ABDT2043 FUNDAMENTALS OF MARKETING

TUTORIAL 2

COMPANY & MARKETING STRATEGY:

PARTNERING TO BUILD CUSTOMER RELATIONSHIPS

Multiple-choice questions

1) Which of the following is true of strategic planning in a firm?（slide 3）

A) It deals with maintaining the company's current business ventures.
B) It focuses on the firm's internal environment rather than the external
environment.
C) It occurs at the business-unit, product, and market levels rather than at the
corporate level.

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D) It deals with adapting the firm to take advantage of changing marketing
opportunities.

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E) It involves preparing short-term investment objectives at the product level.

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2) The first step in strategic planning is to ________. (slide 4)
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A) set objectives and goals
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B) develop the business portfolio
C) define the company mission
D) plan marketing strategies
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E) identify a problem
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3) Paul Pierce is busy working with other managers evaluating the products and
businesses making up their company. Paul is engaged in ________.(slide 8)
A) defining the company's mission statement
B) preparing a business portfolio
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C) portfolio analysis
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D) marketing planning
E) marketing control
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4) Most portfolio analysis methods evaluate SBUs on two dimensions, namely

________ and ________.(slide 9)
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A) market share; strength of the SBU's position

B) market or industry growth rate; market or industry attractiveness
C) market or industry attractiveness; strength of the SBU's position
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D) market growth rate; profits

E) market penetration; market development

5) In the BCG approach, ________ are high-share, high-growth businesses or

products. They need heavy investment to finance rapid growth. When their growth
slows down, they turn into ________.(slide 13/14)

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 A) cash cows; stars
B) question marks; dogs
C) stars; question marks
D) stars; cash cows
E) dogs; cash cows

6) Which of the following products would the electronics company CypressSound

classify as a cash cow in its BCG matrix?
A) Cyan — a cell phone that is designed for music lovers and has a very low market
share in a market that is growing steadily
B) Boosh — a home entertainment system that has a strong market share in a
market that is likely to expand in the future
C) Xpress — an MP3 player that has a high market share in a market that is not
expected to grow significantly
D) AutoPlay — a car audio system that has a high market share in a market that has
been growing constantly

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E) Unipress — a CD player that has a very low market share in a market that is

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7) A firm's decision to identify and develop new markets for new products is a
________ strategy.(slide 19)

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A) market development
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B) market differentiation
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C) market penetration
D) product development
E) diversification
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8) Disney is identifying and developing new markets for its theme parks. Disney is
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exploring possibilities for ________. (slide 19)

A) market penetration
B) market development
C) downsizing
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D) diversification
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E) product development

9) For Hyundai Corporation, customers who care primarily about the price of a car and
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its operating economy make up one ________.

A) market position
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B) value network
C) market segment
D) customer extension
E) value chain
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10) Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs
to work closely with their suppliers to help them reduce their costs and improve
quality. This illustrates the importance of an efficient ________.
A) business model

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 B) low-cost operator
C) product mix
D) value-delivery network
E) problem-solver

11) ________ is the marketing logic by which a company hopes to achieve profitable
customer relationships. （slide 22）
A) Price
B) Being a low-cost operator
C) A consistent product mix
D) Marketing strategy
E) Implementing a differentiation strategy

12) The process of customer-driven marketing involves ________, ________,

________, and ________. （slide 22）

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A) product; price; promotion; adaptation

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B) market segmentation; market targeting; differentiation; positioning

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C) marketing analysis; planning; implementation; feedback

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D) analysis; targeting; implementation; control
E) problem identification; information search; decision; implementation

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13) Most companies today enter a new market by serving a ________; if this proves
successful, they ________. (slide 25)
A) single market segment; add segments
B) multitude of segments; add more segments
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C) few segments; add more segments

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D) niche; differentiate
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E) target market; reposition

14) Jill Reno has researched new markets and has decided which segments to enter.
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Next she should decide what ________ her company should occupy in those
segments.(slide 27)
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A) position
B) place
C) rank
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D) rating
E) percentage of space
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15) Effective positioning begins with ________ the company's marketing offer in order
to give consumers more perceived value. (slide 26)
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A) pricing
B) aligning
C) differentiating
D) promoting
E) placing

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 16) In the four Ps of the marketing mix, design, packaging, services, and variety all fall
under the category of ________.(slide 28)
A) product
B) price
C) promotion
D) place
E) position

17) In a SWOT analysis, which of the following would be considered a strength?(slide

32)
A) internal limitations
B) trends in the market
C) favorable factors in the environment
D) factors that challenge the company's performance
E) internal resources

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18) Under the ________ organizational format of marketing departments, different
marketing activities are headed by a specialist such as a sales manager, advertising

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manager, marketing research manager, or customer-service manager.
A) geographic

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B) product management
C) market management rs e
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D) customer-centered
E) functional
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19) Modern marketing departments are arranged in all of the following ways, EXCEPT
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which one? (slide 39)

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A) functional organization
B) market management organization
C) product management organization
D) geographic organization
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E) strategic management organization

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20) Evaluating the results of marketing strategies and plans and taking corrective action
to ensure that objectives are attained is called ________. (slide 40)
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A) marketing control
B) strategic control
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C) operating control
D) developmental control
E) efficiency
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 True/False questions

21) Targeting refer to consumer who respond in different ways to a given set of
marketing efforts.
(T/F)

22) "At CL Online, we create customer connectivity, anytime, anywhere" is a product-

oriented mission statement.（slide 6）
(T/F)

23) When designing business portfolios, most companies are well advised to add a
broad range of products and businesses to their organization.(slide 9)
(T/F)

24) An organization's mission statement should emphasize its intentions toward

customers and the customer experience the organization seeks to create.(slide 5)

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(T/F)

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25) The image of a product in the minds of consumers is called market segmentation.
(T/F)

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Essay questions

Describe a device that a firm could use to identify future growth opportunities.
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26)
A device that a firm could use to identify future growth opportunities through market
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penetration, market development,product development and diversification. Market

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penetration help it by increasing sales of current products to current market segment

without changing the product and market development help to identify and develop new
market segments for current product.For the product development, it help to offer
modified or new product to market segments and diversification help company to start up
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and acquire businesses outside the company’s current products and markets.
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27) According to the Boston Consulting Group approach, how can a company classify
its SBUs on a growth-share matrix?
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1. Stars are high-growth, high-share businesses or products. They often need heavy
investments to finance their rapid growth. Eventually their growth will slow down, and
they will turn into cash cows.
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2. Cash cows are low-growth, high-share businesses or products. These established and
successful SBUs need less investment to hold their market share. Thus, they produce a lot
of the cash that the company uses to pay its bills and support other SBUs that need
investment.

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 3. Question marks are low-share business units in high-growth markets. They require a
lot of cash to hold their share, let alone increase it. Management has to think hard about
which question marks it should try to build into stars and which should be phased out.

4. Dogs are low-growth, low-share businesses and products. They may generate enough
cash to maintain themselves but do not promise to be large sources of cash.

28)

Group Discussion

Rolex: Building Brand Equity through a Customer-driven Marketing Mix

Refer to http://www.rolex.com and

https://www.youtube.com/user/WorldOfRolex/featured

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1) How Rolex has set and maintained its position in the market through the marketing

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strategies?

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Product - The products currently marketed by Rolex can be broadly divided into three
collections: the Oyster collection, the new 2013 collection, and the Cellini collection. The

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product description states that the products are "made from the finest raw materials and
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assembled with careful attention to detail." The description after which goes on to describe
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the latest technology added to the age-old Rolex class.

Price - There are high prices for the watches sold by Rolex. With their promotion and
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positioning strategy, the pricing strategy goes. In addition, because their products are
manufactured with very expensive raw materials and are equipped with the best quality
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technology. The high price is equivalent to the product being positioned as a luxury item.
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Promotion - Rolex's promotional strategy can be categorized into the following groups.TV
advertisements, print advertisements in magazines and newspapers, gaming festival
sponsors such as Wimbledon, embedded advertisements in films as well
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Place - In terms of its mechanisms, Rolex maintains a high level of precision through its in-
house manufacturing plants. Most of its watches are produced in Switzerland and then
distribution takes place through certified distributors. Rolex believes in the creation of
personal bonds with customers. As it believes in maintaining its premium value, it allows its
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distributors to sell at least two watches per year. In smaller stores, Rolex does not sell its
goods, but instead targets upscale areas. To maintain their brand value, the products are
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available in selected and premium showrooms. It also does not encourage online sales.

2) What is Rolex really selling? What are customers really buying?

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Rolex not only selling luxury watch but also selling value.The customers not
really buying for their watches,the customers are buying for their brands,they are
three famous brand in Rolex such as Submariner,Daytona and Explorer.Not only
that, the customers buy for their quality of the product,because their product are
stay valuable.

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 3) If you worked as Rolex’s operations manager, financial analyst, IT specialist, or
human resources manager, why would it be important for you to understand Rolex’s
marketing strategy?
It would be important for me to consider Rolex's marketing strategies if I served
as Rolex's operations manager, financial analyst, IT expert, or human resources
manager, so we should know what the company does to determine what decision
we need to take. Apart from that, when we know exactly what the marketing
strategy is, I will achieve even more company and employee benefits. Rolex is a
big enterprise and that would lead the company to fail without the management
understanding its own company's marketing strategy.

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