Question

1. Sonic ran an ad claiming that it could make thousands of drink combinations. This is an example of:

a.		Combined target market approach
b.		Mass customization
c.		Task transfer
d.		Diversification strategy
e.		Single target market approach

2. Which of the following requires a detailed look at the company's current marketing plans to see if they are still the best plans the firm can offer?

a.		cost analysis
b.		full-cost approach
c.		sales analysis
d.		marketing audit
e.		strategic scenario review

3. Penetration pricing:

a.		is the same as a "meeting competition" price-level policy.
b.		is wise when demand is fairly inelastic--offering an "elite" market.
c.		involves temporary price cuts to speed new products into market.
d.		involves a series of step-by-step price reductions along an inelastic demand curve.
e.		may be wise if a firm expects strong competition very soon after its product introduction.

4. Generally speaking, cross-functional challenges are greatest:

a.		when minor changes are made to an existing strategy.
b.		in routine established operations.
c.		to a plan that the firm is already implementing.
d.		when developing completely new marketing strategies.
e.		when competition is nonexistent.

Answer 1

1) Mass customization

Mass customization is term used for the combination of mass production and customization. It simply means producing customised products on a very large scale. In the given problem the fact that Sonic can make 1000 drink combinations is an example of mass customization.

2) Marketing audit

Marketing audit is an activity in which the marketing plans, objectives and strategies are reviewed to get an idea about what is really giving out results and what is not giving the results.

3) involves temporary price cuts to speed new products into market.

Penetration pricing is an often used technique which is meant for new products being launched into the market. The price is intentionally set lower so that the customers start purchasing it and once the customers get used to the product then the company increases the price of the product.

4) when developing completely new marketing strategies

In a completely new marketing strategy, all the departments and jobs are designed out from the initial phases. Therefore in such a situation when a certain functional team is still learning about their functions, it gets difficult for it to coordinate with some other team and work together.

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