Question 1

Explain how luxury brands can benefit during an economic recession from having lower-priced brands or sub-brands in their portfolio.

Accepted Answer

They can review product portfolios and brand architecture to confirm that brands and sub-brands are clearly differentiated, targeted, and supported based on their prospects. Luxury brands can benefit from lower-priced brands or sub-brands in their portfolios.
Because different brands or sub-brands appeal to different economic segments, those that target the lower end of the socioeconomic spectrum may be particularly important during a recession. Value-driven companies such as McDonald's, Dell and IKEA are likely to benefit most. Spam, the oft-maligned gelatinous 12-ounce rectangle of spiced ham and pork, found its sales soaring during the recession. Affordably priced and requiring no refrigeration, Spam is, its maker Hormel claims, "like meat with a pause button."

Question 2

A frontal attacking strategy is another name for identifying shifts that are causing gaps to develop, then rushing to fill the gaps.

Accepted Answer

A) True 
 B)False  False

Question 3

Amani, a company that manufactures cloth for suits, strives to be equal to Armani in product design, brand name, and product packaging. This is an example of ________.

Accepted Answer

A)  innovating 
B)  adapting 
C)  imitating 
D)  cloning 
E)  counterfeiting 
A)  innovating 
B)  adapting 
C)  imitating 
D)  cloning 
E)  counterfeiting D

Question 4

During the maturity stage of a product life cycle, profits stabilize or decline because of increased competition.

Accepted Answer

A) True 
 B)False

Question 5

Campy Soups is a newly established company that specializes in preparing healthy but tasty food for children under the age of 5. It is incurring huge productions costs, nonexistent profits, and slow sales growth. The company is in the ________ phase of its life cycle.

Accepted Answer

A)  stagnancy 
B)  introduction 
C)  maturity 
D)  decline 
E)  growth 
A)  stagnancy 
B)  introduction 
C)  maturity 
D)  decline 
E)  growth

Question 6

Appy Juices, a company that manufactures bottled water, diversified into soft drinks before any of its opponents could launch a diversified product. This would be an example of a(n) ________ attack.

Accepted Answer

A)  flank 
B)  bypass 
C)  guerrilla 
D)  encirclement 
E)  frontal 
A)  flank 
B)  bypass 
C)  guerrilla 
D)  encirclement 
E)  frontal

Question 7

The marketing manager of a firm that manufactures cotton cloth has chosen the bypass attack as a means of responding to an industry leader. How will the manager go about launching this type of attack?

Accepted Answer

The bypass attack is a strategy used by

Question 8

When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don't drink coffee, Starbucks was employing a ________ strategy.

Accepted Answer

A)  market-penetration 
B)  new-market segment 
C)  geographical-expansion 
D)  niche identification 
E)  blue-ocean 
A)  market-penetration 
B)  new-market segment 
C)  geographical-expansion 
D)  niche identification 
E)  blue-ocean

Question 9

Which three groups of customers can help expand a firm's market demand?

Accepted Answer

Every product class has the potential to

Question 10

A marketing manager has planned a strategy that will require the organization to erect outposts to protect its weak front-running brands. In this ________ defense, the outposts will be central to the organization's new competitive strategy.

Accepted Answer

A)  position 
B)  flank 
C)  preemptive 
D)  counteroffensive 
E)  mobile 
A)  position 
B)  flank 
C)  preemptive 
D)  counteroffensive 
E)  mobile

Question 11

What is the criticism of the product life-cycle concept?

Accepted Answer

The product life-cycle theory has its sh

Question 12

Glico Pocky chocolate stick snacks has a look-alike in Giant Chocky. Which market follower strategy is being employed by Giant Chocky?

Accepted Answer

A)  counterfeiter 
B)  cloner 
C)  imitator 
D)  adapter 
E)  reverse innovator 
A)  counterfeiter 
B)  cloner 
C)  imitator 
D)  adapter 
E)  reverse innovator

Question 13

A market-penetration strategy is one where a company searches for new customers in a group that has never used a product before.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true about proactive marketing?

Accepted Answer

A)  A company needs creative anticipation to see the writing on the wall. 
B)  Proactive companies create new offers to serve unmet and unknown consumer needs. 
C)  Proactive companies refrain from practicing uncertainty management. 
D)  A company needs responsive anticipation to devise innovative solutions. 
E)  Companies are winners when they are extremely risk-averse. 
A)  A company needs creative anticipation to see the writing on the wall. 
B)  Proactive companies create new offers to serve unmet and unknown consumer needs. 
C)  Proactive companies refrain from practicing uncertainty management. 
D)  A company needs responsive anticipation to devise innovative solutions. 
E)  Companies are winners when they are extremely risk-averse.

Question 15

One way to increase the frequency of consumption of a product by consumers is by introducing it in larger package sizes.

Accepted Answer

A) True 
 B)False

Question 16

When "petroleum" companies such as BP sought to recast themselves as "energy" companies, increasing their research into the oil, coal, nuclear, hydroelectric, and chemical industries, these companies were employing a ________ strategy.

Accepted Answer

A)  preemptive defense 
B)  counteroffensive defense 
C)  mobile defense 
D)  flank defense 
E)  contraction defense 
A)  preemptive defense 
B)  counteroffensive defense 
C)  mobile defense 
D)  flank defense 
E)  contraction defense

Question 17

A(n) ________ marketer discovers solutions customers did not ask for but to which they enthusiastically respond.

Accepted Answer

A)  laidback 
B)  responsive 
C)  inexperienced 
D)  creative 
E)  anticipative 
A)  laidback 
B)  responsive 
C)  inexperienced 
D)  creative 
E)  anticipative

Question 18

An alternate way to increase sales volume is to expand the number of users by having them consume more of the product on each occasion.

Accepted Answer

A) True 
 B)False

Question 19

A market nicher is considered to be a(n) ________ specialist if the firm specializes in producing a certain type of product or product feature such as, Rent-a-Wreck, that rents only "beat-up" cars.

Accepted Answer

A)  end-user 
B)  vertical-level 
C)  customer-size 
D)  channel 
E)  product-feature 
A)  end-user 
B)  vertical-level 
C)  customer-size 
D)  channel 
E)  product-feature

Question 20

As a market follower, the ________ may choose to sell to different markets, but often it grows into a future challenger.

Accepted Answer

A)  imitator 
B)  adapter 
C)  cloner 
D)  counterfeiter 
E)  innovator 
A)  imitator 
B)  adapter 
C)  cloner 
D)  counterfeiter 
E)  innovator

Exam 11: Competitive Dynamics

Explain how luxury brands can benefit during an economic recession from having lower-priced brands or sub-brands in their portfolio.

A frontal attacking strategy is another name for identifying shifts that are causing gaps to develop, then rushing to fill the gaps.

Amani, a company that manufactures cloth for suits, strives to be equal to Armani in product design, brand name, and product packaging. This is an example of ________.

During the maturity stage of a product life cycle, profits stabilize or decline because of increased competition.

Campy Soups is a newly established company that specializes in preparing healthy but tasty food for children under the age of 5. It is incurring huge productions costs, nonexistent profits, and slow sales growth. The company is in the ________ phase of its life cycle.

Appy Juices, a company that manufactures bottled water, diversified into soft drinks before any of its opponents could launch a diversified product. This would be an example of a(n) ________ attack.

The marketing manager of a firm that manufactures cotton cloth has chosen the bypass attack as a means of responding to an industry leader. How will the manager go about launching this type of attack?

When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don't drink coffee, Starbucks was employing a ________ strategy.

Which three groups of customers can help expand a firm's market demand?

A marketing manager has planned a strategy that will require the organization to erect outposts to protect its weak front-running brands. In this ________ defense, the outposts will be central to the organization's new competitive strategy.

What is the criticism of the product life-cycle concept?

Glico Pocky chocolate stick snacks has a look-alike in Giant Chocky. Which market follower strategy is being employed by Giant Chocky?

A market-penetration strategy is one where a company searches for new customers in a group that has never used a product before.

Which of the following is true about proactive marketing?

One way to increase the frequency of consumption of a product by consumers is by introducing it in larger package sizes.

When "petroleum" companies such as BP sought to recast themselves as "energy" companies, increasing their research into the oil, coal, nuclear, hydroelectric, and chemical industries, these companies were employing a ________ strategy.

A(n) ________ marketer discovers solutions customers did not ask for but to which they enthusiastically respond.

An alternate way to increase sales volume is to expand the number of users by having them consume more of the product on each occasion.

A market nicher is considered to be a(n) ________ specialist if the firm specializes in producing a certain type of product or product feature such as, Rent-a-Wreck, that rents only "beat-up" cars.

As a market follower, the ________ may choose to sell to different markets, but often it grows into a future challenger.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Gathering Information and Scanning the Environment

Conducting Marketing Research and Forecasting Demand

Creating Customer Value, Satisfaction, and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Marketing Channels and Value Networks

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events, and Public Relations

Managing Personal Communications: Direct Marketing and Personal Selling

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization for the Long Run

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