Question

1. Like many other companies, Chic-fil-A has a membership rewards program for its customers. In the strategic opportunity matrix, this program would be considered a ____________________________ strategy.

		a. market development
		b. product development
		c. market penetration
		d. product penetration
		e.divestment

2. Burger21 is a chain of fast-food restaurants that got its start in Tampa, Florida. In order to increase sales, the company has opened restaurants in other states and there is now one in the Chicagoland area. This would be an example of a ______________________ strategy.

		a. diversification
		b. market duplication
		c. product development
		d. market penetration
		e.market development

3. The purpose of a SWOT analysis is to  __________________________________.

		a. identify important company and environmental factors
		b. evaluate the marketing strategy that a company has been using
		c. determine the best strategy for the company
		d. formulate goals and objectives for a company
		e. compare the company's advantages with that of its competitors

4. Marketers need to study social values _____________________.

		a. since values describe what consumers do
		b. since these change very rapidly
		c. since values will tell marketers how consumers feel about particular brands
		d. since these are important to consumers and influence consumer decision-making
		e. since these would be included in the strengths/weaknesses section of a SWOT analysis

Answer 1

1. Like many other companies, Chic-fil-A has a membership rewards program for its customers. In the strategic opportunity matrix, this program would be considered a market penetration strategy.

Market penetration is used to encourage potential customers and the customers that have already purchased a specific company's product instead of a competitor's product.

Membership rewards program encourages customers to buy a specific company's product rather than its competitor's product, so this program would be considered a market penetration strategy.

2. Burger21 is a chain of fast-food restaurants that got its start in Tampa, Florida. In order to increase sales, the company has opened restaurants in other states and there is now one in the Chicagoland area. This would be an example of a market development.

Market development is a growth strategy that identifies and develops new markets for the existing products. In addition to its existing restaurants, Burger21 spreads its business in other states to add more potential customers. So this would be an example of a market development.

3. The purpose of a SWOT analysis is to determine the best strategy for the company.

SWOT analysis is a strategic planning tool that helps managers to determine the best strategy for the company. With the help of this tool, managers can analyze internal strengths and weaknesses of the company, also the threats and opportunities for the company and then make strategies to achieve the goal of the company.

4. Marketers need to study social values, since these are important to consumers and influence consumer decision-making.

Consumers are influenced by the social activities of the companies, they prefer to buy products from those companies who work for the society and understands social values.