Marketing management Exercises In 2001, as online trading slowed in the wake of the dot-com crash, Schwab sought to expand its business by providing its customers with a greater number of services. Rather than rely on a high volume of low-cost trades to drive revenues, Schwab began focusing on providing investment advice to its clients. In new brokerage offices, Schwab placed financial advisers from whom clients could seek investment tips and other services for a fee. Schwab also considered offering proprietary stock research for its customers. Industry experts expected these new services would recast Schwab in a role more similar to traditional brokerage hous A former Schwab executive predicted "Schwab will be a lot closer to merrill Lynch than it is to the Schwab of yesterday (Sources: John Gorman. "Charles Schwab, Version 4.0. Forbes, January 8, 2001, pp 89-95, Charles Gasparino and Ken Brown. " Schwab's Own Stock Suffers From Move into Online Trading Wall Street Joumal, June 19, 2001, p A1; Rebecca Buckman and Kathryn Kranhold Schwab Serves Up Sports-Themed Ads. Wall Street Joumal, August 30, 1999, p B9.) 1. What changes in the marketing environment does the Schwab marketing effort reflect? How has Schwab effectively anticipated the needs of the market? 2. Draw on recent economic developments to anticipate where the next changes likely will be for Schwab. Consider what past and future events might have a substantial impact on the way it operates in the future
Marketing Management Exercises 10 In 2001, as online trading slowed in the wake of the dot-com crash, Schwab sought to expand its business by providing its customers with a greater number of services. Rather than rely on a high volume of low-cost trades to drive revenues, Schwab began focusing on providing investment advice to its clients. In new brokerage offices, Schwab placed financial advisers from whom clients could seek investment tips and other services for a fee. Schwab also considered offering proprietary stock research for its customers. Industry experts expected these new services would recast Schwab in a role more similar to traditional brokerage houses. A former Schwab executive predicted, "Schwab will be a lot closer to Merrill Lynch than it is to the Schwab of yesterday." (Sources: John Gorman. "Charles Schwab, Version 4.0." Forbes, January 8, 2001, pp. 89-95; Charles Gasparino and Ken Brown. "Schwab's Own Stock Suffers From Move into Online Trading." Wall Street Journal, June 19, 2001, p. A1; Rebecca Buckman and Kathryn Kranhold. "Schwab Serves Up Sports-Themed Ads." Wall Street Journal, August 30, 1999, p. B9.) 1. What changes in the marketing environment does the Schwab marketing effort reflect? How has Schwab effectively anticipated the needs of the market? 2. Draw on recent economic developments to anticipate where the next changes likely will be for Schwab. Consider what past and future events might have a substantial impact on the way it operates in the future
Marketing management Exercises Chapter 3 Winning Marketing-Oriented Strategic Planning I Multiple choice 1. Most large companies consist of four organizational levels. Which one of the following is not one of those levels E. Division level F. Service level G. Corporate level H. Product level 2. A clear, thoughtful provides employees with a shared sense of purpose, direction, and opportunity. a) mission statement b)vision statement c)policy d)procedure 3. Which of the following is not one of the major competitive scopes within which a company will operate? a) Competence scope b) Industry scope c)Vertical scope d) Versatile scope 4. A strategic business unit has three characteristics. Which of the following is one of those characteristics a) It is a collection of unrelated businesses b) It has no defined set of competitors c)It is a single business or a collection of businesses that can be planned separately d) It should not have a manager who is responsible for planning and profit performance 5. Each of the following is a reason a business should use portfolio models cautiously except one. Which one is not a reason? a)They may le ad the company to place too much emphasis on market-share growt b) they may lead the company to be concerned with market segmentation c) They may lead the company into the entry of a high-growth business d) they may neglect their current customers 6. If a business is a market leader in a high-growth model and does not necessarily produce a positive cash flow for the company it is said to be what kind of business on the growth share matrix? a) st b) Cash Cow 11
Marketing Management Exercises 11 Chapter 3 Winning Marketing-Oriented Strategic Planning ⅠMultiple Choice 1. Most large companies consist of four organizational levels. Which one of the following is not one of those levels? E. Division level F. Service level G. Corporate level H. Product level 2. A clear, thoughtful ___________________ provides employees with a shared sense of purpose, direction, and opportunity. a) mission statement b) vision statement c) policy d) procedure 3. Which of the following is not one of the major competitive scopes within which a company will operate? a) Competence scope b) Industry scope c) Vertical scope d) Versatile scope 4. A strategic business unit has three characteristics. Which of the following is one of those characteristics? a) It is a collection of unrelated businesses. b) It has no defined set of competitors. c) It is a single business or a collection of businesses that can be planned separately. d) It should not have a manager who is responsible for planning and profit performance. 5. Each of the following is a reason a business should use portfolio models cautiously except one. Which one is not a reason? a) They may lead the company to place too much emphasis on market-share growth. b) They may lead the company to be concerned with market segmentation. c) They may lead the company into the entry of a high-growth business. d) They may neglect their current customers. 6. If a business is a market leader in a high-growth model and does not necessarily produce a positive cash flow for the company it is said to be what kind of business on the Growth Share Matrix? a) Star b) Cash Cow
Marketing management Exercises d) Question Mark 7. There are three options available to a comp any if it wants to grow much faster than its current business will permit. Which of the following is not one of those options? a) Identify opportunities to achieve further growth within current business b) Identify opportunities to build or acquire businesses that are related to current bu IsInesses c)Identify opportunities to add attractive businesses that are unrelated to current businesses d) All of the above are opt 8. Which of the following is not an approach to the market-penetration strategy? a) Encourage its current customers to buy more b) Attract competitors'customers c)Profile current customers d) Identify potential user groups in the current sales areas 9. A SWOT Analysis examines four major areas. The major areas examined are strengths, weaknesses, opportunities, and what a) Theories b) Threats arde d) Target Markets 10.A(n) is a challenge posed by an unfavorable trend or development that would lead, in the absence of defensive marketing action, to deterioration in sales or profit. a) environmental threat opportunity d)procedure 11. For a company, objectives should have each of the following characteristics except a) Stated quantitatively b) Should be realistic c)Must be consistent d) All of the above are characteristics 12. Porter's Generic Strategies for strategic thinking include each of the following except which one? a) Overall cost leadership b) Differentiation c)Overall price leadership Focus 13.A alliance is when one company agrees to carry a promotion for another company's product a) logistics b)promotional c)pricing
Marketing Management Exercises 12 c) Dog d) Question Mark 7. There are three options available to a comp any if it wants to grow much faster than its current business will permit. Which of the following is not one of those options? a) Identify opportunities to achieve further growth within current business. b) Identify opportunities to build or acquire businesses that are related to current businesses. c) Identify opportunities to add attractive businesses that are unrelated to current businesses. d) All of the above are options. 8. Which of the following is not an approach to the market-penetration strategy? a) Encourage its current customers to buy more b) Attract competitors' customers c) Profile current customers d) Identify potential user groups in the current sales areas 9. A SWOT Analysis examines four major areas. The major areas examined are strengths, weaknesses, opportunities, and what a) Theories b) Threats c) Targets d) Target Markets 10. A(n) ____________________ is a challenge posed by an unfavorable trend or development that would lead, in the absence of defensive marketing action, to deterioration in sales or profit. a) environmental threat b) opportunity c) policy d) procedure 11. For a company, objectives should have each of the following characteristics except: a) Stated quantitatively b) Should be realistic c) Must be consistent d) All of the above are characteristics 12. Porter's Generic Strategies for strategic thinking include each of the following except which one? a) Overall cost leadership b) Differentiation c) Overall price leadership d) Focus 13. A ____________________ alliance is when one company agrees to carry a promotion for another company's product. a) logistics b) promotional c) pricing
Marketing management Exercises d)product/service 14. Which of the following is not an example of the " hard"elements of a successful busin ractice? b) Stra c)Systems d)Structure 15. The contents of a good marketing plan include all of the following elements except which one? a) Executive Summary b Current Marketing Situation c)Action Programs d)Past Marketing Strategies II True or False 16. Most large companies consist of four organizational levels: the corporate level, divisional level, business unit level, and the service leveL.(F 17. One of the major competitive scopes within which the company will operate is the horizontal scope. (F) 18. Portfolio models may le ad the company to place too much emphasis on market shar growth and entry in high growth businesses or to neglect its current customers. T) 19. The market-penetration strategy is used when a company could find or develop new markets for its current products. (F) 20. Forward integration is when a company acquires wholesalers or retailers, especially if they are highly profitable. T) 21. A marketing opportunity is an area of buyer need or potential interest in which a company can perform profitably.( T) 22. An environmental threat is a challenge posed by an unf avorable trend or development that would lead, in the absence of defensive marketing action, to deterioration in sales or profit. T) 23. Goals are used to describe objectives that are general with respect to magnitude and time.(F) 24. Porter,'s Generic Strategies are Overall Cost Leadership, Differentiation, and Focus 25 Logistic alliances are when one company offers logistical services for another company's product or service. T) 26. The"soft"element of style means that the employees have the skills needed to carry out the company's strategy(F) 27. A smart business competitor must design and deliver offerings for a broadly defined target market.(F) 28. Zero defects mean that the products should be of high quality and free of flaws. (T)
Marketing Management Exercises 13 d) product/service 14. Which of the following is not an example of the "hard" elements of a successful business practice? a) Staff b) Strategy c) Systems d) Structure 15. The contents of a good marketing plan include all of the following elements except which one? a) Executive Summary b) Current Marketing Situation c) Action Programs d) Past Marketing Strategies ⅡTrue or False 16. Most large companies consist of four organizational levels: the corporate level, divisional level, business unit level, and the service level. (F) 17. One of the major competitive scopes within which the company will operate is the horizontal scope. (F) 18. Portfolio models may lead the company to place too much emphasis on market share growth and entry in high growth businesses or to neglect its current customers. (T) 19. The market-penetration strategy is used when a company could find or develop new markets for its current products. (F) 20. Forward integration is when a company acquires wholesalers or retailers, especially if they are highly profitable. (T) 21. A marketing opportunity is an area of buyer need or potential interest in which a company can perform profitably. (T) 22. An environmental threat is a challenge posed by an unfavorable trend or development that would lead, in the absence of defensive marketing action, to deterioration in sales or profit. (T) 23. Goals are used to describe objectives that are general with respect to magnitude and time. (F) 24. Porter's Generic Strategies are Overall Cost Leadership, Differentiation, and Focus (T) 25. Logistic alliances are when one company offers logistical services for another company's product or service. (T) 26. The "soft" element of style means that the employees have the skills needed to carry out the company's strategy. (F) 27. A smart business competitor must design and deliver offerings for a broadly defined target market. (F) 28. Zero defects mean that the products should be of high quality and free of flaws. (T)
Marketing management Exercises 29. It is important to manage products through the product life cycle. The four stages of the product life cycle are introduction, growth, maturity, and reengineering. (F) A good marketing plan should include elements like an executive summary, current market situation, objectives, and a list of products that are irrelevant to the industry.(F) III Essay Questions 4. Describe each of the four different types of business examined in the Growth Share Matrix 5. There are four SBU strategies pursued by a business. They are build, hold, harvest and divest. Explain how each of these strategies works in relation to the four types of businesses examined in the growth share matrix 6. Discuss the three types of marketing control mechanisms used to control how marketing plans are being implemented IV Marketing Spotlight Sara Lee what do Hanes underwear, Coach leather goods, Ball Park hot dogs, and Wonder Bra have in common? Theyre all brands manufactured and sold by Sara Lee Corporation, a company most people associate with frozen cheesecake. The Sara Lee brand accounts for only 25 percent of the company's $19.7 billion revenues, and it is the brand on which its namesake company has spent the least time, money, and focus. Yet, on September 29, 1997, Chicago-based Sara Lee Corporation stunned the business world by announcing an abrupt shift in strategy and focus; it would outsource its manufacturing operations and concentrate on building the Sara Lee brand and marketing its other name brands. Outsourcing will allow Sara Lee to lower its cost structure to make its brands price-competitive and release more funds for marketing od to the future Ce their core competencies and leaving the dirty, less glamorous manufacturing operations to lower-cost manufacturers located overseas. "It's passe for us to be as vertically integrated as we were, "says John Bryan, in his twenty-third year of being Sara Lee's CEO. The company even coined its own word for the new strategy: de-verticalize. Others call it"decapitalizing, -tying up much less fixed assets in the business. Those most surprised by Sara Lee's move are those in the heavily"verticalized"home textile industry, in which Sara Lee, with Hanes and its other brands earns a third of its revenues. The home textile industry is dominated by the giant mills. They are state-of-the-art, highly efficient, and extremely automated manufacturing operations. Y according to Sara Lee, they are edging toward obsolescence in the United States A more recent critique says that while Sara Lee succeeded in reducing its capital as a percentage of sales, its growth has been lackluster. Sara Lee runs some 200 operating companies, each with its own profit center. There are few economies of scale since each company is run independently There is no united front in facing the giant supermarkets. Even payroll and computer systems are not centralized at Sara Lee. At issue is whether conglomerates can be profitable Sources: Based on "Sara Lee to Build Brand through Outsourcing. Marketing. "Discount Store
Marketing Management Exercises 14 29. It is important to manage products through the product life cycle. The four stages of the product life cycle are introduction, growth, maturity, and reengineering. (F) 30. A good marketing plan should include elements like an executive summary, current market situation, objectives, and a list of products that are irrelevant to the industry. (F) Ⅲ Essay Questions 4. Describe each of the four different types of business examined in the Growth Share Matrix. 5. There are four SBU strategies pursued by a business. They are build, hold, harvest, and divest. Explain how each of these strategies works in relation to the four types of businesses examined in the Growth Share Matrix. 6. Discuss the three types of marketing control mechanisms used to control how marketing plans are being implemented. Ⅳ Marketing Spotlight Sara LeeWhat do Hanes underwear, Coach leather goods, Ball Park hot dogs, and Wonder Bra have in common? They're all brands manufactured and sold by Sara Lee Corporation, a company most people associate with frozen cheesecake. The Sara Lee brand accounts for only 25 percent of the company's $19.7 billion revenues, and it is the brand on which its namesake company has spent the least time, money, and focus. Yet, on September 29, 1997, Chicago-based Sara Lee Corporation stunned the business world by announcing an abrupt shift in strategy and focus; it would outsource its manufacturing operations and concentrate on building the Sara Lee brand and marketing its other name brands. Outsourcing will allow Sara Lee to lower its cost structure to make its brands price-competitive and release more funds for marketing. Sara Lee's strategic change represents a nod to the future. Companies are increasingly focusing on their core competencies and leaving the dirty, less glamorous manufacturing operations to lower-cost manufacturers located overseas. "It's passe for us to be as vertically integrated as we were," says John Bryan, in his twenty-third year of being Sara Lee's CEO. The company even coined its own word for the new strategy: de-verticalize. Others call it "decapitalizing," --tying up much less fixed assets in the business. Those most surprised by Sara Lee's move are those in the heavily "verticalized" home textile industry, in which Sara Lee, with Hanes and its other brands, earns a third of its revenues. The home textile industry is dominated by the giant mills. They are state-of-the-art, highly efficient, and extremely automated manufacturing operations. Yet, according to Sara Lee, they are edging toward obsolescence in the United States. A more recent critique says that while Sara Lee succeeded in reducing its capital as a percentage of sales, its growth has been lackluster. Sara Lee runs some 200 operating companies, each with its own profit center. There are few economies of scale since each company is run independently. There is no united front in facing the giant supermarkets. Even payroll and computer systems are not centralized at Sara Lee. At issue is whether conglomerates can be profitable. Sources: Based on "Sara Lee to Build Brand through Outsourcing, Marketing," Discount Store