[UGBA 106] Chapter 12

A market challenger attacks the market leader and other competitors in an aggressive bid for more market share. Challengers must choose​ ________. A. tactical objectives B. tactical and strategic objectives C. an attack strategy D. strategic objectives E. an attack strategy and tactics

C. an attack strategy

When Canon grabbed a large chunk of​ Xerox's market by introducing desk​ copiers, it distanced itself from other challengers by​ ________. A. acquiring guppies B. attacking a regional firm C. attacking the market leader D. attacking a firm of its own size that was not doing the job well E. attacking a firm of its own size that was underfinanced

C. attacking the market leader

​A(n) ________ marketer discovers solutions customers did not ask for but to which they enthusiastically respond. A. responsive B. mobile C. creative D. defensive E. anticipative

C. creative

A market challenger must first​ ________, and then it must decide​ ________. A. set tactical​ objectives; whom to attack B. define the market​ territory; what tactical objectives it wants to achieve C. define its strategic​ objective; whom to attack D. define its sales​ objectives; whom to attack E. define market​ share; whom to attack

C. define its strategic​ objective; whom to attack

Sales of nylon have shown a​ ________ pattern because of the many new uses​ (such as​ parachutes, hosiery,​ shirts, carpeting, boat​ sails, and automobile​ tires) discovered over time. A. fashion PLC B. ​cycle-recycle PLC C. style PLC D. scalloped PLC E. fad PLC

D. scalloped PLC

The​ ________ market follower strategy takes the​ leader's products and adapts or improves them. A. adapter B. initiator C. cloner D. counterfeiter E. imitator

A. adapter

Pepsi used​ ________ when it launched Aquafina nationally​ (before Coca-Cola's launch of​ Dasani), when it purchased orange juice giant​ Tropicana, and when it purchased the owner of Gatorade sports drink. A. bypass attacks B. flank attacks C. frontal attacks D. guerrilla attacks E. encirclement attacks

A. bypass attacks

In​ a(n) ________, a competitor matches its​ opponent's product,​ advertising, price, and​ distribution, and the side with greater resources generally wins. A. frontal attack B. bypass attack C. guerrilla attack D. flank attack E. encirclement attack

A. frontal attack

An alternative strategy to being a follower is to be a leader in small market or niche. The key idea in successful nichemanship is​ ________. A. the use of specialization B. channel specialization C. ​product-line specialization D. vertical market specialization E. geographic specialization

A. the use of specialization

Which of the following is a marketing strategy associated with the decline stage of the product life​ cycle? A.The firm reduces marginal services to cut costs. B. The firm improves product quality and adds new features. C. The firm lowers prices to attract​ price-sensitive buyers. D. The firm adds new models and flanker products. E. The firm shifts to preference and loyalty communications.

A.The firm reduces marginal services to cut costs.

When Arm​ & Hammer discovered that some consumers used its baking soda as a refrigerator​ deodorant, it launched a heavy promotion campaign focusing on this use and succeeded in getting half the homes in the United States to adopt it. This was an example of promoting​ ________ to increase market demand. A.new ways to use the brand B. flanker brands C. geographic expansion D. increased usage amounts E. product development

A.new ways to use the brand

How do dominant firms expand total market​ demand? A. By finding ways to expand total market​ demand, taking offensive​ action, and increasing market share B. By finding ways to expand total market​ territory, taking defensive and offensive​ actions, and increasing market share C. By finding ways to expand total market​ demand, taking defensive and offensive​ actions, and increasing market share D. By finding ways to expand total market​ demand, taking defensive and offensive​ actions, and increasing product positioning and differentiation E. By finding ways to expand total market​ demand, taking defensive​ actions, and increasing market share

C. By finding ways to expand total market​ demand, taking defensive and offensive​ actions, and increasing market share

The product modification strategy that adds​ size, weight,​ materials, supplements, and accessories that expand the​ product's performance,​ versatility, safety, or convenience is​ ________. A. new market segment entry B. feature improvement C. style improvement D. quality improvement E. nonuser conversion

B. feature improvement

Bank of​ America's 16,220 ATMs and​ 5,858 retail branches nationwide envelop the market and signal to competitors not to​ attack, which is a​ ________. A. mobile defense B. preemptive defense C. position defense D. counteroffensive defense E. flank defense

B. preemptive defense

Which of the following is a characteristics of a reactive​ firm? A. It is flexible and nonbureaucratic. B. It is ready to take risks and make mistakes. C. Most of its managers think responsively. D. It has the capabilities to innovate. E. It has a vision of the future and of investing in it.

C. Most of its managers think responsively.

Which of the following is a factor to consider when​ protecting, rather than​ increasing, market share through​ acquisition? A. The economic cost B. The effect of increase market share on actual and perceived quality C. Whether to engage in a contraction defense D. The possibility of provoking antitrust action E. The danger of pursuing the wrong marketing activities

C. Whether to engage in a contraction defense

When Procter​ & Gamble used Gain and Cheer laundry detergents as outposts to protect a weak front or support a possible​ counterattack, they were using a​ ________. A. mobile defense B. position defense C. flank defense D. preemptive defense E. counteroffensive defense

C. flank defense

In times of economic​ recession, firms that received the most benefit​ ________ were often those best able to exploit a marketplace​ advantage, a weakened​ rival, or development of a neglected target market. A. from constraining product development activities B. from adding additional engineering staff C. from increasing marketing investments D. from decreasing marketing investments E. from dramatically increasing sales management activities

C. from increasing marketing investments

During the​ ________ stage of the product life​ cycle, firms are likely to use​ cost-plus pricing. A. growth B. maturity C. introduction D. decline E. development

C. introduction

When the total market​ expands, the dominant firm gains the most. In​ general, the market leader should​ ________ to both expand and defend market share. A. increase usage or consumption from existing customers B. look for new customers C. look for new customers or more usage from existing customers D. consider merging or acquiring competitors E. increase product lines

C. look for new customers or more usage from existing customers

A​ company's ________ and​ ________ strategies must change as the​ product, markets, and competitors change over the product life cycle​ (PLC). A. product​ development; innovation B. ​pricing; distribution C. positioning; differentiation D. ​distribution; channels E. ​sales; marketing

C. positioning; differentiation

The product life cycle is typically divided into four​ stages: introduction,​ growth, maturity, and decline. The product life cycle can be used to analyze​ ________ along with their life cycle stage. A. ​cycle-recycle and scalloped product forms B. ​growth-slump-maturity patterns C. product​ categories, product​ forms, products, and brands D. product​ forms, products, and fashions E. product​ categories, styles, and fads

C. product​ categories, product​ forms, products, and brands

Armani uses a​ three-tier product line differentiated based on​ style, luxury,​ customization, price, and distribution. During the​ recession, the​ lower-priced, younger,​ street-savvy third​ tier, Armani​ Exchange, picked up the selling slack for the upper tiers. This is in line with the recommendation to​ ________ during an economic downturn. A. get closer to customers B. maintain budget allocations C. ​fine-tune brand and product offerings D. explore the upside of increasing investment E. put forth the most expensive value proposition

C. ​fine-tune brand and product offerings

When Starbucks extended its brand into coffee drinks and ice creams to reach customers who did not use its​ brand, it was using a​ ________ strategy. A. ​geographic-expansion B. ​market-penetration C. ​new-market-segment D. larger package size E. ​increased-frequency

C. ​new-market-segment

After FedEx lost shares of its airborn delivery system to​ UPS, how did FedEx challenge UPS in the​ marketplace? A. FedEx expanded its international market. B. FedEx positioned itself as a logistics expert with​ businesses, supplying a broader range of services. C. FedEx worked with European regulators to block​ UPS's attempted purchase of TNT. D. FedEx made a series of acquisitions to challenge​ UPS's market share. E. FedEx cut Saturday deliveries in domestic markets to move resources to marketing efforts.

D. FedEx made a series of acquisitions to challenge​ UPS's market share.

​________ generally have a smaller market share than other​ players, and they are willing to maintain their share and not rock the boat. A. Market nichers B. Market leaders C. Market challengers D. Market followers E. Market rivals

D. Market followers

Which of the following is an example of a producer advantage that might contribute to​ pioneer's advantage? A. The pioneer aims for the middle of the market so that it captures more users. B. Pioneers can spend marketing dollars more effectively and enjoy higher rates of repeat purchases. C. The pioneer benefits from customer inertia. D. The pioneer owns scarce assets. E. The​ pioneer's brand name will be recalled if the product satisfies customers.

D. The pioneer owns scarce assets.

In a​ recession, marketers often focus on price reductions and​ discounts, which can harm​ long-term brand equity and price integrity. They should instead focus on​ ________. A. avoiding any​ fine-tuning of market or customer strategies B. decreasing marketing investments and allocating budgets downward C. avoiding any​ fine-tuning of brands or product offerings D. creating the most compelling value propositions E. modifying sales force organization and structure

D. creating the most compelling value propositions

Historical​ ________ include​ Microsoft, Gatorade, Best​ Buy, McDonald's, Blue Cross Blue​ Shield, and Visa. A. market followers B. market nichers C. market rivals D. market leaders This is the correct answer.E. market challengers

D. market leaders

How can a company promote the growth of the organization and inhibit​ competition? A. By reformulating product offerings several times B. By utilizing global competitors C. By optimizing brand extensions by​ mega-brands moving into new categories D. By promoting​ private-label brands E. By encouraging online competition

A. By reformulating product offerings several times

Which of the following is a less risky alternative growth strategy than expansion into new product​ categories? A. Mergers and acquisitions B. Limiting distribution to existing channels C. Limiting distinctions between the brand and its competitors D. Minimizing new formats and versions E. Growing the core product line

E. Growing the core product line

How can a small firm avoid competing with larger firms in markets of little or no interest to the larger​ firm? A. Imitation B. Bypass attacks C. Encirclement attacks D. Cloning E. Niche marketing

E. Niche marketing

Phasing out unprofitable outlets and reducing communications to the minimal level needed to retain​ hard-core loyals indicates a product is in the​ ________ stage of the product life cycle. A. introduction B. development C. growth D. maturity E. decline

E. decline

Marketers should consider the potential upside of​ _____ investment to exploit a marketplace advantage like an appealing new​ product, a weakened​ rival, or a neglected target market to develop. A. flanking B. keeping the same investment C. decreasing D. projecting E. increasing

E. increasing

During the​ ________ stage of the product life​ cycle, the marketing objective is to maximize profit while defending market share. A. development B. introduction C. growth D. decline E. maturity

E. maturity

The product life cycle stage where sales growth slows​ (due to the achievement of acceptance by most potential​ buyers) and profits stabilize or decline because of increased competition is the​ ________ stage. A. introduction B. growth C. development D. decline E. maturity

E. maturity

A niche specialist that specializes in one type of​ customer, like a​ value-added reseller that customizes computer hardware and software for a specific customer segment and earns a price premium in the​ process, is​ a(n) ________. A. geographic specialist B. ​product-feature specialist C. quality-price specialist D. channel specialist E. ​end-user specialist

E. ​end-user specialist