Nova Southeastern University

MKT 5070

Chapter 2 Developing Marketing Strategies and Plans

1)The task of any business is to                               .

1. 1. create customer needs
   2. differentiate in terms of cost of production
   3. deliver customer value at a profit
   4. reduce competition
   5. communicate similar value as provided by competitors

2. What is the traditional view of marketing?
   1. Firms should just focus on production because if the products are good then they will automatically sell.
   2. Firms should just focus on production and selling because marketing occurs as a part of the selling process.
   3. Firms should have a proper marketing team that can increase consumers' awareness of their products and rouse their interest in them.
   4. Firms should price their products as low as possible so that marketing them becomes easy.
   5. Firms should remember that promotion is the most important of the four Ps.

3. Value delivery process can be divided into three phases, out of which "choosing the value" implies  , which is the essence of strategic marketing.
   1. segmentation, developing, and delivering
   2. targeting, positioning, and communicating
   3. targeting, positioning, and delivering
   4. segmentation, targeting, and positioning
   5. researching, developing, and delivering

4. Apex Corporation is one of the best in its industry in terms of costs and performance. Many companies in its industry will probably consider Apex as a                                                                                .
   1. pioneer
   2. benchmark
   3. target for acquisition
   4. future supplier
   5. sounding board for ideas

5. James Frank has been put in charge of gathering marketing intelligence, disseminating it within his organization, and eventually directing action on the information. Mr. Frank's

task is best described as part of the                         .

1. 1. market-sensing process
   2. new-offering realization process
   3. customer acquisition process
   4. customer relationship management process
   5. fulfillment management process

6. When a customer places an order at BookBox.com, the company processes the customer's payment information, sends the order to the nearest warehouse, and ships the

order via FedEx. This is best described as the                             .

1. 1. market-sensing process
   2. customer acquisition process
   3. customer relationship management process
   4. fulfillment management process
   5. new-offering realization process

7. The first phase of the value creation and delivery sequence is                              that represents the "homework" marketing must do before any product exists.
   1. choosing the value
   2. providing the value
   3. communicating the value
   4. considering the value
   5. acquiring the value

8. The last step in the value creation and delivery sequence is                              the value where the sales force, sales promotion, advertising, and other communication tools announce and promote the product.
   1. developing
   2. positioning
   3. communicating
   4. reversing
   5. researching Answer:   C  

9. In the cycle of complete strategic planning, taking corrective action is a part of

                     .

1. 1. planning
   2. implementation
   3. controlling
   4. organizing
   5. analyzing  

10. The                        in the value chain cover the sequence of bringing materials into the business (inbound logistics), converting them into final products (operations), shipping out final products (outbound logistics), marketing them (marketing and sales), and servicing them (service).
    1. operations processes
    2. manufacturing processes
    3. primary activities
    4. secondary activities
    5. tertiary activities

11. Micheal Porter's value chain would identify which of the following as a support activity?
    1. shipping out final products
    2. marketing products
    3. procurement
    4. servicing products
    5. operations   

12. The fullfilment management process includes all the activities in                                .
    1. gathering and acting upon information about the market
    2. researching, developing, and launching new high-quality offerings quickly and within budget standards
    3. defining target markets and prospecting for new customers
    4. building deeper understanding, relationships, and offerings to individual customers
    5. receiving and approving orders, shipping the goods on time, and collecting payment

13. With respect to core business processes, the                          includes all the activities involved in gathering external information, disseminating it within the organization, and acting on the information.
    1. market-sensing process
    2. market research process
    3. target marketing process
    4. market pulse process
    5. deployment process

14. With respect to the core business processes, the                          includes all the activities involved in developing, and launching high-quality products quickly and within budget.
    1. market-sensing process
    2. new-offering realization process
    3. fulfillment management process
    4. customer acquisition process
    5. customer relationship management process

15. Activities involved in building deeper understanding of existing consumers and what the product offerings mean to them would be a part of                                                                       .
    1. customer acquisition process
    2. customer relationship management process
    3. customer prospecting process
    4. customer integrating management process
    5. customer equity process

16. Another way to describe a supply chain, where companies partner with specific suppliers and distributors to ensure a smooth functioning of the system, is to call it a

                     .

1. 1. teamwork group
   2. horizontal integration
   3. domestic power center
   4. value exploration
   5. value delivery network

17. The key to utilizing organizational core competencies is to                                 that make up the essence of the business.
    1. force organizational departments to justify the budgetary components
    2. vertically integrate and own all intermediaries
    3. own and nurture the resources and competencies
    4. emphasize global promotions
    5. segment the workforces

18.                        has three characteristics: (1) it is a source of competitive advantage in that it makes a significant contribution to perceived customer benefits; (2) it has applications in a wide variety of markets; and (3) it is difficult for competitors to imitate.
    1. Core competency
    2. Market sensing process
    3. Corporate social responsibility
    4. Strategic business unit
    5. Philanthropy  

19. Core competencies tend to refer to areas of special technical and production expertise, whereas  tend to describe excellence in broader business processes.
    1. process benchmarks
    2. distinctive capabilities
    3. distributive capabilities
    4. facultative benchmarks
    5. concentric capabilities

20. Holistic marketers achieve profitable growth by expanding customer share,

                     , and capturing customer lifetime value.

1. 1. undermining competitive competencies
   2. building customer loyalty
   3. creating customer needs
   4. renewing a customer base
   5. cannibalizing products

21. As Kodak addresses the digital revolution taking over the photographic industry, it wants customers to see it as a leader in digital photography. Thus, it is moving away from the production of film roll cameras. This would be an example of which of the following value creation steps?
    1. abandoning current product lines
    2. changing the corporate vision
    3. repositioning the company's brand identity
    4. redoing the corporate logo
    5. realigning core competencies

22. Of the four organizational levels, the corporate level is likely to make which of the following decisions?
    1. entering a new market
    2. resource allocation for each product
    3. strategic plan for individual business units
    4. choosing specific suppliers for each business unit
    5. marketing plan for each product

23. Most large companies consist of four organizational levels: the corporate level, the

                     , the business unit level, and the product level.

1. 1. board of director level
   2. major stakeholder level
   3. management team level
   4. division level
   5. strategic level Answer:   D

24. During Jill's market research study, many customers indicated that traditional oven mitts made it very difficult to hold baking dishes, resulting in frequent spills. Jill brought her findings to the research department, and her company leveraged its engineering and design competencies to develop a new hand-held hot-pad that allows for significantly greater dexterity in handling hot cooking implements, while protecting the cook from burns. This is an example of the                                                       element of the holistic marketing framework.
    1. integrated marketing
    2. value creation
    3. negative demand
    4. value networking
    5. value focus