MKTG Chapter 3 pt. 3

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

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

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

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

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

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

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

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

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

B. challenger

________ 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. marketing challengers

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

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

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

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

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

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

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

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

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 middle of the roader

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

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

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

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

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

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