Marketing Test 2

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

A

According to the Blue Ocean Strategy, the only way to beat the competition is: A) to stop trying to beat the competition B) to select either a cost leadership, differentiation, or focus position C) avoid the Holy Grail of customer service D) innovate, innovate, innovate E) add value

A

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 leadership

A

Selecting which segments of a population of customers to serve is called _____. A) market segmentation B) positioning C) customization D) target marketing E) choosing a value proposition

D

Gaining _______ requires delivering more value and satisfaction to target consumers than competitors do A) competitive advantage B) first-mover advantage C) economies of scale D) comparative advantage E) differentiation

A

In conducting _______, the company first identifies the major attributes that customers value and the importance customers place on theses attributes. Next, it assesses its performance against competitors on those valued attributes. A) a customer value analysis B) benchmarking C) entrepreneurial marketing D) entrepreneurial marketing E) a customer lifetime estimate

A

The art and science of choosing target markets and building profitable relationships with them is called _____. A) marketing management B) positioning C) segmentation D) selling E) societal marketing

A

The proper sequence of Blue Ocean Strategy is: A) Buyer utility, price, cost adoption B) Buyer utility, cost, price, adoption C) BUM/BEP, cost, price, adoption, hurdle rate D) None of the above E) There is no proper sequence

A

A company that pursues _____ will react much more strongly to a competitor's cost reducing manufacturing breakthrough than to the same competitor's advertising increase. A) product differentiation B) low-cost leadership C) customer intimacy D) a middle-of-the-roaders strategy E) product leadership

B

Competition is most intense within: A) a strategic group B) a red ocean C) an industry group D) a market group E) a and b

B

From an industry point of view, Universal Pictures film studio might see its competition as _____. A) West End Theatre B) Columbia Pictures C) Tomorrowland D) Summerfest E) HarperCollins

B

In the Boston Consulting Group approach, _____ serve(s) as a measure of company strength in the market. A) relative market share B) SBUs C) cash cows D) market growth rate E) market segmentation

B

In the context of identifying competitor's strategies, the more that one firm's strategy resembles another firm's strategy, the more likely the two firms are to ______. A) merge B) compete C) globalize D) form a partnership E) become market leaders

B

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

Mountain Home Farms is now using the product/market expansion grid to develop strategies. The owners of the company have most likely found the grid to be quite useful for identifying _____. A) target markets B) growth opportunities C) key customers D) new products E) suppliers

B

Nintendo, producer of the Wii video game console, might define its competitors as other makers of physically interactive video games. But from a(n) ______ point of view, it would include all firms making physically interactive recreational products. A) industry B) market C) segment D) niche E) interdependent

B

There is no Blue Ocean potential unless you can answer the following 2 questions in the affirmative. A) Do we park the offering or rethink it? B) Does the offering unlock exceptional utility; is there a compelling reason for the mass of people to buy it? C) Are there adoption hurdles and potential resistance to the idea from retailers? D) Do we have barriers to entry and patent protection of our offering? E) Is this a true competitive strategy and are there true advantages in cost leadership?

B

A close competitor is one: A) that resides in your neighborhood, city, or ZIP Code area B) that shares a similar UPC Code C) The resembles your firm the most D) that resembles your SKU E) all of the above

C

A company that focuses on customer developments in designing its marketing strategies and delivering superior value to its target customers is known as a: A) company that has elected to compete on the basis of Focus B) Company that has elected to compete on the basis of cost leadership C) customer-centered company D) market-oriented company E) company that has marketing myopia

C

An industry often contains "good" and "bad" competitors. Good competitors _______. A) break the rules of fair competition B) ensure minimum competition between firms C) play by the rules of the industry D) typically dominate the market E) share their marketing strategies with other firms

C

Country Kitchen and Perkins are both a chain of family restaurants featuring diner-like menus with reasonably priced items. These companies are in the same ________. A) focus group B) control group C) strategic group D) target group E) experimental group

C

For Hyundai Corporation, customers who care primarily about the price of a car and its operating economy make up one _____. A) market position B) value network C) market segment D) customer extension E) value chain

C

Making more sales without changing a firm's products is ______. A) market development B) market growth C) market penetration D) product development E) market attractiveness

C

Which of the following sentences best summarizes the differences between the red and blue ocean strategies? A) Red oceans are about avoiding head-to-head competition while blue oceans are about rivals fighting over a shrinking profit pool. B) Red oceans denote an environment where products are not yet well defined while blue oceans refer to the frequently accessed marketplaces where the products are well-defined, competitors are known and competition is based on price, product quality and service. C) In the red oceans, industry boundaries are defined and accepted and the competitive rules of the game are known. Blue oceans are occasionally created well beyond existing industry boundaries. D) Blue oceans are an old paradigm that represents all the industries in existence today while red oceans are those where companies beat competition by focusing on developing compelling value innovations that create uncontested marketspace. E) None of the above best summarizes the differences between red and blue ocean strategies

C

Which of the following statements about Blue Ocean Strategy is/are true? A) It pursues differentiation and low cost B) It maximizes opportunity while minimizing risk C) It creates uncontested market space D) It provides a step-by-step process E) all of the above are true statements about Blue Ocean Strategy

C

A company that offers superior value by offering a continuous stream of leading-edge products, that aims to make its own products and those of the competitors obsolete a: A) company that focuses on customer intimacy B) company that is myopic C) company that focuses of effortless experience D) company that focuses on product leadership E) none of the above

D

Bars and restaurants have few physical features in common with a circus. They also serve a distinct function by providing conversational and gastronomical fun and adventure, a very different experience from the visual entertainment a movie theater offers. These are competitors because: A) they are not competitors B) they share the same form and objective C) they share the same function and objective D) they share the same goal of taking a share of the customer's wallet E) they do not share the sale form and function, but people have the same objective in undertaking these 3 activities

D

In the BCG approach, ____ are high-share, high-growth businesses or products. They need heavy investment to finance rapid growth. When their growth slows down, they turn into _____. A) cash cows; stars B) question marks; dogs C) stars; question marks D) stars; cash cows E) dogs; cash cows

D

Kodak's film business didn't lose out to direct competitor Fijufilm; 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

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) horizontal integration approach B) commercialization process C) guerilla marketing technique D) blue ocean strategy E) lean dynamics approach

D

The first step in initiating competitive marketing strategies is to _______ A) balance customer and competitor orientations B) design broad competitive marketing strategies C) assess long-term organizational objectives D) conduct competitor analysis E) conduct transaction analysis

D

To reconstruct buyer value elements in crafting a new value curve, we complete: A) Michael Porter;s Four Competitive Positions questions B) Tierchy and Waldrops Four decisions framework C) The Four Product/Market Growth Framework D) The BCG Framework E) None of the above

D

What is the least relevant question to ask when assessing a firm's main competitor? A) What are the competitor's objectives? B) What is the competitor's strategy? C) What are the competitor's strengths? D) What are the competitor's locations? E) What are the competitor's weaknesses?

D

_____ is the process of comparing the company's products and processed to those of competitors or leading firms in other industries to find ways to improve quality and performance. A) Segmenting B) Positioning C) Sales promotion D) Benchmarking E) Publicity

D

_____ is the set of benefits a company promises to deliver to its consumers to satisfy their needs A) a money-back guarantee B) low pricing C) good customer service D) a value proposition E) an attribute

D

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 released by Apple

E

From a market point of view, Universal Pictures film studio might see its competition as ______. A) Paramount Pictures B) Warner Bros. Pictures C) Walt Disney Pictures D) 20th Century Fox E) Broadway

E

How would you define "effortless experience" in the BUM? A) removing the blocks to customer productivity at all six stages of the buyer's experience B) removing the blocks to simplicity at all six stages of the buyer's experience C) removing the blocks to environmental friendliness at all 6 stages of the buyer's experience D) removing the blocks to risk reduction at all 6 stages of the buyer's experience E) all of the above

E

In formulating Blue Ocean Strategy, the main challenge in determining price is: A) understanding the strategic cost B) understanding focus C) understanding the price sensitivities of those people who will be buying the product D) understanding the price sensitivities of those people who will be comparing the new product with a host of very different looking products offered outside the group of traditional competitors E) b and c

E

Using the Price Corridor of the Mass format to set prices is an excellent method of: A) identifying the three types of competitors for your product or service B) identifying the number of buyers that each competitor attracts C) determining the degree of legal and resource protection your product or service has D) setting the pricing necessary to pull in an ocean of new demand E) all of the above

E

Value innovation, the cornerstone of Blue Ocean Strategy is the result of: A) the simultaneous pursuit of differentiation and low cost B) driving costs down while driving differentiation up C) reducing or eliminating some factors the industry has taken for granted, while raising or creating other factors the industry has ignored D) driving down costs while driving value up E) all of the above

E

Which of the following are examples of close competitors? A) Applebee's and Subway B) Taco Bell and TGIFriday's C) Pizza Hut and Burger King D) McDonald's and Taco Bell E) McDonald's and Burger King

E

Which of the following are likely competitor reactions to a price cut: A) create a fighting brand B) follow the price cut with one of their on C) increase promotion D) do nothing E) all of the above

E

Which of the following is the most likely result of a middle-of-the-road strategy that attempts to serve all customers? A) all customers will be delighted B) Michael Porter says this strategy will not succeed C) Customer evangelists will become unpaid salespersons for the service or product D) Few customers will be satisfied E) b and d

E

Which of the following is/are not utility levers in the Buyers' Utility Map? A) form B) purchase C) fun and image D) risk E) a and b

E

Which of the following is/are true about good vs. bad competitors? A) good competitors play by the rules and increase total demand in the market B) bad competitors try to buy share, rather than earn it C) bad competitors often create disruptive innovations D) good competitors play by the rules E) all of the above

E