TEST BANK FOR bnbn bnbn
Strategic Market Management, 12th Edition David A. Aaker, Christine Moorman
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Chapter 1 – Strategic Market Management: An Overview
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Essay Question: bnbn
1.1
Describe and give examples of a well-developed business strategy including the
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
four characteristics.
bnbn bnbn
Objective Questions: bnbn
1.1
Five management tasks used to develop strategic competencies do not include
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
the following:
bnbn bnbn
a. Strategic analysis bnbn
b. Manage multiple business units bnbn bnbn bnbn
c. Identify competitors bnbn
d. Develop a sustainable advantage bnbn bnbn bnbn
e. Develop a growth platform bnbn bnbn bnbn
Answer: C. Identifying competitors is valuable but not one of the 5
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
management tasks.
bnbn bnbn
1.2
The book suggests that many markets are dynamic and require new strategic
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
models.
bnbn
Answer: False—the book asserts that all markets are dynamic.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
1.3
To develop a sustainable competitive advantage (SCA) in dynamic markets, a
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
company must create multiple business units.
bnbn bnbn bnbn bnbn bnbn bnbn
Answer: False. There are two routes to creating SCA’s, developing
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
assets and competencies and creating and leveraging organizational
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
synergies between multiple business units.
bnbn bnbn bnbn bnbn bnbn
,1.4
A business is generally an organizational unit that has a distinct business
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
strategy and a manager with sales and profit responsibility.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Answer: True. bnbn
1.5
Synergy occurs when two businesses can reduce costs by sharing some asset
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
such as a sales force or logistics system.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Answer: True. bnbn
1.6
A strategy should only involve one value proposition – otherwise chaos will
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
occur.
bnbn
Answer: False. Most successful strategies involve more than one – for
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
example, a customer value proposition that involves innovation and
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
customer intimacy such as Virgin Atlantic Airways.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn
1.7
A strategic market management system will have more value for an
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
organization that is not engaged in complex markets with multiple
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
channels and regional variation in channels and products.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Answer: False. A strategic market management system is designed
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
to help a company (complex or not) to deal with the rapid
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
changes that can occur in a firm’s external environment.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
1.8
The elements of strategy can be capsulated into four core elements--the
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
product-market investment decision, functional area strategies, the customer
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
value proposition, and the sustainable competitive advantage.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Answer: False. The four elements are: 1) the product-market investment
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
strategy bnbn
2) the customer value proposition, 3) assets and competencies and
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
synergies, and bnbn bnbn
4) functional area strategies. So while a sustainable competitive
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
advantage is the goal of a business strategy it is not one of the
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
elements that make up a good business strategy.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
1.9
A strategic competency is what a business unit does exceptionally well,
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
such a manufacturing, promotion, distribution, etc. which has strategic
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
importance to the business.
bnbn bnbn bnbn bnbn
Answer: True. This is the definition of a strategic competency.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
1.10
According to the book, strategic marketing management has six objectives
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
which include all except one of the following:
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
(a) Precipitate the consideration of strategic choices. bnbn bnbn bnbn bnbn bnbn
(b) Contribute to the bottom line success of the firm. bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
(c) Force a long-range view. bnbn bnbn bnbn
, (d) Make the resource allocation decision visible.
bnbn bnbn bnbn bnbn bnbn
(e) Provide methods to aid in strategic analysis and decision-making.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Answer: B. There is nothing that will guarantee the success of a
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
business. In fact, it is interesting to discuss that a strategy is
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
evaluated after implementation; that is when it is known whether a
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
strategy is successful or not. .
bnbn bnbn bnbn bnbn bnbn bnbn
1.11
The four elements of a business strategy for a firm are the product-market
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
investment decision, the functional strategies and program, the customer value
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
proposition, and the
bnbn bnbn bnbn
and . bnbn
Answer: Assets and competencies. bnbn bnbn bnbn
1.12
The scope of a business is defined by the products it offers and chooses not
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
to offer, by the markets it does and does not seek to serve, by the
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
competitors it chooses to compete with or to avoid, and by its level of
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
vertical integration.
bnbn bnbn
Answer: True. This is the definition of a business scope.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
1.13
Strategic marketing is involved in making decisions, some of which include
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
investment decisions. Of the following which is not an investment decision:
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
(a) Invest for growth bnbn bnbn
(b) Milk
(c) Maintain
(d) Liquidate
(e) Innovation
Answer: E.
bnbn bnbn
1.14
An external analysis includes the analysis of the customers, the competitors, the
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
markets/submarkets and the environment.
bnbn bnbn bnbn bnbn
Answer: True. bnbn
1.15
According to the book, customer analysis involves identifying the
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
organization’s customer segments and each segment’s motivations and
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
priority needs.
bnbn bnbn
Answer: False. bnbn
1.16
Strategic market management is a system designed to help management both
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
precipitate and make strategic decisions, as well as create strategic visions.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Answer: True. This is the definition of strategic market management.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
1.17
Marketing’s role in strategy includes being the primary driver of strategic
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
analysis.
bnbn
Answer: True. bnbn
, 1.18
The strategic plan should be developed annually.
bnbn bnbn bnbn bnbn bnbn bnbn
Answer: False. It should be continuously refined.
bnbn bnbn bnbn bnbn bnbn bnbn
Strategic Market Management, 12th Edition David A. Aaker, Christine Moorman
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Chapter 1 – Strategic Market Management: An Overview
bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Essay Question: bnbn
1.1
Describe and give examples of a well-developed business strategy including the
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
four characteristics.
bnbn bnbn
Objective Questions: bnbn
1.1
Five management tasks used to develop strategic competencies do not include
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
the following:
bnbn bnbn
a. Strategic analysis bnbn
b. Manage multiple business units bnbn bnbn bnbn
c. Identify competitors bnbn
d. Develop a sustainable advantage bnbn bnbn bnbn
e. Develop a growth platform bnbn bnbn bnbn
Answer: C. Identifying competitors is valuable but not one of the 5
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
management tasks.
bnbn bnbn
1.2
The book suggests that many markets are dynamic and require new strategic
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
models.
bnbn
Answer: False—the book asserts that all markets are dynamic.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
1.3
To develop a sustainable competitive advantage (SCA) in dynamic markets, a
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
company must create multiple business units.
bnbn bnbn bnbn bnbn bnbn bnbn
Answer: False. There are two routes to creating SCA’s, developing
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
assets and competencies and creating and leveraging organizational
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
synergies between multiple business units.
bnbn bnbn bnbn bnbn bnbn
,1.4
A business is generally an organizational unit that has a distinct business
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
strategy and a manager with sales and profit responsibility.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Answer: True. bnbn
1.5
Synergy occurs when two businesses can reduce costs by sharing some asset
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
such as a sales force or logistics system.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Answer: True. bnbn
1.6
A strategy should only involve one value proposition – otherwise chaos will
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
occur.
bnbn
Answer: False. Most successful strategies involve more than one – for
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
example, a customer value proposition that involves innovation and
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
customer intimacy such as Virgin Atlantic Airways.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn
1.7
A strategic market management system will have more value for an
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
organization that is not engaged in complex markets with multiple
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
channels and regional variation in channels and products.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Answer: False. A strategic market management system is designed
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
to help a company (complex or not) to deal with the rapid
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
changes that can occur in a firm’s external environment.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
1.8
The elements of strategy can be capsulated into four core elements--the
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
product-market investment decision, functional area strategies, the customer
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
value proposition, and the sustainable competitive advantage.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Answer: False. The four elements are: 1) the product-market investment
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
strategy bnbn
2) the customer value proposition, 3) assets and competencies and
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
synergies, and bnbn bnbn
4) functional area strategies. So while a sustainable competitive
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
advantage is the goal of a business strategy it is not one of the
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
elements that make up a good business strategy.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
1.9
A strategic competency is what a business unit does exceptionally well,
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
such a manufacturing, promotion, distribution, etc. which has strategic
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
importance to the business.
bnbn bnbn bnbn bnbn
Answer: True. This is the definition of a strategic competency.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
1.10
According to the book, strategic marketing management has six objectives
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
which include all except one of the following:
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
(a) Precipitate the consideration of strategic choices. bnbn bnbn bnbn bnbn bnbn
(b) Contribute to the bottom line success of the firm. bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
(c) Force a long-range view. bnbn bnbn bnbn
, (d) Make the resource allocation decision visible.
bnbn bnbn bnbn bnbn bnbn
(e) Provide methods to aid in strategic analysis and decision-making.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Answer: B. There is nothing that will guarantee the success of a
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
business. In fact, it is interesting to discuss that a strategy is
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
evaluated after implementation; that is when it is known whether a
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
strategy is successful or not. .
bnbn bnbn bnbn bnbn bnbn bnbn
1.11
The four elements of a business strategy for a firm are the product-market
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
investment decision, the functional strategies and program, the customer value
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
proposition, and the
bnbn bnbn bnbn
and . bnbn
Answer: Assets and competencies. bnbn bnbn bnbn
1.12
The scope of a business is defined by the products it offers and chooses not
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
to offer, by the markets it does and does not seek to serve, by the
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
competitors it chooses to compete with or to avoid, and by its level of
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
vertical integration.
bnbn bnbn
Answer: True. This is the definition of a business scope.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
1.13
Strategic marketing is involved in making decisions, some of which include
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
investment decisions. Of the following which is not an investment decision:
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
(a) Invest for growth bnbn bnbn
(b) Milk
(c) Maintain
(d) Liquidate
(e) Innovation
Answer: E.
bnbn bnbn
1.14
An external analysis includes the analysis of the customers, the competitors, the
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
markets/submarkets and the environment.
bnbn bnbn bnbn bnbn
Answer: True. bnbn
1.15
According to the book, customer analysis involves identifying the
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
organization’s customer segments and each segment’s motivations and
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
priority needs.
bnbn bnbn
Answer: False. bnbn
1.16
Strategic market management is a system designed to help management both
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
precipitate and make strategic decisions, as well as create strategic visions.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
Answer: True. This is the definition of strategic market management.
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
1.17
Marketing’s role in strategy includes being the primary driver of strategic
bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn bnbn
analysis.
bnbn
Answer: True. bnbn
, 1.18
The strategic plan should be developed annually.
bnbn bnbn bnbn bnbn bnbn bnbn
Answer: False. It should be continuously refined.
bnbn bnbn bnbn bnbn bnbn bnbn
