Q&A Hero

Q: A differentiation strategy refers to one of Porter's generic business strategies that a. involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments. b. requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. c. focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments. d. requires products to have significant points of difference to target one or only a few market segments. e. seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D"manufacturing efficiencies.

Q: One of Porter's generic business strategies requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. This is referred to as a __________. a. differentiation focus strategy b. cost focus strategy c. cost leadership strategy d. differentiation strategy e. supply focus strategy

Q: In the early 1900s, Henry Ford revolutionized the automobile industry by developing production lines and mass-producing the Ford Model T automobile. By heavily reducing production costs, Henry Ford made the Model T affordable for the average American family. What generic business strategy did Henry Ford use to gain a competitive advantage in the automobile market? a. a cost leadership strategy b. a differentiation strategy c. a cost focus strategy d. a differentiation focus strategy e. a limited production strategy

Q: According to Porter's four generic business strategies framework, a __________ strategy focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments. a. differentiation focus b. cost focus c. cost leadership d. differentiation e. supply focus

Q: A cost leadership strategy refers to one of Porter's generic business strategies that a. involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments. b. focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments. c. requires products to have significant points of difference to target one or only a few market segments. d. requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. e. seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D"manufacturing efficiencies.

Q: One of Porter's generic business strategies that focuses on reducing expenses and, in turn, lowers product prices while targeting a broad array of market segments, is referred to as a a. differentiation focus strategy. b. cost focus strategy. c. differentiation strategy. d. cost leadership strategy. e. supply focus strategy.

Q: Figure 1. A firm following a differentiation focus strategy shown in Figure 1. above would be found in a. "A" b. "B" c. "C" d. "D" e. both "B" and "D"

Q: Figure 1. A firm following a differentiation strategy shown in Figure 1. above would be found in __________. a. "A" b. "B" c. "C" d. "D" e. both "B" and "D"

Q: Figure 1. A firm following a cost focus strategy shown in Figure 1. above would be found in __________. a. "A" b. "B" c. "C" d. "D" e. both "A" and "C"

Q: Figure 1. A firm following a cost leadership strategy shown in Figure 1. above would be found in __________. a. "A" b. "B" c. "C" d. "D" e. both "A" and "C"

Q: Figure 1. Porter's generic business strategies shown in Figure 1. above, "D" refers to a __________ strategy. a. quality focus b. cost leadership c. differentiation d. cost focus e. differentiation focus

Q: Figure 1. In Porter's generic business strategies shown in Figure 1. above, "C" refers to a __________ strategy. a. quality focus b. cost leadership c. differentiation d. cost focus e. differentiation focus

Q: Figure 1. In Porter's generic business strategies shown in Figure 1. above, "B" refers to a __________ strategy. a. quality focus b. cost leadership c. differentiation d. cost focus e. differentiation focus

Q: Figure 1. In Porter's generic business strategies shown in Figure 1. above, "A" refers to a __________ strategy. a. quality focus b. cost leadership c. differentiation d. cost focus e. differentiation focus

Q: Porter's four generic business strategies are differentiation, cost focus, __________, and cost leadership. a. exclusivity b. differentiation focus c. quality focus d. geographic span e. service leadership

Q: Porter's four generic business strategies are differentiation, __________, differentiation focus, and cost leadership. a. cost focus b. diversification c. service leadership d. quality leadership e. competition-focus

Q: Porter's four generic business strategies are __________, cost focus, differentiation focus, and cost leadership. a. exclusivity b. quality focus c. differentiation d. geographic span e. service leadership

Q: Porter's four generic business strategies involve combinations of (1) competitive scope or the breadth of the target markets and (2) __________. a. organizational structure b. degree of geographical distribution c. investment in research and development d. a stress on costs versus product differentiation e. relative number of products in a product line

Q: Porter's four generic business strategies involve combinations of (1) __________ and (2) a stress on costs versus product differentiation. a. organizational structure b. degree of geographical distribution c. investment in research and development d. relative number of products in a product line e. competitive scope or the breadth of the target markets

Q: According to Porter's framework regarding generic business strategy, there are two fundamental alternatives a firm can use to seek a competitive advantage. One of these is to a. become the high-cost producer within the markets it competes and using a skimming pricing strategy to recoup these high R&D expenses. b. adopt a "me too" strategy to achieve competitive parity. c. become the low-cost producer within the markets in which it competes. d. state its function in society to differentiate itself from competitors. e. differentiate itself from competitors by developing similar marketing programs.

Q: A generic business strategy refers to a strategy that a. seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D"manufacturing efficiencies. b. can be adopted by any firm, regardless of the product or industry involved, to achieve a competitive advantage. c. describes an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals. d. states the organization's function in society, often identifying its customers, markets, products, and technologies. e. helps a firm search for growth opportunities from among current and new markets as well as current and new products.

Q: Regardless of the product or industry involved, the strategy that a firm adopts to achieve a competitive advantage is referred to as a(n) __________. a. generic business strategy b. annual business plan c. long-range marketing plan d. marketing action program e. synergy analysis framework

Q: For General Mills, the annual planning cycle typically starts with a detailed marketing research study of current users and ends after __________ weeks with the approval of the plan by the division general manager. a. 26 b. 32 c. 42 d. 48 e. 50

Q: Annual __________ are documents that deal with the marketing goals and strategies for a product, product line, or entire firm for a single year. a. production estimates b. sales forecasts c. budget projections d. marketing plans e. tactical forecasts

Q: Marketing plans that cover marketing activities from two to five years into the future are referred to as __________. a. marketing tactics b. marketing strategies c. generic marketing strategies d. short-term marketing plans e. long-range marketing plans

Q: Figure 1. In a recent survey, responding firms reported that on average they used eight metrics to measure their innovation. Figure 1. above shows that among firms that use more than three different innovation metrics, they use two different kindsoutput metrics and input metrics. Which of the following is an input metric? a. number of new products or services launched b. R&D spending as a percentage of sales c. return on assets (ROA) in the pipeline d. customer satisfaction with new products or services e. revenue growth due to new products or services

Q: Figure 1. In a recent survey, responding firms reported that on average they used eight metrics to measure their innovation. Figure 1. above shows that among firms that use more than three different innovation metrics, they use two different kindsoutput metrics and input metrics. Which of the following is an input metric? a. number of ideas or concepts in the pipeline b. number of new products or services launched c. return on assets (ROA) in the pipeline d. customer satisfaction with new products or services e. revenue growth due to new products or services

Q: Figure 1. In a recent survey, responding firms reported that on average they used eight metrics to measure their innovation. Figure 1. above shows that among firms that use more than three different innovation metrics, they use two different kindsoutput metrics and input metrics. Which of the following is an output metric? a. number of ideas or concepts in the pipeline b. R&D spending as a percentage of sales c. return on assets (ROA) in the pipeline d. customer satisfaction with new products or services e. number of R&D projects

Q: Figure 1. In a recent survey, responding firms reported that on average they used eight metrics to measure their innovation. Figure 1. above shows that among firms that use more than three different innovation metrics, they use two different kindsoutput metrics and input metrics. Which of the following is an output metric? a. number of ideas or concepts in the pipeline b. R&D spending as a percentage of sales c. revenue growth due to new products or services d. return on assets (ROA) in the pipeline e. number of R&D projects

Q: Each phase of the strategic marketing process creates its own unique type of output report. Which of the following would be associated with the evaluation phase? a. performance reviews for key personnel b. corrective action memos, triggered by comparing results with goals, often using the firm's marketing dashboards and metrics c. sales reports using the firm's marketing metrics and dashboards d. action memos that tell who is to do what by when e. marketing plans that define goals with the relevant metrics and the marketing mix strategies to achieve them

Q: Which of the following output reports is used in the evaluation phase of the strategic marketing process? a. marketing plans that define goals b. action memos that tell who is to do what c. marketing research reports d. trend reports e. corrective action memos

Q: Each phase of the strategic marketing process creates its own unique type of output report. Which of the following would be associated with the implementation phase? a. performance reviews for key personnel b. corrective action memos, triggered by comparing results with plans, often from the firm's marketing dashboards and metrics c. sales reports using the firm's marketing metrics and dashboards d. action memos that tell who is to do what by when e. marketing plans that define goals with the relevant metrics and the marketing mix strategies to achieve them

Q: Which output report is used in the implementation phase of the strategic marketing process? a. marketing plans that define goals b. projections of sales and expenses c. action memos that tell who is to do what by when d. corrective action memos e. tracking reports

Q: Which output report would be associated with the planning phase of the strategic marketing process? a. performance reviews for key personnel b. marketing plans that define goals with the relevant metrics and the marketing mix strategies to achieve them c. action memos that tell who is to do what by when d. corrective action memos, triggered by comparing results with plans, often from the firm's marketing dashboards and metrics e. sales reports using the firm's marketing metrics and dashboards

Q: Which of the following output reports is used in the planning phase of the strategic marketing process? a. marketing plans that define goals b. action memos that tell who is to do what c. action memos that tell who is to do what by when d. corrective action memos e. tracking reports

Q: What output report would be associated with the planning phase of the strategic marketing process? a. action memo b. operating statement c. marketing dashboard d. marketing plan e. corrective action memo

Q: Which of the following pieces of information is used in the evaluation phase of the strategic marketing process? a. action memos to correct problems and exploit opportunities b. charts assigning responsibilities for actions and deadlines c. revenues associated with each point of market share d. trends for industry and competitors e. possible cannibalization effects on other products in the line

Q: Which of the following pieces of information is used in the evaluation phase of the strategic marketing process? a. marketing return on investment b. tracking reports to measure results c. revenues associated with each point of market share d. trends for industry and competitors e. possible cannibalization effects on other products in the line

Q: The information needed for the evaluation phase of the strategic marketing process includes: (1) __________ and (2) action memos to correct problems and exploit opportunities. a. positioning studies b. market-product grids with target segments and product groupings c. detailed plans to execute the marketing program d. tracking reports to measure results e. projected future sales, expenses, and profits

Q: The actions taken during the evaluation phase of the strategic marketing process include: (1) compare results with plans to identify deviations and (2) __________. a. find points of difference b. execute the marketing program c. track sales and revenues and compare with competitors d. develop the budget by estimating revenues, expenses, and profits e. correct negative deviations and exploit positive ones

Q: The actions taken during the evaluation phase of the strategic marketing process include: (1) __________ and (2) correct negative deviations and exploit positive ones. a. find points of difference b. execute the marketing program c. compare results with plans to identify deviations d. track sales and revenues and compare with competitors e. develop the budget by estimating revenues, expenses, and profits

Q: The information needed for the implementation phase of the strategic marketing process includes: (1) action memos with deadlines and Gantt charts; (2) organizational charts; and (3) __________. a. marketing research b. positioning studies c. market-product grids with target segments and product groupings d. detailed plans to execute the marketing program e. projected future sales, expenses, and profits

Q: The information needed for the implementation phase of the strategic marketing process includes: (1) action memos with deadlines and Gantt charts; (2) __________; and (3) marketing research. a. positioning studies b. market-product grids with target segments and product groupings c. organizational charts d. detailed plans to execute the marketing program e. projected future sales, expenses, and profits

Q: The information needed for the implementation phase of the strategic marketing process includes: (1) __________, (2) organizational charts, and (3) marketing research. a. action memos with deadlines and Gantt charts b. positioning studies c. market-product grids with target segments and product groupings d. detailed plans to execute the marketing program e. projected future sales, expenses, and profits

Q: Which of the following pieces of information is used in the implementation phase of the strategic marketing process? a. marketing return on investment b. marketing research c. revenues associated with each point of market share d. trends for industry and competitors e. possible cannibalization effects on other products in the line

Q: Which of the following pieces of information is used in the implementation phase of the strategic marketing process? a. corporate return on investment b. revenues associated with each point of market share c. trends for industry and competitors d. possible cannibalization effects on other products in the line e. organizational charts

Q: Which of the following pieces of information is used in the implementation phase of the strategic marketing process? a. marketing return on investment b. Gantt charts c. revenues associated with each point of market share d. trends for industry and competitors e. possible cannibalization effects on other products in the line

Q: The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources, (2) design the marketing organization, (3) develop schedules, and (4) __________. a. position the product b. select target markets c. find points of difference d. execute the marketing program e. develop the budget by estimating revenues, expenses, and profits

Q: The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources, (2) design the marketing organization, (3) __________, and (4) execute the marketing program. a. position the product b. select target markets c. develop schedules d. find points of difference e. develop the budget by estimating revenues, expenses, and profits

Q: The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources, (2) __________, (3) develop schedules, and (4) execute the marketing program. a. select target markets b. design marketing organization c. position the product d. find points of difference e. develop the budget by estimating revenues, expenses, and profits

Q: The actions taken during the implementation phase of the strategic marketing process include: (1) __________, (2) design the marketing organization, (3) develop schedules, and (4) execute the marketing program. a. obtain resources b. select target markets c. position the product d. find points of difference e. develop the budget by estimating revenues, expenses, and profits

Q: The information needed for the marketing program, Step 3 of the planning phase, includes: (1) marketing mix actions and (2) __________. a. positioning studies b. market-product grids with target segments and product groupings c. detailed plans to execute the marketing program d. projected future sales, expenses, and profits e. trends for industry and competitors

Q: The information needed for the marketing program, Step 3 of the planning phase, includes: (1) __________ and (2) detailed plans to execute the marketing program. a. positioning studies b. marketing mix actions c. market-product grids with target segments and product groupings d. projected future sales, expenses, and profits e. market potential studies

Q: The actions taken in the development of the marketing program, Step 3 of the planning phase, include: (1) develop the program's marketing mix actions and (2) __________. a. select target markets b. identify industry trends c. position the product d. find points of difference e. develop the budget by estimating revenues, expenses, and profits

Q: The information needed in market product focus and goal setting, Step 2 of the planning phase includes: (1) market potential studies, (2) market-product grids with target segments and product groupings, and (3) __________. a. trends for industry and competitors b. marketing mix actions c. detailed plans to execute the marketing program d. positioning studies e. projected future sales, expenses, and profits

Q: The information needed in market product focus and goal setting, Step 2 of the planning phase includes: (1) __________, (2) market-product grids with target segments and product groupings, and (3) positioning studies. a. market potential studies b. trends for industry and competitors c. marketing mix actions d. detailed plans to execute the marketing program e. projected future sales, expenses, and profits

Q: The actions taken during market product focus and goal setting, Step 2 of the planning phase, include: (1) set market and product goals, (2) select target markets, (3) find points of difference, and (4) __________. a. identify industry trends b. research customers c. develop the program's marketing mix d. develop the budget by estimating revenues, expenses, and profits e. position the product

Q: The actions taken during market product focus and goal setting, Step 2 of the planning phase, include: (1) set market and product goals, (2) select target markets, (3) __________, and (4) position the product. a. find points of difference b. identify industry trends c. research customers d. develop the program's marketing mix e. develop the budget by estimating revenues, expenses, and profits

Q: The actions taken during market product focus and goal setting, Step 2 of the planning phase, include: (1) set market and product goals; (2) __________; (3) find points of difference; and (4) position the product. a. identify industry trends b. select target markets c. research customers d. develop the program's marketing mix e. develop the budget by estimating revenues, expenses, and profits

Q: The actions taken during market product focus and goal setting, Step 2 of the planning phase, include: (1) __________, (2) select target markets, (3) find points of difference, and (4) position the product. a. identify industry trends b. research customers c. set market and product goals d. develop the program's marketing mix e. develop the budget by estimating revenues, expenses, and profits

Q: The information needed in a situation (SWOT) analysis or Step 1 of the planning phase includes: (1) trends for industry and competitors and (2) __________. a. projected future sales, expenses, and profits b. market potential studies c. positioning studies d. market-product grids with target segments and product groupings e. marketing mix actions

Q: The actions taken in a situation (SWOT) analysis or Step 1 of the planning phase include: (1) identify industry trends, (2) analyze competitors, (3) assess own company, and (4) __________. a. set market and product goals b. research customers c. select target markets d. find points of difference e. position the product

Q: The actions taken in a situation (SWOT) analysis or Step 1 of the planning phase include: (1) identify industry trends, (2) __________, (3) assess own company, and (4) research customers. a. set market and product goals b. select target markets c. find points of difference d. analyze competitors e. position the product

Q: The actions taken in a situation (SWOT) analysis or Step 1 of the planning phase include: (1) __________, (2) analyze competitors, (3) assess own company, and (4) research customers. a. set market and product goals b. select target markets c. find points of difference d. position the product e. identify industry trends

Q: During the planning phase of the strategic marketing process, the marketing manager will a. design the marketing organization. b. obtain resources. c. develop marketing schedules. d. construct managerial bonus plans. e. set market and product goals.

Q: Which of the following pieces of information is used in the development of the marketing program, the third step of the planning phase of the strategic marketing process? a. marketing return on investment b. market-product grids with target segments and product groupings c. detailed plans to execute the marketing program d. market potential studies e. trends for industry and competitors

Q: Which of the following pieces of information is used in the development of the marketing program, the third step of the planning phase of the strategic marketing process? a. marketing return on investment b. market-product grids with target segments and product groupings c. trends for industry and competitors d. marketing mix actions e. market potential studies

Q: Which of the following pieces of information is used in market-product focus and goal setting, the second step of the planning phase of the strategic marketing process? a. marketing return on investment b. positioning studies c. revenues associated with each point of market share d. possible cannibalization effects on other products in the line e. trends for industry and competitors

Q: Which of the following pieces of information is used in market-product focus and goal setting, the second step of the planning phase of the strategic marketing process? a. market-product grids with target segments and product groupings b. marketing return on investment c. revenues associated with each point of market share d. trends for industry and competitors e. possible cannibalization effects on other products in the line

Q: Which of the following pieces of information is used in market-product focus and goal setting, the second step of the planning phase of the strategic marketing process? a. marketing return on investment b. revenues associated with each point of market share c. trends for industry and competitors d. possible cannibalization effects on other products in the line e. market potential studies

Q: Which of the following pieces of information is used in a SWOT analysis, the first step of the planning phase of the strategic marketing process? a. marketing return on investment b. projected future sales, expenses, and profits c. market share for the product d. revenues associated with each point of market share e. possible cannibalization effects on other products in the line

Q: Which of the following pieces of information is used in a SWOT analysis, the first step of the planning phase of the strategic marketing process? a. marketing return on investment b. market share for the product c. trends for industry and competitors d. revenues associated with each point of market share e. possible cannibalization effects on other products in the line

Q: When using share points to make marketing resource allocation decisions, marketing managers must estimate: (1) the market share for the product, (2) the revenues associated with each point of market share, (3) __________, and (4) possible cannibalization effects on other products in the line. a. total production costs b. number of market segments c. stage of the product in its product life cycle d. the contribution to overhead and profit of each share point e. the total financial resources available for a sustained marketing effort

Q: When using share points to make marketing resource allocation decisions, marketing managers must estimate: (1) the market share for the product, (2) __________, (3) the contribution to overhead and profit (or gross margin) of each share point, and (4) possible cannibalization effects on other products in the line. a. total production costs b. number of market segments c. stage of the product in its product life cycle d. the total financial resources available for a sustained marketing effort e. the revenues associated with each point of market share

Q: When using share points to make marketing resource allocation decisions, marketing managers must estimate: (1) __________, (2) the revenues associated with each point of market, (3) the contribution to overhead and profit (or gross margin) of each share point, and (4) possible cannibalization effects on other products in the line. a. the market share for the product b. the number of market segments c. the total production costs d. the total financial resources available for a sustained marketing effort e. the stage of the product in its product life cycle

Q: New Balance has no celebrity endorsers and does minimal advertising, yet the athletic shoe brand has 11 percent of the sales in the athletic footwear market. The marketing team at New Balance estimates that increasing sales to 12 percent of the market will require an increase of $10 million in marketing effort and will result in an increase of its footwear sales of an additional $12 million. This 1 percent incremental increase from 11 to 12 percent is referred to as __________. a. a rating b. marginal market share c. a sales response margin d. a share point e. a direct response rate

Q: Percentage points of market share used in analysis as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm are referred to as a. market share b. ratings c. marketing ROI d. S-curve points e. share points

Q: A share point refers to a. the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself. b. the percentage points of market share, used in analysis as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm. c. the sales revenue generated by different products within the firm expressed as a percentage. d. a measure of the quantitative value or trend of a marketing activity or result divided by the total marketing effort of the firm. e. the total number of a product sold in one year compared to the cumulative total sold since its introduction, expressed as a percentage.

Q: You have been told that a company increased its marketing effort from $3 million to $5 million, resulting in increased sales revenue from $10 million to $20 million. Calculate the company's ratio of incremental sales revenue to incremental marketing effort.a. 4:1b. 1:5c. 5:1d. 1:4e. 5:1.

Q: Figure 1. According to Figure 1. above, the result of spending an additional $1 million in annual marketing effort from $3 million to $4 million resulted in increased revenues of __________. a. $20 million b. $40 million c. $50 million d. $70 million e. $80 million