01. _____ consist(s) of deciding the scope and purpose of the business, the objectives, and the resources necessary to achieve the objectives.

A. Marketing strategy
B. Corporate strategy
C. Market sensing
D. Channel bonding
02. In a corporate strategy, _____ indicate(s) the dimensions of performance upon which to focus and the levels of achievement required.

A. corporate objectives
B. synergies
C. vision
D. scope

03. _____ is the combination of the product, value chain, price, and promotion strategies a firm uses to place itself against its key competitors in meeting the needs and wants of the buyers in the market target.

A. Positioning strategy
B. Customer relationship management
C. Customer linking
D. Market targeting strategy

04. Which of the following is the first step in defining and analyzing product-markets?

A. Forecasting market size
B. Determining the boundaries of the market
C. Analyzing competition
D. Predicting rate of change of the market

05. _____ analysis is horizontal and only covers similar types of firms and operating practices of the firms.

A. Value chain
B. Industry
C. Market segmentation
D. Customer profile

06. _____ is measured by comparing the share of the firm against the competitor with the highest market share in the segment.

A. Market segmentation
B. Relative market position
C. Product differentiation
D. Customer segment

07. Company sales divided by the total sales of all firms for a specified product-market determines the _____ of a particular firm.

A. market potential
B. absolute threshold
C. relative market position
D. market share

08. _____ is the process of identifying and analyzing sub-groups of buyers in a product-market with similar response characteristics.

A. Flighting
B. Benchmarking
C. Market segmentation
D. Product differentiation

09. The ______ variables divide a market into segments according to the buyers' age, income, education, and other such characteristics.

A. use situation
B. buyers' needs and preferences
C. demographic
D. purchase-behavior

10. Which of the following types of segmentations of customer groups would be characterized as a response difference?

A. Frequency of purchase
B. Income
C. Industrial sector
D. Age

11. CRM supports a customer-responsive strategy, which gains competitive advantage when it:

A. demonstrates the customer's trustworthiness and reliability to the company.
B. delivers superior customer value by personalizing the interaction between the customer and the company.
C. tightens connections with the competitors.
D. achieves the coordination of customer capabilities around the organization.

12. The _____ component in the CRM strategy indicates how different consumer segments will be formed and managed.

A. business case
B. value proposition
C. customer strategy
D. enterprise transformation plan
13. Which of the following is a pitfall to be avoided when applying CRM initiatives?

A. Changing the organization before putting CRM in place
B. Matching CRM technology to the customer strategy
C. Investing in building relationships with customers who value them
D. Implementing CRM before creating a customer strategy

14. In CRM, the benefits the customer receives are expressed by the _____.

A. value proposition
B. customer equity
C. customer lifetime value
D. enterprise transformation plan

15. Strategic _____ refers to a firm's awareness of what is happening and what is going to happen next, as a basis for rapidly developing effective responses to change or new opportunities.

A. sensitivity
B. alliance
C. equity
D. network optimization

16. The learning processes of market-oriented companies include a sequence of activities beginning with _____.

A. information distribution for synergy
B. objective inquiry
C. mutually informed interpretations
D. accessible memory

17. The market sensing process of _____ includes finding discontent through dialogue, observation, and engagement with clients.

A. building open-minded inquiry
B. analyzing competitors' actions
C. listening to front-line employees
D. searching for latent customer needs

18. Which of the following learning process activities can leverage the value of the information by cutting across business functions to share information on customers, channels of distribution, suppliers and competitors?

A. Objective inquiry
B. Mutually informed interpretations
C. Information distribution for synergy
D. Accessible memory

19. Product-markets that are newly formed are categorized as _____ and are created by factors such as a new technology or the identification of unmet needs by suppliers.

A. growing
B. emerging
C. mature
D. declining

20. A(n)_____ is a life product life cycle stage where the product-market is actually fading away instead of experiencing a temporary fall or cyclical changes.

A. emerging product-market
B. maturing product-market
C. declining product-market
D. growing product-market

21. The global market strategy of _____ considers the extent to which standardized products and other strategy elements can be designed to compete on a global basis, and buyers are targeted without regard to national boundaries and regional preferences.

A. segmentation
B. buffering
C. local responsiveness
D. integration

22. Which of the following positioning concepts is most commonly utilized by luxury brands?

A. Functional positioning
B. Experiential positioning
C. Expedient positioning
D. Symbolic positioning
23. Lambasta is a burger joint that claims to specialize in lamb burgers. Over the past year, Lambasta has experimented in different products wherein they stopped making some of their flagship lamb burgers and replaced them with chicken burgers. The Lambasta website, which claims Lambasta to be "the only legitimate lamb burger joint in town," increasingly provides special offers on their chicken burgers. Their core customer base and profits have steadily declined ever since. Which of the following types of positioning errors is affecting Lambasta?

A. Underpositioning
B. Overpositioning
C. Symbolic positioning
D. Confused positioning

24. _____ reduces the capacity of an organization to respond quickly to customer needs and new product development.

A. Market-sensing
B. Organizational learning
C. Environmental diversity
D. Vertical integration
25. Moving products through various stages in the value-added process often involves linking suppliers, manufacturers, distributors, and consumer and business end-users of goods and services into _____ channels.

A. lateral
B. vertical
C. horizontal
D. parallel

26. A _____ between two organizations is an agreement to cooperate to achieve one or more common important objectives without forming a separate entity.

A. joint venture
B. merger
C. divestiture
D. strategic alliance

27. Which of the following relationships would be considered an internal partnership?

A. Relationships between functional units and employees of a firm
B. Relationships between a firm and a competitor
C. Relationships between a firm and its supplier
D. Relationships between a firm and its customers

28. _____ innovation occurs when products are radically new and the values created are substantial.

A. Substantial
B. Transformational
C. Incremental
D. Nondescript

29. Customer_____ indicates how well the product use experience compares to the value expected by the buyer.

A. value
B. satisfaction
C. need
D. segmentation

30. _____ is the combination of benefits provided by a product minus all of the costs incurred by the buyer.

A. Product use experience
B. Customer satisfaction
C. Customer value
D. Leveraging cost

1. What does becoming market-oriented mean from a business perspective? What are its features?

2. Discuss the differences between a generic product-market and a product-type product-market.

3. What is customer lifetime value? How is it calculated?

4. Elaborate on the scope of using positioning strategies.

5. What is proactive cannibalization and what is the strategic logic of this concept?