MKTG FINAL-- Creating Competitive Advantage

21) ________ is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance. A) Competitive advantage B) Advertising synergy C) Sales promotion D) Benchmarking E) Publicity

21) ________ is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance. A) Competitive advantage B) Advertising synergy C) Sales promotion D) Benchmarking E) Publicity

28) A company wants to find the ________ , the place where it meets customers' needs in a way that rivals can't. A) "strategic sweet spot" B) "value innovation" C) "blue ocean strategy" D) "red ocean strategy" E) "common platform"

A) "strategic sweet spot"

6) ________ involves first identifying and assessing competitors and then selecting which competitors to attack or avoid. A) Competitor analysis B) Benchmarking C) Customer-centered analysis D) Market leading E) The marketing management process

A) Competitor analysis

15) Each competitor has a mix of objectives. The company wants to know the relative importance that a competitor places on all of the following EXCEPT ________. A) company history B) current profitability C) market share growth D) cash flow E) technological and service leadership

A) company history

17) The more that one firm's strategy resembles another firm's strategy, the more the two firms ________. A) compete B) join C) grow D) fail

A) compete

2) To gain ________ requires delivering more value and satisfaction to target consumers than competitors do. A) competitive advantage B) competitor analysis C) benchmarking D) a market-center E) a target advantage

A) competitive advantage

9) Companies can identify ________ from both the industry and market point of view. A) competitors B) products C) customers D) locations E) employees

A) competitors

43) Having identified and evaluated its major competitors, the company now must design broad competitive marketing strategies by which it can gain competitve advantage through superior ________. A) customer value B) customer service C) employee value D) employee service E) target locations

A) customer value

26) Analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers is known as ________. A) customer value analysis B) competitive customer analysis C) power analysis D) advertising specialty analysis E) benchmarking

A) customer value analysis

25) A firm should compete with ________ competitors in order to sharpen its abilities. Succeeding against these competitors often provides greater returns. A) strong B) mediocre C) weak D) distant E) smaller

A) strong

41) Which statement is NOT a factor of the competitive intelligence system? A) The system identifies the vital types of competitive information needed and the best sources of this information. B) The system creates a new brand image and marketing concept. C) The system collects information from the field and from published data. D) The system checks information for validity and reliability, interprets it, and organizes it in an appropriate way. E) The system sends key information to relevant decision makers and responds to inquiries from managers about competitors.

B) The system creates a new brand image and marketing concept.

30) Most companies will compete with ________ rather than ________. A) distant competitors; close competitors B) close competitors; distant competitors C) benchmarkers; distant competitors D) market challengers; market followers E) market challengers; market nichers

B) close competitors; distant competitors

7) To plan effective marketing strategies, the company needs to find out all it can about its competitors. It must constantly compare its marketing strategies, products, prices, channels, and promotion with those of close competitors. This is an example of ________. A) benchmarking B) competitor analysis C) customer value analysis D) product leadership E) continuous innovation

B) competitor analysis

4) Part two of a competitor analysis is assessing all of the following EXCEPT a company's ________. A) objectives B) employees C) strategies D) strengths and weaknesses E) reaction patterns

B) employees

47) Gary Hirshberg of Stonyfield Farm yogurt company stated that "companies can do better with less advertising, less marketing research, more guerilla marketing, and more acting from the gut." At this point, Hirshberg was following which marketing strategy? A) formulated marketing B) entrepreneurial marketing C) innovative marketing D) exponential marketing E) intrepreneurial marketing

B) entrepreneurial marketing

44) Companies that operate large marketing departments, conduct expensive marketing research, spell out elaborate competitive strategies, and spend huge sums on advertising are using ________ competitive marketing strategies. A) informal B) formal C) blue ocean D) red ocean E) technical

B) formal

20) Companies use secondary data, personal experience, benchmarking, and word of mouth to ________. A) estimate competitors' reactions B) learn about their competitors' strengths and weaknesses C) select competitors to attack or avoid D) identify competitors' target locations E) identify competitors' target customers

B) learn about their competitors' strengths and weaknesses

16) A company that pursues ________ leadership will react much more strongly to a competitor's ________ manufacturing breakthrough than to the same competitor's advertising increase. A) high-cost; cost reducing B) low-cost; cost reducing C) high-cost; cost inflation D) low-cost; cost structure E) mid-cost; cost inflation

B) low-cost; cost reducing

12) Hallmark's Binney & Smith, maker of Crayola crayons, might define its competitors as other makers of crayons and children's drawing supplies. But from a/an ________ point of view, it would include all firms making recreational and educational products for children. A) industry B) market C) segment D) niche E) expanded

B) market

18) General Electric and Whirlpool each produce a full line of medium-price appliances supported by good service. In contrast, Sub-Zero and Viking produce a narrower line of higher quality appliances, offer a higher level of service, and charge a premium price. The first group and second group of companies are in the same ________ group. A) leading B) strategic C) branding D) target E) industry

B) strategic

38) Tomorrow's leading companies will succeed by creating "blue oceans" of uncontested market space. Such strategic moves, termed ________ , create powerful leaps in value for both the firm and its buyers, creating all new demand and rendering rivals obsolete. A) "strategic sweet spots" B) "common platforms" C) "value innovation" D) "strategic platform" E) "service nichers"

C) "value innovation"

23) Knowing how major competitors react gives the company clues on how best to ________ competitors or how best to ________ the company's current positions. A) remove; decrease B) attack; increase C) attack; defend D) value; change E) decrease; defend

C) attack; defend

35) Most competitors in the music download industry see Apple's iTunes Music Store as a ________ because they created a closed system with mass appeal. A) good competitor B) marginal competitor C) bad competitor D) market-centered competitor E) maverick competitor

C) bad competitor

1) Of the following successful marketing strategies in the past, today's Nike has learned that the most important is ________. A) creating a recognizable brand image B) having creative advertising C) building deep community with customers D) maintaining big-name endorsers E) moving into new product categories, sports, and regions of the world

C) building deep community with customers

40) There are specific kinds of information that companies need about their competitors. The ________ system first identifies the vital types of competitive information and the best sources of this information. A) marketing information B) global network C) competitive intelligence D) marketing research E) collaborative

C) competitive intelligence

5) Strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage are ________. A) competitor analyses B) customer relationship strategies C) competitive marketing strategies D) competitive relationship strategies E) universal strategy analyses

C) competitive marketing strategies

29) If the company's offer delivers greater value by exceeding the competitor's offer on important attributes, the company can charge a higher price and ________, or it can charge the same price and ________. A) earn lower profits; gain higher profits B) earn higher profits; lose profits C) earn higher profits; gain more market share D) lose profits; gain more market share E) lose profits; gain higher profits

C) earn higher profits; gain more market share

46) Most companies are started by individuals who live by their wits. They visualize an opportunity, construct flexible strategies on the backs of envelopes, and knock on every door to gain attention. What stage in marketing strategy are these individuals in? A) exponential marketing B) formulated marketing C) entrepreneurial marketing D) intrepreneurial marketing E) innovative marketing

C) entrepreneurial marketing

8) Companies can identify competitors from a ________ point of view. Here they define competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group. A) customer's B) market nicher's C) market D) database E) industry

C) market

34) An industry often contains "good" and "bad" competitors. Good competitors ________. A) break all of the rules B) are nice people C) play by the rules D) dominate the market E) share their marketing strategies

C) play by the rules

32) A company's close competitors are ________. A) considered "bad" competitors B) those that least resemble the company's operation C) those that most resemble the company's operations D) not a threat E) the sole focus of all successful companies

C) those that most resemble the company's operations

24) Most companies prefer to aim competition against ________. A) their biggest competitor B) the market leader C) weak competitors D) new competitors E) distant competitors

C) weak competitors

37) Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. This is called a ________. A) "red ocean strategy" B) "strategic sweet spot" C) "common platform" D) "blue ocean strategy" E) "strategic platform

D) "blue ocean strategy"

33) All of the following statements are benefits from the existence of competitors EXCEPT? A) Competitors may share the costs of market and product development. B) Competitors help legitimize new technologies. C) Competitors serve less-attractive segments or lead to more product differentiation. D) Competitors divide the target market. E) Competitors may help increase total demand.

D) Competitors divide the target market.

14) All of the following are fundamental questions that a marketing management team considers when assessing competitors EXCEPT? A) What are competitors' objectiveswhat does each seek in the marketplace? B) What is each competitor's strategy? C) What are various competitors' strengths? D) What are various competitors' locations? E) What are various competitors' weaknesses?

D) What are various competitors' locations?

3) The first step in initiating competitive marketing strategies is to conduct ________. A) a private screening B) a competitive advantage analysis C) management modifications D) competitor analysis E) absolute advantage processing

D) competitor analysis

11) Kodak's film business didn't suffer at the hands of 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) benchmarking C) competitor phobia D) competitor myopia E) marketing myopia

D) competitor myopia

27) PepsiCo conducts a survey on all Coca-Cola drinkers to assess the company's strengths and weaknesses upon their target customers. PepsiCo is using a/an ________. A) innovative market analysis B) global marketing strategy C) competitive marketing strategy D) customer value analysis E) blue ocean strategy

D) customer value analysis

45) Approaches to marketing strategy and practice often pass through which of the three following stages? A) formulated marketing, intrepreneurial marketing, and innovative marketing B) entrepreneurial marketing, intrepreneurial marketing, and innovative marketing C) entrepreneurial marketing, formulated marketing, and strategic marketing D) entrepreneurial marketing, formulated marketing, and intrepreneurial marketing E) innovative marketing, strategic marketing, and formulated marketing

D) entrepreneurial marketing, formulated marketing, and intrepreneurial marketing

42) A manager who used to work for a competitor might follow that competitor closely to see what it does in the marketplace. Such a manager would be considered to be your company's ________ expert. A) market leader B) market follower C) strategy D) in-house E) technical

D) in-house

13) From a/an ________ point of view, Pepsi might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands. From a/an ________ point of view, however, the customer really wants "thirst quenching." A) market; industry B) market; consumer's C) industry; competitive D) industry; market E) company's; consumer's

D) industry; market

36) The implication suggested by strategic actions of "good competitor companies" is that they would like to shape an industry that consists of ________. A) all would-be competitors B) groups that support a democratic model of behavior C) "good" and "bad" competitors D) only well-behaved competitors E) monopolists

D) only well-behaved competitors

19) Companies need to know each competitor's product quality, features, and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs. These are all the dimensions that identify ________ groups within the industry. A) target B) leading C) geographic D) strategic E) competing

D) strategic

39) An example of a company exhibiting blue-ocean thinking is ________. A) Amazon's digital music download services 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-price appliances supported by good service E) Cirque du Soleil's reinvention of the circus as a higher form of modern entertainment

E) Cirque du Soleil's reinvention of the circus as a higher form of modern entertainment

31) The following are all examples of close competitors EXCEPT ________. A) Nike and Adidas B) Wal-Mart and K-Mart C) Pepsi and Coca-Cola D) Neiman Marcus and Nordstom E) Nike and Timberland

E) Nike and Timberland

22) Benchmarking has become a powerful tool for increasing a company's ________, A) brand image B) mass appeal C) employee training services D) distribution channels E) competitiveness

E) competitiveness

10) A company is guilty of ________ if the company forgets latent competitors and only focuses on current competitors. A) marketing myopia B) misdirected segmentation C) competitor synergy D) competitor phobia E) competitor myopia

E) competitor myopia