MKTG311 - Principles of Marketing - Chapter 18 - Creating Competitive Advantage - Review Questions

When Gary Hirshberg started the Stonyfield Farm yogurt company, he stated that his company could do better with less advertising, less marketing research, and more guerrilla marketing. He came up with innovative marketing ideas to promote his products such as having sales personnel dress up as large yogurt cartons to distribute free yogurt samples. Which of the following marketing strategies was being implemented by Hirshberg? A) formulated marketing B) entrepreneurial marketing C) ambush marketing D) undercover marketing E) intrapreneurial marketing

B) entrepreneurial marketing

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. A) overall cost leadership B) focus C) middle-of-the-roaders D) market segmentation E) blue ocean

B) focus

________ involves first identifying and assessing competitors and then selecting which competitors to attack or avoid. A) Competitor analysis B) Self-competition C) Blue ocean strategy D) Quantitative analysis E) Perfect competition

A) Competitor analysis

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 ________. A) operational excellence B) customer intimacy C) product differentiation D) product leadership E) focus

A) operational excellence

89) Dell produces and delivers PCs of competitive quality at lower costs. The company constantly aims to achieve low production and distribution costs to win a large market share. Dell utilizes a(n) ________ strategy very effectively. A) overall cost leadership B) differentiation C) focus D) blue ocean E) market segmentation

A) overall cost leadership

Fifty percent of the market is in the hands of Company A, 30 percent is in the hands of Company B, 15 percent is in the hands of Company C, and the remaining 5 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) maven

B) challenger

In the audio equipment industry, Philips and Sony belong to the same ________. A) target group B) strategic group C) experimental group D) control group E) focus group

B) strategic group

Strategies that strongly position a company against competitors and that give the company the best possible strategic advantage are ________ strategies. A) competitor analysis B) customer relationship C) competitive marketing D) competitive relationship E) customer identification

C) competitive marketing

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 ________. A) niches B) jack-of-all-trades C) middle-of the roaders D) red oceans E) laggards

C) middle-of the roaders

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? A) operational excellence B) customer intimacy C) product leadership D) product activation E) product binning

C) product leadership

Most competitors in the airline industry see Spirit Airlines as a ________ because it competes strictly on rock-bottom prices which makes it difficult for its competitors to match prices and still make a profit. A) good competitor B) marginal competitor C) weak competitor D) bad competitor E) distant competitor

D) bad competitor

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 ________. A) a blue ocean strategy B) competitor backlinking C) self-competition D) competitor myopia E) marketing myopia

D) competitor myopia

A market research firm conducts a survey of soft-drink consumers to assess Pepsi's and Coke's strengths and weaknesses in attributes valued by both company's target customers. The market research firm is using a ________. A) customer lifetime value estimation B) global marketing strategy C) competitive marketing strategy D) customer value analysis E) blue ocean strategy

D) customer value analysis

Bosch is a German firm that manufactures home appliances such as dishwashers, ovens, and ranges. It competes with companies such as GE Elite and LG. Bosch is perceived as the class of the industry. Bosch pursues a(n) ________ strategy. A) focus B) blue ocean C) overall cost leadership D) differentiation E) middle-of-the-road

D) differentiation

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." A) market; industry B) market; consumer C) industry; competitive D) industry; market E) company's; consumer's

D) industry; market

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? A) consumer capitalism B) customer equity C) product differentiation D) product leadership E) customer intimacy

E) customer intimacy

An example of a company exhibiting a blue ocean strategy is ________. A) Amazon's online shopping convenience 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-priced, energy-saving appliances E) the first digital tablet iPad released by Apple

E) the first digital tablet iPad released by Apple