Deck 18: Creating Competitive Advantage

Question 1

Gaining ________ requires delivering more value and satisfaction to target consumers than competitors do.

A) competitive advantage
B) first-mover advantage
C) economies of scale
D) comparative advantage
E) differentiation

Answer 1

A

Question 2

In the context of identifying competitors' strategies, the more that one firm's strategy resembles another firm's strategy, the more likely the two firms are to ________.

A) merge
B) compete
C) globalize
D) form a partnership
E) become market leaders

Answer 2

B

Question 3

To plan effective marketing strategies, a company needs to find out all it can about its competitors. It must constantly compare its marketing strategies, products, prices, channels, and promotions with those of close competitors. This is an example of ________.

A) blue ocean strategy
B) competitor analysis
C) organizational evaluation
D) perfect competition
E) quantitative analysis

Answer 3

B

Question 4

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

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

Question 5

What is the LEAST relevant question to ask when assessing a firm's main competitor?

A) What are the competitor's objectives?
B) What is the competitor's strategy?
C) What are the competitor's strengths?
D) What are the competitor's locations?
E) What are the competitor's weaknesses?

Question 6

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.

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

Question 7

Each competitor has a mix of objectives. The company wants to know the relative importance that a competitor places on all of the following EXCEPT ________.

A) company history
B) current profitability
C) market share growth
D) cash flow
E) technological leadership

Question 8

From a market point of view, Universal Pictures might see its competition as ________.

A) Paramount Pictures
B) Warner Bros. Pictures
C) Walt Disney Pictures
D) 20th Century Fox
E) Broadway

Question 9

Strategies that strongly position the company against competitors and that give the company the best possible strategic advantage are ________ strategies.

A) competitor analysis
B) customer relationship
C) competitive marketing
D) competitive relationship
E) customer identification

Question 10

From an industry point of view, Universal Pictures might see its competition as ________.

A) West End theatre
B) Columbia Pictures
C) Tomorrowland
D) Summerfest
E) HarperCollins

Question 11

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.

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

Question 12

Kodak's film business didn't lose out to direct competitor Fujifilm; it lost out to Sony, Canon, and other digital camera makers, along with a host of digital image developers and online image sharing services. This is an example of ________.

A) a blue ocean strategy
B) competitor backlinking
C) self-competition
D) competitor myopia
E) marketing myopia

Question 13

Companies can identify their competitors from both ________ points of view.

A) industry and market
B) product and customer
C) customer and location
D) location and product
E) product and strategy

Question 14

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.

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

Question 15

The first step in initiating competitive marketing strategies is to ________.

A) balance customer and competitor orientations
B) design broad competitive marketing strategies
C) assess long-term organizational objectives
D) conduct competitor analysis
E) conduct transaction analysis

Question 16

________ involves first identifying and assessing competitors and then selecting which competitors to attack or avoid.

A) Competitor analysis
B) Self-competition
C) Blue ocean strategy
D) Quantitative analysis
E) Perfect competition

Question 17

Companies can identify competitors from a(n) ________ point of view by defining competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group.

A) customer
B) blue ocean
C) market
D) myopic
E) industry

Question 18

From a(n) ________ point of view, Pepsi might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands. From a(n) ________ point of view, however, the customer really wants "thirst quenching."

A) market; industry
B) market; consumer
C) industry; competitive
D) industry; market
E) company's; consumer

Question 19

A competitor analysis requires the assessment of all of the following EXCEPT the competitors' ________.

A) objectives
B) organizational hierarchy
C) strategies
D) strengths and weaknesses
E) reaction patterns

Question 20

Fosters and Mason House, two major coffee brands, competed neck and neck based on their product attributes and price promotions. They were soon blindsided by the arrival of Starcoffeez, which focused more on the coffee experience rather than the coffee. This resulted in major losses for the two companies. This is an example of ________.

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

Question 21

Which of the following is the first step taken in the competitive intelligence system?

A) collect published data and information from the field
B) check, interpret, and organize gathered information
C) identify the vital types of competitive information needed
D) respond to inquiries from managers about competitors
E) create a new brand image and marketing concept for the firm

Question 22

If the company's offer delivers greater value by exceeding the competitor's offer on important attributes, the company can charge a higher price and ________, or it can charge the same price and ________.

A) earn lower profits; gain higher profits
B) earn higher profits; lose profits
C) earn higher profits; gain more market share
D) lose profits; gain more market share
E) lose profits; gain higher profits

Question 23

An analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers is known as ________.

A) customer value analysis
B) customer lifetime value
C) quantitative analysis
D) brand value proposition
E) benchmarking

Question 24

In conducting ________, the company first identifies the major attributes that customers value and the importance customers place on these attributes. Next, it assesses its performance against competitors on those valued attributes.

A) a customer value analysis
B) benchmarking
C) entrepreneurial marketing
D) intrapreneurial marketing
E) a customer lifetime value estimate

Question 25

Which of the following are examples of close competitors?

A) Applebee's and Subway
B) Taco Bell and T.G.I. Friday's
C) Pizza Hut and Burger King
D) McDonald's and Taco Bell
E) McDonald's and Burger King

Question 26

Country Kitchen and Perkins are both a chain of family restaurants featuring diner-like menus with reasonably priced items. These companies are in the same ________.

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

Question 27

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

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 28

Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. This is called a ________.

A) horizontal integration approach
B) commercialization process
C) guerrilla marketing technique
D) blue ocean strategy
E) lean dynamics approach

Question 29

An example of a company exhibiting a blue ocean strategy is ________.

A) Amazon's online shopping convenience
B) a Starbucks opening in the same vicinity of an independent coffee house
C) Nike's brand image of the "swoosh"
D) Whirlpool's full line of medium-priced, energy-saving appliances
E) the first digital tablet iPad released by Apple

Question 30

A market research firm conducts a survey of soft-drink consumers to assess Pepsi's and Coke's strengths and weaknesses in product qualities valued by both company's target customers. The market research firm is using a(n) ________.

A) customer lifetime value estimation
B) global marketing strategy
C) competitive marketing strategy
D) customer value analysis
E) blue ocean strategy

Question 31

A company's close competitors are ________.

A) considered "bad" competitors
B) a serious threat and hence, must be destroyed immediately
C) those that most resemble the company's operations
D) typically ignored as they seldom pose any threat
E) the sole focus of successful companies

Question 32

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

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

Question 33

In the audio equipment industry, Philips and Sony belong to the same ________.

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

Question 34

Benchmarking has become a powerful tool for increasing a company's ________.

A) product mix
B) mass appeal
C) employee training services
D) distribution channels
E) competitiveness

Question 35

A firm should compete with ________ competitors in order to sharpen its abilities. Succeeding against these competitors often provides greater returns.

A) strong
B) international
C) weak
D) distant
E) smaller

Question 36

________ 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.

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

Question 37

Tomorrow's leading companies will succeed by seeking out unoccupied positions in uncontested market spaces. Such strategic moves, termed ________, create powerful leaps in value for both the firm and its buyers, creating new demand for new products.

A) customer lifetime value
B) customer equity
C) value innovation
D) market segmentation
E) customer intimacy

Question 38

Companies use secondary data, personal experience, and word of mouth to ________.

A) identify competitors' target customers and strategies
B) identify competitors' target locations and market share
C) learn about their competitors' strengths and weaknesses
D) select competitors to attack or avoid
E) estimate competitors' sales projections

Question 39

Most companies will compete with ________ rather than ________.

A) distant competitors; close competitors
B) close competitors; distant competitors
C) benchmarkers; distant competitors
D) market challengers; market followers
E) market challengers; market nichers

Question 40

What is most likely a strategic benefit of the existence of competitors?

A) Competitors seldom lead to product differentiation.
B) Competitors help legitimize new technologies.
C) Competitors exclusively serve more-attractive segments.
D) Competitors fracture the target market.
E) Competitors decrease the total demand.

Question 41

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

Question 42

When companies serve customers who are willing to pay a premium to get precisely what they want and the company responds quickly to satisfy these customers' needs, the company has achieved ________.

A) customer intimacy
B) product differentiation
C) operational excellence
D) product leadership
E) focus

Question 43

As small companies achieve success, they inevitably move toward more ________ marketing. They adopt more-developed marketing tools and adhere to them closely.

A) ambush
B) formulated
C) entrepreneurial
D) intrepreneurial
E) multi-level

Question 44

Dell produces and delivers PCs of competitive quality at lower costs. The company constantly aims to achieve low production and distribution costs to win a large market share. Dell utilizes a(n) ________ strategy very effectively.

A) overall cost leadership
B) differentiation
C) focus
D) blue ocean
E) market segmentation

Question 45

Companies that operate large marketing departments, conduct expensive marketing research, spell out elaborate competitive strategies, and spend huge sums on advertising are using ________ marketing strategies.

A) informal
B) formal competitive
C) entrepreneurial
D) intrepreneurial
E) blue ocean

Question 46

According to Michael Porter, what are three effective competitive positioning strategies?

A) middle-of-the-roaders, focus, and overall cost leadership
B) focus, differentiation, and middle-of-the-roaders
C) overall cost leadership, differentiation, and middle-of-the-roaders
D) overall cost leadership, differentiation, and focus
E) differentiation, market segmentation, and focus

Question 47

The competitive intelligence system continuously collects information from the field through ________.

A) government publications
B) online monitoring
C) speeches
D) online databases
E) market surveys

Question 48

When a company provides superior value by leading its industry in price and convenience, it has obtained ________.

A) product leadership
B) focus
C) operational excellence
D) customer intimacy
E) differentiation

Question 49

If a company's aim is to make its own and competing products obsolete and serve customers who want state-of-the-art products and services, it is using a value discipline called ________.

A) overall cost leadership
B) product activation
C) product binning
D) product leadership
E) customer intimacy

Question 50

Companies that have been in existence for some time often lose the marketing creativity and passion that they had at the start. They now need to refresh their marketing strategies and try new approaches, which is known as ________.

A) multi-level marketing
B) formulated marketing
C) ambush marketing
D) intrepreneurial marketing
E) affinity marketing

Question 51

Which of the following are value discipline strategies?

A) operational excellence, overall cost leadership, and differentiation
B) customer intimacy, operational excellence, and focus
C) employee relations, product leadership, and overall cost leadership
D) product leadership, customer intimacy, and focus
E) operational excellence, customer intimacy, and product leadership

Question 52

What are the stages that the approaches to marketing strategy and practice usually pass through?

A) ambush marketing, multi-level marketing, and guerrilla marketing
B) guerrilla marketing, ambush marketing, and affinity marketing
C) multi-level marketing, undercover marketing, and evangelism marketing
D) entrepreneurial marketing, formulated marketing, and intrepreneurial marketing
E) undercover marketing, affinity marketing, and ambush marketing

Question 53

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

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 54

Sears and Holiday Inn encountered difficult times because they did not stand out as the lowest in cost, highest in perceived value, or best in serving some market segment. Both companies are ________.

A) niches
B) jack-of-all-trades
C) middle-of the roaders
D) red oceans
E) laggards

Question 55

When Gary Hirshberg started the Stonyfield Farm yogurt company, he stated that his company could do better with less advertising, less marketing research, and more guerrilla marketing. He came up with innovative marketing ideas to promote his products such as having sales personnel dress up as large yogurt cartons to distribute free yogurt samples. Which of the following marketing strategies was being implemented by Hirshberg?

A) formulated marketing
B) entrepreneurial marketing
C) ambush marketing
D) undercover marketing
E) intrepreneurial marketing

Question 56

Companies that pursue a clear strategy will likely perform well. Firms that do not pursue a clear strategy are called ________.

A) jack-of-all-trades
B) middle-of-the-roaders
C) niches
D) red oceans
E) laggards

Question 57

Smaller companies may assign specific executives to watch particular competitors. A manager who used to work for a competitor might follow that competitor closely to see what it does in the marketplace. Such a manager would be considered the company's ________ on that competitor.

A) market leader
B) market challenger
C) surrogate consumer
D) in-house expert
E) laggard

Question 58

Walmart, Costco, and Southwest Airlines serve customers who want reliable, good-quality products or services that are also reasonable and easily available. These companies are all known for pursuing a value discipline known as ________.

A) operational excellence
B) customer intimacy
C) product differentiation
D) product leadership
E) focus

Question 59

Porsche is a German automobile manufacturer that competes against BMW and Audi, but only in the sports car and SUV segments of the automobile market. Porsche utilizes a(n) ________ strategy.

A) overall cost leadership
B) focus
C) middle-of-the-roaders
D) market segmentation
E) blue ocean

Question 60

American Express will do almost anything to build long-term customer loyalty and to capture customer lifetime value. Which of the following competitive marketing strategies is being pursued by American Express?

A) consumer capitalism
B) customer equity
C) product differentiation
D) product leadership
E) customer intimacy

Question 61

Profitability increases as a business gains share relative to competitors in its ________.

A) higher market
B) direct market
C) secondary market
D) served market
E) valued market

Question 62

Which of the following is a market leader strategy?

A) expanding market share
B) multiple niching
C) full frontal attack
D) following at a distance
E) following closely

Question 63

Samsung and Apple are open to new ideas, relentlessly pursue new solutions, and work to get new products to market quickly. They serve customers who want state-of-the-art products and services, regardless of the costs in terms of price or inconvenience. Which of the following value disciplines is illustrated from this example?

A) operational excellence
B) customer intimacy
C) product leadership
D) product activation
E) product binning

Question 64

Market leaders can expand the market by ________ and more usage of the product.

A) identifying competitors
B) initiating monopolistic practices
C) developing new users
D) ensuring users adhere to higher standards
E) initiating new rules for product users

Question 65

To remain number one, leading firms can take any of three actions. First, they can find ways to expand total demand. Second, they can protect their current market share through good defensive and offensive actions. Third, they can ________.

A) focus exclusively on divestment
B) evaluate current employees and reduce costs through downsizing
C) run smaller companies out of business, causing them to sell out to larger firms
D) try to expand their market share further, even if market size remains constant
E) shut down current company locations and reopen in highly populated areas

Question 66

The market leader normally gains the most when ________.

A) its total market diminishes
B) it achieves expanded market share
C) its personal communication channels expand
D) the niche marketing efforts by other firms expand
E) the major global competitors enter the market

Question 67

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 ________.

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

Question 68

________ are those runner-up firms that are working to increase their market share in an industry.

A) Market leaders
B) Market challengers
C) Market followers
D) Market mavens
E) Market nichers

Question 69

Lovelies is the leading workout and fitness center for women. The regional chain of gyms has traditionally catered to women forty and older who are interested in strength and cardio-vascular training. Lovelies has recently begun promotions to bring younger women into its gyms. This is an example of how the market leader ________.

A) competes with mature products
B) changes its product line
C) develops new rules
D) develops new users
E) increases competition

Question 70

Although it might seem that the market leader has the most going for it, challengers often have what some strategists call a ________. The challenger observes what has made the leader successful and improves upon it.

A) "marketing myopia"
B) "second mover advantage"
C) "absolute advantage"
D) "blue ocean strategy"
E) "red ocean strategy"

Question 71

Marketers can expand markets by discovering and promoting ________.

A) subliminal points of interest
B) the deficiencies of competitors
C) subtle advantages of the product
D) new uses of the product
E) green technologies

Question 72

Most of the market is in the hands of the ________, the firm with the largest market share.

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

Question 73

A market challenger that matches the competitor's product, advertising, price, and distribution efforts is most likely ________.

A) creating multiple niches
B) pursuing an indirect attack
C) launching a full frontal attack
D) exiting from the current market
E) implementing a blue ocean strategy

Question 74

Firms that serve small segments not being pursued by other firms are called ________.

A) market followers
B) market mavens
C) market challengers
D) market nichers
E) market leaders

Question 75

Which of the following is a competitive position or role that firms play in the target market?

A) surrogate consumer
B) market analyst
C) market maven
D) market nicher
E) laggard

Question 76

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

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

Question 77

A runner-up firm that wants to hold its share in an industry without rocking the boat is a ________.

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

Question 78

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

Question 79

Which of the following are market challenger strategies?

A) expand total market and protect market share
B) expand market share and follow closely
C) full frontal attack and indirect attack
D) follow closely and follow at a distance
E) multiple niching and quality service

Question 80

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 B is the market ________.

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