Marketing Strategy Exam 3

 Colgate promotes its toothpaste using a claim that states “helps fight plaque and gingivitis.” What  potential ethical issue does Colgate have with respect to its promotional strategy?

Ambiguous Statements

Why is the strategy canvas tool useful for positioning?

It demonstrates the firm’s relative position in terms of competitive factors important to the target market

Many large firms, such as Walmart, Home Depot, Lowe’s, and Barnes & Noble, have been  accused of predatory pricing because their business practices have put many local, mom-and-pop  firms out of business. In reality, these large firms are not necessarily guilty of predatory pricing.  Why?

Because the large firms have efficient cost structures and lower variable costs

 Because they are cost effective and beneficial to ensuring consistency and standardization within  the marketing program, centralized marketing structures are best suited for which of the following  strategies?

Operational excellence 

 __________ focuses on more fully serving the needs of current customers.

Share of customer relationships

Which of the following IS NOT good advice with respect to leveraging customer satisfaction  from a strategic point of view?

 Flesh out all uncontrollable issues to prevent them

Essentially, having a climate of ethics and social responsibility is all about creating trust among a  firm’s stakeholders. To gain trust, the firm and its employees must continuously uphold:

their standards of integrity

Which of the following IS NOT a function or potential function of packaging?

Integration

Ben & Jerry’s is well known for its use of __________ in that it ties its products and marketing  strategy to social causes such as environmental stewardship

Cause-related marketing

Research indicates that being ethical and socially responsible has a number of benefits for the  organization. Which of the following IS NOT one of these benefits?

 Increased competitive orientation 

Which of the following is a goal of internal marketing?

Deliver external customer satisfaction

During the maturity stage of the product life cycle, a firm has four general goals that can be  pursued. Which of the following IS NOT one of these options?

Divest the product

Firms using the __________ approach during the decline stage of the product life cycle will  gradually reduce marketing expenditures and use a less resource-intensive marketing mix.

Harvesting

Best Buy offers many different manufacturer (name) brands including HP, Panasonic, Sony, and  Canon. Which of the following is a primary reason that Best Buy would offer these and other  manufacturer brands?

Increased store traffic

With respect to customer expectations, which of the following best describes the zone of  tolerance?

It represents the degree to which customers recognize and are willing to accept variability in performance 

__________ are factual descriptors of the product and its characteristics.

Product features

In which of the following situations would a customer become more tolerable of weak or poor  product performance?

When the customer has fewer product alternatives 

__________ is/are considered to be the “glue” of successful implementation that binds the entire  organization together as a single, functioning unit.

Shared goals and values

__________ refers to the degree of superiority of a firm’s goods or services. It is a relative term  because it can only be judged in comparison to competing products or when compared to an  internal standard of excellence.

Quality

To ensure that ethics and social responsibility are thoroughly incorporated into the firm’s  strategic planning process, the firm’s __________ should never be silent about ethical  requirements and social responsibility.

Marketing plan

.Kimberly-Clark has seen one of its product lines decline over the years. The company decides the  product is taking up too much resources, and it would be better to withdraw all marketing support  for the product. This strategy is known as

divesting

Branding strategy involves much more than developing a clever brand name or brand mark. To be  truly effective, a brand should succinctly capture the total offering in a way that:

answers a question in the customer’s mind

With respect to regulating marketing ethics, a key advantage of self-regulatory programs like the  Better Business Bureau is the fact that they are:

 less costly and more practical to implement 

What is the primary disadvantage associated with using financial incentives as a means of  developing customer relationships?

They can be easily imitated 

Socially responsible firms tend to enjoy higher __________ when customers perceive that the  firm is dedicated to doing the right thing and treating customers fairly.

Customer loyalty 

Identifying specific marketing activities, determining the time required to complete each activity,  and organizing marketing activities into the proper sequence are examples of the steps involved in  creating a(n):

implementation timetable 

One way of looking at __________ is to consider the marketing and financial value associated  with a brand’s position in the marketplace.

Brand equity 

Walmart offers many different private-label brands including Sam’s Choice, Equate, and Ol’  Roy. Overall, what is the primary reason that Walmart would offer these and other private-label  brands?

Increased profit margin

At WainPort Industries, the firm’s senior managers approach marketing implementation with the  belief that marketing strategy should be developed at the top of the organization and then  transmitted to lower levels where frontline managers and employees implement it. What  implementation approach is being used at WainPort?

Implementation by command

Assume a customer planning to purchase a Wii U gaming console made this statement: “Given  the expense and all the hype about the new Wii U, it ought to be the best gaming console ever  made.” What type of expectation does this customer have about the Wii U?

A normative expectation 

This type of activity strives to create social value rather than simply earn profits. 

Social Entrepreneurship

Most firms that experience ethical or legal problems actually have a code of conduct or an ethical  compliance program in place. Why is it that these firms can still have ethical problems despite  having a code of ethics or compliance program?

Their codes are typically not integrated into daily decision makin

Which of the following statements is FALSE regarding the use of the 80/20 rule in managing  customer relationships?

The 20 percent of customers in the bottom tier should be fired so the firm can focus on its top customer

With respect to competitive advantages, many see __________ as the most important asset that  an organization can possess, as it stems from the value generated by the trust, commitment,  cooperation, and interdependence among relationship partners

Relationship capital 

Larger financial institutions now offer a wide range of services under one roof, from banking to  stock trading. These institutions have moved away from increasing their market share to instead  focusing on increasing their:

Share of Customer

An employee evaluation and compensation system is which type of control?

Process control

Which of the following relationship strategies is most likely to be used by a health club as it tries  to create social bonds with its clientele?

Membership programs 

What do escalator and aspirin have in common?

Their brand names were not sufficiently protected

In service offerings, the core product is typically composed of three interrelated dimensions.  What are these dimensions?

People, Processes, and Physical evidence

Marketing implementation is critical to the success of any firm. Simply put, implementation  refers to:

How the marketing plan will be put into action

Which activity is part of a stakeholder orientation?

The organization-wide generation of data about stakeholder groups and assessment of the firms effects on these groups 

Samsung shifted its operational focus from production to marketing and dropped over 50 low budget brands in favor of a single master Samsung brand. What type of marketing  implementation is this?

Implementation through change 

In the __________ approach to marketing implementation, marketing strategy is implemented as  a part of the overall organizational vision.

Implementation as organizational culture 

The principles and standards that define acceptable marketing conduct as determined by the  public, government regulators, private-interest groups, competitors, and the firm itself are termed:

marketing ethics 

Some companies choose to engage in a deceptive marketing practice called __________, which  involves misleading consumers into thinking that a product is more environmentally friendly than  it actually is.

Greenwashing

Marketing implementation is often problematic, as marketing plans are usually devised by  __________, while implementation is the responsibility of __________.

Top management; frontline employees

One of the most common marketing goals during the introduction stage of the product life cycle  is to:

engage in customer education activities

Meghan recently took her parents to a gourmet restaurant for their 25^th wedding anniversary. The  evening was exceptional, with everyone receiving the utmost in terms of quality and value. However, when reflecting on the experience the next day, Meghan decided that she was not fully  satisfied. Why might this happen?

Because satisfaction can be based on factors that have nothing to do with quality or value.

One of the links between strategic planning and marketing implementation is interdependency,  which refers to the fact that:

the marketing plan affects how it will be implemented, and implementation affects the marketing plan.

In the purchase of a product, time, effort, risk, and opportunity costs are all examples of:

nonmonetary costs

Patagonia has adopted a ________ approach to environmental issues, a synergistic use of  resources to address key stakeholders' interests and achieve both organizational and societal  benefits.

Strategic philanthropy

What type of marketing controls consists of unwritten, employee-based mechanisms that subtly  affect the behaviors of employees, both as individuals and in groups?

Informal controls

With respect to product descriptors, the product’s __________ communicate(s) how the product  behaves, hopefully in a fashion that is distinctive and appealing to customers.

Advantages

Rovio recently launched a new version of its popular Angry Birds game called “Angry Birds: Star  Wars.” What type of brand alliance does this represent?

Brand Licensing 

With respect to the different components of the total product offering, supplemental products play  the important role of:

Differentiating the product offering from competing products

Without a doubt, the most important tool of differentiation is:

The brand

Which of the following organizations is most likely to adopt a decentralized marketing structure  in order to promote creativity and flexibility?

Ritz-Carlton

Which of the following is an example of a monetary life cycle cost?

Product design

Which of the following activities is used to maintain clients rather than simply acquire  customers?

Value-based pricing strategy

.In times past, developing and implementing the “right” marketing strategy was all about  __________. In today’s economy, however, that emphasis has shifted to developing strategies  that attract and retain customers over the long term.

creating a large number of transactions in order to maximize the firm's market share

What is the difference between social control and cultural control?

Cultural control deals with the firm, social control deals with workgroups.

Based on the requirements for successful implementation, which of the following is the best  candidate to become the "5^th P" of marketing?

People

Why is the connection between marketing ethics and leadership so important in nurturing a strong  ethical culture?

Employees look to the leader as a model of acceptable behavior

Which of the following IS NOT a challenge associated with being ethical and socially  responsible?

Most employees perceive that the values of honesty, respect, and trust are infrequently applied in the workplace.

._________ occurs when a firm advertises a sale price as a reduction below the normal price when  it is not the case.

 Superficial Discounting

Research has found that corporate codes of ethics should contain six highly desirable core values  or principles. Which of the following IS NOT one of these core values?

Legality

The __________ marketing strategy is what the firm wants to happen—it is the firm’s planned  strategic choices that appear in the marketing plan itself.

intended marketing strategy

When a firm begins to charge high fees for additional services to non-profitable customers, it has  determined that the __________ of those customers is too low to warrant added efforts at  maintaining a relationship with them.

lifetime value

Which stage of the product life cycle has (1) establishing a strong, defensible market position,  and (2) achieving financial objectives that repay investment as its main priorities?

Growth

Typically, the difference between the planned marketing strategy and the strategy that actually  takes place is:

caused by the way the planned marketing strategy is implemented.

Each of the following is a potential product-related ethical issue EXCEPT:

Invasion of privacy

While Madison was shopping for coffee makers at Target, she recognized many of the brands that  were available. Although she was looking for a machine made by Mr. Coffee, she bought a coffee  maker by Hamilton Beach because Target was out of all Mr. Coffee machines. What type of  brand loyalty is Madison exhibiting?

Brand preference

Why is relationship development in business markets riskier and more involving than relationship  development in consumer markets?

Business buyers typically have fewer options to choose from, and financial risks are higher.

The role of ethics in marketing strategy can be distilled into one word. Without __________,  marketers run the risk of alienating stakeholders and inviting financial ruin.

trust

As a tool of positioning strategy, perceptual maps illustrate two basic issues. First, they indicate  products/brands that are similar in terms of relative mental position. Second, they illustrate:

voids in the current mindscape for a product category.

There are two types of monetary costs involved in the purchase of any product: transactional  costs and life-cycle costs. Which of the following best exemplifies a life-cycle cost in the  purchase of an automobile?

Anticipated repair expenses

If you purchase a notebook computer from Dell, you will note several brand insignias on the  outside, such as Dell, Intel, and Microsoft Windows. What type of branding strategy does this  example represent?

co-branding

What type of control mechanisms are used during implementation to influence employee  behaviors so that they will support the marketing strategy and its objectives?

process controls

The basis premise of the implementation through change approach is that:

the organization is modified in ways that will ensure the implementation of the marketing strategy.

Procter & Gamble is well known for its use of __________ branding because every product in  P&G’s portfolio has a different brand name.

Individual