[UGBA 106] Chapter 12
A market challenger attacks the market leader and other competitors in an aggressive bid for more market share. Challengers must choose ________. A. tactical objectives B. tactical and strategic objectives C. an attack strategy D. strategic objectives E. an attack strategy and tactics
C. an attack strategy
When Canon grabbed a large chunk of Xerox's market by introducing desk copiers, it distanced itself from other challengers by ________. A. acquiring guppies B. attacking a regional firm C. attacking the market leader D. attacking a firm of its own size that was not doing the job well E. attacking a firm of its own size that was underfinanced
C. attacking the market leader
A(n) ________ marketer discovers solutions customers did not ask for but to which they enthusiastically respond. A. responsive B. mobile C. creative D. defensive E. anticipative
C. creative
A market challenger must first ________, and then it must decide ________. A. set tactical objectives; whom to attack B. define the market territory; what tactical objectives it wants to achieve C. define its strategic objective; whom to attack D. define its sales objectives; whom to attack E. define market share; whom to attack
C. define its strategic objective; whom to attack
Sales of nylon have shown a ________ pattern because of the many new uses (such as parachutes, hosiery, shirts, carpeting, boat sails, and automobile tires) discovered over time. A. fashion PLC B. cycle-recycle PLC C. style PLC D. scalloped PLC E. fad PLC
D. scalloped PLC
The ________ market follower strategy takes the leader's products and adapts or improves them. A. adapter B. initiator C. cloner D. counterfeiter E. imitator
A. adapter
Pepsi used ________ when it launched Aquafina nationally (before Coca-Cola's launch of Dasani), when it purchased orange juice giant Tropicana, and when it purchased the owner of Gatorade sports drink. A. bypass attacks B. flank attacks C. frontal attacks D. guerrilla attacks E. encirclement attacks
A. bypass attacks
In a(n) ________, a competitor matches its opponent's product, advertising, price, and distribution, and the side with greater resources generally wins. A. frontal attack B. bypass attack C. guerrilla attack D. flank attack E. encirclement attack
A. frontal attack
An alternative strategy to being a follower is to be a leader in small market or niche. The key idea in successful nichemanship is ________. A. the use of specialization B. channel specialization C. product-line specialization D. vertical market specialization E. geographic specialization
A. the use of specialization
Which of the following is a marketing strategy associated with the decline stage of the product life cycle? A.The firm reduces marginal services to cut costs. B. The firm improves product quality and adds new features. C. The firm lowers prices to attract price-sensitive buyers. D. The firm adds new models and flanker products. E. The firm shifts to preference and loyalty communications.
A.The firm reduces marginal services to cut costs.
When Arm & Hammer discovered that some consumers used its baking soda as a refrigerator deodorant, it launched a heavy promotion campaign focusing on this use and succeeded in getting half the homes in the United States to adopt it. This was an example of promoting ________ to increase market demand. A.new ways to use the brand B. flanker brands C. geographic expansion D. increased usage amounts E. product development
A.new ways to use the brand
How do dominant firms expand total market demand? A. By finding ways to expand total market demand, taking offensive action, and increasing market share B. By finding ways to expand total market territory, taking defensive and offensive actions, and increasing market share C. By finding ways to expand total market demand, taking defensive and offensive actions, and increasing market share D. By finding ways to expand total market demand, taking defensive and offensive actions, and increasing product positioning and differentiation E. By finding ways to expand total market demand, taking defensive actions, and increasing market share
C. By finding ways to expand total market demand, taking defensive and offensive actions, and increasing market share
The product modification strategy that adds size, weight, materials, supplements, and accessories that expand the product's performance, versatility, safety, or convenience is ________. A. new market segment entry B. feature improvement C. style improvement D. quality improvement E. nonuser conversion
B. feature improvement
Bank of America's 16,220 ATMs and 5,858 retail branches nationwide envelop the market and signal to competitors not to attack, which is a ________. A. mobile defense B. preemptive defense C. position defense D. counteroffensive defense E. flank defense
B. preemptive defense
Which of the following is a characteristics of a reactive firm? A. It is flexible and nonbureaucratic. B. It is ready to take risks and make mistakes. C. Most of its managers think responsively. D. It has the capabilities to innovate. E. It has a vision of the future and of investing in it.
C. Most of its managers think responsively.
Which of the following is a factor to consider when protecting, rather than increasing, market share through acquisition? A. The economic cost B. The effect of increase market share on actual and perceived quality C. Whether to engage in a contraction defense D. The possibility of provoking antitrust action E. The danger of pursuing the wrong marketing activities
C. Whether to engage in a contraction defense
When Procter & Gamble used Gain and Cheer laundry detergents as outposts to protect a weak front or support a possible counterattack, they were using a ________. A. mobile defense B. position defense C. flank defense D. preemptive defense E. counteroffensive defense
C. flank defense
In times of economic recession, firms that received the most benefit ________ were often those best able to exploit a marketplace advantage, a weakened rival, or development of a neglected target market. A. from constraining product development activities B. from adding additional engineering staff C. from increasing marketing investments D. from decreasing marketing investments E. from dramatically increasing sales management activities
C. from increasing marketing investments
During the ________ stage of the product life cycle, firms are likely to use cost-plus pricing. A. growth B. maturity C. introduction D. decline E. development
C. introduction
When the total market expands, the dominant firm gains the most. In general, the market leader should ________ to both expand and defend market share. A. increase usage or consumption from existing customers B. look for new customers C. look for new customers or more usage from existing customers D. consider merging or acquiring competitors E. increase product lines
C. look for new customers or more usage from existing customers
A company's ________ and ________ strategies must change as the product, markets, and competitors change over the product life cycle (PLC). A. product development; innovation B. pricing; distribution C. positioning; differentiation D. distribution; channels E. sales; marketing
C. positioning; differentiation
The product life cycle is typically divided into four stages: introduction, growth, maturity, and decline. The product life cycle can be used to analyze ________ along with their life cycle stage. A. cycle-recycle and scalloped product forms B. growth-slump-maturity patterns C. product categories, product forms, products, and brands D. product forms, products, and fashions E. product categories, styles, and fads
C. product categories, product forms, products, and brands
Armani uses a three-tier product line differentiated based on style, luxury, customization, price, and distribution. During the recession, the lower-priced, younger, street-savvy third tier, Armani Exchange, picked up the selling slack for the upper tiers. This is in line with the recommendation to ________ during an economic downturn. A. get closer to customers B. maintain budget allocations C. fine-tune brand and product offerings D. explore the upside of increasing investment E. put forth the most expensive value proposition
C. fine-tune brand and product offerings
When Starbucks extended its brand into coffee drinks and ice creams to reach customers who did not use its brand, it was using a ________ strategy. A. geographic-expansion B. market-penetration C. new-market-segment D. larger package size E. increased-frequency
C. new-market-segment
After FedEx lost shares of its airborn delivery system to UPS, how did FedEx challenge UPS in the marketplace? A. FedEx expanded its international market. B. FedEx positioned itself as a logistics expert with businesses, supplying a broader range of services. C. FedEx worked with European regulators to block UPS's attempted purchase of TNT. D. FedEx made a series of acquisitions to challenge UPS's market share. E. FedEx cut Saturday deliveries in domestic markets to move resources to marketing efforts.
D. FedEx made a series of acquisitions to challenge UPS's market share.
________ generally have a smaller market share than other players, and they are willing to maintain their share and not rock the boat. A. Market nichers B. Market leaders C. Market challengers D. Market followers E. Market rivals
D. Market followers
Which of the following is an example of a producer advantage that might contribute to pioneer's advantage? A. The pioneer aims for the middle of the market so that it captures more users. B. Pioneers can spend marketing dollars more effectively and enjoy higher rates of repeat purchases. C. The pioneer benefits from customer inertia. D. The pioneer owns scarce assets. E. The pioneer's brand name will be recalled if the product satisfies customers.
D. The pioneer owns scarce assets.
In a recession, marketers often focus on price reductions and discounts, which can harm long-term brand equity and price integrity. They should instead focus on ________. A. avoiding any fine-tuning of market or customer strategies B. decreasing marketing investments and allocating budgets downward C. avoiding any fine-tuning of brands or product offerings D. creating the most compelling value propositions E. modifying sales force organization and structure
D. creating the most compelling value propositions
Historical ________ include Microsoft, Gatorade, Best Buy, McDonald's, Blue Cross Blue Shield, and Visa. A. market followers B. market nichers C. market rivals D. market leaders This is the correct answer.E. market challengers
D. market leaders
How can a company promote the growth of the organization and inhibit competition? A. By reformulating product offerings several times B. By utilizing global competitors C. By optimizing brand extensions by mega-brands moving into new categories D. By promoting private-label brands E. By encouraging online competition
A. By reformulating product offerings several times
Which of the following is a less risky alternative growth strategy than expansion into new product categories? A. Mergers and acquisitions B. Limiting distribution to existing channels C. Limiting distinctions between the brand and its competitors D. Minimizing new formats and versions E. Growing the core product line
E. Growing the core product line
How can a small firm avoid competing with larger firms in markets of little or no interest to the larger firm? A. Imitation B. Bypass attacks C. Encirclement attacks D. Cloning E. Niche marketing
E. Niche marketing
Phasing out unprofitable outlets and reducing communications to the minimal level needed to retain hard-core loyals indicates a product is in the ________ stage of the product life cycle. A. introduction B. development C. growth D. maturity E. decline
E. decline
Marketers should consider the potential upside of _____ investment to exploit a marketplace advantage like an appealing new product, a weakened rival, or a neglected target market to develop. A. flanking B. keeping the same investment C. decreasing D. projecting E. increasing
E. increasing
During the ________ stage of the product life cycle, the marketing objective is to maximize profit while defending market share. A. development B. introduction C. growth D. decline E. maturity
E. maturity
The product life cycle stage where sales growth slows (due to the achievement of acceptance by most potential buyers) and profits stabilize or decline because of increased competition is the ________ stage. A. introduction B. growth C. development D. decline E. maturity
E. maturity
A niche specialist that specializes in one type of customer, like a value-added reseller that customizes computer hardware and software for a specific customer segment and earns a price premium in the process, is a(n) ________. A. geographic specialist B. product-feature specialist C. quality-price specialist D. channel specialist E. end-user specialist
E. end-user specialist