,TESTBANK FOR Marketing Strategy & Management
by Diane M. Phillips
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
Testbank
Chapter 1: Setting the stage: The purpose and promise of
marketing
1. The concept of marketing myopia was first described in a famous article under the same
title written by ______.
a. Dale Carnegie
b. Tyler Levitt
c. Theodore Levitt
d. Philip Kotler
Ans: C
Marketing myopia was first described in a revolutionary 1960 article by Theodore Levitt
published in the Harvard Business Review (HBR). He argued that many companies
incorrectly take a short-sided approach to the market, viewing marketing merely as a tool for
selling products. Instead, he emphasized the importance of focusing on satisfying customers’
needs.
2. Which of the following statements about the concept of ‘marketing myopia’ is correct?
a. Marketing myopia represents the activity, set of institutions and processes for creating,
communicating, delivering and exchanging offerings that have value for customers,
clients, partners and the society at large.
b. Marketing myopia refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market.
c. Marketing myopia is a short-sighted focus on selling products and services, rather than a
‘big picture’ focus on what consumers want.
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
d. Marketing myopia is a situation where a company has a broad-minded marketing approach
and where the long-term marketing goals are given more importance than the short-term
goals.
Ans: C
Marketing myopia is a short-sighted focus on selling products and services, rather than
seeing the ‘big picture’ of what consumers want. The concept refers to the tendency to view
the scope of a business in a very limited way.
3. Which of the following cases best illustrates the concept of marketing myopia?
a. Team Fiji’s efforts to win a medal at the Olympics
b. Sony’s proactive and aggressive approach to marketing digital cameras
c. Netflix’s entry into the film rental industry
d. BP and its efforts to rebrand itself as Beyond Petroleum
Ans: D
With its Beyond Petroleum green advertising campaign (2000–2007), British Petroleum re-
introduced itself to the market as a socially conscious company. However, very few
substantive changes were made with regard to BP operations.
4. The definition of marketing according to the American Marketing Association
acknowledges the importance of______
a. Aggressive selling and promotion of products and services
b. Marketing strategies for the short term
c. Exchanging value-based offerings providing a win-win situation
d. A zero-sum game strategy in marketing
Ans: C
According to the American Marketing Association, marketing is the activity within a set of
institutions and processes for creating, communicating, delivering and exchanging offerings
that have value for customers, clients, partners and the society at large (AMA 2017). The
fundamental concepts to take away from the AMA definition are the customer-centricity
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
approach; the wide range of ‘offerings that have value’ available today: marketers can
promote ideas, people, places and services; the dynamics of exchanging products/services
and the consequent relational balances (or imbalances) among all the parties involved.
5. The process of looking at any industry holistically and understanding the key drivers of
competition and profitability is an important part of ______.
a. Knowledge management
b. Operations management
c. Distribution management
d. Marketing strategy
Ans: D
As Michael Porter claims, the ‘job of the strategist is to understand and cope with the
competition’ (Porter 2008, p. 79). Strategically analysing and coping with the complexity of
the competitive market forces is critical for a marketing strategist.
6. ______ marketing strategy aims to deliver value to consumers in order to help the
organization achieve specific objectives.
a. Internal
b. Integrated
c. Independent
d. International
Ans: B
Integrated: ‘Marketing strategy is an integrated set of decisions and processes designed to
deliver value to consumers to help the organization achieve specific objectives’ (reference
page 11). In any industry, assessing all the interrelated dynamics is crucial to the formulation
of effective strategy.
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
7. Overcoming marketing myopia enables a variety of strategic opportunities for the
marketing team. Which of the following statements most closely represents a non-myopic
approach?
a. Marketing managers cannot identify the myriad of options that are available to customers.
b. Competition is narrow.
c. Marketing managers can better identify not just the myriad of options that are available to
customers, but also they can create strategies that keep these competitive forces in check.
d. A company can easily find the right customers for its products.
Ans: C
Marketing managers can better identify not just the myriad of options that are available to
customers, but they can create strategies that keep these competitive forces in check (ref.
page 13). Facing marketing myopia allows organizations to anticipate and satisfy consumers’
needs and strategize on how to lead and position themselves in the market.
8. The ______ developed by Michael Porter takes a broad perspective on competition.
a. VRIO framework
b. SWOT analysis
c. PESTEL analysis
d. 5 Forces Model
Ans: D
Michael Porter’s Five Forces framework has shaped a generation of academic research and
business practice. According to Porter, the five forces that shape competition, regardless of
the sector/industry are as follows: (1) the threat of new entrants, (2) the bargaining power of
buyers, (3) the threat of substitute products or services, (4) the bargaining power of suppliers
and (5) rivalry among existing competitors.
9. According to Porter (2008), how should the marketing team assess the competitive
landscape?
Ans:
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
Originally developed by Harvard Business School’s Michael E. Porter (2008), the Five
Forces Model represents a crucial marketing tool that helps marketers (and all those parties
involved) analyse and predict the attractiveness and profitability of an industry. Michael
Porter’s framework outlines five factors that are used to gauge competitiveness in a
marketplace: (1) the threat of new entrants, (2) the bargaining power of buyers, (3) the threat
of substitute products or services, (4) the bargaining power of suppliers and (5) rivalry
among existing competitors. Among those relevant aspects, competitive rivalry is the most
important force in any ecosystem. It helps you understand the strength of competitors in
comparison to you. If the rivalry is intense, companies tend to lower prices and attract
customers through the promotion of certain perks/incentives. If not, profits are generally
high. Competitive rivalry is influenced by the bargaining power of buyers, which can exert
pressure and drive prices down. The threat of substitute products or services are alternatives
from a different industry that serve the same need. A considerable number of substitutes can
drive prices down and ultimately influence price, with the consequence of reducing the
number of substitutes and hence favouring the creation of a monopoly in a particular
industry. The entrance of the new players depends on the types of barriers in the market. If
low, the threat of those new actors to existing players is high.
10. Drawing from Porter’s (2008) model, carefully describe at least three strategic moves the
marketing team could take.
Ans:
Based on Porter’s framework, the array of benefits deriving from an effective analysis of the
market includes the possibility of tailoring a unique/ideal company positioning strategy, by
exploiting the weaknesses of the existing players; the possibility of monitoring and
forecasting future trends and shifts; the possibility of shaping industry structure through
innovation; the opportunity of defining the (broad or narrow) scope of the competition.
11. According to Porter (2008), the bargaining power of buyers is high when customers have
weak negotiating power. True or false?
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
Ans: False.
The bargaining power of buyers is high when customers have strong negotiating/leverage
power.
12. According to Porter (2008), the threat of new entrants analyses how much power a
business’s supplier has and how much control it has over the potential to raise its prices.
True or false?
Ans: False.
The threat of new entrants refers to the threat that new competitors pose to current players
within an industry. It determines the attractiveness of the industry.
13. According to Porter (2008), the threat of substitute products or services examines how
easy it is for consumers to switch from a business product or service to that of a potential
competitor. True or false?
Ans: True.
The threat of substitute products or services examines how easy it is for consumers to switch
from a business product or service to that of a potential competitor.
14. According to Porter (2008), rivalry among existing competitors is an indication of how
intense the competition is in the marketplace. True or false?
Ans: True.
Rivalry among existing competitors examines how intense the competition is in the
marketplace.
15. The value proposition is the set of needs a company can satisfy for its target market
customers. True or false?
Ans: True.
The value proposition is the set of needs a company can satisfy for its target market
customers. The value proposition is the core of any business (reference page 16).
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
16. Describe the role of marketing as well as its obligations. Provide an example.
Ans:
Marketing acts as a bridge between the external environment and the organization itself. We
have witnessed a shift in perspective from the views of early economists and marketers.
Enlightened marketing leaders are now dedicated to helping environmental and social causes,
and applying ethics to their marketing strategy and management (see the three principles
listed on page 21: the responsible principle requires giving voice to all marketing
stakeholders; the respectful principle focuses on enabling different levels of aspiration within
a fair society; the resilient principle is based on continuous improvement). An example of
ethical business is exemplified by Allbirds, which is shaking up the clothing industry with its
steadfast commitment to reducing its carbon footprint while advocating for eco-friendly
initiatives that have a positive impact, both locally and globally.
17. Because of its role as a bridge between the external environment and the organization,
marketing is often called upon to be the standard bearer for the organization’s ethical
principles and standards. Therefore, one perspective suggested that an effective
marketing strategy would include each of the following principles EXCEPT:
a. The responsible principle
b. The zero-sum game principle
c. The respectful principle
d. The resilient principle
Ans: B
Hulland et al.’s (2020) perspective on ethics and marketing merges both social purpose and
ethical business practice.
18. The push for more ethical business practices has resulted in marketers becoming much
more aware of each of the following issues EXCEPT:
a. Developing and promoting more environmentally conscious products
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
b. Safeguarding the environment, customers and local communities
c. Applying profit-driven tactics to drive growth
d. Recognizing that a firm’s economic success and ethical principles can coexist
Ans: C
The evolution of marketing has influenced a re-evaluation of marketing’s obligations.
19. ______ are those entities who have a direct connection to and relationship with the
company. They include financiers, employees and customers.
a. Internal stakeholders
b. External stake watchers
c. External stakeholders
d. Marketers
Ans: A
Internal stakeholders are those entities who have a direct connection to and relationship with
the company. They include financiers, employees and customers.
20. What is the most important shortcoming of the traditional stakeholder theory? Describe
the solution to this shortcoming.
Ans:
The primary criticism was the need to clarify roles, dynamics and obligations for all those
internal and external actors involved. For this purpose, the group of stakeholders was
separated into three distinct categories: stakeholders; stake watchers and stake keepers.
21. The concept of corporate social responsibility was introduced in 1938 by theorist Chester
Barnard. Discuss this concept. In what way is it even more relevant today?
Ans:
The concept of corporate social responsibility is not new. It was introduced in 1938 by the
theorist Chester Bernard. He argued that the purpose of a corporation was to serve society.
Nowadays, CSR initiatives are conceived as a series of an organization’s tasks that allow
by Diane M. Phillips
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
Testbank
Chapter 1: Setting the stage: The purpose and promise of
marketing
1. The concept of marketing myopia was first described in a famous article under the same
title written by ______.
a. Dale Carnegie
b. Tyler Levitt
c. Theodore Levitt
d. Philip Kotler
Ans: C
Marketing myopia was first described in a revolutionary 1960 article by Theodore Levitt
published in the Harvard Business Review (HBR). He argued that many companies
incorrectly take a short-sided approach to the market, viewing marketing merely as a tool for
selling products. Instead, he emphasized the importance of focusing on satisfying customers’
needs.
2. Which of the following statements about the concept of ‘marketing myopia’ is correct?
a. Marketing myopia represents the activity, set of institutions and processes for creating,
communicating, delivering and exchanging offerings that have value for customers,
clients, partners and the society at large.
b. Marketing myopia refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market.
c. Marketing myopia is a short-sighted focus on selling products and services, rather than a
‘big picture’ focus on what consumers want.
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
d. Marketing myopia is a situation where a company has a broad-minded marketing approach
and where the long-term marketing goals are given more importance than the short-term
goals.
Ans: C
Marketing myopia is a short-sighted focus on selling products and services, rather than
seeing the ‘big picture’ of what consumers want. The concept refers to the tendency to view
the scope of a business in a very limited way.
3. Which of the following cases best illustrates the concept of marketing myopia?
a. Team Fiji’s efforts to win a medal at the Olympics
b. Sony’s proactive and aggressive approach to marketing digital cameras
c. Netflix’s entry into the film rental industry
d. BP and its efforts to rebrand itself as Beyond Petroleum
Ans: D
With its Beyond Petroleum green advertising campaign (2000–2007), British Petroleum re-
introduced itself to the market as a socially conscious company. However, very few
substantive changes were made with regard to BP operations.
4. The definition of marketing according to the American Marketing Association
acknowledges the importance of______
a. Aggressive selling and promotion of products and services
b. Marketing strategies for the short term
c. Exchanging value-based offerings providing a win-win situation
d. A zero-sum game strategy in marketing
Ans: C
According to the American Marketing Association, marketing is the activity within a set of
institutions and processes for creating, communicating, delivering and exchanging offerings
that have value for customers, clients, partners and the society at large (AMA 2017). The
fundamental concepts to take away from the AMA definition are the customer-centricity
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
approach; the wide range of ‘offerings that have value’ available today: marketers can
promote ideas, people, places and services; the dynamics of exchanging products/services
and the consequent relational balances (or imbalances) among all the parties involved.
5. The process of looking at any industry holistically and understanding the key drivers of
competition and profitability is an important part of ______.
a. Knowledge management
b. Operations management
c. Distribution management
d. Marketing strategy
Ans: D
As Michael Porter claims, the ‘job of the strategist is to understand and cope with the
competition’ (Porter 2008, p. 79). Strategically analysing and coping with the complexity of
the competitive market forces is critical for a marketing strategist.
6. ______ marketing strategy aims to deliver value to consumers in order to help the
organization achieve specific objectives.
a. Internal
b. Integrated
c. Independent
d. International
Ans: B
Integrated: ‘Marketing strategy is an integrated set of decisions and processes designed to
deliver value to consumers to help the organization achieve specific objectives’ (reference
page 11). In any industry, assessing all the interrelated dynamics is crucial to the formulation
of effective strategy.
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
7. Overcoming marketing myopia enables a variety of strategic opportunities for the
marketing team. Which of the following statements most closely represents a non-myopic
approach?
a. Marketing managers cannot identify the myriad of options that are available to customers.
b. Competition is narrow.
c. Marketing managers can better identify not just the myriad of options that are available to
customers, but also they can create strategies that keep these competitive forces in check.
d. A company can easily find the right customers for its products.
Ans: C
Marketing managers can better identify not just the myriad of options that are available to
customers, but they can create strategies that keep these competitive forces in check (ref.
page 13). Facing marketing myopia allows organizations to anticipate and satisfy consumers’
needs and strategize on how to lead and position themselves in the market.
8. The ______ developed by Michael Porter takes a broad perspective on competition.
a. VRIO framework
b. SWOT analysis
c. PESTEL analysis
d. 5 Forces Model
Ans: D
Michael Porter’s Five Forces framework has shaped a generation of academic research and
business practice. According to Porter, the five forces that shape competition, regardless of
the sector/industry are as follows: (1) the threat of new entrants, (2) the bargaining power of
buyers, (3) the threat of substitute products or services, (4) the bargaining power of suppliers
and (5) rivalry among existing competitors.
9. According to Porter (2008), how should the marketing team assess the competitive
landscape?
Ans:
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
Originally developed by Harvard Business School’s Michael E. Porter (2008), the Five
Forces Model represents a crucial marketing tool that helps marketers (and all those parties
involved) analyse and predict the attractiveness and profitability of an industry. Michael
Porter’s framework outlines five factors that are used to gauge competitiveness in a
marketplace: (1) the threat of new entrants, (2) the bargaining power of buyers, (3) the threat
of substitute products or services, (4) the bargaining power of suppliers and (5) rivalry
among existing competitors. Among those relevant aspects, competitive rivalry is the most
important force in any ecosystem. It helps you understand the strength of competitors in
comparison to you. If the rivalry is intense, companies tend to lower prices and attract
customers through the promotion of certain perks/incentives. If not, profits are generally
high. Competitive rivalry is influenced by the bargaining power of buyers, which can exert
pressure and drive prices down. The threat of substitute products or services are alternatives
from a different industry that serve the same need. A considerable number of substitutes can
drive prices down and ultimately influence price, with the consequence of reducing the
number of substitutes and hence favouring the creation of a monopoly in a particular
industry. The entrance of the new players depends on the types of barriers in the market. If
low, the threat of those new actors to existing players is high.
10. Drawing from Porter’s (2008) model, carefully describe at least three strategic moves the
marketing team could take.
Ans:
Based on Porter’s framework, the array of benefits deriving from an effective analysis of the
market includes the possibility of tailoring a unique/ideal company positioning strategy, by
exploiting the weaknesses of the existing players; the possibility of monitoring and
forecasting future trends and shifts; the possibility of shaping industry structure through
innovation; the opportunity of defining the (broad or narrow) scope of the competition.
11. According to Porter (2008), the bargaining power of buyers is high when customers have
weak negotiating power. True or false?
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
Ans: False.
The bargaining power of buyers is high when customers have strong negotiating/leverage
power.
12. According to Porter (2008), the threat of new entrants analyses how much power a
business’s supplier has and how much control it has over the potential to raise its prices.
True or false?
Ans: False.
The threat of new entrants refers to the threat that new competitors pose to current players
within an industry. It determines the attractiveness of the industry.
13. According to Porter (2008), the threat of substitute products or services examines how
easy it is for consumers to switch from a business product or service to that of a potential
competitor. True or false?
Ans: True.
The threat of substitute products or services examines how easy it is for consumers to switch
from a business product or service to that of a potential competitor.
14. According to Porter (2008), rivalry among existing competitors is an indication of how
intense the competition is in the marketplace. True or false?
Ans: True.
Rivalry among existing competitors examines how intense the competition is in the
marketplace.
15. The value proposition is the set of needs a company can satisfy for its target market
customers. True or false?
Ans: True.
The value proposition is the set of needs a company can satisfy for its target market
customers. The value proposition is the core of any business (reference page 16).
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
16. Describe the role of marketing as well as its obligations. Provide an example.
Ans:
Marketing acts as a bridge between the external environment and the organization itself. We
have witnessed a shift in perspective from the views of early economists and marketers.
Enlightened marketing leaders are now dedicated to helping environmental and social causes,
and applying ethics to their marketing strategy and management (see the three principles
listed on page 21: the responsible principle requires giving voice to all marketing
stakeholders; the respectful principle focuses on enabling different levels of aspiration within
a fair society; the resilient principle is based on continuous improvement). An example of
ethical business is exemplified by Allbirds, which is shaking up the clothing industry with its
steadfast commitment to reducing its carbon footprint while advocating for eco-friendly
initiatives that have a positive impact, both locally and globally.
17. Because of its role as a bridge between the external environment and the organization,
marketing is often called upon to be the standard bearer for the organization’s ethical
principles and standards. Therefore, one perspective suggested that an effective
marketing strategy would include each of the following principles EXCEPT:
a. The responsible principle
b. The zero-sum game principle
c. The respectful principle
d. The resilient principle
Ans: B
Hulland et al.’s (2020) perspective on ethics and marketing merges both social purpose and
ethical business practice.
18. The push for more ethical business practices has resulted in marketers becoming much
more aware of each of the following issues EXCEPT:
a. Developing and promoting more environmentally conscious products
, Phillips, Marketing Strategy & Management
SAGE Publishing, 2023
b. Safeguarding the environment, customers and local communities
c. Applying profit-driven tactics to drive growth
d. Recognizing that a firm’s economic success and ethical principles can coexist
Ans: C
The evolution of marketing has influenced a re-evaluation of marketing’s obligations.
19. ______ are those entities who have a direct connection to and relationship with the
company. They include financiers, employees and customers.
a. Internal stakeholders
b. External stake watchers
c. External stakeholders
d. Marketers
Ans: A
Internal stakeholders are those entities who have a direct connection to and relationship with
the company. They include financiers, employees and customers.
20. What is the most important shortcoming of the traditional stakeholder theory? Describe
the solution to this shortcoming.
Ans:
The primary criticism was the need to clarify roles, dynamics and obligations for all those
internal and external actors involved. For this purpose, the group of stakeholders was
separated into three distinct categories: stakeholders; stake watchers and stake keepers.
21. The concept of corporate social responsibility was introduced in 1938 by theorist Chester
Barnard. Discuss this concept. In what way is it even more relevant today?
Ans:
The concept of corporate social responsibility is not new. It was introduced in 1938 by the
theorist Chester Bernard. He argued that the purpose of a corporation was to serve society.
Nowadays, CSR initiatives are conceived as a series of an organization’s tasks that allow
