Test Bank For
Marketing Strategy & Management Diane M. Phillips
Chapter 1-13
Chapter 1: Setting the stage: The purpose and promise of
marketing
1. The concept of marketing myopia was first described in a famous article under the same
title written by ______.
a. Dale Carnegie
b. Tyler Levitt
c. Theodore Levitt
d. Philip Kotler
Ans: C
Marketing myopia was first described in a revolutionary 1960 article by Theodore Levitt
published in the Harvard Business Review (HBR). He argued that many companies
incorrectly take a short-sided approach to the market, viewing marketing merely as a tool for
selling products. Instead, he emphasized the importance of focusing on satisfying customers’
needs.
2. Which of the following statements about the concept of ‘marketing myopia’ is correct?
a. Marketing myopia represents the activity, set of institutions and processes for creating,
communicating, delivering and exchanging offerings that have value for customers,
clients, partners and the society at large.
b. Marketing myopia refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market.
c. Marketing myopia is a short-sighted focus on selling products and services, rather than a
‘big picture’ focus on what consumers want.
,d. Marketing myopia is a situation where a company has a broad-minded marketing approach
and where the long-term marketing goals are given more importance than the short-term
goals.
Ans: C
Marketing myopia is a short-sighted focus on selling products and services, rather than
seeing the ‘big picture’ of what consumers want. The concept refers to the tendency to view
the scope of a business in a very limited way.
3. Which of the following cases best illustrates the concept of marketing myopia?
a. Team Fiji’s efforts to win a medal at the Olympics
b. Sony’s proactive and aggressive approach to marketing digital cameras
c. Netflix’s entry into the film rental industry
d. BP and its efforts to rebrand itself as Beyond Petroleum
Ans: D
With its Beyond Petroleum green advertising campaign (2000–2007), British Petroleum re-
introduced itself to the market as a socially conscious company. However, very few
substantive changes were made with regard to BP operations.
4. The definition of marketing according to the American Marketing Association
acknowledges the importance of______
a. Aggressive selling and promotion of products and services
b. Marketing strategies for the short term
c. Exchanging value-based offerings providing a win-win situation
d. A zero-sum game strategy in marketing
Ans: C
According to the American Marketing Association, marketing is the activity within a set of
institutions and processes for creating, communicating, delivering and exchanging offerings
that have value for customers, clients, partners and the society at large (AMA 2017). The
fundamental concepts to take away from the AMA definition are the customer-centricity
approach; the wide range of ‘offerings that have value’ available today: marketers can
,promote ideas, people, places and services; the dynamics of exchanging products/services
and the consequent relational balances (or imbalances) among all the parties involved.
5. The process of looking at any industry holistically and understanding the key drivers of
competition and profitability is an important part of ______.
a. Knowledge management
b. Operations management
c. Distribution management
d. Marketing strategy
Ans: D
As Michael Porter claims, the ‘job of the strategist is to understand and cope with the
competition’ (Porter 2008, p. 79). Strategically analysing and coping with the complexity of
the competitive market forces is critical for a marketing strategist.
6. ______ marketing strategy aims to deliver value to consumers in order to help the
organization achieve specific objectives.
a. Internal
b. Integrated
c. Independent
d. International
Ans: B
Integrated: ‘Marketing strategy is an integrated set of decisions and processes designed to
deliver value to consumers to help the organization achieve specific objectives’ (reference
page 11). In any industry, assessing all the interrelated dynamics is crucial to the formulation
of effective strategy.
7. Overcoming marketing myopia enables a variety of strategic opportunities for the
marketing team. Which of the following statements most closely represents a non-myopic
approach?
a. Marketing managers cannot identify the myriad of options that are available to customers.
, b. Competition is narrow.
c. Marketing managers can better identify not just the myriad of options that are available to
customers, but also they can create strategies that keep these competitive forces in check.
d. A company can easily find the right customers for its products.
Ans: C
Marketing managers can better identify not just the myriad of options that are available to
customers, but they can create strategies that keep these competitive forces in check (ref.
page 13). Facing marketing myopia allows organizations to anticipate and satisfy consumers’
needs and strategize on how to lead and position themselves in the market.
8. The ______ developed by Michael Porter takes a broad perspective on competition.
a. VRIO framework
b. SWOT analysis
c. PESTEL analysis
d. 5 Forces Model
Ans: D
Michael Porter’s Five Forces framework has shaped a generation of academic research and
business practice. According to Porter, the five forces that shape competition, regardless of
the sector/industry are as follows: (1) the threat of new entrants, (2) the bargaining power of
buyers, (3) the threat of substitute products or services, (4) the bargaining power of suppliers
and (5) rivalry among existing competitors.
9. According to Porter (2008), how should the marketing team assess the competitive
landscape?
Ans:
Originally developed by Harvard Business School’s Michael E. Porter (2008), the Five
Forces Model represents a crucial marketing tool that helps marketers (and all those parties
involved) analyse and predict the attractiveness and profitability of an industry. Michael
Porter’s framework outlines five factors that are used to gauge competitiveness in a
marketplace: (1) the threat of new entrants, (2) the bargaining power of buyers, (3) the threat
Marketing Strategy & Management Diane M. Phillips
Chapter 1-13
Chapter 1: Setting the stage: The purpose and promise of
marketing
1. The concept of marketing myopia was first described in a famous article under the same
title written by ______.
a. Dale Carnegie
b. Tyler Levitt
c. Theodore Levitt
d. Philip Kotler
Ans: C
Marketing myopia was first described in a revolutionary 1960 article by Theodore Levitt
published in the Harvard Business Review (HBR). He argued that many companies
incorrectly take a short-sided approach to the market, viewing marketing merely as a tool for
selling products. Instead, he emphasized the importance of focusing on satisfying customers’
needs.
2. Which of the following statements about the concept of ‘marketing myopia’ is correct?
a. Marketing myopia represents the activity, set of institutions and processes for creating,
communicating, delivering and exchanging offerings that have value for customers,
clients, partners and the society at large.
b. Marketing myopia refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market.
c. Marketing myopia is a short-sighted focus on selling products and services, rather than a
‘big picture’ focus on what consumers want.
,d. Marketing myopia is a situation where a company has a broad-minded marketing approach
and where the long-term marketing goals are given more importance than the short-term
goals.
Ans: C
Marketing myopia is a short-sighted focus on selling products and services, rather than
seeing the ‘big picture’ of what consumers want. The concept refers to the tendency to view
the scope of a business in a very limited way.
3. Which of the following cases best illustrates the concept of marketing myopia?
a. Team Fiji’s efforts to win a medal at the Olympics
b. Sony’s proactive and aggressive approach to marketing digital cameras
c. Netflix’s entry into the film rental industry
d. BP and its efforts to rebrand itself as Beyond Petroleum
Ans: D
With its Beyond Petroleum green advertising campaign (2000–2007), British Petroleum re-
introduced itself to the market as a socially conscious company. However, very few
substantive changes were made with regard to BP operations.
4. The definition of marketing according to the American Marketing Association
acknowledges the importance of______
a. Aggressive selling and promotion of products and services
b. Marketing strategies for the short term
c. Exchanging value-based offerings providing a win-win situation
d. A zero-sum game strategy in marketing
Ans: C
According to the American Marketing Association, marketing is the activity within a set of
institutions and processes for creating, communicating, delivering and exchanging offerings
that have value for customers, clients, partners and the society at large (AMA 2017). The
fundamental concepts to take away from the AMA definition are the customer-centricity
approach; the wide range of ‘offerings that have value’ available today: marketers can
,promote ideas, people, places and services; the dynamics of exchanging products/services
and the consequent relational balances (or imbalances) among all the parties involved.
5. The process of looking at any industry holistically and understanding the key drivers of
competition and profitability is an important part of ______.
a. Knowledge management
b. Operations management
c. Distribution management
d. Marketing strategy
Ans: D
As Michael Porter claims, the ‘job of the strategist is to understand and cope with the
competition’ (Porter 2008, p. 79). Strategically analysing and coping with the complexity of
the competitive market forces is critical for a marketing strategist.
6. ______ marketing strategy aims to deliver value to consumers in order to help the
organization achieve specific objectives.
a. Internal
b. Integrated
c. Independent
d. International
Ans: B
Integrated: ‘Marketing strategy is an integrated set of decisions and processes designed to
deliver value to consumers to help the organization achieve specific objectives’ (reference
page 11). In any industry, assessing all the interrelated dynamics is crucial to the formulation
of effective strategy.
7. Overcoming marketing myopia enables a variety of strategic opportunities for the
marketing team. Which of the following statements most closely represents a non-myopic
approach?
a. Marketing managers cannot identify the myriad of options that are available to customers.
, b. Competition is narrow.
c. Marketing managers can better identify not just the myriad of options that are available to
customers, but also they can create strategies that keep these competitive forces in check.
d. A company can easily find the right customers for its products.
Ans: C
Marketing managers can better identify not just the myriad of options that are available to
customers, but they can create strategies that keep these competitive forces in check (ref.
page 13). Facing marketing myopia allows organizations to anticipate and satisfy consumers’
needs and strategize on how to lead and position themselves in the market.
8. The ______ developed by Michael Porter takes a broad perspective on competition.
a. VRIO framework
b. SWOT analysis
c. PESTEL analysis
d. 5 Forces Model
Ans: D
Michael Porter’s Five Forces framework has shaped a generation of academic research and
business practice. According to Porter, the five forces that shape competition, regardless of
the sector/industry are as follows: (1) the threat of new entrants, (2) the bargaining power of
buyers, (3) the threat of substitute products or services, (4) the bargaining power of suppliers
and (5) rivalry among existing competitors.
9. According to Porter (2008), how should the marketing team assess the competitive
landscape?
Ans:
Originally developed by Harvard Business School’s Michael E. Porter (2008), the Five
Forces Model represents a crucial marketing tool that helps marketers (and all those parties
involved) analyse and predict the attractiveness and profitability of an industry. Michael
Porter’s framework outlines five factors that are used to gauge competitiveness in a
marketplace: (1) the threat of new entrants, (2) the bargaining power of buyers, (3) the threat
