Question 1

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

Accepted Answer

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

Question 2

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.

Accepted Answer

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

Question 3

Michael Porter suggested four basic competitive positioning strategies that companies can follow, three winning strategies and one losing one. Name and describe these four different strategies.

Accepted Answer

The answer of Michael Porter suggested four basic competitive positioning...

Question 4

The existence of competitors in a market may cause a decrease in total demand.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is most critical for successful niching?

Accepted Answer

A)  catering to global markets 
B)  buzz marketing 
C)  follow-up 
D)  specialization 
E)  mass appeal of one idea

Question 6

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.

Accepted Answer

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

Question 7

Which of the following are market challenger strategies?

Accepted Answer

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 8

Which of the following conditions would enable higher market share to produce higher profits?

Accepted Answer

A)  when unit costs drop as market share increases 
B)  when unit costs increase as market share increases 
C)  when production volume drops as market share increases 
D)  when production volume remains unaltered as market share increases 
E)  when the company fails to break even

Question 9

Give examples of competitor objectives and discuss the importance of knowing a competitor's mix of objectives.

Accepted Answer

The answer of Give examples of competitor objectives and discuss...

Question 10

Discuss why a company really needs and benefits from competitors.

Accepted Answer

The answer of Discuss why a company really needs and...

Question 11

Discuss the functions and goals of a competitive intelligence system.

Accepted Answer

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

Question 12

At the narrowest level, a company can define its competitors as other companies offering similar products and services to the same customers at similar prices.

Accepted Answer

A) True 
 B)False

Question 13

Refer to the scenario below to answer the following question(s).
Essential-Beauty is a rapidly growing firm that manufactures women's makeup, perfumes, and nail-care products. The company has established itself as a high-end cosmetic product brand available at most national drug stores. In the past, almost all of the advertising for Essential-Beauty has been in women's fashion magazines.
The firm is now launching a new line of skin care products, ranging from facial cleansers to body lotion. These products are designed to be marketed to a broader audience, so the marketing team is exploring the effectiveness of different promotional mixes.
-Entrepreneurial marketing exclusively involves developing formal marketing strategies and adhering to them closely.

Accepted Answer

A) True 
 B)False

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

Question 15

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 service of their primary target market segment. Both companies are ________.

Accepted Answer

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

Question 16

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 17

An advantage of a competitor-centered company is that it ends up simply matching or extending industry practices rather than seeking innovative new ways to create more value for customers.

Accepted Answer

A) True 
 B)False

Question 18

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)  intrepreneurial marketing 
E)  a customer lifetime value estimate

Question 19

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

Accepted Answer

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 20

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

Accepted Answer

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

Exam 18: Creating Competitive Advantage

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

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.

Michael Porter suggested four basic competitive positioning strategies that companies can follow, three winning strategies and one losing one. Name and describe these four different strategies.

The existence of competitors in a market may cause a decrease in total demand.

Which of the following is most critical for successful niching?

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.

Which of the following are market challenger strategies?

Which of the following conditions would enable higher market share to produce higher profits?

Give examples of competitor objectives and discuss the importance of knowing a competitor's mix of objectives.

Discuss why a company really needs and benefits from competitors.

Discuss the functions and goals of a competitive intelligence system.

At the narrowest level, a company can define its competitors as other companies offering similar products and services to the same customers at similar prices.

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

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 service of their primary target market segment. Both companies are ________.

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

An advantage of a competitor-centered company is that it ends up simply matching or extending industry practices rather than seeking innovative new ways to create more value for customers.

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.

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

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