TB Chap001
TB Chap001
TB Chap001
Chapter 01
Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing
Strategies
1. Which of the following is a component of strategy that involves detailing the desired levels
of accomplishment on one or more performance dimensions over specified time periods for
the organization as a whole?
A. Scope of an organization
B. Resource deployments
C. Identifying a sustainable competitive advantage
D. Goals and objectives
Answer: d
Level of Difficulty: Easy
Page: 6
2. Decisions about the organization’s scope and resource deployments across its divisions or
businesses are the primary focus of _____ strategy.
A. business
B. corporate
C. marketing
D. functional
Answer: b
Level of Difficulty: Easy
Page: 8
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies
8. The tendency for firms to automatically continue strategies that were successful in the past,
even though current market conditions are changing, is referred to as:
A. marketing myopia.
B. strategic inertia.
C. adverse possession.
D. product facelift.
Answer: b
Level of Difficulty: Easy
Page: 15
9. Which of the following is the reason why early entrants into newly emerging industries,
particularly industries based on new technologies, are especially likely to be internally
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies
10. Product-oriented firms differ from market-oriented firms in that product-oriented firms:
A. use promotion to emphasize product benefits and its ability to satisfy customers’ needs.
B. base their pricing on production and distribution costs.
C. have broad product lines.
D. consider credit as customer service and a tool to attract customers.
Answer: b
Level of Difficulty: Medium
Page: 15
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies
16. E-tailers such as Amazon and iTunes are examples of _____ category of e-commerce.
A. business-to-business
B. consumer-to-business
C. business-to-consumer
D. consumer-to-consumer
Answer: c
Level of Difficulty: Easy
Page: 19
17. PriceTag.com is a site that enables users to bid on unsold airline tickets and other goods
and services. PriceTag.com is an example of _____ type of e-commerce.
A. business-to-consumer
B. consumer-to-business
C. consumer-to-consumer
D. business-to-business
Answer: b
Level of Difficulty: Medium
Page: 19
18. Out of the 4Cs of a market analysis, _____ would be considered under “characteristics of
customers.”
A. benchmarking
B. initial public offering
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies
C. market segmentation
D. equity capital
Answer: c
Level of Difficulty: Medium
Page: 21
19. A distinct subset of people with similar needs, circumstances, and characteristics that lead
them to respond in a similar way to a particular product or service offering is known as
a _____.
A. market segment
B. set-aside
C. penetrated market
D. market mix
Answer: a
Level of Difficulty: Easy
Page: 23
20. Which of the following contents of a marketing plan specifically presents the expected
financial payoff from the plan ?
A. Objectives
B. Projected profit-and-loss statement
C. Current situation and trends
D. Executive summary
Answer: b
Level of Difficulty: Easy
Page: 25
21. Which of the following contents of a marketing plan specifies the goals to be
accomplished in terms of sales volume, market share, and profit?
A. Key issues
B. Marketing strategy
C. Objectives
D. Action plans
Answer: c
Level of Difficulty: Easy
Page: 25
Essay Questions
22. What is the primary focus of marketing-level strategies? What critical issues do they focus
on?
Answer: The primary focus of marketing strategy is to effectively allocate and coordinate
marketing resources and activities to accomplish the firm's objectives within a specific
product-market. Thus, the critical issue concerning the scope of a marketing strategy is
specifying the target market(s) for a particular product or product line. Firms then seek
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies
23. Why are some firms not very focused on their consumers or competitors?
Answer: Competitive factors affecting a firm’s market orientation:
Early entrants into newly emerging industries have few strong competitors, rapidly growing
customer demand, and immediate threats of production problems and resource constraints. As
industries grow, they become more competitive. Industry capacity grows faster than demand,
and the environment shifts from a seller’s market to a buyer’s market. Firms often respond to
changes with aggressive promotional activities to maintain market share and hold down unit
costs. This sales-oriented response focuses on selling what the firm wants to make rather than
on customer needs. Spending more on selling efforts doesn’t create a sustainable competitive
advantage. As industries mature, sales volume levels off, and technological differences among
brands disappear as manufacturers copy the best features of each other’s products. Managers
can most readily appreciate benefits of a market orientation at this stage.
Level of Difficulty: Hard
Page: 15-16
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.