Question 1

Discuss the functions and goals of a competitive intelligence system.

Accepted Answer

The answer of Discuss the functions and goals of a...

Question 2

The market subsegment that a company exclusively caters to may dry up, or it might grow to the point that it attracts larger competitors. This is why such companies practice ________.

Accepted Answer

A)  multiple niching 
B)  mass marketing 
C)  overall cost leadership 
D)  low-price strategies 
E)  dumping

Question 3

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

Accepted Answer

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

Question 4

Entrepreneurial marketing exclusively involves developing formal marketing strategies and adhering to them closely.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

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

Question 6

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."

Accepted Answer

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

Question 7

Discuss the need to understand competitors as well as customers through competitor analysis.

Accepted Answer

The answer of Discuss the need to understand competitors as...

Question 8

Marketers can expand markets by discovering and promoting ________.

Accepted Answer

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 9

Continuous innovation is the best response by a company trying to protect its market share.

Accepted Answer

A) True 
 B)False

Question 10

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.

Accepted Answer

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

Question 11

When companies watch both their buyers and their competitors, they are called ________.

Accepted Answer

A)  shell companies 
B)  market-centered companies 
C)  customer-centered companies 
D)  dummy companies 
E)  maquiladoras

Question 12

Compare and contrast the four competitive positions that are often used to describe market structures.

Accepted Answer

The answer of Compare and contrast the four competitive positions...

Question 13

Why is niching profitable?

Accepted Answer

The answer of Why is niching profitable?...

Question 14

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.

Accepted Answer

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

Question 15

Although competition is most intense within a strategic group, explain why there is also rivalry among groups. Give examples.

Accepted Answer

The answer of Although competition is most intense within a...

Question 16

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

Accepted Answer

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

Question 17

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

Accepted Answer

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

Question 18

Which of the following are examples of close competitors?

Accepted Answer

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 19

Describe a scenario that shows why a company may want to avoid destroying a close competitor.

Accepted Answer

The answer of Describe a scenario that shows why a...

Question 20

Rather than challenging head on, the challenger can make a(n) ________ on the competitor's weaknesses or on gaps in the competitor's market coverage.

Accepted Answer

A)  bypass attack 
B)  frontal attack 
C)  indirect attack 
D)  guerrilla attack 
E)  pre-emptive attack

Exam 18: Creating Competitive Advantage