Chapter 2: Marketing Strategy

Question 1

What is marketing strategy planning

Answer 1

Finding opportunities and developing profitable marketing strategies that the company can use to capitalize on the opportunities.

Question 2

What is the marketing mix?

Answer 2

Refers to marketing tools that a company uses to produce the desired respond from its target market.
1. Product
2. Price
3. Place
4. Promotion

Question 3

What is the Product Marketing Mix?

Answer 3

Refers to the goods or services offered by a. Company to meet the needs and wants of customers

Question 4

What is the Price Marketing Mix?

Answer 4

Represents the amount of money that customers are willing to pay for the product or service. Setting the “right” price by considering many factors

Question 5

What is the Place Marketing Mix?

Answer 5

To get the right product to the right consumer, in the right place, at the right time, in the right quantity and in the right condition, hopefully at a reasonable cost

Question 6

What is the Promotion Marketing Mix?

Answer 6

Involves the various marketing activities used to communicate the benefits of a product or service to the target market. There are three types of promotion

Question 7

What are the three main types of promotion?

Answer 7

Personal Selling
Mass Selling
Sales Promotion

Question 8

What are the main factors of Price setting?

Answer 8

1. Pricing Objectives
2. Price flexibility
3. Price over the Life Cycle
4. Discounts and Allowances
5. Geographic Pricing Terms
6. Competition

Question 9

Target Marketing

Answer 9

Marketing -oriented manager sees everyone as different and practices “target marketing”

Question 10

Mass Marketing

Answer 10

Production-orientated manager sees everyone as basically similar and practices “mass marketing”

Question 11

What are the 4 types of marketing strategies

Answer 11

1. Market Penetration
2. Market Development
3. Product Development
4. Diversification

Question 12

Example of Market Penetration

Answer 12

Starbucks sales program is a good example of Market Penetration by attempting to increase sales of its current products in its present markets. The company is also attempting to take customer relationship management to the next level.

Question 13

Example of Product Development

Answer 13

Tylenol offers a new & improved product for its existing markets (Tylenol Extra strength Rapid Release Gels)

Question 14

Which of the actions shown below is an example of Market Penetration?
A) TV Guide develops multiple covers for each weekly issue (e.g, covers feature “Enterprise” Cast members)
B) Burger King develops a new Halloween game promotion giving customers the opportunity to win prizes
C) Ben & Jerry’s develops a line of toys to be sold in France through Toy stores
D) Dr. Pepper adds a strawberry flavored non-caffeinated drink to its product line

Answer 14

B) Burger King
Market Penetration involves increasing sales of existing products or services in existing markets. In this case, BK is introducing a new Halloween game promotion to attract more customers and increase sales within its existing market.

Question 15

Which of the actions shown below is an example of Diversification?
A) Charity asks past donors to increase the amount of their contribution
B) Dell computer develops a new hand-help computing device to compete with Palm
C) A dry cleaner adds washing and ironing of regular clothes to its services
D) Coors Brewing company develops a long of cheap hand-held tools and gains a license to sell them in Saudi Arabia

Answer 15

D) Coors Brewing company develops a long of cheap hand-held tools and gains a license to sell them in Saudi Arabia.

Diversification Involves entering new markets or offering new products or services that are distinct from the company’s existing offerings

Question 16

Which of the actions shown below is an example of Product Development?
A) Lean Cuisine decides to produce and market auto accessories
B) Frito-lay begins distribution of snack foods in Russia for the first time
C) RC Cola Develops a line of fruit flavored ice tea beverages
D) Campbell’s promotes the use of Chunky Clam Chowder as a quick and easy linguini sauce for dinner.

Answer 16

C) RC Cola Develops a line of fruit flavored ice tea beverages

Product development involves creating new products or improving existing ones to meet customer needs or preferences

Question 17

Which of the actions shown below is an example of Market Development?
A) Coca-cola develops a new aerosol spray that removes rust from metal parts and components
B) Arm & Hammers develops a laundry detergent containing baking soda
C) Blue Bell Ice Cream gains a license to distribute their product in China
D) A local bank develops and begins offering Internet Service Nationwide

Answer 17

C) Blue Bell Ice Cream gains a license to distribute their product in China

Market Development involves expanding into new markets with existing products.

Here, Blue Bell Ice Cream is entering the Chinese market, which is a new geographic area for the company.