Test bank for Marketing 4th Canadian Edition by Dhruv Grewal

Chapter 02 Developing Marketing Strategies and a Marketing Plan Multiple Choice Questions 1. Wine industry is a very competitive market. Some wineries invest in corporate social responsibility programs knowing that competitors cannot easily copy the programs. This is a good example of ______ A. defining the target market. B. reducing the cost. C. gaining competitive advantage. D. increasing promotion. E. providing outstanding customer services. A sustainable competitive advantage is an advantage over the competition that is not easily copied and could be maintained over a long period of time. Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 02-01 Define a marketing strategy. Topic: 02-01 What Is A Marketing Strategy? 2. Customer excellence focuses on: A. having a good physical location and Internet presence. B. carrying out effective branding and positioning. C. having products with high perceived value. D. retaining loyal buyers and providing excellent service. E. maintaining efficient operations and an excellent supply chain. Customer excellence focuses on retaining loyal customers and providing excellent customer service. Viewing customers with a lifetime value perspective is key to modern customer retention programs. Accessibility: Keyboard Navigation Blooms: Evaluate Difficulty: Easy Learning Objective: 02-01 Define a marketing strategy. Topic: 02-02 Customer Excellence 3. Emily regularly chooses Argo Airlines for her travels. The company values her preference and rewards her with loyalty points. It would entitle Emily for reduced ticket rates for certain flights. Through this offer, the company succeeds in retaining a regular user. In this scenario, which of the following is used by Argo Airlines to achieve sustainable competitive advantage? A. Operational excellence B. Product excellence C. Diversification excellence D. Locational excellence E. Customer excellence By retaining a loyal customer, Argo Airlines has used customer excellence to achieve sustainable competitive advantage. Customer excellence is achieved when a firm develops value-based strategies for retaining loyal customers and provides outstanding customer service. Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 02-01 Define a marketing strategy. Topic: 02-02 Customer Excellence 4. Operational excellence is achieved by: A. ensuring an excellent supply chain management and strong relationships with suppliers. B. maintaining excellent customer service and excellent relationships with suppliers. C. strong relationships with suppliers and retailing loyal buyers. D. maintain efficient operations with the best location selection. E. excellent supply chain management and differentiate the product offerings. Operational excellence is achieved by ensuring an excellent supply chain management and strong relationships with suppliers. It helps firms to satisfy their customers through better service. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Moderate Learning Objective: 02-01 Define a marketing strategy. Topic: 02-03 Operational Excellence 5. Tectron Computers Inc., a manufacturer of desktop computers and peripherals, focuses on efficient coordination in every stage of production and delivery and ensures that customers' demands are met within the target time. This precision makes Tectron a favourite choice among customers. Given this information, which of the following does the company use to achieve sustainable competitive advantage? A. Product excellence B. Customer excellence C. Operational excellence D. Diversification excellence E. Locational excellence Tectron Computers achieves sustainable competitive advantage through operational excellence. It is achieved by ensuring an excellent supply chain management. Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 02-01 Define a marketing strategy. Topic: 02-03 Operational Excellence 6. Davison Associates Inc. manufactures office furniture. The management of the company believes that developing a strong brand name is the primary strategy to compete in the market. Hence, it invests a significant share of its resources to position its brands through promotions and service. Which of the following does the company use to achieve sustainable competitive advantage? A. Diversification excellence B. Product excellence C. Customer excellence D. Locational excellence E. Operational excellence In this scenario, Davison Associates uses product excellence to achieve sustainable competitive advantage. Product excellence focuses on having products with high perceived value and effective branding and positioning. Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 02-01 Define a marketing strategy. Topic: 02-04 Product Excellence 7. Which of the following strategies involves focusing on having an Internet presence? A. Diversification excellence B. Product excellence C. Locational excellence D. Operational excellence E. Customer excellence Locational excellence focuses on having an Internet presence. A competitive advantage based on location is sustainable because it is not easily duplicated. Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 02-01 Define a marketing strategy. Topic: 02-05 Locational Excellence 8. Foodstar Corp., a chain of restaurants, has outlets in the major residential areas of a town. It ensures that its outlets are well placed and easily accessible. It also maintains a strong Internet presence by updating the details of each day's menu on its website. Given this information, which of the following strategies is used by Foodstar to achieve sustainable competitive advantage? A. Locational excellence B. Operational excellence C. Product excellence D. Customer excellence E. Diversification excellence Foodstar uses locational excellence to achieve sustainable competitive advantage. Locational excellence involves having a good physical location and Internet presence. Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 02-01 Define a marketing strategy. Topic: 02-05 Locational Excellence 9. Apple achieved success by providing customers with products that meet/exceed expectations, good customer service, convenient locations and online presence. Which of the following strategies is used by Apple to achieve sustainable competitive advantage? A. Service excellence B. Marketing excellence C. Product excellence D. Multiple source of advantage E. Operational excellence Successful firms, in many cases, use multiple strategies to build a competitive advantage. In this example, Apple is using product, operational, and service excellence. Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 02-01 Define a marketing strategy. Topic: 02-06 Multiple Sources of Advantage 10. The top managers of a firm prepare a marketing plan. They define the mission and objectives of the business and evaluate the present situation of the firm. Which of the following phases of the marketing plan includes these activities performed by the top managers? A. Planning B. Implementation C. Control D. Initiation E. Design In the planning phase of the marketing plan, marketing executives and other top managers define the mission and objectives of the business and evaluate the situation by assessing how various players, both inside and outside the organization, affect the firm's potential for success. Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 02-02 Describe the elements of a marketing plan. Topic: 02-07 The Marketing Plan 11. Which of the following is NOT an activity in the planning phase of a marketing plan? A. Developing a marketing mix B. Setting business objectives C. Defining the mission D. Situation analysis E. Observe consumer behaviour