Cuốn Nguyên lý tiếp thị của Philip Kotler được xem như kinh thánh về ngành marketing tại 58 quốc gia trên thế giới. Thực ra bản dịch Nguyên lý tiếp thị chưa thực sự bao quát được toàn bộ nội dung cuốn sách bởi marketing rộng hơn tiếp thị rất nhiều. Bởi tính toàn diện của mình, sách Nguyên lý tiếp thị đã trở thành giáo trình môn marketing trong rất nhiều trường đại học.
Chapter Company and Marketing Strategy: Partnering to Build Customer Relationships GENERAL CONTENT: Multiple-Choice Questions _ is the task of selecting an overall company strategy for long-run survival and growth a Strategic market planning b Annual market planning c Short-term planning d Advertising e None of the above is correct (Answer: a; p 37; Easy) Adapting the firm to take advantage of opportunities in its constant changing environment is called _ a long-range planning b short-range planning c annual planning d strategic planning e environmental scanning (Answer: d; p 37; Easy) What is our business? Who’s our customer? What our customers value? What should our business be? All these simple-sounding questions define a firm’s _ a objectives and goals b mission statement c business portfolio d marketing and functional strategies e operational strategies (Answer: b; p 37; Moderate) A _ defines a business in terms of satisfying basic customer needs a market oriented mission statement b strategic plan c annual plan d operational plan e none of the above is correct (Answer: a; p 38; Moderate) 33 All of the following are accurate descriptions of a company’s mission statement, except which one? a Mission statement should be realistic b Mission statement should be broad c Mission statement should fit the market environment d Mission statement should be written for “public relations” purpose e Mission statement might outline employee growth options (Answer: b; p 39; Moderate) All of the following are market-oriented mission statements, except which one? a eBay’s mission is to connect individual buyers and sellers online b Singapore Airlines is the world’s largest airline c Girl Scouts of America, “where girls grow strong” d Wal-Mart, “we deliver low prices everyday.” e None of the above is a market-oriented mission statement (Answer: b; p 38; Easy) The collection of businesses and products that make up a company is called its _ a strategic business unit b mission statement c strategic plan d business portfolio e operational factors (Answer: d; p 40; Easy) _ can be a company division, a product line within a division, or sometimes a single product or brand a A market b The BCG c An SBU d A PLC e An initiator (Answer: c; p 40; Easy) The purpose of _ is to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment a a market b an SBU c strategic planning d short-term planning e operational planning (Answer: c; p 40; Moderate) 34 10 The best known product portfolio planning method was developed by _ a Philip Kotler b Harvard University c SRI Consulting Firm d Boston Consulting Group e James P Hess (Answer: d; p 40; Easy) 11 Most portfolio analysis methods evaluate SBUs on two dimensions, namely _ and _ a market share; sales b market growth rate; relative market share c market attractiveness; market growth rate d market growth rate; profits e none of the above (Answer: b; p 40; Moderate) 12 The BCG growth-share matrix classifies four types off SBUs They are _, _, _ and _ a product; price; promotion; placement b sales; market share; price; promotion c stars; cash cows; question marks; dogs d planning; organizing; leading; controlling e north; south; east; west (Answer: c; p 41; Moderate) 13 In the BCG approach, _ are high-share, high-growth businesses or products They need heavy investment to finance rapid growth When their growth slows down, they turn into _ a cash cows; stars b question marks; dogs c stars; question marks d stars; cash cows e dogs; cash cows (Answer: d; p 41; Moderate) 14 All of the following phrases accurately reflect problems with the BCG matrix approach, except which one? a They are easy to implement b They can be costly c They can be time consuming to implement d It is difficult to define SBUs and measure market share and growth e B and C (Answer: a; p 41; Moderate) 35 15 Unlike former strategic-planning efforts, today’s strategic planning has been _ a short-term oriented b decentralized c limitation-free d customer friendly e centralized (Answer: b; p 42; Moderate) 16 Making more sales to current customers without changing a firm’s products is _ a market development b market growth c market penetration d product development e industry attractiveness (Answer: c; p 44; Moderate) 17 _ are low-growth, high share businesses or products They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment a Stars b Cash cows c Question marks d Dogs e Cats (Answer: b; p 41; Moderate) 18 Management must think hard about which _ it should try to build into stars, and which should be phased out a stars b dogs c 1uestion marks d cash cows e cats (Answer: c; p 41; Moderate) 19 Disney is identifying and developing new markets for its theme parks Disney is exploring possibilities for _ a market penetration b market development c Japan d diversity e product development (Answer: b; p 44; Moderate) 36 20 In 1999, Starbucks purchased Hear Music and began making compilation music CDs to play and sell in its stores It has also tested new restaurant concepts, such as Circadia in San Francisco Starbucks is considering _ a new product development b market development c diversification d market penetration e product adaptation (Answer: c; p 45; Challenging) 21 Increasingly in today’s marketplace, competition takes place between the _ a large and small competitors b number and number spot firms c entire value-delivery networks of firms d market leaders only e none of the above (Answer: c; p 48; Easy) 22 The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors is called _ a target marketing b positioning c marketing strategy d market segmentation e market extension (Answer: d; p 50; Easy) 23 For Hyundai Corporation, customers who care about price and operating economy make up the firm’s _ a position b value network c market segment d customer extension e none of the above (Answer: c; p 50; Easy) 24 _ entails reducing the business portfolio by eliminating products that no longer fit the company’s overall strategy a Market segmentation b BCG c Product line extension d Downsizing e Market redesign 37 (Answer: d; p 45; Easy) 25 _ involves evaluating each market segment’s attractiveness and selecting one or more segments to enter a Market segmentation b Product differentiation c Target marketing d A and B e None of the above (Answer: c; p 50; Moderate) 26 _ is the place a product occupies in the consumer’s mind relative to competition a Product placement b Product positioning c Market segmentation d Target marketing e Perceptual map (Answer: b; p 50; Easy) 27 Saturn is “a different kind of company, different kind of a car”; the Hummer is “like nothing else.” These statements reflect a firm’s _ a product portfolio b target markets c market positioning d strategy e all of the above (Answer: c; p 50; Moderate) 28 Effective positioning begins with actually _ the company’s marketing offer so that it gives consumers more value a pricing b aligning c differentiating d promoting e extending (Answer: c; p 52; Moderate) 29 Most companies today enter a new market by serving a _, and if this proves successful, they _ a single market segment; add segments b multitude of segments; add more segments c few segments; add more segments d niche; differentiate e none of the above 38 (Answer: a; p 50; Challenging) 30 _ involves looking at whether a company’s basic strategies are well matched to its opportunities a Operating control b Marketing audit c Marketing control d Strategic control e Distribution (Answer: d; p 57; Challenging) 31 Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained is called _ a marketing control b strategic control c operating control d developmental control e efficiency (Answer: a; p 57; Easy) 32 To ensure that the company achieves the sales, profits, and other goals set out in its annual marketing plan is called _ a marketing control b operating control c strategic control d anticipatory control e marketing audit (Answer: b; p 57; Moderate) 33 The marketing control process entails the following steps in order: setting goals, _, evaluating performance, and _ a evaluating goals; measuring performance b achieving goals; measuring performance c taking corrective action; measuring performance d measuring performance; taking corrective action e taking corrective action; follow-up (Answer: d; p 57; Challenging) 34 The _ is normally conducted by an objective and experienced outside party The findings are later presented to management Management then decides which actions make sense and how and when to implement them a marketing planning b marketing audit c advertising plan 39 d marketing research e none of the above (Answer: b; p 57; Moderate) 35 The uncontrollable macro forces to which a firm must adapt is called the a micro environment b marketing environment c marketing audit d environmental scan e none of the above (Answer: b; p 38; Easy) 36 All of the following are steps in the strategic planning process, except which one? a Defining the company mission b Setting company objectives and goals c Planning marketing and other functional strategies d Collaborating with suppliers on all fronts e None of the above (Answer: d; p 37; Moderate) 37 Starbucks has an annual plan in place to deal with the company’s current SBUs and their operations However, Starbucks as a growth-oriented firm is interested in both domestic and international markets This requires Starbucks to constantly monitor the environment and adapt to the opportunities it is presented with Starbucks needs a _ in place a value-delivery network b mission statement c supporting objectives d profit analysis e strategic plan (Answer: e; p 37; Moderate) 38 Monsanto operates in many businesses, including pharmaceuticals and food products The company defines its _ as creating “abundant food and a healthy environment.” a objectives b goals c product portfolio d mission e value-delivery network (Answer: d; p 39; Moderate) 39 The mission statement of the Girl Scouts of America reads as follows: “where girls grow strong.” This reflects the fact that mission statements must a be realistic b be motivating 40 c be narrow d fit the market environment e A and B (Answer: d; p 39; Moderate) 40 All of the following are examples of market-oriented mission statements, except which one? a We make the Internet buying experience fast, easy, and enjoyable b We create customer connectivity anytime, anywhere c We create fantasies d We hold online auctions e B and C (Answer: d; p 38; Moderate) 41 All of the following are examples of product-oriented mission statements, except which one? a At America Online we provide online services b In Disney, we run theme parks c At Nike, we sell shoes d At Wal-Mart, we deliver low prices every day e B and C (Answer: d; p 38; Moderate) 42 _ should be market oriented and defined in terms of _ a Strategic plans; company needs b Annual plans; product needs c Long-range plans; company needs d Mission statements; customer needs e Objectives; customer wants (Answer: d; p 38; Moderate) 43 A vendor for Ford Motor Company received the following message from Ford’s marketing managers: “As we move forward during the 21 st century, it is incumbent upon us to inform you that Ford is committed to building profitable customer relationships by creating environmentally better cars and getting them to market faster at lower costs.” The marketing manager is referring to Ford’s _ a marketing strategy b market tactics c business portfolio d mission statement e competitive advantage (Answer: d; p 39; Moderate) 44 To increase its U.S market share, Starbucks has stepped up efforts in the areas of product availability and promotion These are examples of broad _ a marketing objectives b marketing strategies 41 c marketing goals d marketing tactics e none of the above (Answer: b; p 40; Moderate) 45 Revlon has clearly defined its “mission” of selling lifestyle and self-expression As the firm prepares to launch its strategic plan, the mission needs to be turned into detailed _ that guide the whole company a sets of strategies b sets of tactics c sets of product mixes d supporting objectives e sets of promotional tools (Answer: d; p 39; Moderate) 46 McDonald’s has traditionally been preoccupied with its current businesses and how to keep them going It has been accused of being complacent when it comes to opportunities in its constantly changing environment _ involves adapting McDonald’s to capitalize upon opportunities in its constantly changing environment a Long-range planning b Annual planning c Strategic planning d Operational planning e None of the above (Answer: c; p 37; Moderate) 47 Colgate toothpaste, the flagship product of Colgate-Palmolive Company, has been a success for generations The parent company’s success is so well known that it could enter the solar energy business, but that would not take advantage of its core competency, providing a plethora of brands to large groups of customers This reflects that Colgate-Palmolive should base its mission on its _ a market environment b distinctive competencies c bottom-line orientation d resource strengths e sales forecast (Answer: b; p 39; Moderate) 48 All of the following are problems with matrix approaches, except which one? Formal planning approaches can place too much emphasis on marketshare growth or growth through entry into new markets b Many companies can plunge into unrelated and new high-growth businesses that they did not know how to manage—with bad results c Many companies often too quickly abandon, sell, or milk to death their healthy mature businesses d Many firms have dropped formal matrix methods in favor of more customized approaches that are better suited to their specific situations a 42 91 Holiday Inn has divided the total customer market into smaller segments and selected the most promising segments Deciding what position it wants to occupy in these segments is called targeting (Answer: False; p 50; Moderate) 92 At America Online, “we create customer connectivity, anytime, anywhere,” is a product-oriented business definition (Answer: False; p 38; Moderate) 93 At America Online, “we provide online services,” is a market-oriented business definition (Answer: False; p 38; Moderate) 94 “At Nike, we sell shoes” is a market-oriented business definition (Answer: False; p 38; Moderate) 95 Revlon has clearly defined its “mission” of selling lifestyle and self-expression As the firm prepares to launch its strategic plan, the mission needs to be turned into a detailed set of objectives that guide the whole company (Answer: True; p 39; Moderate) 96 Making more sales to current customers without changing a firm’s products is market penetration (Answer: True; p 44; Moderate) 97 Unlike former strategic planning efforts, today’s strategic planning has been centralized (Answer: False; p 42; Moderate) 98 Mission statements must fit the market environment, as indicated here by the Girl Scouts of America’s mission: “where girls grow strong.” (Answer: True; p 39; Moderate) 99 The collection of businesses and products that make up a company is called its marketing strategy (Answer: False; p 49; Easy) 100 An SBU can be a company division, a product line within a division, or sometimes a single product or brand (Answer: True; p 40; Easy) 101 In the Boston Consulting Group approach, relative market share serves as a measure of company strength in the market (Answer: False; p 40; Easy) 50 102 More and more companies are shifting their brand management focus toward customer relationship management (Answer: True; p 61; Easy) 103 ABC Fortunes has just developed a formal statement of its purpose This firm has put together a mission statement (Answer: True; p 38; Easy) 104 Mission statements should be realistic and general in nature (Answer: False; p 39; Moderate) 105 Mission statements should both fit the market environment and be motivating (Answer: True; p 39; Easy) Essay 106 Define strategic planning Discuss the steps involved The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities is called strategic market planning At the outset, beginning at the corporate level, each company must define its overall purpose and mission What is our business? Who is the customer? What our customers value? Answers to these questions are crucial in writing a clear mission statement Thus, mission statements need to be carefully defined in terms of customer needs Missions should be realistic, motivating, and fit the market environment Missions lead to setting business and marketing objectives/goals in the planning process This is followed by decisions regarding what portfolio of businesses and products is best for the company and how much support to give each one Next, each business and product develops detailed marketing and other functional strategies In this step, plans are drawn at the business unit, product, and market levels in support of company wide plans (p 37; Moderate) 107 What is business portfolio planning? Discuss the Boston Consulting Group’s product portfolio analysis method A business portfolio is the collection of businesses and products that make up the company Business portfolio planning entails two steps First, there is an analysis of the company’s current business portfolio, followed by what businesses should receive more, less, or no investment Second, it must shape the future portfolio by developing strategies for growth and downsizing The Boston Consulting group matrix evaluates SBUs on two important dimensions: the attractiveness of the SBU’s market or industry growth rate and the strength of the SBU’s position or relative market share in 51 that market or industry The growth-share matrix defines four types of SBUs: stars, cash cows, question marks, and dogs (pp 40–41; Moderate) 108 What are some problems with matrix approaches? The BCG and other portfolio planning approaches can be difficult to execute, time consuming, and also costly to implement Defining SBUs and the measurement of relative market share and growth can be a difficult task too A serious flaw with these approaches is that although the approaches are helpful for classifying current businesses, little or no advice is available for future planning There are several examples of firms that have plunged into new unrelated market, only to scale back and get back to basics based on their core competencies (pp 40–411; Moderate) 109 The BCG is a useful approach to evaluate current businesses What devices are available to firms to identify growth opportunities in the future? The product/market expansion grid is a useful device for identifying growth opportunities in the future There are four strategies available to companies: market penetration, market development, product development, and diversification Market penetration entails making more sales to current customers without changing products Market development involves identifying and developing new markets for a company’s products New markets include demographic groups and geographic regions, among others Companies can consider product development, offering modified or new products to current markets Diversifying companies might consider acquiring or starting new businesses unrelated to their core competencies Diversifying too broadly can be detrimental tin the long run (p 44; Moderate) 110 What does the term “value-delivery network” mean? Explain For decades, marketers have traditionally created value to satisfy customer needs and wants Today, the manufacturer or retailer needs to look beyond its own value chain and into the value chains of suppliers and distributors More companies are partnering with other members of the supply chain to improve the performance of the customer value-delivery network When Wal-Mart supplies vital sales data to P&G regarding its brands, it is helping P&G streamline its operations and reduce costs This information in turn gets transmitted to P&G’s vendors, who save money in turn An efficient supply chain process benefits customers (p 47; Moderate) 52 111 According to the authors of your text, the four Ps concept of the marketing mix takes a seller’s view of the market, not the buyer’s view Explain In today’s day and age of customer relationship marketing, the four Ps are described as the four Cs In lieu of product, there is customer solution; that is, customers buy solutions to their problems or look for value in products Customers are more interested in the total costs of obtaining, using, and disposing of a product That is, customer cost replaces price in customer relationships The place element of the marketing mix focuses on convenience Convenience in availability is the central focus of customers Finally, customers and marketers want to-way communication (p 53; Challenging) 112 Define marketing strategy Discuss the steps in formulating marketing strategy The marketing logic by which a company hopes to achieve profitable relationships is called its marketing strategy Marketing strategy formulation entails three specific steps: market segmentation, targeting, and positioning The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior is called market segmentation Target marketing involves evaluating each market segment’s attractiveness and selecting one or more segments to enter A company should target segments in which it can profitably generate the greatest customer value and sustain it over time Positioning is defined as the image a product projects in the eyes of consumers Effective positioning begins with actually differentiating the company’s marketing offer so that it gives consumers greater value (p 55; Moderate) 113 Define marketing planning Briefly outline the major steps in a marketing plan Marketing planning involves deciding on marketing strategies that will help the company achieve its overall strategic objectives A detailed marketing plan is needed at the business, product, or brand level An executive summary is the first step in the plan It contains a brief summary of the main goals and recommendations of the plan for management review The current marketing situation describing the target market and company’s position in it, including information about the market, product performance, competition, and distribution is presented In the next section, major threats and opportunities are presented The plan then states major objectives for the brand and outlines the specifics of a marketing strategy for achieving them In addition, action programs for implementing the marketing strategy along with the details of a supporting marketing budget are presented The final section outlines the controls used to monitor progress and corrective action 53 (p 54; Moderate) 114 Marketing departments are organized in several ways Discuss the most common forms of marketing organizations Some common forms of marketing department organization include functional organization, geographical organization, product management organization and market management organization Under a functional department organization, a functional specialist-sales manager, advertising manager, or market research manager is responsible for all marketing activities Under a geographic organization, sales and marketing people are assigned to specific countries, regions, and districts Product management organization first appeared at P&G in the 1930s Under this approach, a product manager develops and implements a complete strategy and marketing program for a specific product or brand Under a market or customer management organization, the company is organized around the needs of specific customer segments Herein, one product line is sold to many different types of markets and customers that have different needs and preferences (p 56; Moderate) 115 Briefly mention the components of a strategic plan A strategic plan consists of a market-oriented mission statement This plan must also set company objectives and goals It designates the business portfolio of businesses and products it will pursue Strategies for growth and downsizing must be put in place Last but not least, a plan for partnering to build customer relationships must be added (p 37; Easy) APPLICATION CONTENT: Multiple-Choice Questions 116 The company you work for is on the “right track” because its mission statement fits the _ environment a economic b political-legal c social-cultural d market e natural (Answer: d; p 39; Moderate) 117 Paul Pierce is busy working with other managers evaluating the products and businesses making up their company Paul is engaged in 54 a strategic business unit analysis b preparing a business portfolio c portfolio analysis d marketing planning e marketing auditing (Answer: c; p 40; Moderate) 118 Kimball Gardens is a company that operates as two distinctive businesses—one that sells lawn and garden products and one that markets booklets Each business is called a _ a separate entity b strategic business unit (SBU) c profit center d division e business portfolio (Answer: b; p 40; Challenging) 119 Mountain Home Farms is now using the product/market expansion grid The owners have found it to be quite useful for identifying _ a target markets b growth opportunities c key customers d new products e suppliers (Answer: b; p 44; Easy) 120 You have been given the assignment to develop new markets for your current products and services Which of the following might work? a Reviewing new demographic markets b Reviewing new geographic markets c Reviewing current sales records d Reviewing current customer attitudes e.A and B (Answer: d; p 44; Challenging) 121 Your textbook suggested that Starbucks might consider a _ strategy This strategy would allow the company to start up or buy businesses outside of its current products and markets a product development b market development c market penetration d diversification e B or C (Answer: d; p 45; Easy) 55 122 Lucy Ortiz has just prepared a PowerPoint presentation of the marketing process to show at a sales meeting If you look closely, you will see that _ stand(s) in the center a sales goals b customers c company objectives d customer retention e A and C (Answer: b; p 46; Moderate) 123 TelStar Plastics is in the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products or marketing programs Which is this firm doing? a Market development b Market diversification c Market penetration d Market skimming e Market segmentation (Answer: e; p 50; Easy) 124 Paul Pendergraff has discovered a group of potential customers who seem to respond in a similar way to a given set of marketing efforts Paul has discovered a(n) a target market b market segment c market d gold mine e undefined niche (Answer: b; p 50; Moderate) 125 Paul Pendergraff is evaluating each market segment’s attractiveness and is in the process of selecting one or more segments to enter What is Paul doing? a Target marketing b Marketing segmenting c Marketing d Market positioning e Selecting VALS (Answer: a; p 50; Easy) 126 Jill Reno has researched new markets and has decided which segments to enter Next she should decide what _ her company should occupy in those segments a position 56 b place c rank d rating e percentage of space (Answer: a; p 50; Easy) 127 Environmental Service Company wants to practice effective positioning The owners have discovered that it begins with actually _ the company’s marketing offer so that it gives consumers more value a differentiating b promoting c advertising d selling e representing (Answer: a; p 52; Moderate) 128 Favorite Memories specializes in serving market segments that major competitors overlook and ignore What strategy does this firm use? a Market follower b Marketer challenger c Market seeker d Market nicher e None of the above (Answer: d; p 50; Easy) 129 Emerson Studios, a chain of 25 portrait stores in five states, has organized its marketing organization in to different marketing activities that are headed by specialists What is this organization called? a Geographic b Product c Organic d Functional e Market (Answer: d; p 56; Moderate) 130 Peter Cramer is involved in evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained What we call Peter’s current work? a Marketing control b Marketing planning c Strategic planning d Tactical planning e Auditing (Answer: a; p 57; Moderate) 57 131 Juanita Castro is looking at whether her company’s strategies are well matched to its opportunities It seems that Juanita is into _ a marketing control b operating control c strategic control d loss of control e marketing auditing (Answer: c; p 57; Easy) 132 The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market In order to increase market share, managers may decide to _ a continually add new products in the market b implement a harvest strategy c use money from a cash cow to promote the pharmaceuticals division d divest the SBU e A or C (Answer: e; p 58; Challenging) 133 Acme, Inc., has modified the production processes of its widgets and gadgets in order to tap into the Eastern European market Acme is likely following a _ strategy a market penetration b market development c diversification d A or C e product development (Answer: b; p 44; Challenging) 134 Wal-Mart relies on sound relationships with its low-cost suppliers in order to pass low prices on to consumers Thus, forming a _ is crucial to Wal-Mart’s success a value-delivery network b value chain c customer relationship management policy d market concept philosophy e diversification strategy (Answer: a; p 47; Challenging) 58 135 To move a question mark to a star, what might a marketer have to do? a Promote aggressively b Hold market share at the same level c Increase price d increase market share e A or D (Answer: e; p 41; Challenging) Short Answer 136 Why should a mission statement be market oriented instead of product or technology oriented? A market-oriented mission statement defines the business in terms of customer needs; products and technologies become outdated, but basic market needs may last forever (p 38; Moderate) 137 Why should a mission statement be “motivating” instead of stated in terms of sales or profits? Sales and profits are only a reward for undertaking a useful activity; a company’s employees need to feel that their work is significant (p 39; Moderate) 138 What provides the best business portfolio? The best business portfolio is the one that best fits the company’s strengths and weaknesses to environmental opportunities (p 40; Challenging) 139 What is a strategic business unit (SBU)? An SBU is a key part of a business—whether a product, product line, department, or an entire division—where managers place a major emphasis; an SBU is typically a major profit center with a separate mission (p 40; Easy) 59 140 Into what BCG quadrant does a high-share, high-growth SBU fall? It falls into the “star” category (p 41; Easy) 141 What type of strategy might a cash cow follow? A cash cow will generate cash that could, in turn, be used to finance and/or promote question marks (p 41; Easy) 142 According to the product/market expansion grid, what strategy would Starbucks follow when attempting to increase sales of current products to current customers? Starbucks would follow a market penetration strategy in this scenario (p 44; Moderate) 143 How might Starbucks implement a market development strategy? Starbucks might attempt to identify and develop new markets for its current products (p 44; Challenging) 144 According to the product/market expansion grid, what strategy would McDonald’s follow when offering a salad bar option during lunch hours? In this scenario, McDonald’s would follow a product development strategy (p 45; Moderate) 145 Explain how a company begins the strategic planning process at the corporate level At the corporate level, the company starts the strategic planning process by defining its overall purpose and mission; the mission is then turned into detailed supporting objectives (p 37; Challenging) 146 How might the BCG matrix represent a life cycle? Many SBUs start out as question marks, then move into the star category if they succeed; stars eventually become cash cows, then perhaps, dogs (p 41; Moderate) 60 147 Into what quadrant of the product/market expansion grid would a “new and improved” product fall? The “new and improved” product would fall into the product development quadrant (p 45; Moderate) 148 Give two situations in which a company may develop strategies for downsizing its business portfolio Such strategies may prevail if a company has grown too fast or has entered areas where it lacks experience, for example (p 45; Challenging) 149 How are partner relationship management and the value chain related? Marketers must work closely with partners in other company departments to form an effective value chain that serves the customer (p 46; Easy) 150 Explain how a marketer of baking soda may attempt to attract more than one market segment Some consumers buy baking soda as a baking ingredient and some consumers buy baking soda to use as a deodorizer, for example The marketer will focus on both uses in the marketing mix, such as how the product is promoted (p 50; Challenging) 151 Give an example of a product for which segmenting the market would not be useful There are numerous examples of such products that can be mass marketed One example is Tylenol; focusing on demographics or geographics, for example, would not be useful (p 50; Moderate) 152 How might a marketer of pens alter the “product” portion of the marketing mix when targeting female college students versus male college students? The marketer may use feminine colors and a spiral-flower stripe, for example, when marketing its pens to the females; when targeting males, more neutral colors might be used (p 52; Moderate) 61 153 What role does the marketing mix play in positioning? The marketing mix creates a portion of the marketer’s image in the marketplace The marketing mix creates a “package” with which consumers can compare competitors (p 53; Easy) 154 Why is marketing analysis such an important part of marketing management? This function allows the marketer to analyze environmental opportunities and threats which, in turn, allows the marketer to determine which opportunities to pursue From this starting point, the market can continue with planning, implementation, and control (p 54; Challenging) 155 Give a situation in which the suggested strategy for a dog might not be to divest Consider a new technology that is being launched into the market If managers of the dog are merely waiting to implement that new technology or to somehow incorporate it into the dog, moving the dog into a different BCG quadrant, divesting would not have been practical (p 41; Moderate) Scenario Fun-Spot Fun Park began as a small amusement park in 1985 With nothing more than a merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theater “My wife, Gail, and I didn’t know what we were getting into,” commented Ron Hart, the owner “We just knew that weekenders coming to the lakes in our rural area represented an untapped market.” Today, thousands of visitors flock to Fun-Spot—families, children of all ages, even senior citizens who enjoy strolling through the gardens and arbor “There’s something here for everyone,” Gail Hart said with a smile “Dozens of companies hold annual company picnics here We have welcomed class field trips And we even had one wedding here at the park!” “Here’s the funny thing,” Ron chimed in “We really don’t know why we’ve been so successful! There is nothing else like Fun-Spot Fun Park in the area We were just lucky.” “I think it’s the ambience of the park,” Gail added, “that has brought so many visitors We provide a ‘total package’ of entertainment Plus, we try to change our rides and various attractions from time to time.” Ron and Gail Hart admitted that making every visitor happy is a priority “That has always been our philosophy,” they said “And we’ve always been able to deliver on that because we’ve never allowed ourselves to grow too big too quickly.” 62 156 Describe two critical factors impacting the strategic plan at Fun-Spot Answers will vary; however, Ron and Gail’s continued success will depend on their ability to make visitors as happy as possible and their ability to continue to provide a variety of entertainment options (p 37; Moderate) 157 Would you consider Fun-Spot’s mission statement to be market oriented? Explain The mission at Fun-Spot is defined in terms of customer needs Providing the fastest roller coaster, the greatest variety of ice cream flavors, or the scariest spook house is not as important, for example, as providing top-notch customer attention and attractions appealing to a variety of visitors at this small, rural park (p 38; Moderate) 158 At this point, how Ron and Gail monitor Fun-Spot’s business portfolio? Ron and Gail make a continuous assessment of Fun-Spot’s strengths and weaknesses, compared to the opportunities in the environment If a competitor should appear within a relatively close distance, for example, Ron and Gail will likely have to alter the business portfolio to offset the competition (p 40; Challenging) 159 Into which quadrant of the BCG matrix does Fun-Spot fall? Why? Fun-Spot Fun Park is a star, currently situated in a high-growth, high-share position (p 41; Easy) 160 How might Ron and Gail implement a market penetration strategy at Fun-Spot? Ron and Gail would maintain their current entertainment offering and continue to deliver customer attention to their existing customers (p 44; Moderate) 161 In what way Ron and Gail implement a product development strategy at FunSpot? The owners at Fun-Spot strive to provide new offerings and entertainment options for their visitors (p 45; Moderate) 63 162 What are three possible emerging conditions that may cause the Hart’s to develop a downsizing strategy at Fun-Spot? Over time, less profitable operations might need to be eliminated; for example, children may love pony rides but maintaining the animals in a zoo setting may become costly An economic recession or a new, close-by competitor may lead to downsizing (p 45; Challenging) 163 Who comprises Fun-Spot’s target market? The target market here includes anyone who desires a relaxing, fun day or evening at a small amusement park Families with children are likely the primary target market (p 50; Easy) 164 If you had to select a primary market segment that is crucial to the success of FunSpot, who would it be? Why? Answers will vary; however, on a weekly basis, Fun-Spot likely relies on families with children for a steady stream of revenues (p 50; Moderate) 165 What role service products play at Fun-Spot? With the exception of meals and refreshments, most of what visitors receive at FunSpot are service products (p 53; Easy) 64 ... value-delivery networks of firms d market leaders only e none of the above (Answer: c; p 48; Easy) 22 The process of dividing a market into distinct groups of buyers with different needs, characteristics,... more value a pricing b aligning c differentiating d promoting e extending (Answer: c; p 52; Moderate) 29 Most companies today enter a new market by serving a _, and if this proves successful,... product (Answer: False; p 52; Moderate) 90 The elements of the marketing mix commonly known as the “four Ps” include: product, price, place, and promotion (Answer: True; p 52; Easy) 49 91 Holiday