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eu/Test-Bank-Bank-for-Strategic-Marketing-9-E-by-Cravens
Chapter 01
Imperatives for a Market-Driven Strategy
True / False Questions
1. (p. 4) For companies that are becoming market oriented the skills of top management only are
required.
FALSE
Difficulty: Moderate
2. (p. 5) All the major components of distinctive capabilities are organizational processes and
assets.
FALSE
Difficulty: Easy
3. (p. 7) Superior customer value results from a very favorable use experience of the customer
compared to expectations of the customer and the value offerings of competitors.
TRUE
Difficulty: Easy
4. (p. 10) Corporate strategy consists of the decisions made by top-management and the
resulting actions taken to achieve the objectives set for the corporation.
TRUE
Difficulty: Easy
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5. (p. 12) A strategic business unit (SBU) is a cohesive organizational unit that is separately
managed, incurs costs and, does not generate sales.
FALSE
Difficulty: Moderate
6. (p. 13) Strategic marketing links the company with the environment and marketing is the
responsibility of the entire business.
TRUE
Difficulty: Challenging
7. (p. 14) A product-market consists of a specific product or product line that can satisfy a set of
needs and wants for the people willing and able to purchase it.
TRUE
Difficulty: Moderate
8. (p. 14) The objective of strategic market segmentation is to identify segments within the
product-market of interest.
TRUE
Difficulty: Moderate
9. (p. 14) Customer relationship management does not emphasize delivering superior customer
value.
FALSE
Difficulty: Challenging
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10. (p. 15) The purpose of market targeting strategy is to select people or organizations that
management wishes to serve in the product-market.
TRUE
Difficulty: Easy
Difficulty: Moderate
12. (p. 4) Answering the questions 'which competitors, what technologies and how customers
perceive being satisfied' comes from _____.
A. Market orientation
B. Competitor intelligence
C. Cross-functional coordination
D. Distinctive capabilities
Difficulty: Easy
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13. (p. 4) Getting all business functions working together to provide superior customer value is
_____.
A. Market orientation
B. Competitor intelligence
C. Cross-functional coordination
D. Distinctive capabilities
Difficulty: Easy
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14. (p. 5) _____ is/are a bundle(s) of knowledge that enables firms to make use of their assets.
A. Market orientation
B. Competitor intelligence
C. Cross-functional coordination
D. Distinctive capabilities
Difficulty: Moderate
15. (p. 7) _____ consist(s) of the benefits and costs resulting from the purchase and use of
products as perceived by the buyer.
A. Customer Value
B. Distinctive capabilities
C. Customer linking
D. Customer Relationships
Difficulty: Easy
16. (p. 9) _____ consist(s) of deciding the scope and purpose of the business, the objectives and
the resources necessary to achieve the objectives.
A. Corporate strategy
B. Business and marketing strategy
C. Market sensing
D. Customer relationship management
Difficulty: Easy
17. (p. 11) What defines the corporation and what provides guidelines for managing the
corporation is _____.
A. Corporate strategy
B. Business and marketing strategy
C. Corporate vision
D. Customer relationship management
Difficulty: Easy
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18. (p. 11) The _____ is/are set at several levels of the company and includes the time frame
necessary for strategic change.
A. Corporate strategy
B. Business and marketing strategy
C. Corporate vision
D. Corporate objectives
Difficulty: Moderate
19. (p. 13) The focus of _____ is on organizational performance rather than a primary concern
about increasing sales.
A. Corporate strategy
B. Strategic marketing
C. Corporate vision
D. Corporate objectives
Difficulty: Moderate
20. (p. 14) _____ offers a company the opportunity to focus its business on the requirements of
one or more groups of buyers.
A. Corporate strategy
B. Strategic marketing
C. Market segmentation
D. Corporate responsiveness
Difficulty: Moderate
21. (p. 14) A _____ is described by characteristics of people including why they buy and their
preferences for brands of products.
A. Customer relationship management system
B. Strategic marketing objective
C. Market segment
D. Corporate capability
Difficulty: Moderate
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22. (p. 14) A(n) _____ is formed according to the type of industry or the uses of the product.
A. Customer relationship management system
B. Strategic marketing objective
C. Industrial market segment
D. Corporate capability
Difficulty: Moderate
23. (p. 14) _____ emphasizes delivering superior customer value by personalizing the
interaction between the customer and the company.
A. Customer relationship management
B. Strategic marketing
C. Market segmentation
D. Corporate positioning
Difficulty: Moderate
24. (p. 14) When a company decides what organizations it wishes to serve in the productmarket, the company is engaged in choosing the _____.
A. Customer relationship management
B. Strategic marketing
C. Market target
D. Corporate positioning
Difficulty: Moderate
25. (p. 15) A company that is deciding the _____ objectives is likely to include the level of sales
they wish to achieve.
A. Customer relationship management
B. Strategic marketing
C. Market target
D. Corporate positioning
Difficulty: Challenging
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26. (p. 15) A _____ is the combination of the product, value chain, price and promotion
strategies a firm uses to position itself against its competitors in meeting the needs of a market
target.
A. Customer relationship strategy
B. Strategic market
C. Market target
D. Positioning strategy
Difficulty: Easy
27. (p. 15) A _____ seeks to have the brand own a place in the eyes and mind of the buyer and
the product be distinguished from the products of the competition.
A. Customer relationship strategy
B. Strategic market
C. Market target
D. Positioning strategy
Difficulty: Moderate
28. (p. 15) The product, distribution, price and promotion strategy components are used to
influence the buyers' _____ of the brand.
A. Relationship strategy
B. Idea
C. Market target
D. Positioning
Difficulty: Challenging
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29. (p. 16) The product, distribution, price and promotion strategy components are the marketing
_____.
A. Relationship
B. Idea
C. Target
D. Mix
Difficulty: Easy
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30. (p. 17) Companies will use a _____ to contact and deliver product to the market target
buyers.
A. Product strategy
B. New idea strategy
C. Value-chain strategy
D. Relationship strategy
Difficulty: Challenging
Essay Questions
31. (p. 7) Discuss how customers perceive value and how companies deliver customer value.
Intense global competition and the increasing demands of ever-more sophisticated customers
make the creation of customer value an important challenge for managers. Offering superior
customer value is at the core of business design. Buyers form value expectations and decide to
purchase goods and services based on their perceptions of products' benefits less the total
costs incurred. Customer satisfaction indicates how well the product use experience compares
to the buyer's value expectations. Superior customer value results from a very favorable use
experience compared to expectations and the value offerings of competitors. The
organization's distinctive capabilities are used to deliver value by differentiating the product
offer, offering lower prices relative to competing brands or a combination of lower cost and
differentiation. Deciding which avenue to follow requires matching capabilities to the best
value opportunities.
Difficulty: Moderate
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Difficulty: Moderate
33. (p. 8) What is the relationship between the corporate strategy and the business and
marketing strategies?
The relationship between corporate, business and marketing strategy is as follows. Corporate
strategy consists of deciding the scope and purpose of the business, its objectives and the
initiatives and resources necessary to achieve the objectives. Business and marketing strategy
is guided by the decisions top management makes about how, when and where to compete.
This should be a two-way relationship while corporate strategy defines strategic direction,
allocates resources and defines constraints on what cannot be done, executives responsible for
marketing strategy have a responsibility to inform corporate strategists about external change
in the market that identifies opportunities and threats.
Difficulty: Challenging
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34. (p. 15) Discuss the role of market targeting in the company's marketing strategy.
A core issue is deciding how, when and where to compete, given a firm's market and
competitive environment. The purpose of market targeting strategy is to select the people (or
organizations) that management wishes to serve in the product-market. When buyers' needs
and wants vary, the market target is usually one or more segments of the product-market.
Once the segments are identified and their relative importance to the firm determined, the
targeting strategy is selected. The objective is to find the best match between the value
requirements of each segment and the organization's distinctive capabilities. The targeting
decision is the focal point of marketing strategy since targeting guides the setting of
objectives and developing a positioning strategy. Examples of market target objectives are
desired levels of sales, market share, customer retention, profit contribution and customer
satisfaction.
Difficulty: Moderate
35. (p. 15) Discuss the role of positioning strategy in the company's marketing strategy.
Positioning strategy is the combination of product, value chain, price and promotion strategies
a firm uses to position itself against its key competitors in meeting the needs and wants of the
market target. The strategies and tactics used to gain a favorable position are called the
marketing mix or the marketing program. The positioning strategy seeks to position the brand
in the eyes and mind of the buyer and distinguish the product from the competition. The
product, distribution, price and promotion strategy components make up a bundle of actions
that are used to influence buyers' positioning of a brand.
Difficulty: Moderate
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