Chapter 18 - EXAM 2

28) A company wants to find the ________ , the place where it meets customers' needs in a way that rivals can't. A) "strategic sweet spot" B) "value innovation" C) "blue ocean strategy" D) "red ocean strategy" E) "common platform"

A) "strategic sweet spot"

6) ________ involves first identifying and assessing competitors and then selecting which competitors to attack or avoid. A) Competitor analysis B) Benchmarking C) Customer-centered analysis D) Market leading E) The marketing management process

A) Competitor analysis

81) ________ can adopt one of two competitive strategies: they can challenge the leader or they can play along with competitors and not rock the boat. A) Runner-up firms B) Market nichers C) Market followers D) Localized marketers E) Market developers

A) Runner-up firms

100) All of the below choices are evolving company orientations EXCEPT? A) central-orientation B) competitor-orientation C) customer-orientation D) product orientation E) market-orientation

A) central-orientation

15) Each competitor has a mix of objectives. The company wants to know the relative importance that a competitor places on all of the following EXCEPT ________. A) company history B) current profitability C) market share growth D) cash flow E) technological and service leadership

A) company history

17) The more that one firm's strategy resembles another firm's strategy, the more the two firms ________. A) compete B) join C) grow D) fail E) succeed

A) compete

2) To gain ________ requires delivering more value and satisfaction to target consumers than competitors do. A) competitive advantage B) competitor analysis C) benchmarking D) a market-center E) a target advantage

A) competitive advantage

96) A negative side of the ________ is that the company becomes too reactive. Rather than carry out its own customer relationship strategy, it bases its own moves on competitors' moves. A) competitor-centered company B) customer-centered company C) market-centered company D) dual marketing strategy E) image-centered company

A) competitor-centered company

9) Companies can identify ________ from both the industry and market point of view. A) competitors B) products C) customers D) locations E) employees

A) competitors

78) The best response to competitive threats is ________. A) continuous innovation B) a frontal attack C) an indirect attack D) to find partners E) to ignore them

A) continuous innovation

50) There will be a constant tension between the formulated side of marketing and the ________. A) creative side B) competitor side C) customer side D) overall cost leadership E) product value

A) creative side

58) When customers are willing to pay a premium to get precisely what they want and company respond quickly to satisfy customer needs, the company has achieved what is called ________. A) customer intimacy B) employee intimacy C) operational excellence D) promotional intimacy E) marketing intelligence

A) customer intimacy

43) Having identified and evaluated its major competitors, the company now must design broad competitive marketing strategies by which it can gain competitve advantage through superior ________. A) customer value B) customer service C) employee value D) employee service E) target locations

A) customer value

26) Analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers is known as ________. A) customer value analysis B) competitive customer analysis C) power analysis D) advertising specialty analysis E) benchmarking

A) customer value analysis

86) Many firms prefer to ________ rather than ________ the leader. A) follow; challenge B) challenge; follow C) challenge; support D) support; challenge E) follow; support

A) follow; challenge

68) A runner-up firm that wants to hold its share in an industry without rocking the boat is a ________. A) market follower B) direct marketer C) market challenger D) market nicher E) market leader

A) market follower

72) The ________ usually leads the other firms in price changes, new product introductions, distribution coverage, and promotion spending. A) market leader B) direct leader C) market challenger D) target leader E) market nicher

A) market leader

70) Expanding the total market, protecting market share, and expanding market share are all strategies for ________. A) market leaders B) market challengers C) market followers D) market nichers E) market providers

A) market leaders

88) Almost every industry includes firms that specialize in serving target subsegments called ________. A) market niches B) benchmarkers C) customer databases D) hotbox markets E) local markets

A) market niches

94) The market niche may dry up, or it might grow to the point that it attracts larger competitors. That is why many companies practice ________. A) multiple niching B) single niching C) specific niching D) service niching E) market niching

A) multiple niching

57) Wal-Mart, Washington Mutual, and Southwest Airlines serve customers who want reliable, good-quality products or services, but who want them cheaply and easily. They are all known for pursuing a value discipline known as ________. A) operational excellence B) customer intimacy C) middle-of-the-road D) product leadership E) marketing insight

A) operational excellence

52) Wal-Mart, Texas Instruments, and Dell all achieve the lowest production and distribution costs to win a large market share. They utilize a(n) ________ strategy very effectively. A) overall cost leadership B) differentiation C) focus D) operational E) customer intimacy

A) overall cost leadership

25) A firm should compete with ________ competitors in order to sharpen its abilities. Succeeding against these competitors often provides greater returns. A) strong B) mediocre C) weak D) distant E) smaller

A) strong

80) Higher shares tend to produce higher profits only when ________ fall with increased market share. A) unit costs B) higher markets C) sales D) product values E) numbers of customers

A) unit costs

82) Although it might seem that the market leader has the most going for it, challengers often have what some strategists call a ________. The challenger observes what has made the leader successful and improves upon it. A) "competitor myopia" B) "second mover advantage" C) "strategic sweet spot" D) "blue ocean strategy" E) "red ocean strategy"

B) "second mover advantage"

67) ________ are those runner-up firms that are working to increase its market share in an industry. A) Market leaders B) Market challengers C) Market followers D) Market analyzers E) Market nichers

B) Market challengers

41) Which statement is NOT a factor of the competitive intelligence system? A) The system identifies the vital types of competitive information needed and the best sources of this information. B) The system creates a new brand image and marketing concept. C) The system collects information from the field and from published data. D) The system checks information for validity and reliability, interprets it, and organizes it in an appropriate way. E) The system sends key information to relevant decision makers and responds to inquiries from managers about competitors.

B) The system creates a new brand image and marketing concept.

64) Forty percent of the market is in the hands of Company A. Another 30 percent is in the hands of Company B. Twenty percent is in the hands of Company C, and the remaining 10 percent is in the hands of Company D. Based on these hypothetical numbers Company B is the market ________. A) leader B) challenger C) follower D) nicher E) strategist

B) challenger

30) Most companies will compete with ________ rather than ________. A) distant competitors; close competitors B) close competitors; distant competitors C) benchmarkers; distant competitors D) market challengers; market followers E) market challengers; market nichers

B) close competitors; distant competitors

7) To plan effective marketing strategies, the company needs to find out all it can about its competitors. It must constantly compare its marketing strategies, products, prices, channels, and promotion with those of close competitors. This is an example of ________. A) benchmarking B) competitor analysis C) customer value analysis D) product leadership E) continuous innovation

B) competitor analysis

95) A company can become so ________ centered that it loses its even more important focus on maintaining profitable ________ relationships. A) customer; competitor B) competitor; customer C) market; customer D) market; competitor E) competitor; product

B) competitor; customer

4) Part two of a competitor analysis is assessing all of the following EXCEPT a company's ________. A) objectives B) employees C) strategies D) strengths and weaknesses E) reaction patterns

B) employees

47) Gary Hirshberg of Stonyfield Farm yogurt company stated that "companies can do better with less advertising, less marketing research, more guerilla marketing, and more acting from the gut." At this point, Hirshberg was following which marketing strategy? A) formulated marketing B) entrepreneurial marketing C) innovative marketing D) exponential marketing E) intrepreneurial marketing

B) entrepreneurial marketing

44) Companies that operate large marketing departments, conduct expensive marketing research, spell out elaborate competitive strategies, and spend huge sums on advertising are using ________ competitive marketing strategies. A) informal B) formal C) blue ocean D) red ocean E) technical

B) formal

48) As small companies achieve success, they inevitably move toward more ________ marketing. They pore over the latest Nielsen numbers, scan market research reports, and try to fine-tune their competitve strategies and programs. A) diversified B) formulated C) entrepreneurial D) intrepreneurial E) targeted

B) formulated

20) Companies use secondary data, personal experience, benchmarking, and word of mouth to ________. A) estimate competitors' reactions B) learn about their competitors' strengths and weaknesses C) select competitors to attack or avoid D) identify competitors' target locations E) identify competitors' target customers

B) learn about their competitors' strengths and weaknesses

16) A company that pursues ________ leadership will react much more strongly to a competitor's ________ manufacturing breakthrough than to the same competitor's advertising increase. A) high-cost; cost reducing B) low-cost; cost reducing C) high-cost; cost inflation D) low-cost; cost structure E) mid-cost; cost inflation

B) low-cost; cost reducing

87) The market follower must keep its manufacturing costs and prices ________ or its product quality and services ________. A) stable; low B) low; high C) high; low D) fair; low E) low; fair

B) low; high

12) Hallmark's Binney & Smith, maker of Crayola crayons, might define its competitors as other makers of crayons and children's drawing supplies. But from a/an ________ point of view, it would include all firms making recreational and educational products for children. A) industry B) market C) segment D) niche E) expanded

B) market

8) Companies can identify competitors from a ________ point of view. Here they define competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group. A) customer's B) market nicher's C) market D) database E) industry

B) market nicher's

99) When companies watch both their customers and their competitors, they are called ________. A) promotion-centered companies B) market-centered companies C) competitor-centered companies D) customer-centered companies E) analytically-centered companies

B) market-centered companies

53) Companies that pursue a clear strategy will likely perform well. Firms that do not pursue a clear strategy are called ________. A) challenger risk-takers B) middle-of-the-roaders C) nichers D) analyzers E) overall cost leaders

B) middle-of-the-roaders

91) Computer mouse and interface device maker Logitech is only a fraction the size of giant Microsoft. Yet through skillful ________, it dominates the PC mouse market, with Microsoft as its runner-up. A) employment tactics B) niching C) brand imaging D) vertical marketing E) benchmarking

B) niching

18) General Electric and Whirlpool each produce a full line of medium-price appliances supported by good service. In contrast, Sub-Zero and Viking produce a narrower line of higher quality appliances, offer a higher level of service, and charge a premium price. The first group and second group of companies are in the same ________ group. A) leading B) strategic C) branding D) target E) industry

B) strategic

74) The leading firm normally gains the most when the ________. A) rest of the market follows far behind B) total market expands C) personal communication channels expand D) integrated marketing effort expands E) major competitors enter the market

B) total market expands

38) Tomorrow's leading companies will succeed by creating "blue oceans" of uncontested market space. Such strategic moves, termed ________ , create powerful leaps in value for both the firm and its buyers, creating all new demand and rendering rivals obsolete. A) "strategic sweet spots" B) "common platforms" C) "value innovation" D) "strategic platform" E) "service nichers"

C) "value innovation"

89) ________ is profitable because the needs of the target customer segment are better met than when other firms casually attempt to sell to the same segment. A) Benchmarking B) Differentiated marketing C) Market niching D) Vertical marketing E) Dynamic marketing

C) Market niching

84) Rather than challenging head-on, the challenger can make ________ on the competitor's weaknesses or on gaps in the competitor's market coverage. A) a direct attack B) a frontal attack C) an indirect attack D) an individual attack E) a cautious attack

C) an indirect attack

23) Knowing how major competitors react gives the company clues on how best to ________ competitors or how best to ________ the company's current positions. A) remove; decrease B) attack; increase C) attack; defend D) value; change E) decrease; defend

C) attack; defend

35) Most competitors in the music download industry see Apple's iTunes Music Store as a ________ because they created a closed system with mass appeal. A) good competitor B) marginal competitor C) bad competitor D) market-centered competitor E) maverick competitor

C) bad competitor

1) Of the following successful marketing strategies in the past, today's Nike has learned that the most important is ________. A) creating a recognizable brand image B) having creative advertising C) building deep community with customers D) maintaining big-name endorsers E) moving into new product categories, sports, and regions of the world

C) building deep community with customers

40) There are specific kinds of information that companies need about their competitors. The ________ system first identifies the vital types of competitive information and the best sources of this information. A) marketing information B) global network C) competitive intelligence D) marketing research E) collaborative

C) competitive intelligence

5) Strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage are ________. A) competitor analyses B) customer relationship strategies C) competitive marketing strategies D) competitive relationship strategies E) universal strategy analyses

C) competitive marketing strategies

97) A positive aspect of a ________ is that the company develops a fighter orientation, watches for weaknesses in its own position, and searches out competitors' weaknesses. A) market-centered company B) customer-centered company C) competitor-centered company D) branding-centered company E) image-centered company

C) competitor-centered company

76) Market leaders can expand the market by ________, new uses, and more usage of the product. A) developing competitors B) initiating monopolistic practices C) developing new users D) developing higher standards E) initiating new rules

C) developing new users

29) If the company's offer delivers greater value by exceeding the competitor's offer on important attributes, the company can charge a higher price and ________, or it can charge the same price and ________. A) earn lower profits; gain higher profits B) earn higher profits; lose profits C) earn higher profits; gain more market share D) lose profits; gain more market share E) lose profits; gain higher profits

C) earn higher profits; gain more market share

46) Most companies are started by individuals who live by their wits. They visualize an opportunity, construct flexible strategies on the backs of envelopes, and knock on every door to gain attention. What stage in marketing strategy are these individuals in? A) exponential marketing B) formulated marketing C) entrepreneurial marketing D) intrepreneurial marketing E) innovative marketing

C) entrepreneurial marketing

83) The market challenger may launch a full ________, matching the competitor's product, advertising, price, and distribution efforts. It attacks the competitor's strengths rather than its weaknesses. A) indirect attack B) direct attack C) frontal attack D) multiple attack E) strength attack

C) frontal attack

71) Which of the following are market challenger strategies? A) expand total market and protect market share B) expand market share and follow closely C) full frontal attack and indirect attack D) follow closely and follow at a distance E) by customer, market, quality-price, service and multiple niching

C) full frontal attack and indirect attack

90) Whereas the mass marketer achieves ________, the nicher achieves ________. A) low margins; low volume B) low volume; high margins C) high volume; high margins D) high volume; low margins E) high margins; high volume

C) high volume; high margins

63) Most of the market is in the hands of the ________, the firm with the largest market share. A) market challenger B) market follower C) market leader D) market nicher E) market analyzer

C) market leader

54) Sears and Holiday Inn encountered difficult times because they did not stand out as the lowest in cost, highest in perceived value, or best in serving some market segment. Both companies are ________. A) nichers B) challenger risk-takers C) middle-of the roaders D) differentiated E) formulated

C) middle-of the roaders

56) When a company provides superior value by leading its industry in price and convenience, it has obtained what is called ________. A) product leadership B) employee excellence C) operational excellence D) employee intimacy E) cost leadership

C) operational excellence

34) An industry often contains "good" and "bad" competitors. Good competitors ________. A) break all of the rules B) are nice people C) play by the rules D) dominate the market E) share their marketing strategies

C) play by the rules

61) Nokia and Apple are open to new ideas, relentlessly pursue new solutions, and work to get new products to market quickly. They serve customers who want state-of-the-art products and services, regardless of the costs in terms of price or inconvenience. These companies are offering what value discipline? A) operational excellence B) customer intimacy C) product leadership D) promotional innovation E) differentiation

C) product leadership

32) A company's close competitors are ________. A) considered "bad" competitors B) those that least resemble the company's operation C) those that most resemble the company's operations D) not a threat E) the sole focus of all successful companies

C) those that most resemble the company's operations

24) Most companies prefer to aim competition against ________. A) their biggest competitor B) the market leader C) weak competitors D) new competitors E) distant competitors

C) weak competitors

37) Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. This is called a ________. A) "red ocean strategy" B) "strategic sweet spot" C) "common platform" D) "blue ocean strategy" E) "strategic platform"

D) "blue ocean strategy"

21) ________ is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance. A) Competitive advantage B) Advertising synergy C) Sales promotion D) Benchmarking E) Publicity

D) Benchmarking

33) All of the following statements are benefits from the existence of competitors EXCEPT? A) Competitors may share the costs of market and product development. B) Competitors help legitimize new technologies. C) Competitors serve less-attractive segments or lead to more product differentiation. D) Competitors divide the target market. E) Competitors may help increase total demand.

D) Competitors divide the target market.

14) All of the following are fundamental questions that a marketing management team considers when assessing competitors EXCEPT? A) What are competitors' objectiveswhat does each seek in the marketplace? B) What is each competitor's strategy? C) What are various competitors' strengths? D) What are various competitors' locations? E) What are various competitors' weaknesses?

D) What are various competitors' locations?

85) Red Bull entered the U.S. soft drinks market with a niche product: a carbonated energy drink retailing at about twice what you would pay for a Coke or Pepsi. Their product was sold in unconventional outlets not dominated by the market leaders. In this case, Red Bull was using ________ against the market leaders. A) a direct attack B) an individual attack C) a cautious attack D) an indirect attack E) a frontal attack

D) an indirect attack

3) The first step in initiating competitive marketing strategies is to conduct ________. A) a private screening B) a competitive advantage analysis C) management modifications D) competitor analysis E) absolute advantage processing

D) competitor analysis

69) When it comes to creating ________, Ritz-Carlton sets the gold standard. "It's all about providing a unique, personal, memorable experience." A) overall cost leadership B) differentiation C) focus D) customer intimacy E) product leadership

D) customer intimacy

27) PepsiCo conducts a survey on all Coca-Cola drinkers to assess the company's strengths and weaknesses upon their target customers. PepsiCo is using a/an ________. A) innovative market analysis B) global marketing strategy C) competitive marketing strategy D) customer value analysis E) blue ocean strategy

D) customer value analysis

98) A company that focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers is a ________. A) market-centered company B) geographic-centered company C) target-centered company D) customer-centered company E) branding-centered company

D) customer-centered company

77) NutriSystem has typically targeted its weight loss programs toward women. Recently, however, it stepped up its efforts to attract male customers. This is an example of how the market leader ________. A) develops new competitors B) changes its products C) develops new rules D) develops new users E) challenges competition

D) develops new users

45) Approaches to marketing strategy and practice often pass through which of the three following stages? A) formulated marketing, intrepreneurial marketing, and innovative marketing B) entrepreneurial marketing, intrepreneurial marketing, and innovative marketing C) entrepreneurial marketing, formulated marketing, and strategic marketing D) entrepreneurial marketing, formulated marketing, and intrepreneurial marketing E) innovative marketing, strategic marketing, and formulated marketing

D) entrepreneurial marketing, formulated marketing, and intrepreneurial marketing

42) A manager who used to work for a competitor might follow that competitor closely to see what it does in the marketplace. Such a manager would be considered to be your company's ________ expert. A) market leader B) market follower C) strategy D) in-house E) technical

D) in-house

13) From a/an ________ point of view, Pepsi might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands. From a/an ________ point of view, however, the customer really wants "thirst quenching." A) market; industry B) market; consumer's C) industry; competitive D) industry; market E) company's; consumer's

D) industry; market

49) Companies that have been in existence for some time often lose the marketing creativity and passion that they had at the start. They now need to refresh their marketing strategies and try new approaches. This is known as ________. A) network marketing B) formulated marketing C) entrepreneurial marketing D) intrepreneurial marketing E) marketing myopia

D) intrepreneurial marketing

66) Firms that serve small segments not being pursued by other firms are called ________. A) market followers B) direct marketers C) market challengers D) market nichers E) market leaders

D) market nichers

75) Marketers can expand markets by discovering and promoting ________. A) subliminal points of interest B) the deficiencies of competitors C) subtle advantages of the product D) new uses of the product E) new employees

D) new uses of the product

65) Forty percent of the market is in the hands of Company A. Another 30 percent is in the hands of Company B. Twenty percent is in the hands of Company C, and the remaining 10 percent is in the hands of Company D. Based on these hypothetical numbers Company D is the market ________. A) leader B) challenger C) follower D) nicher E) strategist

D) nicher

36) The implication suggested by strategic actions of "good competitor companies" is that they would like to shape an industry that consists of ________. A) all would-be competitors B) groups that support a democratic model of behavior C) "good" and "bad" competitors D) only well-behaved competitors E) monopolists

D) only well-behaved competitors

51) Michael Porter suggests four basic competitive positioning strategies that companies can follow-three winning strategies and one losing one. Which of the following are considered winning strategies? A) middle-of-the-roader, focus, and overall cost leadership B) focus, differentiation, and middle-of-the-roader C) overall cost leadership, differentiation, and middle-of-the-roader D) overall cost leadership, differentiation, and focus E) differentiation, operational excellence, and focus

D) overall cost leadership, differentiation, and focus

60) If a company's aim is to make its own and competing products obsolete and serve customers who want state-of-the-art products and services, it is using a value discipline called ________. A) captive-product innovation B) promotional innovation C) new product innovation D) product leadership E) market leadership

D) product leadership

79) Profitability increases as a business gains share relative to competitors in its ________. A) higher market B) direct market C) communication market D) served market E) valued market

D) served market

92) The key to successful niching is ________. A) having only a few specific customers B) buzz marketing C) follow-up D) specialization E) mass appeal of one idea

D) specialization

19) Companies need to know each competitor's product quality, features, and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs. These are all the dimensions that identify ________ groups within the industry. A) target B) leading C) geographic D) strategic E) competing

D) strategic

39) An example of a company exhibiting blue-ocean thinking is ________. A) Amazon's digital music download services B) a Starbucks opening in the same vicinity of an independent coffee house C) Nike's brand image of the "swoosh" D) Whirlpool's full line of medium-price appliances supported by good service E) Cirque du Soleil's reinvention of the circus as a higher form of modern entertainment

E) Cirque du Soleil's reinvention of the circus as a higher form of modern entertainment

31) The following are all examples of close competitors EXCEPT ________. A) Nike and Adidas B) Wal-Mart and K-Mart C) Pepsi and Coca-Cola D) Neiman Marcus and Nordstom E) Nike and Timberland

E) Nike and Timberland

22) Benchmarking has become a powerful tool for increasing a company's ________, A) brand image B) mass appeal C) employee training services D) distribution channels E) competitiveness

E) competitiveness

10) A company is guilty of ________ if the company forgets latent competitors and only focuses on current competitors. A) marketing myopia B) misdirected segmentation C) competitor synergy D) competitor phobia E) competitor myopia

E) competitor myopia

59) Nordstrom, Lexus, American Express, British Airways, and Ritz-Carlton Hotels will do almost anything to build long-term customer loyalty and to capture customer lifetime value. These companies are pursuing which of the following competitive marketing strategy? A) employee intimacy B) operational excellence C) differentiation D) product leadership E) customer intimacy

E) customer intimacy

93) A market nicher can specialize along all of the following market, customer, product, or marketing mix lines EXCEPT? A) end users B) customer-size groups C) geographic market D) quality price E) employees

E) employees

62) Which of the following is NOT an example of the competitive positions or roles that firms play in the target market? A) market leader B) market challenger C) market follower D) market nicher E) market provider

E) market provider

11) Kodak's film business didn't suffer at the hands of direct competitor Fujifilm; it lost out to Sony, Canon, and other digital camera makers, along with a host of digital image developers and online image sharing services. This is an example of ________. A) a blue ocean strategy B) benchmarking C) competitor phobia D) competitor myopia E) marketing myopia

E) marketing myopia

55) Companies can pursue any of the following three strategies, called value disciplines, for delivering superior customer value: A) operational excellence, overall cost leadership, and differentiation B) customer intimacy, operational excellence, and focus C) employee relations, product leadership, and overall cost leadership D) product leadership, customer intimacy, and focus E) operational excellence, customer intimacy, and product leadership

E) operational excellence, customer intimacy, and product leadership

73) To remain number one, leading firms can take any of three actions. First, they can find ways to expand total demand. Second, they can protect their current market share through good defensive and offensive actions. Third, they can ________. A) hire and train new employees B) evaluate current employees C) run smaller companies out of business, causing them to sell out to larger companies D) try to expand their market share further, even if market size remains constant E) shut down current company locations and reopen in highly populated areas

E) shut down current company locations and reopen in highly populated areas