing customer retention leads to:
A. product design excellence.
B. mission statement satisfaction.
C. sustainable price decreases.
D. increased long term profits.
E. producer excellence.
Problem 17. _________________ are an example of an incentive-based customer loyalty program.
A. Frequent-flyer programs
B. Quantity discount incentives
C. Customer referral programs
D. Everyday low prices
E. Cost-based pricing programs
Problem 18: Narbonne's, an upscale department store, instructs sales personnel that whenever a customer asks where something is, they should drop what they are doing and offer to escort the customer to what they are looking for. The company's reputation for excellent customer service has resulted in:
A. product design excellence.
B. mission statement satisfaction.
C. sustainable price decreases.
D. a sustainable competitive advantage.
E. producer excellence.
Problem 19: Firms achieve ___________ through efficient procedures and excellent supply chain management.
A. customer loyalty
B. strategic acceptance
C. relative market share
D. value-based penetration
E. operational excellence
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 20: Marketers want their firms to develop efficient operations because:
A. it leads to lower prices or greater pricing flexibility.
B. marketers can then offer greater value to the customers.
C. it makes it easier to get the products customers want to them when they want it.
D. it can lead to more attractive margins.
E. All of the above
Problem 21: Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can:
A. persuade stores to refuse to carry competitors' products.
B. use their power and control within the supply chain to compel weaker members of the supply chain to accept less favorable terms and agreements.
C. control prices and lock-in margins.
D. create competitive advantages.
E. develop information not available to others on strategic moves to help with its own acquisitions and pricing.
Problem 22: Allen is in the marketing department of a mid-sized firm that develops and sells communications systems. He is proud of the Human Resources 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 advantage for the firm because:
A. customers appreciate the kind of service that knowledgeable employees provide.
B. employees play a major role in the success of the firm.
C. it's easier to communicate with and inspire the customer if the employees really believe in what the firm is doing.
D. building customer loyalty depends on a committed workforce.
E. All of the above.
Problem 23: Which of the following represents a way to build a sustainable competitive advantage using product excellence?
A. Being the first to offer customers desired features, even if competitors can match these.
B. Positioning the product using a clear, distinctive brand image.
C. Having the most features on each model.
D. Focusing on being cutting edge and continually eliminating older features though this may alienate some customers.
E. All of the above.
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 24: Product excellence occurs through:
A. customer loyalty
B. strategic acceptance
C. branding and positioning
D. value-based penetration
E. operational excellence
Problem 25: For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest:
A. no single strategy is likely to be sufficient to build a sustainable competitive advantage.
B. situation analysis is a continuous process.
C. marketing is a never-ending story.
D. product excellence is the best source of a sustainable competitive advantage.
E. all of the above
Problem 26: "Effective marketing doesn't just happen." It is:
A. promoted through STP analysis.
B. imagined.
C. planned.
D. introduced through control phase SBUs.
E. the result of competitor's failures.
Problem 27: Building a competitive advantage based on location is sustainable because:
A. mobile marketing has not yet proven its value for most customers.
B. real estate prices have been dropping.
C. few marketers are aware of its importance yet.
D. it is not easily duplicated.
E. the internet has diminished the importance of "brick and mortar" stores.
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 28: Of the five steps to the strategic marketing planning process, which step usually comes in the MIDDLE of the process?
A. evaluate performance
B. define the business mission.
C. situation analysis
D. implement marketing mix and resources.
E. identifying and evaluating opportunities.
Problem 29: Brenda works as a caterer at many business functions. Pump-N-Slurp convenience store chain has just had their annual meeting and left behind copies of their marketing plan. Brenda opens a copy of their plan. Which of the following would Brenda likely find in Pump-NSlurp's marketing plan?
A. a situation analysis.
B. opportunities for the firm
C. perceived threats to the firm.
D. marketing objectives.
E. all of the above.
Problem 30: Carla has been directed by her regional marketing manager to cut prices on seasonal items, submit an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which stage of the strategic marketing planning process is Carla engaged in?
A. evaluate performance
B. define the business mission.
C. situation analysis
D. implement marketing mix and resources.
E. identifying and evaluating opportunities.
Problem 31: When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged?
A. planning
B. implementation
C. control
D. segmentation
Problem 32: Why do IRR and PI have problems with ranking projects?
Multiple Choice Questions
Problem 33: Dunkin' Donuts and Starbucks have transformed and lead the branded coffee market by:
A. using fresher ingredients than competitors do.
B. employing different but focused marketing strategies.
C. relying on quick responses to each others' moves instead of working through detailed plans and strategies.
D. locating exclusively near college campuses and high-density downtown offices.
E. All of the above.
Problem 34: Over the last few months, John and his colleagues have been identifying the target markets for his firm's personal care products and then developing the products, prices, distribution and promotion that will appeal to each of those target markets. In doing so, he has also identified what he believes is an advantage his competitors cannot match. John has been working on:
A. strategic planning
B. vision development
C. team-building exercises
D. a marketing strategy
E. competitive assessments
Problem 35: Companies seek to develop a sustainable competitive advantage that can be maintained over a long period of time and:
A. is difficult for competitors to copy.
B. can be patented or registered to protect it as intellectual property.
C. will appeal to financial analysts and potential shareholders.
D. will be easy for employees to use and remember.
E. cannot be discovered through marketing research.
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 36: Dale's Appliance Repair Service has created a scheduling system using cellular communications and routing software to guide the work of each of its highly trained and wellequipped technicians. As a result, Dale's can make and keep exact appointments with customers. Other repair services in the area can only promise technicians will be there within a four- to six-hour block. As a result, Dale's has developed a loyal customer following and the business continues to grow through referrals. Dale's has developed:
A. a marketing plan.
B. a customer-service specialization
C. a referral development system.
D. a sustainable competitive advantage
E. All of the above.
Problem 37: If a firm wants to develop a sustainable competitive advantage, it should:
A. begin an aggressive campaign to buy up competitors.
B. copy the innovative features of other firms that are attractive to customers.
C. examine its own operations and relations with its customers to identify significant things competitors cannot copy.
D. begin recruiting as many recent graduating marketing students as it can afford.
E. arrange to meet with competitors to discuss with them how to avoid direct competition in agreed to market segments.
Problem 38: Which of the following is not one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantages?
A. Locational excellence
B. Customer excellence
C. Operational excellence
D. Product excellence
E. Planning excellence
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 39: Gerald's Tire Store offers all the major brands but pays extra attention to providing fast, courteous, and friendly service in a clean, professional looking environment. Gerald's has used this strategy for over 40 years and expanded to 15 outlets. Gerald's Tire store has created a ___________________ to create and deliver value and to develop sustainable competitive
advantages.
A. product development
B. market development
C. market penetration
D. diversification
E. macro, or overarching, strategy
Problem 40: When Ron, the keynote speaker at a major business leader conference, arrived in the middle of the night at the Ritz-Carlton, he was exhausted and his suit disheveled from being on an airplane for 17 hours. The night clerk found someone to dry clean Ron's suit and have it ready for his 9 AM presentation. Ron has been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton demonstrated the macro strategy of:
A. customer excellence
B. operational excellence
C. product excellence
D. promotional excellence
E. global excellence
Problem 41: Almost every banker thinks his or her firm provides better service than their competitors. If this is accurate, and customers recognize it, the bank creates and delivers value through:
A. customer excellence
B. operational excellence
C. product excellence
D. promotional excellence
E. global excellence
Problem 42: Customer excellence results in loyal customers. Customer loyalty can be developed through:
A. having a strong brand
B. unique merchandise
C. superior customer service
D. all of the above
E. none of the above
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 43: Customer loyalty is an important method of:
A. creating new products.
B. promoting efficiency.
C. sustaining an advantage over competitors.
D. promotional pricing strategies.
E. all of the above.
Problem 44: Whenever Harry goes down on Bay Street to have something to drink, he goes to Luther's Pharmacy. There are many other "watering holes" on Bay Street but Harry will only go to them if Luther's is closed. Luther's has achieved __________________ from Harry.
A. customer loyalty
B. strategic acceptance
C. relative market share
D. value-based penetration
E. operational excellence
Problem 45: Banks have begun offering special accounts designed to attract junior high school children. These kids save in very small amounts creating more work than the account is probably worth to the bank but bankers know consumers are creatures of habit and young people they service now will likely become adult customers. These banks recognize:
A. operational excellence as a macro strategy.
B. the life-time value of customers.
C. product excellence leads to loyal customers.
D. segmentation, targeting, and positioning strategy.
E. diversification demographics.
Problem 46: The key to modern customer retention programs is:
A. operational excellence as a macro strategy.
B. viewing customers with the life-time value perspective.
C. product excellence leads to transactional customers.
D. segmentation, targeting, and positioning strategy.
E. situational ethics.
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 47: Most marketers spend heavily on customer retention programs, recognizing customer retention leads to:
A. product design excellence.
B. mission statement satisfaction.
C. sustainable price decreases.
D. increased long term profits.
E. producer excellence.
Problem 48: _________________ are an example of an incentive-based customer loyalty program.
A. Frequent-flyer programs
B. Quantity discount incentives
C. Customer referral programs
D. Everyday low prices
E. Cost-based pricing programs
Problem 49: Narbonne's, an upscale department store, instructs sales personnel that whenever a customer asks where something is, they should drop what they are doing and offer to escort the customer to what they are looking for. The company's reputation for excellent customer service has resulted in:
A. product design excellence.
B. mission statement satisfaction.
C. sustainable price decreases.
D. a sustainable competitive advantage.
E. producer excellence.
Problem 50: Firms achieve ___________ through efficient procedures and excellent supply chain management.
A. customer loyalty
B. strategic acceptance
C. relative market share
D. value-based penetration
E. operational excellence
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 51: Marketers want their firms to develop efficient operations because:
A. it leads to lower prices or greater pricing flexibility.
B. marketers can then offer greater value to the customers.
C. it makes it easier to get the products customers want to them when they want it.
D. it can lead to more attractive margins.
E. All of the above
Problem 52: Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can:
A. persuade stores to refuse to carry competitors' products.
B. use their power and control within the supply chain to compel weaker members of the supply chain to accept less favorable terms and agreements.
C. control prices and lock-in margins.
D. create competitive advantages.
E. develop information not available to others on strategic moves to help with its own acquisitions and pricing.
Problem 53: Allen is in the marketing department of a mid-sized firm that develops and sells communications systems. He is proud of the Human Resources 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 advantage for the firm because:
A. customers appreciate the kind of service that knowledgeable employees provide.
B. employees play a major role in the success of the firm.
C. it's easier to communicate with and inspire the customer if the employees really believe in what the firm is doing.
D. building customer loyalty depends on a committed workforce.
E. All of the above.
Problem 54: Which of the following represents a way to build a sustainable competitive advantage using product excellence?
A. Being the first to offer customers desired features, even if competitors can match these.
B. Positioning the product using a clear, distinctive brand image.
C. Having the most features on each model.
D. Focusing on being cutting edge and continually eliminating older features though this may alienate some customers.
E. All of the above.
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 55: Product excellence occurs through:
A. customer loyalty
B. strategic acceptance
C. branding and positioning
D. value-based penetration
E. operational excellence
Problem 56: For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest:
A. no single strategy is likely to be sufficient to build a sustainable competitive advantage.
B. situation analysis is a continuous process.
C. marketing is a never-ending story.
D. product excellence is the best source of a sustainable competitive advantage.
E. all of the above
Problem 57: "Effective marketing doesn't just happen." It is:
A. promoted through STP analysis.
B. imagined.
C. planned.
D. introduced through control phase SBUs.
E. the result of competitor's failures.
Problem 58: Building a competitive advantage based on location is sustainable because:
A. mobile marketing has not yet proven its value for most customers.
B. real estate prices have been dropping.
C. few marketers are aware of its importance yet.
D. it is not easily duplicated.
E. the internet has diminished the importance of "brick and mortar" stores.
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 59: Of the five steps to the strategic marketing planning process, which step usually comes in the MIDDLE of the process?
A. evaluate performance
B. define the business mission.
C. situation analysis
D. implement marketing mix and resources.
E. identifying and evaluating opportunities.
Problem 60: Brenda works as a caterer at many business functions. Pump-N-Slurp convenience store chain has just had their annual meeting and left behind copies of their marketing plan. Brenda opens a copy of their plan. Which of the following would Brenda likely find in Pump-NSlurp's marketing plan?
A. a situation analysis.
B. opportunities for the firm
C. perceived threats to the firm.
D. marketing objectives.
E. all of the above.
Problem 61: Carla has been directed by her regional marketing manager to cut prices on seasonal items, submit an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which stage of the strategic marketing planning process is Carla engaged in?
A. evaluate performance
B. define the business mission.
C. situation analysis
D. implement marketing mix and resources.
E. identifying and evaluating opportunities.
Problem 62: When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged?
A. planning
B. implementation
C. control
D. segmentation
E. all of the above.
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 63: Violet's company has just purchased a small software manufacturer. Violet has been charged to assess what the new company will do as part of her company and what will be needed to address this question. Violet is engaged in the ____________ stage of the strategic marketing planning process.
A. evaluate performance
B. define the business mission
C. situation analysis
D. implement marketing mix and resources
E. identifying and evaluating opportunities
Problem 64: The automobile manufacturing industry closely watches the annual consumer satisfaction survey. For years, Japanese car companies have consistently had the highest levels of customer satisfaction, creating a ____________ for these companies.
A. strategic marketing plan
B. control phase mission advantage
C. STP cost
D. sustainable competitive advantage
E. diversification strategy
Problem 65: Which of the following is LEAST likely to be a sustainable competitive advantage?
A. lowering prices.
B. brand name.
C. customer satisfaction.
D. patented technology.
E. supply chain efficiency.
Problem 65: The cereal industry is dominated by four companies. These firms produce large volumes, promote heavily, and through slotting allowance payments control access to the supermarket shelves. Combined, these four firms have:
A. value-based customer care.
B. successful mission-goal statements.
C. sustainable competitive advantages.
D. market segmentation sufficiency.
E. strategic business acumen.
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 66: Even when big-box discount retailers enter a market, some small, local retailers survive and prosper. These retailers have developed a _________________ generating long-term profitability.
A. value-based customer avoidance
B. successful mission-goal statements
C. sustainable competitive advantage
D. market segmentation sufficiency
E. strategic business simulation
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 67: Violet's company has just purchased a small software manufacturer. Violet has been charged to assess what the new company will do as part of her company and what will be needed to address this question. Violet is engaged in the ____________ stage of the strategic marketing planning process.
A. evaluate performance
B. define the business mission
C. situation analysis
D. implement marketing mix and resources
E. identifying and evaluating opportunities
Problem 68: The automobile manufacturing industry closely watches the annual consumer satisfaction survey. For years, Japanese car companies have consistently had the highest levels of customer satisfaction, creating a ____________ for these companies.
A. strategic marketing plan
B. control phase mission advantage
C. STP cost
D. sustainable competitive advantage
E. diversification strategy
Problem 69: Which of the following is LEAST likely to be a sustainable competitive advantage?
A. lowering prices.
B. brand name.
C. customer satisfaction.
D. patented technology.
E. supply chain efficiency.
Problem 70: The cereal industry is dominated by four companies. These firms produce large volumes, promote heavily, and through slotting allowance payments control access to the supermarket shelves. Combined, these four firms have:
A. value-based customer care.
B. successful mission-goal statements.
C. sustainable competitive advantages.
D. market segmentation sufficiency.
E. strategic business acumen.
Chapter: Developing Marketing Strategies and a Marketing Plan
Problem 71: Even when big-box discount retailers enter a market, some small, local retailers survive and prosper. These retailers have developed a _________________ generating long-term profitability.
A. value-based customer avoidance
B. successful mission-goal statements
C. sustainable competitive advantage
D. market segmentation sufficiency
E. strategic business simulation