Recently, Walmart announced it would begin selling organic food products. In doing so, Walmart is probably trying to: save the environment. reduce its costs. offset cost-based pricing pressure. gain government subsidies. attract a different market segment. Abercrombie & Fitch, a hip clothing retailer, includes a “Share it!” button on its website. This button encourages an Abercrombie customer to post a link to a product page (perhaps showing a new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer’s friends (who are probably very much like current customers) will click the link, visit the page, and make purchases. This is an example of a ______ growth strategy. diversification market development product proliferation market penetration product development LeBron James, Alex Rodriguez, and other athletes are paid huge sums of money by companies for celebrity endorsements. If, endorsements by these athletes create a clear understanding among consumers of the companies’ products, they can help with the firm’s ________________ strategy. product excellence segmentation customer excellence targeting positioning For many years, because of the size of the U.S. economy, domestic companies ignored international markets, preferring instead to develop new product offerings for existing customers. These companies were pursuing a ________________ strategy. market development segment development diversification market penetration product development Portfolio analysis is a useful and powerful tool, but firms often need to take a more balanced approach because: substitute approaches can offer different insights. None of these. measures are difficult to obtain and project. All of these. classifications can become self-fulfilling prophecies and strengths and weaknesses are distorted. For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates: strengths. threats. weaknesses. strategic plans. opportunities. Starbucks has developed a number of metrics beyond purely financial metrics. Knowing the importance of perceptions and knowing the importance of developing ways to demonstrate its activity, Starbucks tries to find clear ways to: help consumers to feel better about their purchases. demonstrate its sense of corporate social responsibility. build brand equity. All of these address concerns of opponents at local, regional, national and global levels. 8. In 2007, Apple Computer Company introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing a(n) __________ strategy. product development market penetration market development customer excellence operational excellence The strategic marketing planning process: forces marketing managers to think rationally. is a five-step process that should always be completed in order. begins with establishing specific, measurable outcomes. is not always sequential. is frequently used in reverse. An advertising campaign for Geico Insurance uses the slogan, “So easy, even a caveman could do it” to emphasize the ease of buying insurance on Geico’s website. This campaign is part of Geico’s: mission statement. market segmentation plan. positioning strategy. customer excellence strategy. product strategy. After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Monique now has to make _____________ decisions. mission statement competitive response product line market growth resource allocation Using the BCG portfolio analysis, a “dog” should be phased out unless: the market has a small chance of rebounding. None of the above. Dogs should be phased out. it complements or boosts the sales of another product. its marketing manager is a champion of the product. additional resources could increase its relative market share slightly. Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm’s products. These marketers are attempting to create value through ____. product cost-based price promotion place Which of the following is the best way to build a sustainable competitive advantage using product excellence? Copying the market leader’s features, but at a lower cost. Positioning the product using a clear, distinctive brand image. Focusing on being cutting edge and continually eliminating older features that are still in use by customers. Having the most features on each model. Being the first to offer customers desired features, even if competitors can copy them easily. When discussing the marketing planning process, STP stands for: Strategize, target, and promote. Situation analysis, trend spotting, and planning. Sustaining, trending, and positioning. Segmentation, targeting, and positioning. Strategies, tactics, and plans. 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: All of these. employees play a major role in the success of the firm. customers appreciate the kind of service that knowledgeable employees provide. building customer loyalty depends on a committed workforce. it is easier to communicate with and inspire the customer if the employees believe in what the firm is doing. Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in: more clearly defined market segments. increased long term profits. a product development growth strategy. opportunities for diversification. an operational advantage. As discussed in the chapter opening, Dunkin’ Donuts, Starbucks, and McDonald’s have all found ways to succeed in the branded coffee market. How have they managed to do this? They avoid opening stores near competitors’ locations. They have agreed to divide the coffee market between them, and thus can avoid competing with each other. They have competed in the coffee market for so long that their success is guaranteed. Each of the firms employs marketing strategies that take advantage of the firm’s unique strengths. They use higher-quality ingredients than do other firms. E-books, in addition to being an alternative product form, provide __________ value creation since they can be downloaded via the Internet immediately when they are needed. promotion price product place Primary H&R is a small, local heating and air conditioning business. The area military base is a potential source of growth, and H&R already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. H&R is considering a ____________ growth strategy. market development market penetration product proliferation diversification product development After identifying various market segments that her company could pursue, Lisa evaluated each segment’s attractiveness based on size, income, and accessibility. Lisa was involved in: situation analysis. target marketing. market penetration estimation. positioning. diversification. When firms successfully implement poor strategies (perhaps due to good luck) or do a poor job of implementing good strategies, it can be difficult to: evaluate performance and make adjustments. increase product excellence without reducing customer excellence. choose a business mission. develop segmentation strategies. generate cost-based performance ratios Value creation through Place decisions for a consumer product involves: making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to. putting the product in the front of the store. designing creative displays to capture consumers’ attention. pricing products differently at different stores. focusing exclusively on internet sales to reduce supply chain costs 3M involves its customers in the process of developing new products. In this way, it can benefit from current customers’ insights and develop new products that will meet these customers’ needs. 3M is pursuing a ______ growth strategy. Product penetration Diversification Market development Product development Market penetration Braddock University allows recent graduates to come back and take additional courses for free. By offering additional educational services, the university is enhancing its _____________ in an attempt to create value for its customers. diversification strategy product strategy locational excellence strategy segmentation strategy place strategy