Question

1. The most important risk of trade-up strategy is:

a. lack of credibility d. cannibalization

b. increased costs e. none of the above

c. loss of prestige

2. A major advantage of single segment strategy is:

a. single segment strategies are more profitable

b. large firms are never interested in small segments

c. by focusing on the segment, firms avoid competition from larger firms

d. it helps firms keep costs low

e. small segments are more suitable for large firms

3. The purpose of ________ is to seek a position of competitive advantage such as low cost, differentiation, or focus.

a. business strategy d. strategic analysis

b. market segmentation e. product strategy

c. competitive strategy

4. Which of the following is not a component of market orientation?

a. customer orientation

b. competitor orientation

c. interfunctional coordination

d. internal orientation

e. all of the above are components of a market orientation

5. The purpose of _______is to assess the organization’s resources and capabilities and draw up a list of strengths and weaknesses.

a. internal analysis

b. external analysis

c. target market analysis d. segmentation analysis e. market analysis

6. ________ are skills, technologies, and knowledge that are embedded in organizational processes and enable the assets to be deployed profitably.

a. core competencies

b. resources

c. distinctive capabilities

d. organizational assets

e. capabilities

7. The following are requirements for successful implementation of differentiation strategies EXCEPT:

a. the basis of differentiation is unique and valuable

b. a large number of customers desires unique features of product or service

c. firm possesses necessary resources and capabilities to pursue the differentiation strategy

d. a large price sensitive market

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8. A firm that directs its communication effort to the final consumer is using a:

a. defensive strategy d. push strategy

b. pull strategy e. sales strategy

c. offensive strategy

9. The starting point in the strategic marketing planning process is:

a. market segmentation

b. strategic positioning

c. market definition

d. corporate vision, mission, and goals

e. strategic intent

10. Business-level strategies encompass the following EXCEPT?

a. the company’s strategic market definition

b. the company’s overall competitive posture

c. the company’s distinctive competencies

d. the company’s competitive strategy

e. all of the above are encompassed in business-level strategies

11. Which one of the following is not an identification basis?

a. Geographic d. benefits sought

b. Demographic e. all of above are identification bases

c. Pychographic

12. One of the most important risks of trade down strategy is:

a. increased costs d. tarnish company image

b. lack of skills e. none of the above

c. lack of credibility

13. An important benefit of creative market segmentation is that it:

a. helps firms lower costs

b. helps firms improve their advertising efforts

c. helps firms increase prices

d. helps firms discover overlooked or underserved but promising segments

e. all of the above

14.Which one of the following is a requirement for successful implementation of cost leadership strategies?

a. maintain differentiation parity

b. lack of switching costs

c. no other competitor is pursuing a cost leadership strategy

d. a large price sensitive market

e. all of the above

15. Effective market segmentation involves:

a. using identification bases only

b. using response profile bases only

c. combining identification and response profile bases

d. using intuitive methods

e. all of the above

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16. Which of the following is not a reason for the failure of strategic networks?

a. weak support from senior management

b. unclear strategies

c. poor partner selection

d. clashing corporate values and goals

e. lack of appropriate technologies

17.__________ involves the analysis of economic, political, legal, technological, and cultural events and trends that may affect the future of the organization and its marketing efforts.

a. Competitive intelligence d. Marketing research

b. Environmental scanning e. External analysis

c. Tactical planning

18. Whether at the corporate, business-unit, or functional level, the planning process always begins with an in-depth:

a. a statement of goals and objectives.

b. a situation analysis.

c. strategy for achieving growth.

d. statement of the organization’s competitive advantages.

e. assessment of the organization’s resources.

19. When a firm possesses capabilities that allow it to serve customers’ needs better than the competition, the firm is said to have a:

20. Which of the following IS NOT a purpose of a marketing plan?

a. It explains the present and future situations of the organization.

b. It specifies the expected outcomes of the plan.

c. It describes specific actions that are to take place.

d. It explains how marketing activities mesh with other functional areas.

e. It identifies resources needed to carry out the plan.

21.Marketing strategy involves:

a. b. c. d. e.

determine who our most valuable customers are and what needs we are trying to satisfy how we should compete in our chosen market segments

how we can develop favourable relationships with our most valuable customers

choose a certain course of action and reject other alternatives after careful consideration all of the above are involved in marketing strategy

22. A

the high-end of the market.

a) trade-down

b) trade-up

c) product line extension

d) product filling

e) product proliferation

______________ strategy is employed by a low-end company that introduces products to

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a. b. c.

d. e.

resource advantage. competitive advantage. value-based advantage.

marketing advantage relative advantage

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23. ____ are products that are different in terms of technology, production process, or materials used but can satisfy the same need as another product.

a. substitutes

b. complements

c. functional products

d. image products

e. commodities

24. The general environment (PEST analysis) consists of all of the following factors EXCEPT:

a. demographic factors

b. political factors

c. legal factors

d. economic factors

e. market demand

25.___is something an organization possesses exclusively or does better than the competition.

a. competitive advantage

b. core competence

c. distinctive capability

d. dynamic capability

e. competitive strength

26.Which of the following is/are helping company to obtain competitive advantage?

a. strong market research team

b. internal competency

c. low cost leadership

d. product uniqueness

e. both c) & d)

27.In SWOT analysis matrix, when a company in a situation their “Strengths” face the “Threats”, the suitable marketing strategy includes:

a. improve competency

b. adjust resource to deal with threats

c. avoid the market

d. none of the above

e. all of the above

28. By focusing on efficiency of operations and processes, lower costs, and delivering good value, Southwest Airlines attempts to build a competitive advantage based on:

a. production orientation. d. operational excellence.

b. customer intimacy. e. strategic efficiency.

c. process improvement.

29. The basic assumption of __________ is that all customers in the market have similar needs and wants that can be reasonably satisfied with a single marketing program.

a. holistic marketing d. focused marketing

b. mass marketing e. single segment marketing

c. market concentration

30. The main advantage of __________ is specialization, as it allows the firm to focus its resources toward understanding and serving a single segment.

a. focused marketing d. multisegment marketing

b. unidimensional marketing e. market concentration

c. mass marketing

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31. Firms that sell luxury products, custom-made products, and services often take the time to significantly modify their products in an effort to precisely match the needs of individual customers. These firms are pursuing what type of approach to market segmentation?

a. b. c.

d. e.

individualized marketing niche marketing pinpointed marketing

focused marketing one-to-one marketing

32. Advances in supply chain management now allow companies to customize products to meet the needs of individual customers on a mass scale. This individualized approach to market segmentation is called:

a. b. c.

f. g.

individualization. one-to-one marketing. mass customization.

customized marketing permission marketing

33. Which of the following IS NOT an example of mass customization?

a. A college creates a custom degree program to match your unique needs.

b. A customer orders a custom teddy bear from Build-A-BearWorkshop.com.

c. Dell offers fully customized computers based on your needed configuration.

d. A bank employee logs into the e-procurement system to browse a fully customized

catalog of office supplies.

e. You order a customized vase of flowers from 1-800-Flowers.com.

34. __________ segmentation is the most powerful form of segmentation in consumer markets

because it uses actual product usage to make distinctions among market segments.

a. Demographic d. Lifestyle

b. Behavioral e. Geographic c. Psychographic

35. What is the key to using behavioral segmentation successfully in consumer markets?

a. The firm must clearly link behavioral characteristics with risk profiles.

b. The firm must clearly link behavioral to demographic characteristics.

c. The firm must determine whether consumers see their behaviors as being distinct

from other behavioral segments.

d. The firm must clearly link behavioral information with geography.

e. The firm must clearly understand the basic needs and benefits sought by different

consumer groups.

36. What type of segmentation divides consumer markets into segments using individual factors

such as gender, age, income, and education?

a. psychographic segmentation d. behavioral segmentation

b. demographic segmentation e. lifestyle segmentation

c. benefit segmentation

37. One of the most successful and well-known tools of __________ segmentation is VALSTM (Value and lifestyle) developed by Strategic Business Insights.

a. psychographic b. geographic

c. demographic

d. geoclustering e. emotional

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38. Which of the following IS NOT a typical basis used to segment business markets?

a. type of organization d. organizational culture

b. organizational characteristics e. relationship intensity

c. benefits sought

39. To successfully utilize SWOT analysis as a catalyst for strategic planning, the marketing

manager must focus on the important issues. Which of following IS NOT one of these issues?

a. The manager must look beyond the firm’s current product offerings.

b. The manager must find ways to connect the firm’s strengths to its opportunities.

c. The manager must strive to convert weaknesses into strengths.

d. The manager must attempt to minimize the firm’s limitations.

e. The manager must find ways to transform key threats into strengths.

40. Although mass media audiences are becoming increasingly fragmented, media fragmentation does have a major advantage. What is this advantage?

a. It now costs less to reach a mass audience.

b. It is much easier to measure feedback from mass media audiences.

c. It is now easier to reach small, highly targeted audiences.

d. Consumers are now much more receptive to television advertising.

e. Consumers are now highly susceptible to online advertising.

Answer 1

​​​​​​1)The correct option is (B)

Reason :-Trading up means when we are buying something having higher price. Therefore , in trade leads to increased cost .

2) the correct option is (A).

Reason :-Single segment strategies apply its all resources to specific needs of customers which help them to provide better services as compared to other companies catering needs of many segments therefore it helps to earn more profits.

3.) the correct option is ( C) .

Reason : Competitive strategy focuses on providing products that are different from competitors at lower prices as compared to competitors and focusing on their customers.

4) the correct option is (d) i.e Internal orientation is not a component of Market orientation .

Reason :Market orientation has only 3 components:-

customer orientation,competitor orientation and interfunctional coordination

5. The correct option is (a)

Reason :The purpose of Internal Analysis is to assess organizations resources and capabilities and draw up list of strengths and weaknesses.

6) The correct option is (a).

Reason :Core competencies are those skils,technoligies and knowledge that helps the organisations to take major decisions and enable the assests to be deployed profitably .

7) The correct option is (d)

Reason :A large price sensitive market is not the requirement of differentitation strategy.Here the price charged depends upon the demand of the product either company can charge very low prices or can charge high prices

8) The correct option is (D).

Reason : Push strategy is used by the firms to direct communication about the product to the final consumers to assure that the customer is aware about the brand .

9) The correct option is ( D).

Reason : It is because they show the management where the firm is heading to which helps the Management to take quick decision.

10) The correct option is ( E).

Reason : The business strategy is focused on single unit of company and all this strategies are required to be made in order to make the entity a successful one .

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