Question 1

A group of firms in an industry following the same or a similar strategy in a given target market is known as a strategic group.

Accepted Answer

A) True 
 B)False

Question 2

Although it might seem that the market leader has the most going for it, challengers often have what some strategists call a(n) ________. 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 3

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 4

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 5

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 considers one of its most important competitors to be Look-Lovely, another marketer of high-end makeup and skin care products sold in drug stores. Based on this, it is most accurate to say that Look-Lovely and Essential-Beauty are both ________.

Accepted Answer

A)  niche marketers 
B)  in the same strategic group 
C)  distant competitors 
D)  overall cost leaders 
E)  market followers

Question 6

Most companies prefer to compete against strong competitors.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

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

Question 8

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

Accepted Answer

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

Question 9

Bosch is a German firm that manufactures home appliances such as dishwashers, ovens, and ranges. It competes with companies such as GE Elite and LG. Bosch is perceived as the class of the industry. Bosch pursues a(n) ________ strategy.

Accepted Answer

A)  focus 
B)  blue ocean 
C)  overall cost leadership 
D)  differentiation 
E)  middle-of-the-road

Question 10

Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. This is called a ________.

Accepted Answer

A)  horizontal integration approach 
B)  commercialization process 
C)  guerrilla marketing technique 
D)  blue ocean strategy 
E)  lean dynamics approach

Question 11

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 12

________ 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 13

Competitive exchanges such as comparison advertisements can provide useful information to consumers and advantages from brands. However, they also might reflect negatively on the entire industry.

Accepted Answer

A) True 
 B)False

Question 14

Samsung and Apple actively generate new ideas, relentlessly pursue new solutions, and quickly work to get new products to market. They serve customers who want state-of-the-art products and services, regardless of the costs in terms of price or inconvenience. Which of the following value disciplines is illustrated from this example?

Accepted Answer

A)  operational excellence 
B)  customer intimacy 
C)  product leadership 
D)  product activation 
E)  product binning

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Market niching is profitable because the company ________.

Accepted Answer

A)  copies or improves on the leader's products and programs, usually with much less investment 
B)  bears the cost of developing new products and markets, expanding distribution, and educating the market 
C)  knows the needs of the target customer segment better than other firms that casually attempt to sell to the same segment 
D)  either keeps its manufacturing costs and prices low or its product quality and services high 
E)  can achieve economies of scale much faster by selling the same product to the global market

Question 17

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 18

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 19

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.
-Firms competing in a given target market, at any point in time, are similar in their objectives and resources.

Accepted Answer

A) True 
 B)False

Question 20

The market leader normally gains the most when ________.

Accepted Answer

A)  its total market diminishes 
B)  it achieves expanded market share 
C)  its personal communication channels expand 
D)  the niche marketing efforts by other firms expand 
E)  the major global competitors enter the market

Exam 18: Creating Competitive Advantage

A group of firms in an industry following the same or a similar strategy in a given target market is known as a strategic group.

Although it might seem that the market leader has the most going for it, challengers often have what some strategists call a(n) ________. The challenger observes what has made the leader successful and improves upon it.

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.

Marketers can expand markets by discovering and promoting ________.

Most companies prefer to compete against strong competitors.

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

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

Bosch is a German firm that manufactures home appliances such as dishwashers, ovens, and ranges. It competes with companies such as GE Elite and LG. Bosch is perceived as the class of the industry. Bosch pursues a(n) ________ strategy.

Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. This is called a ________.

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

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

Competitive exchanges such as comparison advertisements can provide useful information to consumers and advantages from brands. However, they also might reflect negatively on the entire industry.

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

Market niching is profitable because the company ________.

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

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

The market leader normally gains the most when ________.