MKTG FINAL-- Creating Competitive Advantage pt 2

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

D) try to expand their market share further, even if market size remains constant

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

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

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

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

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

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

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

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

D) nicher

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

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