战略营销Test-BankChapter-1-Question-Bank-7-28-2017.docx

Marketing Strategy: Based on First Principles and Data Analytics

Marketing Strategy:
Based on First Principles and Data Analytics

Question Bank

Chapter 1 Question Bank

MULTIPLE CHOICE and TRUE/FALSE QUESTIONS

1) Marketing Strategy consists of decisions and actions focused on building _____________, to create value for stakeholders:
a) sustainable brand equity, relative to competitors, in the minds of customers
b) sustainable differential advantage, relative to competitors, in the minds of customers
c) sustainable price advantage, relative to marquee players, in the minds of suppliers
d) profitable product-mix, relative to competitors, in the minds of customers
Answer: B

2) Three of the five key elements of marketing strategy are that it:
a) takes a customer perspective, guides promotions, and leads to differential advantage
b) takes a supplier perspective, guides decisions and actions, and leads to differential advantage.
c) takes a supplier perspective, guides promotions, and leads to differential advantage.
d) takes a customer perspective, guides decisions and actions, and leads to differential advantage.
Answer: D

3) A corporate strategy must answer the following questions (check all that apply):
a) who are your customers?
b) what affects cash flow?
c) what value do you provide customers?
d) what personnel policies should you have in place?
Answer: B, D

4) Calculate the market share for XYZ Inc. for 2016 if average selling price = $15/unit, market demand = 18 million units, and sales revenue = $32.4 million.
a) 22%
b) 32%
c) 8%
d) 12%
Answer: D

5) If ABC Inc.’s profit = $46,000, margin = 25%, marketing expense = $93,000, and G&A expense = $56,000, ABC’s sales revenue is:
a) $5,56,000
b) $7,80,000
c) $3,32,000
d) $5,96,000
Answer: B

6) Map the four first principles of marketing strategy to the four associated marketing decisions
All customers change (1)
All resources are limited (2)
All competitors react (3)
All customers differ (4)
Managing sustainable competitive advantage (5)
Managing resource tradeoffs (6)
Managing customer dynamics (7)
Managing customer heterogeneity (8)

a) 1-5, 2-6, 3-7, 4-8
b) 3-5, 4-7,1-6, 4-8
c) 2-6,3-5,1-7,4-8
d) 4-7,2-6, 3-5,1-7
Answer: C

7) The key elements of marketing strategy include (check all that apply):
a) differential advantage
b) sustainability
c) company’s mission
d) customer-centricity
Answer: A, B, and D

8) A marketing strategy must answer the following questions (check all that apply):
a) what personnel policies should you have in place?
b) what legal considerations affect your business?
c) what value do you earn due to the differential advantage?
d) how will you sustain the differential advantage?
Answer: C & D

9) Various factors lead customers to differ in their preferences, including (check all that apply)
a) personal differences
b) varying peer experiences
c) unique functional needs
d) celebrity self-identities
e) previous persuasion-based activities
Answer: A, C, E

10) Which of the following is a solution to handle customer heterogeneity (check all that apply)
a) ignore customer heterogeneity and provide an offering that matches the average customers’ needs.
b) offer a range of products and services to satisfy the needs of many different customer segments.
c) embrace the notion that customers will sacrifice desired product attributes if the price is low enough.
d) select a specific segment of customers and target them by positioning its offering as the best solution.
Answer: A, B, C, and D.
11) The outputs of managing customer heterogeneity are:
a) Target industry segment, positioning statement, SWOT analysis
b) Target customer segment, positioning statement, customer-centric view
c) Target customer Segment, industry segmentation, positioning statement
d) None of the above
Answer: B

12) The inputs of managing customer heterogeneity are the 3Cs of situation analysis: customers, competitors, and consolidation.
Answer: FALSE (customers, competitors, and company)

13) A product or lifestyle approach captures:
a) typical user experiences
b) industry developmental efforts
c) individual sources of customer dynamics
d) both A & B
Answer: D

14) A firm can compile a descriptive “persona” by grouping existing customers into:
a) those recently acquired
b) long-term customers
c) Those lost or at risk of being lost
d) All of the above
Answer: D

15) Lost customer analysis provides insights on:
a) defection, reflection, loss, and recovery
b) harvest, reflection, recovery, and defection
c) strategy, customer-centricity, defection, reflection
d) reflection, harvest, loss, recovery
Answer: A

16) Various factors lead customers to change their preferences over time, including seminal events, life stages, knowledge, product category maturity, and exposure to relevant information.
Answer: TRUE

17) Which of the following is an input category to handling customer dynamics (check all that apply)
a) data on customer portfolios
b) data on customer response to past programs
c) lost customer analysis
d) customer lifetime value
Answer: A, B, and C.

18) Whereas MP#1 recognizes dynamic customer needs across the market and seeks to select appropriate target segments, MP#2 looks at the customers within each target segment to understand how to win and keep them, by accounting for their evolving diversity.
Answer: FALSE (MP#1 is about static customer needs).

19) Various factors provide competitors avenues for undermining a focal firm’s market position, including (check all that apply)
a) copying the incumbent’s offerings
b) redefining the marketplace
c) making the incumbent irrelevant
d) launching new offerings
Answer: all of the above.

20) The three sources of sustainable competitive advantage are (check all that apply)
a) customers care, the company does “it” better than competitors, hard to duplicate
b) multiplicative
c) evaluated from a customer equity perspective
d) customers can be both assets and liabilities, based on customer equity
Answer: A, C, and D.

21) Brands create SCA through multiple mechanisms, but in the simplest form, ____ can cause customers to buy on the basis of_____, which ____:

a) strong awareness, recognition and habit, reduces their cognitive effort
b) strong engagement, switching costs, increases price premium
c) strong awareness, switching costs, increases price premium
d) strong engagement, recognition and habit, reduces their cognitive effort
Answer: A.

22) Firms allocate large budgets to ____, in an effort to achieve the newest or most innovative product, as well as______, or fundamentally ____:

a) research and development (R&D), reduce their costs, supplementary services
b) data mining, reduce their costs, change customers’ experiences
c) data mining, reduce their costs, supplementary services
d) research and development (R&D), reduce their costs, change customers’ experiences
Answer: D.

23) Which of the following is an input category to managing sustainable competitive advantage (check all that apply)
a) Internal personas
b) AER strategies for each persona
c) conjoint analysis
d) innovation processes
Answer: A & B.

24) Resource slack refers to ___________ for a firm for marketing strategy?
a) unusable resources
b) usable resources
c) competitors resources
d) none of the above
Answer: B

25) ____________ help in making critical resource allocations decisions such as “ How much would the financial income change with 1% increase in marketing efforts”? (Check all that apply)
a) Attribution based processes
b) Experimental processes
c) Response-model based processes
d) Resource based processes
e) All of the above
Answer: A, B, & C

26) ____________ is a technology-enabled, ______to harnessing customer and market data to understand and serve customers?
a) big data, model supported approach
b) customer analytics, computer-aided approach
c) big data, model supported approach
d) customer analytics, model supported approach
Answer: D

27) The micro-macro duality is critical to successful marketing strategy, because _______ occur/occurs at micro levels, but ___________ occur/occurs at Macro level?
a) All decisions, customer understandings
b) True customer understandings, most strategic and resource oriented
c) most strategic and resource oriented, True customer understandings
d) customer understandings, All decisions
Answer: B

28) Various factors provide induce complex resource trade-offs including (check all that apply)
a) Effectiveness of marketing activities
b) Changes in product landscape
c) Product lifecycle maturity
d) Stable customer preferences
Answer: A, B &C

29) In relatively ____ markets, ____ might be acceptable; however, with substantial _____, they often lead to poor trade-off decisions
a) unstable, heuristic, heterogeneity and volatility
b) stable, attribution, heterogeneity and volatility
c) stable, heuristic, heterogeneity and volatility
d) unstable, attribution, heterogeneity and volatility
Answer: C

TRUE/FALSE QUESTIONS
30) A first principle is a foundational concept or assumption on which a theory, system, or method is based.
Answer: TRUE

31) A corporate strategy is the set of principles a firm uses to achieve the lowest cost to beat the competition.
Answer: FALSE (The overall scope and direction of a firm and the way in which its various business operations work together to achieve particular goals).

32) A firm’s sales profit is (market demand x market share x average selling price)x (margin – marketing expense – G&A expense)
Answer: FALSE. It is (market demand x market share x average selling price)x (margin) – marketing expense – G&A expense)

33) Each First Principle or underlying assumption, when matched with its associated marketing decisions, is a Marketing Principle (MP). For example, all customers change, so firms must make strategic decisions to manage customer heterogeneity, and these combined statements constitute MP#1.
Answer: FALSE (all customers differ)

34) Customer heterogeneity is defined as variation among customers in terms of their identities, aspirations, and image.
Answer: FALSE (Needs, desires, and subsequent behaviors)

35) With a classic low-cost strategy, firms attempt to identify core, must-have attributes that will satisfy consumers’ functional needs, then focus all their efforts on reaching the lowest cost for an offering that meets those needs.
Answer: TRUE

36) Building strong relationships between customers and the firm’s salespeople or other boundary-spanning employees can bar customer defection, prompt enduring customer loyalty, and ensure superior financial performance.
Answer: TRUE

37) BOR strategies reflecting an aggregation and reorganization of each targeted customer and persona need (accounting for customer dynamics) and the most effective strategies over time (accounting for customer heterogeneity)
Answer: FALSE (switching customer heterogeneity and dynamics).

38) Firms use simple attribution models to make decisions when they lack hard data on each resource option.
Answer: FALSE (Heuristic based processes)

39) A firm’s resource trade-off strategies defining how much it allocates to each target market segment, AER strategy, and SCA strategy, should be developed to be relevant to maintain the firm’s current AER strategy (MP#1), to support its stated SCA (MP#2), and the firm’s current target segments (MP#3).
Answer: FALSE (MP #2, 3, and 1)

40) Most heuristics are incorrect. They lack any scientific basis for the decisions, relying instead on managers’ gut feelings about what the right resource allocations are.
Answer: FALSE (MP #2, 3, and 1)

ESSAY TYPE QUESTIONS

41) Define marketing strategy, and provide a short discussion about its key elements and scope.
Answer: Marketing strategy consists of decisions and actions focused on building a sustainable differential advantage, relative to competitors, in the minds of customers, to create value for stakeholders. The five key elements are critical to marketing strategy:
1. Leads to a differential advantages over competitors
2. Sustainability
3. Ability to enhance firm performance
4. Customer perspective
5. Guides decisions and actions.
Initially, the strategy concept arose from a military context, where a strategy represents the pursuit of situational superiority over an enemy. Karl von Clausewitz, in On War (1832), thus describes strategy as follows: “Consequently, the forces available must be employed with such skill that even in the absence of absolute superiority, relative superiority is attained at the decisive point (p. 196).” From these military roots, the notion of using resources skillfully, to create decisive positions of superiority over competitors, began to be applied in business in the 1950s and 1960s. A variety of forces (e.g., rapid, unpredictable changes in customer, competitor, technical, and economic environments) were beginning to challenge the “lumbering corporations” of the time, whose size presented an obstacle to operational dexterity. A new way of thinking—generally described as formal strategic planning—was needed. Thus a typical definition of business strategy from the 1960s described “the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals (p. 13).” Management scholars and practitioners from this era retained two elements of military strategy, focused on how decisions and actions could lead to differential advantages over opponents (or competitors). Over the next few decades though, thought leaders added two elements that they regarded as necessary to apply the strategy concept to a business: the need to make the differential advantage sustainable and the idea that the objective of any business strategy is to enhance firm performance. Even more recently, marketing strategists have suggested a refined view in which both the sustainable differential advantage and its objective should be evaluated from the perspective of the customer, such that the central approach is “strategy from the outside-in.”

42) How does marketing strategy differ from corporate strategy?
Answer: Corporate strategy is the overall scope and direction of a firm and the way in which its various business operations work together to achieve particular goals. Marketing strategy consists of decisions and actions focused on building a sustainable differential advantage, relative to competitors, in the minds of customers, to create value for stakeholders. Although the two levels of strategy should have consistent goals (i.e., marketing strategy aligns with corporate strategy), the marketing strategy focuses specifically