Question 1

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.

Accepted Answer

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

Question 2

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

Accepted Answer

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 3

An industry often contains "good" competitors and "bad" competitors. Define each term and discuss scenarios with both "good" and "bad" competitors. How might "good" competitors choose to react to "bad" competition?

Accepted Answer

The answer of An industry often contains "good" competitors and...

Question 4

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

Accepted Answer

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 5

What is the primary focus of a competitor-centered company?

Accepted Answer

The answer of What is the primary focus of a...

Question 6

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

Accepted Answer

A)  It carries out its own customer relationship strategy. 
B)  It bases its own moves on competitors' moves. 
C)  It searches out competitors' weaknesses. 
D)  It concentrates its resources on delivering superior value to target customers. 
E)  It ends up seeking innovative ways to create more value for customers.

Question 7

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.

Accepted Answer

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

Question 8

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

Accepted Answer

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

Question 9

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 10

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.

Accepted Answer

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

Question 11

The presence of competitors may serve less-attractive segments or lead to more product differentiation.

Accepted Answer

A) True 
 B)False

Question 12

Discuss customer intimacy. Why is it important? Provide an example of a company that successfully abides by this value discipline.

Accepted Answer

The answer of Discuss customer intimacy. Why is it important?...

Question 13

Discuss two ways a market challenger can best attack the chosen competitor and achieve its strategic objectives. Explain when a challenger should use these attacks and provide examples of companies that have used these methods.

Accepted Answer

The answer of Discuss two ways a market challenger can...

Question 14

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.
-Before deciding to launch the new line of products, Essential-Beauty conducted extensive market research to make sure the products were optimally positioned. A complete marketing plan including mobile advertising, magazine advertising, event sponsorship, and sales promotions was established long before the products themselves were ready for market. In this case, Essential-Beauty was using ________.

Accepted Answer

A)  cost leadership 
B)  entrepreneurial marketing 
C)  intrepreneurial marketing 
D)  formulated marketing 
E)  operational excellence

Question 15

Marketing managers need a deep understanding of a given competitor's mentality if they want to anticipate how the competitor will act or react. Discuss the different ways competitors act or react. Why do they do so? Use examples to support your thoughts.

Accepted Answer

The answer of Marketing managers need a deep understanding of...

Question 16

"Destroying" a close competitor can actually damage a company's market share in the long run.

Accepted Answer

A) True 
 B)False

Question 17

To plan effective marketing strategies, the company must ignore its competitors.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

Most companies will compete with ________ rather than ________.

Accepted Answer

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

Exam 18: Creating Competitive Advantage

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

An industry often contains "good" competitors and "bad" competitors. Define each term and discuss scenarios with both "good" and "bad" competitors. How might "good" competitors choose to react to "bad" competition?

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

What is the primary focus of a competitor-centered company?

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

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

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

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.

The presence of competitors may serve less-attractive segments or lead to more product differentiation.

Discuss customer intimacy. Why is it important? Provide an example of a company that successfully abides by this value discipline.

Discuss two ways a market challenger can best attack the chosen competitor and achieve its strategic objectives. Explain when a challenger should use these attacks and provide examples of companies that have used these methods.

Marketing managers need a deep understanding of a given competitor's mentality if they want to anticipate how the competitor will act or react. Discuss the different ways competitors act or react. Why do they do so? Use examples to support your thoughts.

"Destroying" a close competitor can actually damage a company's market share in the long run.

To plan effective marketing strategies, the company must ignore its competitors.

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

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

Most companies will compete with rather than .