Question 1

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

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

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's

Question 4

A market nicher can most likely specialize along all of the following lines EXCEPT ________.

Accepted Answer

A)  specific end users 
B)  unique products 
C)  customized services 
D)  quality-price 
E)  mass marketing

Question 5

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 ________.

Accepted Answer

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

Question 6

Which of the following are value discipline strategies?

Accepted Answer

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 7

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 8

A competitive analysis involves first identifying and assessing competitors and then selecting which competitors to attack or avoid.

Accepted Answer

A) True 
 B)False

Question 9

Almost every industry includes firms that specialize in serving target subsegments called market ________.

Accepted Answer

A)  niches 
B)  mavens 
C)  baskets 
D)  indicators 
E)  mixes

Question 10

Which of the following is a negative aspect of a competitor-centered company?

Accepted Answer

A)  It may end up simply matching industry practices. 
B)  It fails to identify competitors' weaknesses. 
C)  It becomes stable and unreactive. 
D)  It fails to notice weaknesses in its own position. 
E)  It fails to develop a fighter orientation.

Question 11

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

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

In some markets, competitors live in relative harmony.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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 15

How can companies learn about their competitors' strengths and weaknesses?

Accepted Answer

The answer of How can companies learn about their competitors'...

Question 16

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 ________.

Accepted Answer

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

Question 17

Most companies tend to compete with distant competitors that are typically unlike them, rather than with close competitors.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

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

Question 19

Discuss formal and informal marketing strategies and give examples of companies that follow these strategies.

Accepted Answer

The answer of Discuss formal and informal marketing strategies and...

Question 20

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.
-Essential-Beauty e-mailed a survey to a group of its most frequent, loyal customers. The survey asked what makeup and skin care characteristics were most important to them. The company's marketing staff then ranked the performance of Essential-Beauty products in each of these categories. Essentials was conducting a(n) ________.

Accepted Answer

A)  customer lifetime value survey 
B)  entrepreneurial marketing strategy 
C)  intrepreneurial marketing strategy 
D)  customer value proposition 
E)  customer value analysis

Exam 18: Creating Competitive Advantage

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

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

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 nicher can most likely specialize along all of the following lines EXCEPT ________.

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 ________.

Which of the following are value discipline strategies?

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

Almost every industry includes firms that specialize in serving target subsegments called market ________.

Which of the following is a negative aspect of a competitor-centered company?

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

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

In some markets, competitors live in relative harmony.

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

How can companies learn about their competitors' strengths and weaknesses?

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 ________.

Most companies tend to compete with distant competitors that are typically unlike them, rather than with close competitors.

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

Discuss formal and informal marketing strategies and give examples of companies that follow these strategies.