MTKG STRAT Last Test

8.Which of the following objectives can be achieved with a confrontation strategy for share maintenance? A. Appeal to late adopters with same attributes and benefits offered to early adopters. B. Improve ability to retain current customers as market fragments. C. Increase ability to attract new customers in selected high-growth segments by focusing resources on them. D. Improve ability to win new customers who might otherwise be attracted to competitor's offering.

D. Improve ability to win new customers who might otherwise be attracted to competitor's offering.

13. Which of the following is an example of using product features as a determinant attribute in positioning? A. "This is the quietest dishwasher made in America." B. "Buying a car is like getting married." C. "We know it's perfect, but we take another 1,000 hours just to be sure." D. "Tests prove that Renty Candies is more nutritious than Jimbo Candies, costs less than Jimbo, and tastes great, too."

A. "This is the quietest dishwasher made in America."

2. _____ entails designing product offerings and marketing programs that can establish an enduring competitive advantage in the target market by creating a unique brand image, or position, in the customer's mind. A. Brand positioning B. Market segmentation C. Brand preference D. Brand dilution

A. Brand positioning

19. _____ is the simplest way to enter a foreign market because it involves the least commitment and risk. A. Exporting B. Countertrade C. Franchising D. Overseas direct investment

A. Exporting

12. The pioneer's brand can become the standard of reference customers use to evaluate other brands, making it more difficult for followers to convince existing customers that their new brands are superior to the older and more familiar pioneer. Which advantage of being a pioneer does this explain? A. First choice of market segments and positions B. Economies of scale and experience C. Distribution advantages D. High switching costs for early adopters

A. First choice of market segments and positions

9. Which of the following strategies is most effective in a market that is relatively homogeneous in relation to customer needs and purchase criteria? A. Fortress strategy B. Market expansion strategy C. Contraction strategy D. Flanker strategy

A. Fortress strategy

1. In which of the following stages of the product life cycle do sales increase at a progressively faster rate as more people learn about the product and it becomes readily available? A. Growth stage B. Introductory stage C. Competitive turbulence stage D. Decline stage

A. Growth stage

17. Identify the limitation of a product positioning analysis. A. It does not tell the marketer which positions are most appealing to customers. B. It does not include a tool to identify gaps where an opportunity for developing a new product exists. C. It does not include a tool indicating how products within a category compare in terms of the level of as many attributes as are relevant. D. It does not indicate how alternative products are positioned relative to one another in customers' minds.

A. It does not tell the marketer which positions are most appealing to customers.

17. Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is moderate and the competitive position is weak? A. It should expand without high risk or minimize investment and focus on operations. B. It should withdraw if indications of sustainable growth are lacking. C. It should emphasize profitability by increasing productivity. D. It should seek ways to increase current earnings without speeding market's decline.

A. It should expand without high risk or minimize investment and focus on operations.

10. What action must a leader take to improve customer satisfaction as competitor enters or prepares to enter the market? A. It should take steps to improve the physical product and customers' perceptions of it as well. B. It should shift its sales promotion emphasis from building selective demand to stimulating primary demand. C. It should continue sales promotion efforts aimed only at stimulating trial among later adopters. D. It should shift its sales-force efforts from servicing existing customers to prospecting for new accounts.

A. It should take steps to improve the physical product and customers' perceptions of it as well.

5. Which of the following is a characteristic of physical positioning? A. Large number of dimensions B. Consumer orientation C. Perceptual attributes D. Limited number of dimensions

A. Large number of dimensions

11. Which of the following positioning bases typically includes "who made it" and "prior products?" A. Parentage B. Comparison C. Ingredients D. Pro-environment

A. Parentage

4. Which of the following is characteristic of physical positioning analysis of a brand? A. Represents impact of product specs B. Limited number of dimensions C. Need for marketing research D. Perceptual measures

A. Represents impact of product specs

15. What is the first step in constructing a market attractiveness/competitive position matrix for evaluating potential target markets? A. Selecting market attractiveness and competitive position factors B. Choosing segments to target and allocate resources C. Rating segments on each factor and plotting results on matrices D. Projecting future position for each segment

A. Selecting market attractiveness and competitive position factors

7. Which of the following statements is associated with the fortress strategy? A. The market leader develops a strong position when potential customers have relatively homogeneous needs. B. The market leader develops a second brand to compete directly against the challenger's offering. C. The market leader changes the marketing program before a suspected competitive challenge occurs. D. The market leader defends its relative market share by expanding into a number of market segments.

A. The market leader develops a strong position when potential customers have relatively homogeneous needs.

10. Which of the following is true of principle-oriented consumers? A. They are motivated by abstract and idealized criteria. B. They shop for products that demonstrate the consumer's success. C. They are guided by the need for social or physical activity and variety. D. They are motivated by risk-taking.

A. They are motivated by abstract and idealized criteria.

13. Strategic withdrawal is most likely when: A. a firm is unable to defend itself adequately in all segments due to competitors having more resources. B. a firm's primary objective is to capture a large share of new customers who may prefer something different from the initial offering. C. a competitor chooses to attack the leader head to head and attempts to steal customers in the target market. D. a firm tries to beat the attractive features of a competitor's offering only after the challenger's success has become obvious.

A. a firm is unable to defend itself adequately in all segments due to competitors having more resources.

18. Customers are surveyed and asked their preferences among various real or hypothetical product configurations, each with attributes that are systematically varied. This is an example of a: A. conjoint analysis. B. cluster analysis. C. logit analysis. D. discriminant analysis.

A. conjoint analysis.

20. A(n) _____ strategy involves targeting several smaller untapped or underdeveloped segments in the market simultaneously. A. encirclement B. guerrilla attack C. flank attack D. leapfrog

A. encirclement

2. Sony was the pioneer and early share leader in the videocassette recorder industry with its Betamax technology. But Matsushita's longer-playing and lower-priced VHS format equipment proved much more popular with consumers, and dethroned Sony as industry leader. This example underlines that: A. firms cannot always rely on their competencies to maintain share leadership in a market. B. the number of firms competing for a share of the market will decrease if there are few barriers to entry. C. market fragmentation will occur if potential customers have homogeneous functional needs. D. pioneers in new product-markets always manage to leverage their competitive advantages as the market grows.

A. firms cannot always rely on their competencies to maintain share leadership in a market.

21. Sales promotion efforts (like coupon drops and merchandising deals), local advertising blitzes, and legal action are examples of the _____ strategy to achieve share growth. A. guerilla attack B. flank attack C. frontal attack D. leapfrog

A. guerilla attack

6. In _____, customers are grouped by the characteristics of the individuals who influence the purchasing decision. A. microsegmentation B. geographic segmentation C. demographic segmentation D. macrosegmentation

A. microsegmentation

13. A(n) _____ refers to a recurring buying situation handled on a routine basis. A. straight rebuy B. old rebuy C. modified rebuy D. new buy

A. straight rebuy

7. New-to-the-world products can be defined as: A. true innovations that are new to the firm and create an entirely new market. B. a product category that is new for the company introducing it, but not new to customers in the target market. C. existing products that are targeted at new applications and new market segments. D. items providing improved performance brought out to replace existing products.

A. true innovations that are new to the firm and create an entirely new market.

19. Both positioning statements and value propositions should reflect a: A. unique selling proposition. B. low price component. C. high value component. D. indication of high market acceptance.

A. unique selling proposition.

21. Which of the following market strategies is often favored by smaller companies to avoid direct confrontations with larger firms while building volume and share? A. A niche-market strategy B. A growth-market strategy C. A resource-market strategy D. A mass-market strategy

B. A growth-market strategy

8. Which of the following refers to products that supplement a firm's established product line? A. Repositioning B. Additions to existing product lines C. New product lines D. Cost-reduced products

B. Additions to existing product lines

8. Marketing decision makers, while seeking to win a particular position in a customer's mind, endow their product with various kinds of attributes. The speed of a computer system, the roominess of a car, and a product or service being user-friendly are examples of which type of categorization based on such attributes? A. Simple physically based attributes B. Complex physically based attributes C. Essentially abstract attributes D. Price

B. Complex physically based attributes

14. Rex and Tens, a food manufacturing company, has the following tagline in its ad for a new health drink—Speedheal"Find out why thousands of nutritionists across America are recommending Speedheal to their clients."—Which positioning base is used in this Speedheal ad? A. Manufacturing process B. Endorsements C. Ingredients D. Parentage

B. Endorsements

15. Which of the following elements belongs to the successful late entrants' market strategy? A. Leapfrogging the pioneer with superior product technology B. Focusing on peripheral target markets or niches C. Larger entry scale than the pioneer D. Heavy promotional expenditures

B. Focusing on peripheral target markets or niches

15. Which of the following share-growth strategies involves attacking the leader within its primary target market? A. Flanker strategy B. Frontal attack strategy C. Encirclement strategy D. Guerrilla attack strategy

B. Frontal attack strategy

5. Identify the appropriate response by a firm when its product line is in the mature life cycle stage. A. Reduce length of line B. Hold length of line C. Broaden product line D. Introduce new product line

B. Hold length of line

1. _____ is the process by which a market is divided into distinct subsets of customers with similar needs and characteristics that lead them to respond in similar ways to a particular product offering and marketing program. A. Market capitalization B. Market segmentation C. Brand positioning D. Marketing mix

B. Market segmentation

10. Which of the following is an appropriate strategic objective for repositionings? A. Use excess or off-season capacity B. Provide a cash generator C. Capitalize on distribution strengths D. Exploit technology in a new way

B. Provide a cash generator

12. _____ is the degree to which buying activity is centralized and influences a buyer to consider all transactions with a given supplier on a global basis, to emphasize cost savings, and to minimize risk. A. Brand parity B. Purchasing structure C. Choice criteria D. Purchasing influence

B. Purchasing structure

3. Which of the following is characteristic of perceptual positioning analysis of a brand? A. Technical orientation B. R&D implications need to be interpreted C. Physical brand properties D. Large number of dimensions

B. R&D implications need to be interpreted

4. Carol's Trio, an upscale retail chain, stocks and sells only Spanish, German, and French products. Trio is an example of segmenting a market by _____. A. age B. ethnic origin C. education D. income

B. ethnic origin

14. Which of the following buying situations occurs when some element, such as price or delivery schedules, has changed in a client-supplier relationship? A. A straight rebuy B. An old rebuy C. A modified rebuy D. A new buying situation

C. A modified rebuy

14. What is the major marketing objective for followers, particularly larger firms entering a product-market shortly after the pioneer? A. Defend market position B. Develop only a niche strategy C. Attain share growth D. Start discrete price wars

C. Attain share growth

10. Volvo's emphasis on safety, Toyota's emphasis on reliability, and Norelco's promising a "close and comfortable shave" highlights which determinant attribute? A. Ingredients B. Manufacturing process C. Benefits D. Endorsements

C. Benefits

21. _____ involves a company providing technical know-how and components in return for a share of the output that it must sell. A. Buyback arrangement B. Countertrade C. Coproduction D. Joint ventures

C. Coproduction

3. Identify the scenario emphasizing the impact of income on consumer markets that are segmented demographically. A. MobServ, a mobile service provider, focusing attention on the 65-plus segments to improve market penetration B. CarsForWomen Inc. launching an online information service aimed at women to directly influence eight out of ten vehicle purchases C. Cyan Mobiles launching a subsidiary to create an ultra-exclusive mobile telephone targeting customers who buy luxurious products D. GloGarments creating needs for specialized goods and services due to increase in the number of men opting for neon clothing

C. Cyan Mobiles launching a subsidiary to create an ultra-exclusive mobile telephone targeting customers who buy luxurious products

4. Identify a market leader's action aimed at stimulating selective demand among later adopters. A. Maintaining/improving customer satisfaction and loyalty B. Encouraging/simplifying repeat purchase C. Differentiated positioning against competitive offerings D. Reducing attractiveness of switching

C. Differentiated positioning against competitive offerings

11. Tokomo Motors has introduced a new line of cars aimed at creating an appeal for young car buyers looking for good quality, funky designs, and low-prices. Their intent is to protect their primary brands from direct competition in the same category and from low-price competitors. Identify the strategy employed by Tokomo Motors. A. Confrontation strategy B. Position defense strategy C. Flanker strategy D. Market expansion strategy

C. Flanker strategy

20. _____ grants the right to use the company's name, trademarks, and technology. A. Contract manufacturing B. Countertrade C. Franchising D. Coproduction

C. Franchising

18. What strategy would a challenger be pursuing if its primary objective is to capture a modest share of repeat purchases in several market segments? A. Frontal attack strategy B. Leapfrog strategy C. Guerrilla attack strategy D. Encirclement strategy

C. Guerrilla attack strategy

12. Which of the following positioning bases is illustrated by a clothing manufacturer's claim of their shirts being made from pure organic cotton? A. Price/quality B. Endorsements C. Ingredients D. Parentage

C. Ingredients

16. Identify the firm characteristic of a new product pioneer pursuing the mass-market penetration strategy. A. It should have limited marketing skills and resources. B. It should have a leading share position in target segment. C. It should have the ability to shift from stimulation of primary demand to stimulation of selective demand. D. It should have limited financial resources to commit to building capacity prior to demand growth.

C. It should have the ability to shift from stimulation of primary demand to stimulation of selective demand.

18. Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is low and the competitive position is strong? A. It should build selectively on strengths and invest to improve position only in areas where risk is low. B. It should emphasize profitability by increasing productivity and build up ability to counter competition. C. It should protect current strengths of the firm and seek ways to increase current earnings without speeding market's decline. D. It should invest more to grow at a maximum rate and concentrate on maintaining strength.

C. It should protect current strengths of the firm and seek ways to increase current earnings without speeding market's decline.

14. Pioneers that are able to maintain their preeminent position well into the market's growth stage have supported their early status with one or more marketing strategy elements. Identify the strategy that allows firms to expand their volumes quickly and achieve the benefits of experience-curve effects before major competitors can confront them. A. Broad product lines B. Heavy promotional expenditures C. Large entry scale D. High product quality

C. Large entry scale

6. Which of the following is a difference between physical and perceptual positioning? A. Physical positioning represents product specs and communication, but perceptual positioning does not. B. In a perceptual positioning analysis, data is readily available, but in physical positioning analyses it is not. C. Perceptual positioning has a consumer orientation while physical positioning has a technical orientation. D. Physical positioning analysis is based in perceptual measures, while perceptual positioning analysis is based in objective measures.

C. Perceptual positioning has a consumer orientation while physical positioning has a technical orientation.

16. In which of the following steps of evaluating potential target markets is the market-attractiveness/competitive-position matrix plotted? A. Choosing segments to target and allocating resources B. Projecting future position for each segment C. Rating segments on each factor D. Assigning numerical weights to the factors

C. Rating segments on each factor

3. Identify the share maintenance marketing objective for share leaders. A. Delineate into niche target markets in product growth stage. B. Stimulate selective demand among innovators. C. Retain existing customers and ensure brand loyalty. D. Stimulate secondary demand to help speed up overall market growth.

C. Retain existing customers and ensure brand loyalty.

2. _____ is designed to obtain as much margin per unit as possible and also enables the company to recover its new product investments more quickly. A. Penetration pricing B. Odd-even pricing C. Skimming D. Benchmarking

C. Skimming

6. The shakeout stage in a product life cycle is signaled by: A. an expansion of the product line to attract new segments. B. limited purchase of the product due to lack of awareness. C. a drop in the overall growth rate and substantial price cuts. D. stability in terms of demand, technology, and competition.

C. a drop in the overall growth rate and substantial price cuts.

8. When consumers evaluate product alternatives on the basis of desired characteristics and how valuable each characteristic is to them, it is referred to as _____. A. benchmarking B. productivity paradox C. choice criteria D. paradox of thrift

C. choice criteria

16. Two stores occupy positions comparable to one another on the positioning grid. This indicates that: A. the two stores use different perceptual positioning of their products. B. the intensity of competition between the two stores is most likely to be very low. C. consumers consider them to be relatively alike. D. consumers see them as very different.

C. consumers consider them to be relatively alike.

5. The marketing action of developing a second product line with features that are more appealing to a specific segment of potential customers is characteristic of the _____ strategy. A. market expansion B. contraction C. flanker D. confrontation

C. flanker

1. The primary objective of the early share leader, usually the market pioneer, in a growth market is _____. A. share reduction B. share growth C. share maintenance D. mass-market penetration

C. share maintenance

1. Brand positioning refers to both the place a brand occupies in customers' minds relative to the competition, and: A. the profit that positioning can generate. B. the characteristics built into the product. C. the marketer's decision making intended to create that position. D. the competitive advantage that a position conveys.

C. the marketer's decision making intended to create that position.

15. A bank positions itself using its deposit safety as an attribute. Why would this positioning not create an impact in the consumer's mind? A. Because consumers can consider only those attributes of which they are aware B. Because the positioning effort was kept too simple and complexity was not included C. Because the importance attached to a bank's deposit safety varies largely among consumers D. Because most consumers perceive all banks to be about equally safe

D. Because most consumers perceive all banks to be about equally safe

20. _____ is the term marketers use to refer to the value created by establishing customer preference for one's brand. A. Brand extension B. Brand recognition C. Brand positioning D. Brand equity

D. Brand equity

21. Which of the following results when companies create differences between their brands and other brands that consumers perceive as meaningful? A. Brand extension B. Diversification C. Line extension D. Brand equity

D. Brand equity

7. Which of the following examples best illustrates perceptual positioning? A. General Foods' breakfast cereal in new chocolate and honey flavors B. Volvo's new venture into making fighter planes C. L'Oreal's new range of water resistant lipstick in fruit flavors D. Colgate's toothpaste with enhanced freshness of breath and sparkly teeth

D. Colgate's toothpaste with enhanced freshness of breath and sparkly teeth

2. Identify a limitation of physical positioning. A. It ignores the early stages of identifying new product offerings. B. Competitive offerings of many industrial goods and services cannot be typically evaluated on the basis of physical characteristics. C. It is rarely useful in undertaking a positioning analysis because they are based primarily on technical rather than on market data. D. Customers' attitudes toward a product are often based on social or psychological attributes.

D. Customers' attitudes toward a product are often based on social or psychological attributes.

6. Which of the following is characteristic of a market expansion strategy? A. Make product modifications or improvements to match or beat superior competitive offerings. B. Develop a second brand or product line with features or price more appealing to a specific segment of potential customers. C. Meet or beat lower prices or heavier promotional efforts by competitors when necessary to retain customers and when lower unit costs allow. D. Develop multiple-line extensions or brand offerings targeted to the needs of various potential user applications or geographical segments within the market.

D. Develop multiple-line extensions or brand offerings targeted to the needs of various potential user applications or geographical segments within the market.

13. Which of the following advantages of pioneers is particularly pronounced when the product is technically sophisticated and involves high development costs? A. Possibility of preempting scarce resources and suppliers B. Distribution advantages C. High switching costs for early adopters D. Economies of scale and experience

D. Economies of scale and experience

16. Which of the following is an appropriate share-growth strategy in a relatively homogeneous market with respect to customers' needs and purchase criteria? A. Guerrilla attack B. Encirclement C. Flank attack D. Frontal attack

D. Frontal attack

17. Which of the following share-growth strategies is appropriate when the needs and preferences of customers in most segments are currently satisfied by competing brands? A. Leapfrog B. Flank attack C. Encirclement D. Guerrilla attack

D. Guerrilla attack

4. Which of the following pricing strategies is appropriate during the maturity stage of the product life cycle? A. Skimming B. Penetration strategy C. Reduce across the board D. Hold or reduce selectively

D. Hold or reduce selectively

9. A firm is considering introducing a new product category in a highly competitive environment. The marketers obtain customer perceptions of the new product concept relative to likely substitute products on various critical determinant attributes. Which of the following stages of the product positioning process is the firm currently in? A. Determining customers' most preferred combination of determinant attributes B. Examining the fit between preferences of market segments and current position of product C. Determining product's current location in the product space and intensity D. Identifying relevant set of competitive products serving a target market

D. Identifying relevant set of competitive products serving a target market

9. Which of the following statements is true of behavioral segmentation? A. It is useful in assessing the size and market potential of a market segment defined by a particular trade area. B. It identifies a common purchasing structure across all organizational markets. C. It is based on who the target customers are and where they live. D. It identifies new markets even among homogeneous demographic groups when segmented by lifestyle.

D. It identifies new markets even among homogeneous demographic groups when segmented by lifestyle.

20. Which of the following is true of a mass-market strategy? A. It involves serving one or more segments with customers seeking somewhat-specialized benefits from a product. B. It works on the principle that an undifferentiated marketing strategy generates more sales than a differentiated strategy. C. It involved using a differentiated marketing strategy to decrease manufacturing and promotion costs. D. It involves designing a single product-and-marketing program that will appeal to the largest number of consumers.

D. It involves designing a single product-and-marketing program that will appeal to the largest number of consumers.

19. Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is high and the competitive position is strong? A. It should protect existing strengths and invest to improve position only in areas where risk is low. B. It should defend its current position and stop all further investments. C. It should sell when possible to maximize cash value and cut fixed costs in the meantime. D. It should invest more to grow at a maximum rate and concentrate on maintaining strengths.

D. It should invest more to grow at a maximum rate and concentrate on maintaining strengths.

5. _____ divides the market according to the characteristics of the buying organization using attributes such as age of firm, firm size, and industry affiliation. A. Microsegmentation B. Geographic segmentation C. Behavioral segmentation D. Macrosegmentation

D. Macrosegmentation

12. A firm develops line extensions, new brands, or alternative product forms utilizing similar technologies to appeal to multiple market segments. Identify the strategy employed here. A. Flanker strategy B. Fortress strategy C. Confrontation strategy D. Market expansion strategy

D. Market expansion strategy

17. Which of the following is a primary objective of mass-market penetration strategies? A. Recoup development and commercialization costs as soon as possible. B. Maintain leading share position in target segment. C. Maximize number of triers and adopters in target segment. D. Maximize number of triers and adopters in total market.

D. Maximize number of triers and adopters in total market.

3. Which of the following is true of the introductory stage in a product life cycle? A. The product is easily available at this stage. B. The net adoption rate holds steady at this stage. C. Shakeout or competitive turbulence occurs at the end of this stage. D. Skimming is one of the pricing strategies applied at this stage.

D. Skimming is one of the pricing strategies applied at this stage.

18. Which of the following marketing programs is used by pioneers as a niche penetration strategy to increase the customers' ability to buy? A. Moving relatively quickly to expand offerings to appeal to multiple segments B. Offering free trial or extended warranty policies to reduce target customers' perceived risk C. Attempting to maintain margins at level consistent with value of product to early adopters D. Starting with high price but bringing out lower-priced versions in anticipation of competitive entries

D. Starting with high price but bringing out lower-priced versions in anticipation of competitive entries

9. Which of the following observations best describes new-to-the-world products? A. They are new to the company but not to the market. B. They are often not very innovative in design or operations. C. They are aimed at new customer segments or repositioning of existing products. D. They try to build primary demand by creating product awareness.

D. They try to build primary demand by creating product awareness.

7. AdventureBikes targets wilderness enthusiasts and introduced special robust bikes for them. PowerDrink's target market comprises tennis players who need to replenish water and salts lost through perspiration. These are examples of _____ segmentation that is based on target consumers' activities. A. demographic B. geographical C. geodemographic D. behavioral

D. behavioral

19. A _____ strategy is appropriate when the market can be broken into two or more large segments, when the leader and/or other major competitors hold a strong position in the primary segment, and when no existing brand fully satisfies the needs of customers in at least one other segment. A. frontal attack B. leapfrog C. guerrilla attack D. flank attack

D. flank attack

11. Defending a current market-share position is an appropriate strategic objective for: A. repositionings. B. new product lines. C. new-to-the-world products. D. improvements or revisions to existing products.

D. improvements or revisions to existing products.

11. A(n) _____ consumer shops for products that demonstrate the consumer's success. A. principle-oriented B. action-oriented C. resource-oriented D. status-oriented

D. status-oriented