Question 1

How can a firm with low share of the total market become highly profitable?

Accepted Answer

Firms with low shares of the total market can become highly profitable through smart niching.Such companies tend to offer high value,charge a premium price,achieve lower manufacturing costs,and shape a strong corporate culture and vision.

Question 2

Winners is a master at convincing consumers that they get more value for their money by buying sought-after brands at their sotres than through department stores. What type of attack is this market challenger using?

Accepted Answer

This is a type of frontal attack-a modified frontal attack,such as cutting price.It can work if the market leader doesn't retaliate,and if the competitor convinces the market its product is equal to the leader's.

Question 3

Characterize the four broad strategies often employed by market followers to meet their competitors.

Accepted Answer

These broad strategies include:(1)counterfeiter-the counterfeiter duplicates the leader's product and package and sells it on the black market or through disreputable dealers; (2)cloner-the cloner emulates the leader's products,name,and packaging,with slight variations; (3)imitator-the imitator copies some things from the leader but maintains differentiation in terms of packaging,advertising,pricing,or location;and (4)adapter-the adapter takes the leader's products and adapts or improves them.For additional information and characterization,see chapter section.

Question 4

A group of firms following the same strategy in a given target market is called a strategic alliance.

Accepted Answer

A) True 
 B)False

Question 5

Occasionally, a company will be able to straddle two frames of reference with one set of attributes and benefits.

Accepted Answer

A) True 
 B)False

Question 6

Which three groups of marketers help satisfy a customer's needs?

Accepted Answer

In satisfying customer needs,one can dra

Question 7

Because of economies of scale, increased market share automatically produce higher profits.

Accepted Answer

A) True 
 B)False

Question 8

Your marketing manager has asked you to develop a new customer strategy for your company. Additionally, you have been asked to develop, specifically, a market-penetration strategy to assist in gaining new customers. Describe a market-penetration strategy in this context.

Accepted Answer

The market penetration strateg

Question 9

As end-user specialist, the firm limits its selling to one or a few customers.

Accepted Answer

A) True 
 B)False

Question 10

The frontal attack by a market challenger looks for weak spots on the fringe of the opponent's defenses because these are natural targets.

Accepted Answer

A) True 
 B)False

Question 11

Characterize the typical market leader. Can market leadership be lost?

Accepted Answer

The market leader has the largest market

Question 12

One of the chief advantages held by a market nicher is the fact that once a niche is established it tends to be rather stable and can be "milked for profit" for several years (i.e., single niching is a preferred strategy).

Accepted Answer

A) True 
 B)False

Question 13

An alternative to being a market follower in a large market is to be a leader in a small market. This type of competitor is called a(n)

Accepted Answer

A)  guerilla marketer. 
B)  strategic clone. 
C)  market nicher. 
D)  marketing knave. 
E)  segment king. 
A)  guerilla marketer. 
B)  strategic clone. 
C)  market nicher. 
D)  marketing knave. 
E)  segment king.

Question 14

The market nicher serves small market segments not being served by larger firms. Nichers account for about ________ of the market in relation to other competitors.

Accepted Answer

A)  10 percent 
B)  20 percent 
C)  15 percent 
D)  30 percent 
E)  25 percent 
A)  10 percent 
B)  20 percent 
C)  15 percent 
D)  30 percent 
E)  25 percent

Question 15

Jessie Shambra is an up-and-coming marketing manager for a large department store chain. Ms. Shambra has distinguished herself with bold strategies such as launching attacks on her primary competitor from several fronts (including advertising, new store openings, price cuts, new distributor alliances, and creative merchandising). Her "blitz" is comparable to any done by the military in time of war. Which of the following market challenger attack strategies is Ms. Shambra using to attack her competition?

Accepted Answer

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

Question 16

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ strategy.

Accepted Answer

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

Question 17

The ________ has the largest market share and usually shows the way to other firms in price changes, new-product introductions, distribution coverage, and promotional intensity.

Accepted Answer

A)  market nicher 
B)  market challenger 
C)  market entrant 
D)  market leader 
E)  market follower 
A)  market nicher 
B)  market challenger 
C)  market entrant 
D)  market leader 
E)  market follower

Question 18

A preemptive defense is basically a strategic retreat until resources can be assembled for a more advantageous attack.

Accepted Answer

A) True 
 B)False

Question 19

Using a market approach, competitors are companies that satisfy the same customer need.

Accepted Answer

A) True 
 B)False

Question 20

Technological leapfrogging is a guerilla warfare tactic practised in the fast-food marketplace.

Accepted Answer

A) True 
 B)False

Exam 11: Competitive Dynamics

How can a firm with low share of the total market become highly profitable?

Winners is a master at convincing consumers that they get more value for their money by buying sought-after brands at their sotres than through department stores. What type of attack is this market challenger using?

Characterize the four broad strategies often employed by market followers to meet their competitors.

A group of firms following the same strategy in a given target market is called a strategic alliance.

Occasionally, a company will be able to straddle two frames of reference with one set of attributes and benefits.

Which three groups of marketers help satisfy a customer's needs?

Because of economies of scale, increased market share automatically produce higher profits.

Your marketing manager has asked you to develop a new customer strategy for your company. Additionally, you have been asked to develop, specifically, a market-penetration strategy to assist in gaining new customers. Describe a market-penetration strategy in this context.

As end-user specialist, the firm limits its selling to one or a few customers.

The frontal attack by a market challenger looks for weak spots on the fringe of the opponent's defenses because these are natural targets.

Characterize the typical market leader. Can market leadership be lost?

One of the chief advantages held by a market nicher is the fact that once a niche is established it tends to be rather stable and can be "milked for profit" for several years (i.e., single niching is a preferred strategy).

An alternative to being a market follower in a large market is to be a leader in a small market. This type of competitor is called a(n)

The market nicher serves small market segments not being served by larger firms. Nichers account for about ________ of the market in relation to other competitors.

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ strategy.

The ________ has the largest market share and usually shows the way to other firms in price changes, new-product introductions, distribution coverage, and promotional intensity.

A preemptive defense is basically a strategic retreat until resources can be assembled for a more advantageous attack.

Using a market approach, competitors are companies that satisfy the same customer need.

Technological leapfrogging is a guerilla warfare tactic practised in the fast-food marketplace.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Position

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

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

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Introducing New Marketing Offerings

Tapping into Global Markets

Managing a Holistic Marketing Organization

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