Question 1

In terms of comparisons with a market leader, whereas the market leader achieves high volume, the market nicher achieves

Accepted Answer

A)  high margin. 
B)  low margin. 
C)  medium pricing. 
D)  lower demand. 
E)  high promotability. 
A)  high margin. 
B)  low margin. 
C)  medium pricing. 
D)  lower demand. 
E)  high promotability.

Question 2

Some market leaders have increased profitability by selectively ________ market share in weaker areas.

Accepted Answer

A)  decreasing 
B)  trading 
C)  sharing 
D)  increasing 
E)  protecting 
A)  decreasing 
B)  trading 
C)  sharing 
D)  increasing 
E)  protecting

Question 3

Once a company identifies its primary competitors, it must ascertain their objectives, strengths and weaknesses, and

Accepted Answer

A)  positioning. 
B)  vertical integration. 
C)  customers. 
D)  strategies. 
E)  locations. 
A)  positioning. 
B)  vertical integration. 
C)  customers. 
D)  strategies. 
E)  locations.

Question 4

One of the market leader strategies for expanding the total market is to focus on more usage. Two avenues are open for doing this: increasing the frequency of consumption or

Accepted Answer

A)  decreasing the number of product returns. 
B)  increasing the level or quantity of consumption. 
C)  decreasing sales-related expenses. 
D)  increasing adherence to everyday low pricing. 
E)  increasing the level of promotional expenditures relative to market share percentage. 
A)  decreasing the number of product returns. 
B)  increasing the level or quantity of consumption. 
C)  decreasing sales-related expenses. 
D)  increasing adherence to everyday low pricing. 
E)  increasing the level of promotional expenditures relative to market share percentage.

Question 5

Which of the following companies has been characterized as a "runner-up" or "trailing" firm in its industry?

Accepted Answer

A)  Proctor & Gamble 
B)  Toyota 
C)  British Airways 
D)  Ford 
E)  Honda 
A)  Proctor & Gamble 
B)  Toyota 
C)  British Airways 
D)  Ford 
E)  Honda

Question 6

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

Accepted Answer

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

Question 7

A typical market challenger strategy is that of being an imitator (e.g., copies some things from the leader but maintains differentiation in terms of packaging, advertising, pricing, or location).

Accepted Answer

A) True 
 B)False

Question 8

Market broadening and market diversification are likely tactics employed in which of the following market leader defensive strategies?

Accepted Answer

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

Question 9

Many factors shape a competitor's objectives, including size, history, current management, and

Accepted Answer

A)  existing customer base. 
B)  expansion forecast. 
C)  pricing structure. 
D)  marketing plan. 
E)  financial situation. 
A)  existing customer base. 
B)  expansion forecast. 
C)  pricing structure. 
D)  marketing plan. 
E)  financial situation.

Question 10

When firms look for new users in groups that have never used the product before, the firm is using the ________ strategy.

Accepted Answer

A)  diversification 
B)  product development 
C)  geographical-expansion 
D)  market-penetration 
E)  new-market segment 
A)  diversification 
B)  product development 
C)  geographical-expansion 
D)  market-penetration 
E)  new-market segment

Question 11

When the total market expands, the dominant firm usually gains the most.

Accepted Answer

A) True 
 B)False

Question 12

As a proven strategy for meeting competitors, almost all companies spend the majority of their time focusing on competitors exclusively.

Accepted Answer

A) True 
 B)False

Question 13

Assume that you are the marketing manager for a market challenger that is seeking to attack the market leader with an encirclement attack. Describe the encirclement attack and evaluate probable success using this strategy.

Accepted Answer

The encirclement attempts to capture a w

Question 14

Many companies prefer to follow rather than challenge the market leader. Patterns of ________ are common in capital-intensive, homogeneous-product industries, such as steel, fertilizers, and chemicals.

Accepted Answer

A)  "feature fashion" 
B)  "conscious parallelism" 
C)  "supply delay" 
D)  "predatory pricing" 
E)  "covert security analysis" 
A)  "feature fashion" 
B)  "conscious parallelism" 
C)  "supply delay" 
D)  "predatory pricing" 
E)  "covert security analysis"

Question 15

A good way of describing a contraction defense would be to label it a strategic withdrawal.

Accepted Answer

A) True 
 B)False

Question 16

A job-shop specialist ________.

Accepted Answer

A)  sells only in a certain locality, region, or area of the world 
B)  operates at the low- or high-quality ends of the market 
C)  offers one or more services not available from other firms 
D)  customizes its products for individual customers 
E)  specializes in serving only one channel of distribution 
A)  sells only in a certain locality, region, or area of the world 
B)  operates at the low- or high-quality ends of the market 
C)  offers one or more services not available from other firms 
D)  customizes its products for individual customers 
E)  specializes in serving only one channel of distribution

Question 17

Apex Corporation is considered to be a market follower in its industry. About what percentage of a hypothetical market structure would be controlled by market followers such as Apex?

Accepted Answer

A)  30 percent 
B)  10 percent 
C)  25 percent 
D)  20 percent 
E)  40 percent 
A)  30 percent 
B)  10 percent 
C)  25 percent 
D)  20 percent 
E)  40 percent

Question 18

The telecommunications industry in Canada is the scene of frequent price wars, advertising battles, and new-product introductions. Considering the information provided in Michael Porter's model that describes segment structural attractiveness, what type of threat has made this segment unattractive?

Accepted Answer

This is th

Question 19

As a market follower strategy, the ________ emulates the leader's products, name, and packaging, with slight variations.

Accepted Answer

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

Question 20

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?

Accepted Answer

In mobile defense,the leader s

Exam 11: Competitive Dynamics

In terms of comparisons with a market leader, whereas the market leader achieves high volume, the market nicher achieves

Some market leaders have increased profitability by selectively ________ market share in weaker areas.

Once a company identifies its primary competitors, it must ascertain their objectives, strengths and weaknesses, and

One of the market leader strategies for expanding the total market is to focus on more usage. Two avenues are open for doing this: increasing the frequency of consumption or

Which of the following companies has been characterized as a "runner-up" or "trailing" firm in its industry?

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

A typical market challenger strategy is that of being an imitator (e.g., copies some things from the leader but maintains differentiation in terms of packaging, advertising, pricing, or location).

Market broadening and market diversification are likely tactics employed in which of the following market leader defensive strategies?

Many factors shape a competitor's objectives, including size, history, current management, and

When firms look for new users in groups that have never used the product before, the firm is using the ________ strategy.

When the total market expands, the dominant firm usually gains the most.

As a proven strategy for meeting competitors, almost all companies spend the majority of their time focusing on competitors exclusively.

Assume that you are the marketing manager for a market challenger that is seeking to attack the market leader with an encirclement attack. Describe the encirclement attack and evaluate probable success using this strategy.

Many companies prefer to follow rather than challenge the market leader. Patterns of ________ are common in capital-intensive, homogeneous-product industries, such as steel, fertilizers, and chemicals.

A good way of describing a contraction defense would be to label it a strategic withdrawal.

A job-shop specialist ________.

Apex Corporation is considered to be a market follower in its industry. About what percentage of a hypothetical market structure would be controlled by market followers such as Apex?

The telecommunications industry in Canada is the scene of frequent price wars, advertising battles, and new-product introductions. Considering the information provided in Michael Porter's model that describes segment structural attractiveness, what type of threat has made this segment unattractive?

As a market follower strategy, the ________ emulates the leader's products, name, and packaging, with slight variations.

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?

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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