Question 1

Which of the following statements is true of the approaches to marketing strategy?

Accepted Answer

A)  Intrepreneurial marketing applies to companies that sometimes lose their marketing creativity and passion that they had at the start. 
B)  As small companies achieve success, they inevitably move away from more-formulated marketing. 
C)  Within a company, a single strategy exclusively applies to all different businesses and products. 
D)  Formulated marketing seldom involves developing formal marketing strategies and adhering to them closely. 
E)  Formulated marketing encourages more marketing initiative and "intrepreneurship" at the local level. 
A)  Intrepreneurial marketing applies to companies that sometimes lose their marketing creativity and passion that they had at the start. 
B)  As small companies achieve success, they inevitably move away from more-formulated marketing. 
C)  Within a company, a single strategy exclusively applies to all different businesses and products. 
D)  Formulated marketing seldom involves developing formal marketing strategies and adhering to them closely. 
E)  Formulated marketing encourages more marketing initiative and "intrepreneurship" at the local level.

Question 2

A good competitor plays by its own rules at the expense of the industry as a whole.

Accepted Answer

A) True 
 B)False

Question 3

Companies need to know each competitor's product quality, features, and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs. These are all the dimensions that identify ________ groups within the industry.

Accepted Answer

A)  target 
B)  focus 
C)  control 
D)  strategic 
E)  experimental 
A)  target 
B)  focus 
C)  control 
D)  strategic 
E)  experimental

Question 4

The competitive intelligence system of a company supplies key information to relevant decision makers about the company's competitors.

Accepted Answer

A) True 
 B)False

Question 5

Most companies are started by individuals who live by their wits. They visualize an opportunity, take risks, and knock on every door to gain attention. Which of the following stages in marketing strategy is being illustrated here?

Accepted Answer

A)  exponential marketing 
B)  formulated marketing 
C)  entrepreneurial marketing 
D)  affinity marketing 
E)  ambush marketing 
A)  exponential marketing 
B)  formulated marketing 
C)  entrepreneurial marketing 
D)  affinity marketing 
E)  ambush marketing

Question 6

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.

Accepted Answer

A)  product differentiation 
B)  low-cost leadership 
C)  customer intimacy 
D)  a middle-of-the-roaders strategy 
E)  product leadership 
A)  product differentiation 
B)  low-cost leadership 
C)  customer intimacy 
D)  a middle-of-the-roaders strategy 
E)  product leadership

Question 7

Fifty percent of the market is in the hands of Company A. Another 30 percent is in the hands of Company B. Fifteen percent is in the hands of Company C, and the remaining five percent is in the hands of Company D. Based on these hypothetical numbers, Company D is the market ________.

Accepted Answer

A)  leader 
B)  challenger 
C)  follower 
D)  nicher 
E)  maven 
A)  leader 
B)  challenger 
C)  follower 
D)  nicher 
E)  maven

Question 8

________ is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance.

Accepted Answer

A)  Segmenting 
B)  Positioning 
C)  Sales promotion 
D)  Benchmarking 
E)  Publicity 
A)  Segmenting 
B)  Positioning 
C)  Sales promotion 
D)  Benchmarking 
E)  Publicity

Question 9

Whereas the mass marketer achieves ________, the nicher achieves ________.

Accepted Answer

A)  low margins; low volume 
B)  low volume; high margins 
C)  high volume; high margins 
D)  high volume; low margins 
E)  high margins; high volume 
A)  low margins; low volume 
B)  low volume; high margins 
C)  high volume; high margins 
D)  high volume; low margins 
E)  high margins; high volume

Question 10

A company is guilty of ________ if the company forgets latent competitors and only focuses on current competitors.

Accepted Answer

A)  perfect competition 
B)  self-competition 
C)  Cournot competition 
D)  competitor backlinking 
E)  competitor myopia 
A)  perfect competition 
B)  self-competition 
C)  Cournot competition 
D)  competitor backlinking 
E)  competitor myopia

Question 11

Market niching is profitable because the company ________.

Accepted Answer

A)  copies or improves on the leader's products and programs, usually with much less investment 
B)  bears the cost of developing new products and markets, expanding distribution, and educating the market 
C)  knows the needs of the target customer segment better than other firms that casually attempt to sell to the same segment 
D)  either keeps its manufacturing costs and prices low or its product quality and services high 
E)  can achieve economies of scale much faster by selling the same product to the global market 
A)  copies or improves on the leader's products and programs, usually with much less investment 
B)  bears the cost of developing new products and markets, expanding distribution, and educating the market 
C)  knows the needs of the target customer segment better than other firms that casually attempt to sell to the same segment 
D)  either keeps its manufacturing costs and prices low or its product quality and services high 
E)  can achieve economies of scale much faster by selling the same product to the global market

Question 12

________ can adopt one of two competitive strategies: they can challenge the leader or they can play along with competitors and not rock the boat.

Accepted Answer

A)  Runner-up firms 
B)  Market nichers 
C)  Global investors 
D)  Localized marketers 
E)  Market developers 
A)  Runner-up firms 
B)  Market nichers 
C)  Global investors 
D)  Localized marketers 
E)  Market developers

Question 13

A company can become so ________ centered that it loses its even more important focus on maintaining profitable ________ relationships.

Accepted Answer

A)  customer; competitor 
B)  competitor; customer 
C)  market; customer 
D)  market; competitor 
E)  competitor; product 
A)  customer; competitor 
B)  competitor; customer 
C)  market; customer 
D)  market; competitor 
E)  competitor; product

Question 14

An industry often contains "good" and "bad" competitors. Good competitors ________.

Accepted Answer

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 
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

Question 15

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.

Accepted Answer

A)  industry 
B)  market 
C)  segment 
D)  niche 
E)  interdependent 
A)  industry 
B)  market 
C)  segment 
D)  niche 
E)  interdependent

Question 16

Firms competing in a given target market, at any point in time, differ in their objectives and resources.

Accepted Answer

A) True 
 B)False

Question 17

A group of firms in an industry following the same or a similar strategy in a given target market is known as a strategic group.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is the best response a company can make to competitive threats?

Accepted Answer

A)  continuous innovation 
B)  surrender to the competitor 
C)  exit from the market 
D)  divestment 
E)  globalization 
A)  continuous innovation 
B)  surrender to the competitor 
C)  exit from the market 
D)  divestment 
E)  globalization

Question 19

The existence of competitors in a market may help a company increase total demand.

Accepted Answer

A) True 
 B)False

Question 20

Most competitors in the music download industry see Apple's iTunes Music Store as a ________ because it created a closed system with mass appeal.

Accepted Answer

A)  good competitor 
B)  marginal competitor 
C)  bad competitor 
D)  weak competitor 
E)  distant competitor 
A)  good competitor 
B)  marginal competitor 
C)  bad competitor 
D)  weak competitor 
E)  distant competitor

Which of the following statements is true of the approaches to marketing strategy?

A good competitor plays by its own rules at the expense of the industry as a whole.

Companies need to know each competitor's product quality, features, and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs. These are all the dimensions that identify ________ groups within the industry.

The competitive intelligence system of a company supplies key information to relevant decision makers about the company's competitors.

Most companies are started by individuals who live by their wits. They visualize an opportunity, take risks, and knock on every door to gain attention. Which of the following stages in marketing strategy is being illustrated here?

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.

Fifty percent of the market is in the hands of Company A. Another 30 percent is in the hands of Company B. Fifteen percent is in the hands of Company C, and the remaining five percent is in the hands of Company D. Based on these hypothetical numbers, Company D is the market ________.

________ is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance.

Whereas the mass marketer achieves , the nicher achieves .

A company is guilty of ________ if the company forgets latent competitors and only focuses on current competitors.

Market niching is profitable because the company ________.

________ can adopt one of two competitive strategies: they can challenge the leader or they can play along with competitors and not rock the boat.

A company can become so centered that it loses its even more important focus on maintaining profitable relationships.

An industry often contains "good" and "bad" competitors. Good competitors ________.

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.

Firms competing in a given target market, at any point in time, differ in their objectives and resources.

A group of firms in an industry following the same or a similar strategy in a given target market is known as a strategic group.

Which of the following is the best response a company can make to competitive threats?

The existence of competitors in a market may help a company increase total demand.

Most competitors in the music download industry see Apple's iTunes Music Store as a ________ because it created a closed system with mass appeal.

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Consumer Buyer Behavior

Business Markets and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

New-Product Development and Product Life Cycle Strategies

Pricing: Understanding and Capturing Customer Value

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 18: Creating Competitive Advantage

Which of the following statements is true of the approaches to marketing strategy?

A good competitor plays by its own rules at the expense of the industry as a whole.

Companies need to know each competitor's product quality, features, and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs. These are all the dimensions that identify ________ groups within the industry.

The competitive intelligence system of a company supplies key information to relevant decision makers about the company's competitors.

Most companies are started by individuals who live by their wits. They visualize an opportunity, take risks, and knock on every door to gain attention. Which of the following stages in marketing strategy is being illustrated here?

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.

Fifty percent of the market is in the hands of Company A. Another 30 percent is in the hands of Company B. Fifteen percent is in the hands of Company C, and the remaining five percent is in the hands of Company D. Based on these hypothetical numbers, Company D is the market ________.

________ is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance.

Whereas the mass marketer achieves ________, the nicher achieves ________.

A company is guilty of ________ if the company forgets latent competitors and only focuses on current competitors.

Market niching is profitable because the company ________.

________ can adopt one of two competitive strategies: they can challenge the leader or they can play along with competitors and not rock the boat.

A company can become so ________ centered that it loses its even more important focus on maintaining profitable ________ relationships.

An industry often contains "good" and "bad" competitors. Good competitors ________.

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.

Firms competing in a given target market, at any point in time, differ in their objectives and resources.

A group of firms in an industry following the same or a similar strategy in a given target market is known as a strategic group.

Which of the following is the best response a company can make to competitive threats?

The existence of competitors in a market may help a company increase total demand.

Most competitors in the music download industry see Apple's iTunes Music Store as a ________ because it created a closed system with mass appeal.

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Consumer Buyer Behavior

Business Markets and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

New-Product Development and Product Life Cycle Strategies

Pricing: Understanding and Capturing Customer Value

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Whereas the mass marketer achieves , the nicher achieves .

A company can become so centered that it loses its even more important focus on maintaining profitable relationships.