11 May Chapter 01 Assignment: Customer-Driven Strategic Marketing
Chapter 01 Assignment: Customer-Driven Strategic Marketing
1. Assessment question
Scenario 1.1.
Karen works as a salesperson for Wüsthof, a company that makes cutlery and kitchen knives. She is driven to make as many sales as possible to as many people as possible in order to increase her commission. Although she has many great customer relationships, she also has a reputation for overly aggressive sales tactics. Karen has been able to convince customers to purchase more expensive knives even after they say they are not interested. As a result of Karen’s high sales, she is a top sales associate at the company.
Recently, however, Karen’s sponsor has been informed of complaints that customers have levied against Karen accusing her of “badgering” them into buying products. The sponsor meets with Karen and tells her it is unacceptable to pressure consumers into purchasing items they do not want.
Refer to Scenario 1.1. Which variable of the marketing mix does this issue involve?
Promotion
Marketing environment
Price
Distribution
Product
2. Assessment question
Scenario 1.2.
An indie nail polish brand, Holo Taco, conducts in-depth marketing research to determine what customers want. Its long-wearing nail polishes are made with the highest quality holographic glitter. The company creates buzz around its product offerings by discussing the product weeks before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in its website selling out of the newest product.
Refer to Scenario 1.2. Holo Taco’s emphasis on marketing research is used to enhance what variable of the marketing mix?
Product
Distribution
Price
Promotion
Supply chain management
3. Assessment question
Scenario 1.2.
An indie nail polish brand, Holo Taco, conducts in-depth marketing research to determine what customers want. Its long-wearing nail polishes are made with the highest quality holographic glitter. The company creates buzz around its product offerings by discussing the product weeks before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in its website selling out of the newest product.
Refer to Scenario 1.2. Holo Taco’s skills at creating buzz for its newest product offering weeks before its release is an example of what marketing variable?
Supply chain management
Product
Promotion
Price
Distribution
4. Assessment question
Christopher, the CEO of a linguistics company, worked with his chief technology officer to develop an information system to discover customers’ real needs. Christopher uses the information to create satisfying products for his target market, increasing his sales revenue and profit. He strives to perfect his marketing mix to keep business booming. Christopher embraces the marketing concept. What is the major focus of the marketing concept?
Marketing mix
Target market
Profit
Sales revenue
Customer satisfaction
5. Assessment question
What deepens the buyer’s trust in the company and increases the firm’s understanding of the customer’s needs as the customer’s confidence grows?
Marketing
Marketing concept
Relationship marketing
Customer lifetime value
Market share
6. Assessment question
Scenario 1.3.
Dylan manages a highly reputable cybersecurity business. This company has been voted as having the best cybersecurity software. Consumers appreciate the fact that they can make secure transactions without worrying about privacy or identity theft. Dylan knows that the company’s product far surpasses that of the competition. One thing has been bothering him, though. In order to put so many resources into ensuring the best software, Dylan had to lay off employees at the customer call center. Recently, consumers have begun complaining about long wait times when they call in with a problem or concern. Although its cybersecurity software is still considered one of the best, customer satisfaction with the firm’s customer service has plummeted. Dylan does not understand why consumers are getting so upset. He believes the exceptional software more than makes up for long waiting periods and other issues with its customer service. “After all,” he says, “they can’t have it all. If I invest more in customer service, that means less investment on ensuring the quality of our product offering.”
Refer to Scenario 1.3. Dylan has asked you, a marketing consultant, to give him advice. He cannot understand how a cybersecurity company with the best product offering in the industry could get such low satisfaction ratings simply because the customer service is not up to par. You suggest that Dylan has a narrowly defined view of the company’s product offering. You tell Dylan that successful marketers should define their products as what they _______.
produce
cost customers
deliver
do to satisfy customers
make
7. Assessment question
Scenario 1.3.
Dylan manages a highly reputable cybersecurity business. This company has been voted as having the best cybersecurity software. Consumers appreciate the fact that they can make secure transactions without worrying about privacy or identity theft. Dylan knows that the company’s product far surpasses that of the competition. One thing has been bothering him, though. In order to put so many resources into ensuring the best software, Dylan had to lay off employees at the customer call center. Recently, consumers have begun complaining about long wait times when they call in with a problem or concern. Although its cybersecurity software is still considered one of the best, customer satisfaction with the firm’s customer service has plummeted. Dylan does not understand why consumers are getting so upset. He believes the exceptional software more than makes up for long waiting periods and other issues with its customer service. “After all,” he says, “they can’t have it all. If I invest more in customer service, that means less investment on ensuring the quality of our product offering.”
Refer to Scenario 1.3. On your advice, Dylan decides to invest more in customer service training and hiring. Satisfaction increases, but not to the level Dylan thinks it should be. He conducts a marketing research study and finds that while most consumers like the product many would like to see additional software available. However, what type of software customers want tends to vary by customer. Dylan has come to believe that customers just do not know how to assess value correctly. Dylan appears to believe that determining value is a(n) _______ process, while in reality the process of assessing value is highly _______.
rational; irrational
complex; simple
subjective; objective
objective; subjective
irrational; rational
8. Assessment question
Scenario 1.1.
Karen works as a salesperson for Wüsthof, a company that makes cutlery and kitchen knives. She is driven to make as many sales as possible to as many people as possible in order to increase her commission. Although she has many great customer relationships, she also has a reputation for overly aggressive sales tactics. Karen has been able to convince customers to purchase more expensive knives even after they say they are not interested. As a result of Karen’s high sales, she is a top sales associate at the company.
Recently, however, Karen’s sponsor has been informed of complaints that customers have levied against Karen accusing her of “badgering” them into buying products. The sponsor meets with Karen and tells her it is unacceptable to pressure consumers into purchasing items they do not want.
Refer to Scenario 1.1. Karen’s sponsor tells her that it is important for her to determine her customer’s needs and then find the product that best meets those needs, regardless of price. She recommends that Karen adopt the _______. In other words, Karen should move from a _______, where she is focused on using her aggressive direct selling talents to maximize profits, toward embracing the more customer-centric _______.
marketing concept; production orientation; sales orientation
relationship marketing model; production orientation; sales orientation
relationship marketing model; market orientation; production orientation
marketing concept; sales orientation; market orientation
marketing concept; sales orientation; production orientation
9. Assessment question
Scenario 1.2.
An indie nail polish brand, Holo Taco, conducts in-depth marketing research to determine what customers want. Its long-wearing nail polishes are made with the highest quality holographic glitter. The company creates buzz around its product offerings by discussing the product weeks before it is launched. This anticipation builds up until the product is launched, resulting in wide-scale sales that often result in its website selling out of the newest product.
Refer to Scenario 1.2. From the information provided about Holo Taco and its marketing strategies, Holo Taco most likely embraces a _______.
sales orientation
marketing concept orientation
market orientation
production orientation
promotion orientation
10. Assessment question
Which of the following institutions would be most likely to market an idea as its main product?
A travel agency
A local dry cleaner
Holiday Inn
Taco Bell
Greenpeace
11. Assessment question
Carol needs a ride to downtown Denver. She is not very familiar with the area and is running late for an appointment. In the Uber app she sees an UberX ride is $18. Carol is irritated by the price. Although there is likely a less expensive ride available on another ridesharing app, Carol does not check for other rides and pays for the UberX since a driver is already nearby and the ride will arrive at her destination quickly. Different cost considerations impacted Carol’s decision, but clearly one stood out above all others. Which cost exerted the most influence over Carol’s decision to pay $18 for a ride?
The monetary cost of time
The monetary cost of the effort involved
The non-monetary cost of time
The $18 monetary cost
The non-monetary cost of risk
12. Assessment question
Brandy is a frequent shopper at REI. She reluctantly purchases a pair of climbing shoes that are more expensive than she would like. After a month of frequent use, Brandy regrets her purchase and decides to return the shoes. REI gladly accepted the worn shoes because of its 100% satisfaction guarantee which allows customers to return products up to one year after purchase. This is an attempt by REI to reduce what type of cost?
Effort
Quality
Time
Purchase risk
Monetary
13. Assessment question
Which of the following statements about the marketing environment is false?
Marketing environment forces are uncontrollable, so marketers do not plan for them.
Marketing environmental forces often shape a marketer’s decisions and actions.
The marketing environment influences customers by affecting their lifestyles, standards of living, and preferences and needs for products.
Marketing environment forces can fluctuate quickly and dramatically.
The marketing-mix variables are easier to control than the marketing environment.
14. Assessment question
When Petco decided to eliminate pet food with artificial flavors, colors, and preservatives from its stores, it was most likely responding to which of the following?
Customer lifetime value
Sales orientation
Changes in the marketing mix
Marketing environment forces
Changing regulations
15. Assessment question
Scenario 1.4.
Alan manages a small factory that produces computer graphics cards. Alan operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The company’s salesperson Melissa, however, views customer relationships and personal selling as being the highest priority. Between the two of them, the firm has become known for its quality products and excellent customer relationships.
Refer to Scenario 1.4. What type of orientation has Alan adopted?
Sales
Production
Customer
Market
Marketing concept
16. Assessment question
Scenario 1.4.
Alan manages a small factory that produces computer graphics cards. Alan operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The company’s salesperson Melissa, however, views customer relationships and personal selling as being the highest priority. Between the two of them, the firm has become known for its quality products and excellent customer relationships.
Refer to Scenario 1.4. Recently, Melissa has found that they have begun to reach market saturation. She is having trouble finding new customers. One solution would be to increase the company’s reach, perhaps by opening up locations in other areas. However, she knows this will be expensive. After noticing that many of their customers are planning on expanding and purchasing bigger facilities, Melissa feels that the best option is to increase the company’s _______.
market share
share of customer
promotional efforts
product output
customer lifetime value
17. Assessment question
The Washington family earns $10,000 per month collectively. About $3,000 goes toward taxes and savings. They spend $7,000 on goods and services. Based upon the information in the text, about how much of their money goes toward marketing activities?
$3,000
$4,000
$7,000
$1,500
$3,500
18. Assessment question
A startup skincare company, Skintopical, has been operating for six months. The company is a team of one: Linette, the owner. She single-handedly creates the products and sells them to her friends and family. Sales have slowed, so her sister suggests Linette invest more in marketing to help Skintopical grow. Which of the following statements describes a benefit that marketing offers Skintopical?
It results in lower prices for customers.
It enhances consumer awareness.
It eliminates cultural barriers.
It offers heightened job security.
It gets customers the best deals.
19. Assessment question
IKEA is known for its sustainability initiatives to improve its products and stores. The company uses sustainable sources for its materials and aims to use 100 percent renewable energy. IKEA releases an annual sustainability report to inform stakeholders. IKEA believes in the strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment. This strategic process is called _______.
relationship marketing
green marketing
global marketing
socially responsible marketing
the marketing concept
20. Assessment question
Scenario 1.5
Rebecca works at a biotech firm that develops medicines for rare diseases. The company develops a new medication for a disease that less than 100 people have in the entire country. As a result, the drug will be priced high, but the firm will work closely with insurance companies to get the medicine to the right people without sacrificing much revenue.
Refer to Scenario 1.5. Her friend Rick, who is taking business classes, tells her that her _______ is very small.
value
marketing mix
price
marketing environment
target market
21. Assessment question
Scenario 1.5.
Rebecca works at a biotech firm that develops medicines for rare diseases. The company develops a new medication for a disease that less than 1,000 people have in the entire country. As a result, the drug will be priced high, but the firm will work closely with insurance companies to get the medicine to the right people without sacrificing much revenue. Though the medicine was originally sold in a cost-efficient capsule, the firm decided to switch to a premium vegan capsule due to the high demand from its most loyal customers who now avoid animal byproducts.
Refer to Scenario 1.5. This is an example of forces in _______.
the marketing mix
the target market
the marketing environment
value
price
22. Assessment question
Scenario 1.6.
Walmart has a robust supply chain with sustainable suppliers and more than 100 distribution centers. It sells thousands of products at affordable prices. The retailer has a TV advertisement centered around its slogan, “Save Money. Live Better.”
Refer to Scenario 1.6. Which of the following marketing-mix variables does Walmart emphasize in its marketing activities?
Product
Marketing concept
Promotion
Distribution
Price
23. Assessment question
Scenario 1.6.
Walmart has a robust supply chain with sustainable suppliers and more than 100 distribution centers. It sells thousands of products at affordable prices. The retailer has a TV advertisement centered around its slogan, “Save Money. Live Better.”
Refer to Scenario 1.6. Which of the following marketing-mix variables does Walmart focus on by attracting sustainable suppliers?
Promotion
Marketing concept
Product
Price
Distribution
24. Assessment question
Netflix has a wide selection of original content. Its hit show Stranger Things is widely popular and has a large following on social media. Netflix uses its Stranger Things Twitter account to create awareness and build excitement for upcoming seasons by posting teaser trailers, memes, and user-generated content. The account is also known to reply directly to fan questions and posts mentioning the show. This allows for greater use of user-generated content and connectedness to the show and other fans. This is an example of _______.
relationship marketing
market share
customer lifetime value
a market orientation
marketing concept
25. Assessment question
Barry is a business owner who sells high quality drones with HD cameras for personal use. In an effort to improve his skills in social media, he pays to attend an online webinar about Pinterest strategy. What is Barry engaging in?
Changing the marketing environment
Customer relationship management
Satisfying his stakeholder’s needs
Adopting a product orientation
An exchange
Chapter 02 Assignment: Planning, Implementing, and Evaluating Marketing Strategies
1.Assessment question
Which of the following is needed to guide the process of strategic planning to ensure that a concern for customer satisfaction is an integral part of the entire company, thereby leading to the development of successful marketing strategies and planning process?
Mission statement
Marketing objective
Market orientation
SWOT analysis
Market growth/market share matrix
2.Assessment question
Google has widely posted the following: “to organize the world’s information and make it universally accessible and useful.” This is most likely a part of Google’s _______.
corporate strategy
strengths
marketing plan
mission statement
marketing objective
3.Assessment question
The Coca-Cola Company introduced a low-sugar, high-protein, lactose-free dairy milk product called Fairlife. For Coca-Cola, Fairlife milk products represent which of the following growth strategies?
Diversification
Product development
Market penetration
Product penetration
Market development
4.Assessment question
Procter & Gamble’s Tide laundry detergent has a dominant share of the detergent market in the United States. It makes $4.5 billion in sales of this detergent brand. However, the detergent market has reached market saturation in the United States. With this information, what type of product is Tide based upon the Boston Consulting Group’s market growth/market share matrix?
Cash cow
Question mark
Star
Dog
Pig
5.Assessment question
The United Way, a nationwide nonprofit, recently hired a new top executive. He is currently occupied with refining the scope of the organization and assessing its resource deployment, competitive advantages, and overall coordination of functional areas. The United Way’s executive is focusing on _______.
business-unit strategy
SWOT analysis
corporate strategy
mission statement
marketing strategy
6.Assessment question
Amazon’s Echo product line of smart speakers has 61 percent of a market that has grown from 47 million speakers to 66 million speakers in just one year. With this information, what type of product is the Echo speaker based upon the Boston Consulting Group’s market growth/market share matrix?
Cat
Dog
Cash cow
Question mark
Star
7.Assessment question
Which of the following is a disadvantage of being a first mover in the market?
The chance that products will be protected by patents
Inability to accurately predict performance standards
Costs of marketing plan implementation
Large outlays associated with creating a new product
High switching costs consumers may experience
8.Assessment question
Which of the following is an advantage of being a late mover in the market?
The chance that products will be protected by patents
Ability to benefit from first movers’ mistakes
High switching costs consumers may experience
Large outlays associated with creating a new product
Costs of marketing plan implementation
9.Assessment question
Which of the following is probably the most important decision a company makes during the strategic planning process?
Conducting a SWOT analysis
Creating the marketing mix
Choosing a target market
Evaluating marketing performance
Developing a marketing strategy
10.Assessment question
How does a sustainable competitive advantage differ from a competitive advantage?
A sustainable competitive advantage has an environmental focus.
A sustainable competitive advantage lasts forever.
A sustainable competitive advantage is when a company matches a core competency to opportunities in the marketplace.
A sustainable competitive advantage is one that competitors cannot copy in the immediate future.
A sustainable competitive advantage occurs when the company takes advantage of temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market.
11.Assessment question
Hank’s small restaurant business is doing extremely well, and it often has hours-long waits at peak dining times. Hank thinks it is time to grow the business by opening new restaurants to take advantage of his success. He has begun the strategic planning process and has set the following objective for his company: grow the business by 10 percent in one year. What’s wrong with Hank’s marketing objective?
It should be expressed in clear, simple terms.
It should be measurable.
It should be consistent with business-unit and corporate strategies.
It should be comparable to rival firms.
It should specify a time frame for its achievement.
12.Assessment question
Marty works at an organization with a clear chain of command. The major decisions are relegated to top managers. Marty and his co-workers have strict performance standards. Managers at his organization monitor the work of employees to make sure they are staying on track. What type of organization is Marty’s company?
Bureaucratic
Decentralized
Centralized
Customer-oriented
Laissez-faire
13.Assessment question
Barry is in charge of implementing his unit’s marketing strategy, and he is currently engaged in establishing a timetable for implementation activities. Which of the following is Barry’s final step in establishing an implementation timetable?
Organizing the activities in the proper order
Determining the time required to complete each activity
Assigning responsibility for completing each activity to one or more employees, teams, or managers
Identifying the activities to be performed
Separating the activities to be performed in sequence from those to be performed simultaneously
14.Assessment question
Why might a marketer want to engage in marketing cost analysis?
To reflect the market’s reaction to the marketing mix
To determine how much the company will charge customers
To evaluate the firm’s strengths and weaknesses
To help outline how the company will achieve its objectives
To allocate the firm’s marketing resources better in the future
15.Assessment question
Scenario 2.1.
Ajei is working on a SWOT analysis of a local Mexican restaurant Tres Pimientos in Flagstaff. She writes down that the organization has high customer loyalty, resources for expansion, a large social media following, and strong management. She also writes that the market for salsa products is high and more people are eating out. On the other hand, one major complaint levied against the restaurant is that it is high priced and other casual-dining restaurants with less expensive menu offerings are locating to the city. Still, Ajei believes the restaurant’s talented and well-known chef provides it with an advantage that other restaurants do not have.
Refer to Scenario 2.1. Which of the following characteristics of the Mexican restaurant represents an opportunity?
Customer loyalty
Strong management
Greater demand for salsa products
Strong organizational resources
Talented and well-known chef
16.Assessment question
Scenario 2.2.
Ajei’s manager believes that Tres Pimientos can gain an advantage over competing Mexican restaurants in the area by capitalizing on the growing demand for salsa. He believes the firm’s top-secret salsa recipe could be the key to expanding into another market niche. The manager has proposed developing a line of its salsas in 16-ounce jars to sell at its restaurant. This way its loyal customers could buy its salsa outright and serve it at home. Ajei has been tasked with determining the feasibility of this strategy.
Refer to Scenario 2.2. What type of competitive growth strategy is Ajei’s manager discussing?
Market development
Product penetration
Market penetration
Diversification
Product development
17.Assessment question
Scenario 2.3.
Ajei continues to work on the marketing strategy for Tres Pimientos. Tres Pimientos was successful in selling 16-ounce jars of salsa in its restaurant. In fact, demand for the jars of salsa is so high that Ajei believes Tres Pimientos should try to expand and start selling in stores and online. She believes Tres Pimientos salsa has the potential for enormous growth, perhaps even more so than the actual restaurant.
Refer to Scenario 2.3. Ajei’s manager is skeptical. Such an investment would require a manufacturing facility, a larger marketing budget, and salespeople who would be able to get the salsa onto store shelves. However, Ajei maintains that Tres Pimientos’s secret salsa recipe provides it with a core competency. The market for salsa is also strong. She believes this provides Tres Pimientos with a chance to match its core competency to market opportunities, otherwise known as a(n) _______.
strategic window
late-mover advantage
competitive advantage
first-mover advantage
optimal fit
18.Assessment question
