Marketing Strategy Questions Quiz!

The organization's purpose is typically outlined in its mission statement, which succinctly describes its goals, values, and overall reason for existence. This statement serves as a guiding principle for the organization and helps to clarify its direction and priorities. It is a concise summary of what the organization aims to achieve and often reflects its core values and beliefs. Therefore, the correct answer is "Mission statement."

American Express is using conglomerate diversification as a strategy because they are creating new products in unrelated industries such as mobile communications, travel products, and health care. This strategy involves entering new markets with unrelated products or services, allowing the company to spread its risk and take advantage of new opportunities outside of its core business.

Corporate strategy refers to the overall plan and direction of a company in order to achieve its long-term goals and objectives. It involves making decisions and taking actions that align with the company's mission, vision, and values. This includes determining the company's competitive position in the market, identifying growth opportunities, allocating resources, and setting priorities. Corporate strategy is broader and more comprehensive than functional marketing strategy, as it encompasses all aspects of the organization and guides the development of specific marketing strategies within the larger framework. It focuses on long-term success rather than reacting to short-term competitive activity.

In a marketing plan, the section where the absence of a formal organization for marketing would be stated is the SWOT Analysis. SWOT Analysis stands for Strengths, Weaknesses, Opportunities, and Threats, and it is a strategic planning tool used to evaluate the internal and external factors that can impact a business. In this case, the lack of a formal organization for marketing would be considered a weakness and would be mentioned in the SWOT Analysis section of the marketing plan.

John Lusty acts as a middleman between overseas producers and supermarkets/caterers, facilitating their export strategy. This suggests that they are enabling the producers to export their products indirectly, rather than directly dealing with the foreign markets themselves. Indirect exporting involves using intermediaries like agents, distributors, or trading companies to handle the export process on behalf of the producers. This allows the producers to focus on their core business while benefiting from the intermediaries' expertise and network in the foreign markets.

When conducting a marketing audit and portfolio analysis, it is important to gain greater insight into the critical issues that could affect the business. Each of the models mentioned - Porter's Five Forces Model, Ansoff Model, Boston Consulting Group Model, and General Electric Model - provide different perspectives and frameworks to analyze the market, competition, growth opportunities, and resource allocation. By using all of these models, businesses can have a comprehensive understanding of the various factors and make informed decisions to address the critical issues effectively.

Hormel Foods Corporation is using a franchising market entry strategy by allowing Tulip International to produce and market SPAM for the UK market under its own name. Franchising involves granting the rights to a third party to operate a business using the franchisor's brand, trademarks, and business model. In this case, Hormel is granting Tulip International the rights to use its brand and produce SPAM in the UK market, while Tulip operates independently under its own name.

Introducing new products to existing markets refers to horizontal diversification. This strategy involves expanding a company's product offerings within its current market segment. It allows the company to leverage its existing customer base and distribution channels to introduce new products and capture additional market share. Horizontal diversification helps to minimize risk by capitalizing on the company's existing expertise and resources while also providing opportunities for growth and revenue generation.

The US company Hilton Hotels is using a contracting market entry strategy in this scenario. This means that they have entered into a contract with London and Regional Properties to operate and market the Hilton London Green Park Hotel. The ownership and maintenance of the building is handled by London and Regional Properties, while Hilton Hotels focuses on managing and promoting the hotel. This allows Hilton Hotels to expand their presence in the London market without having to invest in owning and maintaining the property themselves.

When a company acquires a supplier through an acquisition strategy, it is referred to as forward integration. This strategy involves a company expanding its operations by acquiring or merging with a supplier in the supply chain. It allows the company to gain control over its supply chain, reduce costs, improve efficiency, and have more control over the quality and availability of its inputs.