Chapter 18 Quiz

Which of the following statements regarding a customer intimacy strategy is​ correct?

A customer intimacy strategy requires quickly responding to customer needs.

What is a strategic​ group?

A group of firms in an industry following the same or a similar strategy in a given target market

In the process of analyzing​ competitors, what should a company do next after identifying​ competitors?

Assess them

Which orientation could result in a firm simply matching or extending industry practices rather than seeking innovative new ways to create more value for​ customers?

Competitor-centered

What is most likely a strategic benefit of the existence of competitors?

Competitors help legitimize new technologies.

Marketing strategy often passes through three stages. At which stage is a company started by an individual who visualizes an​ opportunity?

Entrepreneurial marketing

What is the first thing a company does when analyzing​ competitors?

Identify the​ company's competitors.

Which of the following statements is most likely true of market follower strategies?

Market followers must keep manufacturing costs and prices low or product quality and services high.

According to the​ text, which customer and competitor orientation should​ company's today​ practice?

Market-centered

Which of the following strategies would be utilized by a market​ challenger?

Observe what has made the market leader successful and improve on it.

Companies such as Walmart and Spirit Airlines offer lower prices than competitors. Which competitive strategy are they​ using?

Overall cost leadership

What are the three winning competitive positioning strategies proposed by Michael​ Porter?

Overall cost​ leadership, differentiation, and focus

What is the key idea in a market nicher​ strategy?

Specialization

Which of the following statements regarding identifying competitors is​ correct?

There is no one correct way to identify competitors.

According to the​ text, what is the best way a market leader can protect its market share​ position?

Through continuous innovation

What is benchmarking used​ for?

To assess​ competitor's strengths and weaknesses

What is the goal of a​ blue-ocean strategy?

To make competition irrelevant by finding uncontested market spaces

According to the​ text, digital services that overlap with traditional newspaper content are​ __________ because they​ offer, for​ free, real-time content that​ subscription-based newspapers printed once a day​ can't match.

bad competitors

Kodak's film business didn't lose out to 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 ________.

competitor myopia

A company can become so ________ centered that it loses its even more important focus on maintaining profitable ________ relationships.

competitor; customer

According to the​ text, it is important that a company design a competitive intelligence system that is​ __________.

cost effective

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?

customer intimacy

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.

customer value analysis

​A(n) __________ is used to determine the benefits that target customers value and how customers rate the relative value of various​ competitors' offers.

customer value analysis

There are three ways that market leaders can expand total market demand. They can expand total demand by​ __________.

finding new users of the​ product, promoting new uses for the​ product, and encouraging more usage of its products

Ritz-Carlton focuses on the top 5 percent of corporate and leisure travelers. This represents​ a(n) __________ strategy.

focus

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 the same strategic group

Cozy Country Market entered the candle business with a unique product: a line of candles made from soy that produces less smoke and lasts up to twice as long as other candles. The firm sold this unique product exclusively to a few niches. The candles were priced at twice the cost charged for normal candles. The product was also sold online and in unconventional outlets not dominated by market leaders. In this case, Cozy Country Market was using a(n) ________ against the market leaders.

indirect attack

Companies use secondary data, personal experience, and word of mouth to ________.

learn about their competitors' strengths and market share

Defining competitors as open double quote companies that are trying to satisfy the same customer need or build relationships with the same customer groupclose double quote is using​ a(n) __________ point of view.

market

Greener-grass Inc. is a lawn care company providing landscaping and lawn maintenance services to customers in and around Kansas City. The marketing team at Greener-grass carefully tracks the moves of competing companies, watching for shifting strategies and new promotions. The marketing team is also in constant touch with customers, using surveys and other feedback methods to find out what kind of services customers value the most. Greener-grass is most accurately described as having a ________ orientation.

market

In competitive​ positioning, __________ are​ runner-up firms that want to hold their share without rocking the boat.

market followers

Regarding their competitive​ position, Walmart,​ Amazon, Coca-Cola, and Facebook are all examples of​ __________.

market leaders

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 service of their primary target market segment. Both companies are ________.

middle-of the roaders

Computer mouse and interface device maker AdvTechPRO is only a fraction the size of software giant Terminal Time Software Inc. AdvTechPRO manufactures every variation of computer mouse imaginable (for left-handed people, wireless mice, shaped like actual mice, LED mice, etc.). Through skillful ________, the firm dominates the PC mouse market, with Terminal Time Software as its runner up.

niching

Walmart, Costco, and Southwest Airlines serve customers who want reliable, good-quality products or services that are also reasonable and easily available. These companies are all known for pursuing a value discipline known as ________.

operational excellence

When a company provides superior value by leading its industry in price and​ convenience, it is pursuing​ a(n) __________ strategy.

operational excellence

A company has​ a(n) __________ orientation when it is not​ customer-centered and is also not​ competitor-centered.

product

Samsung and Apple actively generate new ideas, relentlessly pursue new solutions, and quickly work to get new products to market. 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?

product leadership