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MKT 6301-Chapter 2

QuestionAnswer
1) The ________ is the criterion by which the success or failure of the strategy is measured. Answer: objective
2) The ________ communicates the reasons to buy a product/ service to a specific customer group. Answer: core strategy
3) The value proposition is operationalized and represented in the customers' minds through: Answer: product positioning.
4) Which of the following is often referred to as the "4Ps" of marketing? Answer: marketing mix
5) When marketing managers consider the alternative differentiation possibilities and determine what differential advantages are to be emphasized and communicated to the target customer, they are engaging in: Answer: product positioning.
6) Which of the following usually describes a company's major business thrusts, customer orientation, or business philosophy, in general terms? Answer: mission statement
7) "Increasing market share" and "increasing profit" is a poor objective because: Answer: it is not stated in quantitative terms.
8) Which of the following is a characteristic of a good objective statement? Answer: It should be stated in measurable terms.
9) Marketing managers use a market penetration strategy to target: Answer: individuals who are buying your product or service or a direct competitor's.
10) There is often tension between objectives of increasing market share and increasing profits because: Answer: some of the activities required to increase share lower profit margins and increase costs.
11) Customers who have purchased your product or service are familiar with its benefits. Assuming that your customers enjoyed the consumption experience, there is often potential left in the market from the current customers who could be persuaded to buy more. You, as a marketing manager, should therefore prioritize: Answer: market penetration strategy.
12) Identify the correct statement about market development strategy. Answer: It is usually implemented in markets where growth rate is slowing.
13) It easier to persuade a competitor's customer to switch to product or service in the: Answer: maturity stage of the product life cycle.
14) A ________ strategy targets customers who have not yet purchased the product or service. Answer: market development
15) Entering foreign markets is an example of a: Answer: market development strategy.
16) Once the decision has been made to enter a country, the most important decision is: Answer: the mode of entry.
17) Identify the statement that addresses the mode of entry. Answer: "We should consider a joint venture with a firm that has the greatest presence in the market."
18) Identify the factor that can be controlled by a company while entering a foreign market. Answer: country selection
19) Five sets of factors should be considered when deciding on how to enter a new foreign market. Identify the key feature of country characteristics. Answer: market size and growth
20) Which of the following is an example of a trade barrier? Answer: quota
21) Which of the following is a component of the core strategy? Answer: value proposition
22) When customers cannot discriminate among products, they consider the products to be similar, and the main determinant of which product is purchased is: Answer: their relative price.
23) Which of the following is a characteristic of a competitive advantage? Answer: It generates customer value.
24) Which of the following represents a basis on which customers will choose a firm's product or Answer: Differential advantage
25) When we say that a firm is using a differentiation advantage to developing competitive advantage, we mean that the approach is: Answer: quality-based.
26) When competitive advantage is cost- or price-based, it is necessary to know the ________ to be sure that you can compete on this basis by matching price cuts. Answer: competitor's costs
27) The best method of attaining a low-cost position is to: Answer: take advantage of economies of scale and experience curve.
28) ________ is a notion that costs fall with cumulative production or delivery of a service and that, using the first few years of a product's life as a yardstick, the continued decline in costs is predictable. Answer: Experience curve
29) Firms can compete on price if they: Answer: focus on controlling costs.
30) Economies of scale is a concept used in this approach to developing competitive advantage. Answer: price-based advantage
31) The rationale behind ________ is that larger sales mean fixed costs of operations can be spread over more units, which lowers average unit costs. Answer: economies of scale
32) IKEA emphasizes self-service and customer pickup and delivery. Identify the approach that IKEA is using to develop competitive advantage. Answer: price-based advantage
33) Which of the following approaches to developing competitive advantage is most likely to involve a payment of price premium by the customers? Answer: differentiation advantage
34) Caterpillar markets are the most reliable farm equipment in the industry. This is an example of a: Answer: differentiation strategy.
35) Identify the correct statement about differentiation. Answer: It is based on obtaining an observable point of difference that customers will value.
36) Which of the following is an excellent vehicle for delivering perceived images and feelings? Answer: electronic and print advertising
37) One of the best methods of determining how consumers feel about the perceived differences between competitive products or services is through: Answer: perceptual mapping.
38) Which of the following best defines perceptual mapping? Answer: It measures perceptions of competing products on a variety of attributes.
39) A customer's perception of one brand in relation to its competitors is indicated by: Answer: brand position.
40) The value of a brand name in communicating quality or other aspects of the product is called: Answer: brand equity.
41) When a marketing manager is dissatisfied with the current positioning of his/her product or service and seeks a new perceived advantage, it is called: Answer: brand repositioning
42) When the ________ is put to work in a market place, it is known as product positioning. Answer: value proposition
43) Which of the following is considered as the implementation stage of the marketing strategy? Answer: employing the marketing mix
44) Which of the following is one of the "3Cs" of marketing? Answer: company
45) Which of the following is a stage in the product life cycle (PLC)? Answer: growth
46) Which of the following sketches the sales history of a product category over time? Answer: product life cycle
47) A product life cycle curve is usually ________ shaped. Answer: S
48) Which of the following statements is true regarding the growth stage of the product life cycle? Answer: The rate of growth begins to decrease in this stage.
49) Which of the following statements is true regarding the maturity stage of the product life cycle? Answer: Usually, competition is most intense in this phase.
50) Identify the correct statement about the introduction stage of the product life cycle. Answer: In this stage, selling and advertising focus on the generic product.
51) Identify the stage in the product life cycle (PLC) where the growth rate and the size of the market are low. Answer: introduction stage
52) When the market growth becomes flat, we can say that this stage of the product life cycle has been reached. Identify the stage. Answer: maturity stage
53) Identify the stage in the product life cycle where selling and advertising focus on the generic product. Answer: introduction stage
54) Identify the stage of the product life cycle where distributors have more power in the relationship with manufactures or service suppliers. Answer: introduction stage
55) The purpose of a penetration pricing strategy during the introduction stage of the product life cycle is to: Answer: build market share and a broader market.
56) Which of the following refers to a strategy of entering the market with a high price and creating a narrow market? Answer: skimming
57) Most likely, marketing managers would like to be first in the market because: Answer: the first mover establishes awareness of its product as the prototype.
58) Market segmentation becomes a key issue in this stage of the product life cycle. Identify the stage. Answer: growth stage
59) In the growth stage of the product life cycle, the riskiest move by a follower is to: Answer: leapfrog the competition.
60) Identify the stage in the product life cycle at which fierce battles for market share take place. Answer: maturity stage
61) When marketing mangers see that the sales curve has flattened out and few new buyers are in the market, they know that they are in this stage of the product life cycle. Identify the stage. Answer: maturity stage
62) Identify the stage of the product life cycle where a large amount of money is spent on consumer promotion. Answer: maturity stage
63) Setting an objective of gradual share decline with minimal investment to maximize short-run profits is known as: Answer: harvesting.
64) The general strategies in mature markets are similar to those in which other markets? Answer: growth markets
65) Which of the following statements is true about the decline stage of the product life cycle? Answer: Product category sales decrease at this stage.
66) Lansdale Semiconductor is considered as the "last iceman" manufacturing the 8080 computer chip. With this information, we can say that 8080 computer chip is in the ________ stage of the product life cycle. Answer: decline stage
67) Which of the following explains stretching out the life cycle? Answer: Looking ahead to the next stage and planning changes in the product.
68) Which of the following statements is true regarding the product life cycle (PLC)? Answer: PLC is a conceptual framework.
69) After reaching the mature stage, 3M's Scotch tape was extended through new dispensers and the use of colored and waterproof varieties (varied usage). This is an example of: Answer: market penetration.
70) A firm's objective is the criteria by which the success or failure of a strategy is measured. Answer: TRUE
71) A firm's customer targets represent a specific group of customers which the marketing manager wants to persuade to buy the product or service. Answer: TRUE
72) 'Procurement' is one of the '4Ps' of marketing. Answer: FALSE
73) Competitor targets must be identified so that marketing managers know which brands or companies offer the most likely competition for the identified customer. Answer: TRUE
74) Marketing mix is a set of decisions regarding price, product, customer targets, and competitor targets. Answer: FALSE
75) The corporate objective is usually stated in financial or stock price terms. Answer: TRUE
76) Volume often has a significant positive relationship with unit costs due to economies of scale. Answer: FALSE
77) A good company objective should be stated in measurable terms. Answer: TRUE
78) Market penetration strategies are used to attract customers who have never purchased the product. Answer: FALSE
79) A good objective statement should have a quantified standard of performance. Answer: TRUE
80) Market development strategies consider customers who either have been targeted by the firm or the firm's competitors but have never purchased product from the firm or its competitors. Answer: TRUE
81) Implementation of market penetration strategy is more risky and expensive than implementing a market development strategy. Answer: FALSE
82) A market development strategy can be implemented without product modifications. Answer: FALSE
83) Purchasing power takes into account population size. Answer: FALSE
84) The basic component of the core strategy is the value proposition. Answer: TRUE
85) A competitive advantage should be difficult to imitate. Answer: TRUE
86) The concept of economies of scale is used for achieving quality-based advantage. Answer: FALSE
87) It is possible to use a low-price competitive advantage even if you are not the industry leader, or do not have the greatest cumulative experience. Answer: TRUE
88) Industrial and highly technical products and services are differentiated solely on the basis of perception. Answer: FALSE
89) The importance of various marketing-mix elements varies over the product life cycle. Answer: TRUE
90) In the introductory phase, the growth rate and the size of the market are high. Answer: FALSE
91) A large number of competitors are present in a market during the introductory stage of a product life cycle. Answer: FALSE
92) The price skimming strategy involves entering the market with a low initial price. Answer: FALSE
93) Typically, penetration strategies which involve entering the market with low price are employed by technology-based products. Answer: FALSE
94) Market segments are well defined during the introduction stage of the product life cycle. Answer: FALSE
95) Explain the major components of a complete marketing strategy. Answer:
96) Explain the difference between a market penetration strategy and a market development strategy. Answer:
97) Discuss the three general characteristics mentioned in the textbook for developing a competitive advantage for a firm. Answer:
98) Discuss the three general approaches to developing competitive advantage: Answer:
99) List the various stages of the product life cycle and describe the characteristics of each stage. Answer:
Created by: lonehorse
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