Principles of Marketing - Chapter 18 w/ Practice Quiz

Low Cost Leadership

A company that pursues ________ will react much more strongly to a competitor's cost reducing manufacturing breakthrough than to the same competitor's advertising increase.

False

A good competitor plays by its own rules at the expense of the industry as a whole.

True

At the narrowest level, a company can define its competitors as other companies offering similar products and services to the same customers at similar prices.

Formulated Marketing

Before deciding to launch the new line of products, Essential-Beauty conducted extensive market research to make sure the products were optimally positioned. A complete marketing plan including mobile advertising, magazine advertising, event sponsorship, and sales promotions was established long before the products themselves were ready for market. In this case, Essential-Beauty was using ________.

Strategic Group

Country Kitchen and Perkins are both a chain of family restaurants featuring diner-like menus with reasonably priced items. These companies are in the same ________.

Industry; Market

From a(n) ________ point of view, Pepsi might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands. From a(n) ________ point of view, however, the customer really wants "thirst quenching."

Columbia Pictures

From an industry point of view, Universal Pictures might see its competition as ________.

?

In the audio equipment industry, Philips and Sony belong to the same ________.

Blue Ocean Strategy

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 ________.

Product Leadership

Samsung 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. Which of the following value disciplines is illustrated from this example?

?

The competitive intelligence system continuously collects information from the field through ________.

True

The competitive intelligence system of a company supplies key information to relevant decision makers about the company's competitors.

True

The existence of competitors in a market may help a company increase total demand.

Competitor Analysis

The first step in initiating competitive marketing strategies is to conduct

True

The presence of competitors may serve less-attractive segments or lead to more product differentiation.

Overall cost leadership, differentiation, and focus

According to Michael Porter, what are three effective competitive positioning strategies?

Customer Intimacy

American Express will do almost anything to build long-term customer loyalty and to capture customer lifetime value. Which of the following competitive marketing strategies is being pursued by American Express?

Play by the rules of the industry

An industry often contains "good" and "bad" competitors. Good competitors ________.

Formulated Marketing

As small companies achieve success, they inevitably move toward more ________ marketing. They adopt more-developed marketing tools and adhere to them closely.

?

Fifty percent of the market is in the hands of Company A. Another 30 percent is in the hands of Company B. Fifteen percent is in the hands of Company C, and the remaining five percent is in the hands of Company D. Based on these hypothetical numbers, Company D is the market ________.

Develop New Users

Lovelies is the leading workout and fitness center for women. The regional chain of gyms has traditionally catered to women forty and older who are interested in strength and cardio-vascular training. Lovelies has recently begun promotions to bring younger women into its gyms. This is an example of how the market leader ________.

Close competitors; distant competitors

Most companies will compete with ________ rather than ________.

Market Leader

Most of the market is in the hands of the ________, the firm with the largest market share.

Focus

Porsche is a German automobile manufacturer that competes against BMW and Audi, but only in the sports car and SUV segments of the automobile market. Porsche utilizes a(n) ________ strategy.

In the same strategic group

Refer to the scenario below to answer the following questions. Essential-Beauty is a rapidly growing firm that manufactures women's makeup, perfumes, and nail-care products. The company has established itself as a high-end cosmetic product brand available at most national drug stores. In the past, almost all of the advertising for Essential-Beauty has been in women's fashion magazines. The firm is now launching a new line of skin care products, ranging from facial cleansers to body lotion. These products are designed to be marketed to a broader audience, so the marketing team is exploring the effectiveness of different promotional mixes. Essential-Beauty considers one of its most important competitors to be Look-Lovely, another marketer of high-end makeup and skin care products sold in drug stores. Based on this, it is most accurate to say that Look-Lovely and Essential-Beauty are both ________.

In-House Expert

Smaller companies may assign specific executives to watch particular competitors. 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 the company's ________ on that competitor.

Value Innovation

Tomorrow's leading companies will succeed by seeking out unoccupied positions in uncontested market spaces. Such strategic moves, termed ________, create powerful leaps in value for both the firm and its buyers, creating new demand for new products.

Market Nicher

Which of the following is a competitive position or role that firms play in the target market?

Product Leadership

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 ________.

?

________ can adopt one of two competitive strategies: they can challenge the leader or they can play along with competitors and not rock the boat.