Question 1

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

Accepted Answer

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

Question 2

Which of the following is a market leader strategy?

Accepted Answer

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

Question 3

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 4

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

Accepted Answer

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

Question 5

Discuss why a company really needs and benefits from competitors.

Accepted Answer

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

Question 6

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

Accepted Answer

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

Question 7

If a company identifies its competitors from an industry point of view, it must understand ________ if it hopes to be an effective player in that industry.

Accepted Answer

A)  the trends in the industry 
B)  the primary customers 
C)  the impact of technological changes 
D)  the potential customers 
E)  the competitive patterns

Question 8

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 9

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 10

Which of the following statements is most likely true of market follower strategies?

Accepted Answer

A)  Market followers have the resources to expand the market by developing new users, new uses, and more usage of its products. 
B)  Market followers must expand internationally first to ensure distribution effectiveness, cost savings, and quality control. 
C)  Market followers should conduct indirect attacks on competitors' weaknesses to gain market share quickly and inexpensively. 
D)  Market followers benefit from pursuing subsegments of target markets due to their limited resources. 
E)  Market followers must keep manufacturing costs and prices low or product quality and services high.

Question 11

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

Question 12

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 13

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 14

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 15

A company can protect its market share through all of the following EXCEPT ________.

Accepted Answer

A)  continuous innovation 
B)  attacking its competitors directly 
C)  preventing or fixing weaknesses 
D)  fulfilling its value promise to customers 
E)  pricing its products to be consistent with the customers' perceived value

Question 16

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 17

Discuss the four evolving company orientations. Which orientation is considered most successful and why?

Accepted Answer

The answer of Discuss the four evolving company orientations. Which...

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

Many approaches to developing effective competitive marketing strategies exist. There may be ________ between the formulated side of marketing and the creative side, as creativity and passion help build and maintain success.

Accepted Answer

A)  collaboration 
B)  strong disagreements 
C)  managerial conflicts 
D)  productive meetings 
E)  constant tension

Exam 18: Creating Competitive Advantage