40 Questions
At which level do market-oriented perspectives underlie successful corporate, business, and marketing strategies?
Among businesses in the corporate portfolio
What is the primary focus of marketing strategy?
Allocate and coordinate resources and activities to accomplish the firm's objectives within a specific product-market
Which of the following statements about market-oriented firms is true?
They are characterized by a consistent focus on customers' needs by personnel in all departments
What is the term for the tendency for firms to automatically continue strategies that were successful in the past, even though current market conditions are changing?
Strategic inertia
Which of the following is a characteristic of a market-oriented firm?
Focusing on customer needs by personnel in all departments
What is the main goal of allocating and coordinating resources and activities in a marketing strategy?
To accomplish the firm's objectives within a specific product-market
What is the primary focus of a market-oriented organization?
Customer needs and wants
Which of the following is a key aspect of market-oriented perspectives?
Focusing on customers' needs in all departments
What is a key characteristic of a product-oriented organization?
Focuses technical research on product improvement and cost-cutting in production
Which of the following is true of a market-oriented strategy?
Pricing is based on perceived benefits the product provides
What happens when firms continue to use strategies that were successful in the past, even though current market conditions are changing?
They experience strategic inertia
What is the main difference between a market-oriented organization and a product-oriented organization?
Focus on customer needs and wants versus product features
Which of the following statements is true of a market-oriented organization?
Makes product packaging for the customer's convenience
What is a characteristic of a product-oriented organization?
Focuses technical research on product improvement and cost-cutting in production
Which of the following statements is NOT true of a market-oriented organization?
Uses promotional tactics to emphasize product features, quality, and price
What is a key difference between a market-oriented organization and a product-oriented organization?
Focus on customer needs and wants versus product features and quality
What is a characteristic of early entrants into newly emerging industries based on new technologies?
They are especially likely to be internally focused and not very market-oriented
What is a key difference between product-oriented firms and market-oriented firms?
Product-oriented firms base their pricing on production and distribution costs
What is a feature of a market-oriented organization?
It bases its pricing on perceived benefits provided by the product to its customer
Which of the following is a characteristic of a production-oriented organization?
Its primary focus when offering a product is on the product's functional performance and cost
What is a benefit of having a market-oriented approach?
It enables companies to better understand customer needs and preferences
What is a key difference between a market-oriented organization and a production-oriented organization?
A market-oriented organization focuses on customer needs, while a production-oriented organization focuses on product functionality and cost
What is a characteristic of a product-oriented firm?
It uses promotion to emphasize product benefits and ability to satisfy customers' needs
Why are early entrants into newly emerging industries based on new technologies often internally focused and not very market-oriented?
Due to rapid growth in demand for the new product
What should a firm do when the market attractiveness is low and the competitive position is weak?
It should sell when possible to maximize cash value and cut fixed costs in the meantime.
When a firm has a strong competitive position in a highly attractive market, what strategy should it consider?
Invest more to grow at a maximum rate and concentrate on maintaining strengths.
What is the primary goal of a firm with a strong competitive position in a low-attractiveness market?
To protect current strengths and invest to improve position only in areas where risk is low.
When a firm has a weak competitive position in a highly attractive market, what strategy should it consider?
Emphasize profitability by increasing productivity and build up ability to counter competition.
What is a characteristic of a mass-market strategy?
It works on the principle that an undifferentiated marketing strategy generates more sales than a differentiated strategy.
What should a firm do when the market attractiveness is high and the competitive position is weak?
Emphasize profitability by increasing productivity and build up ability to counter competition.
What is the primary goal of a firm with a weak competitive position in a low-attractiveness market?
To sell when possible to maximize cash value and cut fixed costs in the meantime.
What should a firm do when the market attractiveness is low and the competitive position is strong?
Protect current strengths and invest to improve position only in areas where risk is low.
Which positioning base is illustrated by a clothing manufacturer's claim of their shirts being made from pure organic cotton?
Ingredients
What is the positioning base that typically includes 'who made it' and 'prior products'?
Parentage
Which of the following is an example of using product features as a determinant attribute in positioning?
This is the quietest dishwasher made in America.
Which positioning base is used in the Speedheal ad 'Find out why thousands of nutritionists across America are recommending Speedheal to their clients'?
Endorsements
What is the benefit of using the ingredients of a product as a positioning base?
To differentiate the product from competitors
Which positioning base is used when a company emphasizes the quality of its product?
Price/quality
What is the purpose of using endorsements as a positioning base?
To build credibility and trust with customers
Which positioning base is used when a company emphasizes the heritage of its product?
Parentage
Study Notes
Market-Oriented Perspectives
- A market-oriented firm focuses on customers' needs by personnel in all departments.
- The primary focus of marketing strategy is to allocate and coordinate resources and activities to accomplish the firm's objectives within a specific product-market.
- Strategic inertia refers to the tendency for firms to automatically continue strategies that were successful in the past, even though current market conditions are changing.
Characteristics of Market-Oriented Firms
- They have a consistent focus on customers' needs by personnel in all departments.
- They use promotion to emphasize product benefits and its ability to satisfy customers' needs.
- They base their pricing on perceived benefits provided by the product to its customers.
- They make product packaging for the customer's convenience.
- They use promotional tactics to emphasize product benefits, quality, and price.
Characteristics of Product-Oriented Firms
- They base their pricing on production and distribution costs.
- They focus technical research on product improvement and cost-cutting in production.
- They view credit as a necessary evil that can be used to minimize major debt losses.
- They use promotional tactics to emphasize product features, quality, and price.
Market Attractiveness/Competitive Position Matrix
- When the market attractiveness is high and the competitive position is strong, a firm should invest more to grow at a maximum rate and concentrate on maintaining strengths.
Mass-Market Strategy
- It involves serving one or more segments with customers seeking somewhat-specialized benefits from a product.
- It works on the principle that an undifferentiated marketing strategy generates more sales than a differentiated strategy.
Positioning Bases
- Parentage includes "who made it" and "prior products."
- Ingredients is illustrated by a clothing manufacturer's claim of their shirts being made from pure organic cotton.
- Product features can be used as a determinant attribute in positioning, such as "This is the quietest dishwasher made in America."
- Endorsements involves using a tagline like "Find out why thousands of nutritionists across America are recommending Speedheal to their clients."
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