Exam 11: Competitive Dynamics

Attacking the market leader proves successful and beneficial only when the leader is not serving the market well.

A firm that is willing to maintain its market share, and not attack the leader and other competitors in an aggressive bid for further market share, is known as a ________.

________ defense involves occupying the most desirable market space in the minds of the consumers and making the brand almost impregnable.

When large companies can no longer defend all their territory, they launch a ________ defense where they give up weaker markets and reassign resources to stronger ones.

As a(n)________, BurgerJacks, a fast food chain selling low-price burgers, has differentiated on location by setting up base in the Middle East, a market which the current leader of the industry McDonalds has yet not exploited.

Trendz Inc. is a leading brand of fashion clothing and accessories based in Houston. After gaining a strong foothold in the U.S., the company wants to foray into foreign markets. The management at Trends knows that people residing in other countries are likely to have different tastes and preferences, so they may have to redesign some of their offerings. Which of the following strategies is Trendz using?

During the ________ stage of a product's life cycle, sales show a downward drift and profits erode.

The prime objective, during the introduction stage of a product life cycle, is to maximize market share.

To satisfy customers, a(n)________ marketer finds a stated need and fills it.

As the marketing manager of a company that manufactures floor tiles, Evans Smith is given a target to achieve 500 new customers by the end of summer. He decides to search the market for probable customers who might use the product but do not at present. Which of the following strategies is Evans pursuing to increase the market demand for his product?

The ________ attack offers the firm an opportunity to diversify into unrelated products, into new geographical markets, and leapfrogging into new technologies.

________ marketers are not just market-driven, they are proactive market-driving firms.

Market challengers are companies that attack the leader and other competitors in an aggressive bid for further market share.

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

In a ________ defense strategy, the market leader can meet the attacker frontally and hit its flank, or launch a pincer movement so that it's forced to pull back to defend itself.

If you were asked to develop a mobile defense for your products that are likely to come under attack from a market challenger, what would you suggest?

Position defense means occupying the most desirable market space in consumers' minds, making the brand almost impregnable.

A music school in Boyles Height, LA, specializes in teaching the guitar and the violin. After a spurt in growth and a few successful years, the school is experiencing a slowdown in sales and stability in its profits due to an increase in competition. The school is in the ________ stage of its life cycle.

After Olay entered and took over the Indian market with its anti-aging lotion, Ponds decided to defend its home turf by investing heavily in a similar product, but that which used only natural ingredients. This is an example of a ________.

The cost of buying higher market share through acquisition may far exceed its revenue value. Which are the four factors a company should consider before doing so?