MKTG 7, 7th Edition solutions manual and test bank by Charles W. Lamb | Joe F. Hair | Carl McDaniel

MKTG 7, 7th Edition solutions manual and test bank by Charles W. Lamb | Joe F. Hair | Carl McDaniel

Chapter 2 Case Study—Disney: The Happiest Brand on Earth

TRUE/FALSE

1. By creating sequels and spinoffs of the original Cars, such as short films and a Cars theme park attraction, Disney is pursuing market penetration.

ANS: T PTS: 1 OBJ: 2-3 TOP: AACSB Reflective Thinking

KEY: CB&E Model Strategy MSC: BLOOMS Level I Knowledge

2. Disney is a large corporation with many SBUs creating products for every individual in the typical (and not so typical) family. So, these units can be seen as niche marketing.

ANS: F

A niche market is a market segment that isn’t important to larger competitors. Disney’s operations focus on large markets.

PTS: 1 OBJ: 2-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Strategy MSC: BLOOMS Level I Knowledge

3. When Disney spins off one of its franchises, like a line of Hannah Montana jeans, it is building a sustainable competitive advantage.

ANS: T PTS: 1 OBJ: 2-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Strategy MSC: BLOOMS Level I Knowledge

4. Disney’s change in strategy would, if applied to developing a mission statement, would emphasize serving a target audience of young people.

ANS: F

False, because the Disney case shows that the company is intent on producing entertainment products that follow a person throughout his or her life, that is, into adulthood.

PTS: 1 OBJ: 2-4 TOP: AACSB Reflective Thinking

KEY: CB&E Model Marketing Plan MSC: BLOOMS Level I Knowledge

MULTIPLE CHOICE

1. A significant demographic driver for Disney to expand its target market to teens was __________.

a.	family-friendly fare
b.	to achieve tween appeal
c.	fewer younger children
d.	to reach out to an adult audience
e.	all of the above

ANS: C

It was becoming evident that Disney had missed opportunities with the narrowing of its narrowing target market of younger children.

PTS: 1 OBJ: 2-8 TOP: AACSB Reflective Thinking

KEY: CB&E Model Strategy MSC: BLOOMS Level II Comprehension

2. If Disney created a Jonas Brothers wristwatch packaged with their latest CD, which only sold in its theme park gift shops to maximize profits over CD sales in third-party outlets, Disney would be pursing what strategy?

a.	a promotion strategy
b.	a mixed market
c.	a pricing strategy
d.	a place strategy
e.	all of the above

ANS: A

This is a promotion strategy designed to increase sales in one place, but it is still a promotion strategy first and foremost.

PTS: 1 OBJ: 2-9 TOP: AACSB Reflective Thinking

KEY: CB&E Model Strategy MSC: BLOOMS Level II Comprehension

3. You are tasked with doing a market opportunity analysis (MOA) of Disney’s target markets. Which division(s) might create the most value by appealing to each of those markets?

a.	Pixar
b.	Disney’s theme parks
c.	Pixar and Disney’s movie studios
d.	Disney’s stable of pop stars
e.	Pirates of the Caribbean franchise

ANS: C

The most probably answer is Pixar and the movie studios because these business units create the products that generate the most spinoffs and sequels.

PTS: 1 OBJ: 2-8 TOP: AACSB Reflective Thinking

KEY: CB&E Model Strategy MSC: BLOOMS Level II Comprehension

4. In determining that Disney could achieve a technological advantage in purchasing Pixar as well as appeal to a smaller number of younger children with the most appealing animation, which of the following processes would help most in making that determination?

a.	market myopia
b.	environmental scanning
c.	taking control of resources
d.	product differentiation
e.	identifying a cash cow

ANS: B

Environmental scanning helps identify important macroenvironmental forces, including social, demographic, economic, technological, political and legal, and competitive.

PTS: 1 OBJ: 2-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Strategy MSC: BLOOMS Level II Comprehension

5. The decision to purchase Pixar was to revitalize Disney’s animation business. Which of the following most likely have helped in reaching that decision?

a.	SWOT analysis
b.	The General Electric Model
c.	A portfolio matrix
d.	Ansoff’s Opportunity Matrix
e.	Any of the above would be of equal help

ANS: A

When Disney chose to buy Pixar, it sought to revitalize one of its core businesses, animation, that is, it addressed both a strength and a weakness.

PTS: 1 OBJ: 2-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Strategy MSC: BLOOMS Level II Comprehension

6. Name the person or persons most critical to the strategic plan behind the success of Disney’s individual franchises.

a.	the CEO and Roy Disney
b.	Michael Eisner
c.	the franchise management teams
d.	Steve Jobs and Bob Iger
e.	Bob Iger

ANS: E

The most critical element in successful strategic planning is top management’s support and participation.

PTS: 1 OBJ: 2-10 TOP: AACSB Reflective Thinking

KEY: CB&E Model Strategy MSC: BLOOMS Level II Comprehension