Deck 18: Creating Competitive Advantage

Question 1

Refer to the scenario below to answer the following questions.
Essentials is a rapidly growing brand of women's makeup,perfumes,and nail care products.The company has established itself as a high- end cosmetic product available at most national drug stores.In the past,almost all of the advertising for Essentials has been in women's fashion magazines.
Essentials 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.
Essentials considers one of its most important competitors to be Estee Lauder,another marketer of high- end makeup and skin care products sold in drug stores.Based on this,it is most accurate to say that Estee Lauder and Essentials are both .

A)in the same strategic group
B)overall cost leaders
C)competitor- centered
D)distant competitors
E)niche marketers

Answer 1

A

Question 2

According to management at hotel chain Ritz- Carlton,"It's all about providing a unique,personal,memorable experience" for guests.Ritz- Carlton most likely pursues which of the following strategies?

A)overall cost leadership
B)customer intimacy
C)focus
D)market follower
E)product leadership

Answer 2

B

Question 3

To plan effective marketing strategies,the company needs to find out all it can about its competitors.It must constantly compare its marketing strategies,products,prices,channels,and promotion with those of close competitors.This is an example of _ .

A)customer value analysis
B)product leadership
C)competitor analysis
D)continuous innovation
E)benchmarking

Answer 3

C

Question 4

Gary Hirshberg of Stonyfield Farm yogurt company stated that "companies can do better with less advertising,less marketing research,more guerilla marketing,and more acting from the gut." At this point,Hirshberg was following which marketing strategy?

A)innovative marketing
B)entrepreneurial marketing
C)exponential marketing
D)formulated marketing
E)intrepreneurial marketing

Question 5

Walmart,Costco,and Southwest Airlines serve customers who want reliable,good- quality products or services,but who want them cheaply and easily.These companies are all known for pursuing a value discipline known as .

A)marketing insight
B)operational excellence
C)product leadership
D)customer intimacy
E)middle- of- the- road

Question 6

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

A)market niches
B)benchmarkers
C)hotbox markets
D)customer databases
E)local markets

Question 7

If a company's aim is to make its own and competing products obsolete and serve customers who want state- of- the- art products and services,it is using a value discipline called .

A)promotional innovation
B)product leadership
C)market leadership
D)captive- product innovation
E)new product innovation

Question 8

Most companies are started by individuals who live by their wits.They visualize an opportunity,construct flexible strategies on the backs of envelopes,and knock on every door to gain attention.What stage in marketing strategy are these individuals in?

A)intrepreneurial marketing
B)formulated marketing
C)entrepreneurial marketing
D)exponential marketing
E)innovative marketing

Question 9

Whereas the mass marketer achieves ,the nicher achieves _ .

A)low volume;high margins
B)high margins;high volume
C)low margins;low volume
D)high volume;high margins
E)high volume;low margins

Question 10

Which of the following are market challenger strategies?

A)expand total market and protect market share
B)follow closely and follow at a distance
C)multiple niching
D)expand market share and follow closely
E)full frontal attack and indirect attack

Question 11

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)company's;consumer's
B)industry;competitive
C)industry;market
D)market;industry
E)market;consumer's

Question 12

A negative side of the is that the company becomes too reactive.Rather than carry out its own customer relationship strategy,it bases its own moves on competitors' moves.

A)market- centered company
B)image- centered company
C)competitor- centered company
D)customer- centered company
E)dual marketing strategy

Question 13

The first step in initiating competitive marketing strategies is to conduct .

A)management modifications
B)absolute advantage processing
C)a competitive advantage analysis
D)a private screening
E)competitor analysis

Question 14

Part two of a competitor analysis is assessing all of the following EXCEPT a company's .

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

Question 15

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

A)entrepreneurial marketing
B)formulated marketing
C)blue sky marketing
D)network marketing
E)intrepreneurial marketing

Question 16

An example of a company exhibiting blue- ocean thinking is _.

A)Whirlpool's full line of medium- priced appliances supported by good service
B)Nike's brand image of the "swoosh"
C)Amazon's digital music download services
D)the first digital tablet iPad released by Apple
E)a Starbucks opening in the same vicinity of an independent coffee house

Question 17

Companies can identify competitors from a _ point of view by defining competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group.

A)customer's
B)database
C)market nicher's
D)industry
E)market

Question 18

Walmart and Texas Instruments achieve the lowest production and distribution costs to win a large market share.They utilize a(n)strategy very effectively.

A)focus
B)customer intimacy
C)differentiation
D)overall cost leadership
E)operational

Question 19

There will be a constant tension between the formulated side of marketing and the .

A)overall cost leadership
B)competitor side
C)product value
D)customer side
E)creative side

Question 20

Expanding the total market,protecting market share,and expanding market share are all strategies for .

A)market challengers
B)market leaders
C)market followers
D)market nichers
E)market providers

Question 21

Which of the following is the best response a company can make to competitive threats?

A)to find partners
B)to ignore them
C)continuous innovation
D)an indirect attack
E)a frontal attack

Question 22

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

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

Question 23

A company's close competitors are .

A)those that least resemble the company's operation
B)a negligible threat
C)considered "bad" competitors
D)the sole focus of successful companies
E)those that most resemble the company's operations

Question 24

As small companies achieve success,they inevitably move toward more marketing.They pore over the latest Nielsen numbers,scan market research reports,and try to fine- tune their competitive strategies and programs.

A)formulated
B)niched
C)entrepreneurial
D)targeted
E)intrepreneurial

Question 25

When customers are willing to pay a premium to get precisely what they want and a company responds quickly to satisfy customer needs,the company has achieved what is called .

A)customer intimacy
B)promotional intimacy
C)employee intimacy
D)marketing intelligence
E)operational excellence

Question 26

A positive aspect of a(n)_ is that the company develops a fighter orientation,watches for weaknesses in its own position,and searches out competitors' weaknesses.

A)customer- centered company
B)competitor- centered company
C)market- centered company
D)branding- centered company
E)image- centered company

Question 27

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

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

Question 28

Fifty percent of the market is in the hands of Company A.Another 30 percent is in the hands of Company B.Fifteen percent is in the hands of Company C,and the remaining five percent is in the hands of Company D.Based on these hypothetical numbers,Company D is the market .

A)leader
B)strategist
C)challenger
D)follower
E)nicher

Question 29

A manager who used to work for a competitor might follow that competitor closely to see what it does in the marketplace.Such a manager would be considered your company's expert.

A)market follower
B)market leader
C)technical
D)in- house
E)strategy

Question 30

If the company's offer delivers greater value by exceeding the competitor's offer on important attributes,the company can charge a higher price and ,or it can charge the same price and .

A)earn lower profits;gain higher profits
B)earn higher profits;gain more market share
C)earn higher profits;lose profits
D)lose profits;gain more market share
E)lose profits;gain higher profits

Question 31

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 serving some market segment.Both companies are .

A)middle- of the roaders
B)nichers
C)formulated
D)challenger risk- takers
E)differentiated

Question 32

The market niche may dry up,or it might grow to the point that it attracts larger competitors.That is why many companies practice _ .

A)multiple niching
B)market niching
C)specific niching
D)service niching
E)single niching

Question 33

Which of the following is most critical for successful niching?

A)follow- up
B)mass appeal of one idea
C)buzz marketing
D)specialization
E)having only a few specific customers

Question 34

Country Kitchen and Perkins are both chain casual family restaurants featuring diner- like menus with reasonably priced items.These companies are in the same group.

A)branding
B)leading
C)technology
D)strategic
E)profitability

Question 35

Analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers is known as .

A)benchmarking
B)customer value analysis
C)advertising specialty analysis
D)power analysis
E)competitive customer analysis

Question 36

All of the below choices are company orientations EXCEPT which one?

A)market- orientation
B)product orientation
C)customer- orientation
D)central- orientation
E)competitor- orientation

Question 37

Firms that serve small segments not being pursued by other firms are called .

A)market nichers
B)market challengers
C)market followers
D)market leaders
E)direct marketers

Question 38

The following are all examples of close competitors EXCEPT .

A)Walmart and Target
B)Pepsi and Coca- Cola
C)Nike and Timberland
D)Nike and Adidas
E)Neiman Marcus and Nordstrom

Question 39

PepsiCo conducts a survey of Coca- Cola drinkers to assess the Pepsi's and Coke's strengths and weaknesses in product qualities valued by both company's target customers.PepsiCo is using a(n) .

A)global marketing strategy
B)innovative market analysis
C)competitive marketing strategy
D)customer value analysis
E)blue ocean strategy

Question 40

American Express will do almost anything to build long- term customer loyalty and to capture customer lifetime value.American Express pursues which of the following competitive marketing strategies?

A)product leadership
B)employee intimacy
C)operational excellence
D)customer intimacy
E)differentiation

Question 41

Nokia and Apple are open to new ideas,relentlessly pursue new solutions,and work to get new products to market quickly.They serve customers who want state- of- the- art products and services,regardless of the costs in terms of price or inconvenience.These companies are offering what value discipline?

A)differentiation
B)operational excellence
C)promotional innovation
D)customer intimacy
E)product leadership

Question 42

Strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage are _.

A)customer relationship strategies
B)competitive relationship strategies
C)competitor analyses
D)universal strategy analyses
E)competitive marketing strategies

Question 43

Most competitors in the music download industry see Apple's iTunes Music Store as a because it created a closed system with mass appeal.

A)benchmarked competitor
B)distant competitor
C)good competitor
D)bad competitor
E)marginal competitor

Question 44

When companies watch both their customers and their competitors,they are called .

A)market- centered companies
B)competitor- centered companies
C)analytically- centered companies
D)promotion- centered companies
E)customer- centered companies

Question 45

is profitable because the company knows the needs of the target customer segment better than other firms that casually attempt to sell to the same segment.

A)Benchmarking
B)Dynamic marketing
C)Undifferentiated marketing
D)Market niching
E)Vertical marketing

Question 46

Lovelies is the leading workout center in its area for women.The regional chain of gyms has traditionally catered to women forty and older who are interested in strength and cardiovascular training.Lovelies has recently begun promotions to bring younger women into its gyms.This is an example of how the market leader .

A)changes its products
B)challenges competition
C)develops new rules
D)develops new competitors
E)develops new users

Question 47

When a company provides superior value by leading its industry in price and convenience,it has obtained what is called .

A)operational excellence
B)product leadership
C)employee intimacy
D)focus leadership
E)employee excellence

Question 48

Market leaders can expand the market by _ and more usage of the product.

A)developing new users
B)initiating new rules
C)developing competitors
D)developing higher standards
E)initiating monopolistic practices

Question 49

Most companies will compete with _ _ rather than _.

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

Question 50

A company can become so centered that it loses its even more important focus on maintaining profitable relationships.

A)competitor;product
B)customer;competitor
C)market;competitor
D)market;customer
E)competitor;customer

Question 51

Computer mouse and interface device maker Logitech is only a fraction the size of giant Microsoft.Yet through skillful ,it dominates the PC mouse market,with Microsoft as its runner up.

A)niching
B)brand imaging
C)vertical marketing
D)benchmarking
E)employment tactics

Question 52

There are specific kinds of information that companies need about their competitors.The system first identifies the vital types of competitive information and the best sources of this information.

A)global network
B)marketing database
C)marketing information
D)competitive intelligence
E)marketing research

Question 53

Companies can identify _ _ from both the industry and market point of view.

A)locations
B)competitors
C)employees
D)products
E)customers

Question 54

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.

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

Question 55

Which of the following is NOT an example of the competitive positions or roles that firms play in the target market?

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

Question 56

is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance.

A)Advertising synergy
B)Competitive advantage
C)Publicity
D)Benchmarking
E)Sales promotion

Question 57

Which of the following would be the LEAST critical question that a marketing management team might consider when assessing competitors?

A)What are various competitors' strengths?
B)What are competitors' objectives-what does each seek in the marketplace?
C)What are various competitors' weaknesses?
D)What are various competitors' locations?
E)What is each competitor's strategy?

Question 58

The market follower must keep its manufacturing costs and prices _ or its product quality and services .

A)high;low
B)stable;low
C)low;fair
D)low;high
E)fair;low

Question 59

Most companies prefer to aim competition against .

A)new competitors
B)the market leader
C)distant competitors
D)weak competitors
E)their biggest competitor

Question 60

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)leading
B)target
C)geographic
D)competing
E)strategic

Question 61

Fifty percent of the market is in the hands of Company A.Another 30 percent is in the hands of Company B.Fifteen percent is in the hands of Company C,and the remaining five percent is in the hands of Company D.Based on these hypothetical numbers,Company B is the market .

A)follower
B)challenger
C)leader
D)strategist
E)nicher

Question 62

All of the following statements identify benefits from the existence of competitors EXCEPT?

A)Competitors may share the costs of market and product development.
B)Competitors may help increase total demand.
C)Competitors help legitimize new technologies.
D)Competitors serve less- attractive segments or lead to more product differentiation.
E)Competitors fracture the target market.

Question 63

The purpose of is to find the place where a company meets customers' needs in a way that rivals can't.

A)overall cost leadership
B)benchmarking
C)entrepreneurial marketing
D)intrapreneurial marketing
E)customer value analysis

Question 64

Knowing how major competitors react gives the company clues on how best to competitors or how best to the company's current positions.

A)decrease;defend
B)value;change
C)remove;decrease
D)attack;increase
E)attack;defend

Question 65

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)"second mover advantage"
B)"blue ocean strategy"
C)"strategic sweet spot"
D)"red ocean strategy"
E)"competitor myopia"

Question 66

A market nicher can specialize along all of the following market,customer,product,or marketing mix lines EXCEPT?

A)quality price
B)end users
C)customer- size groups
D)employees
E)geographic market

Question 67

The more that one firm's strategy resembles another firm's strategy,the more likely the two firms are to .

A)succeed
B)grow
C)join
D)compete
E)partner

Question 68

Refer to the scenario below to answer the following questions.
Essentials is a rapidly growing brand of women's makeup,perfumes,and nail care products.The company has established itself as a high- end cosmetic product available at most national drug stores.In the past,almost all of the advertising for Essentials has been in women's fashion magazines.
Essentials 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,Essentials 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,Essentials was using _ .

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

Question 69

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

A)competitive advantage
B)a target advantage
C)competitor analysis
D)benchmarking
E)a market- center

Question 70

Rather than challenging head on,the challenger can make on the competitor's weaknesses or on gaps in the competitor's market coverage.

A)a leadership attack
B)an indirect attack
C)a frontal attack
D)a direct attack
E)an individual attack

Question 71

To remain number one,leading firms can take any of three actions.First,they can find ways to expand total demand.Second,they can protect their current market share through good defensive and offensive actions.Third,they can .

A)try to expand their market share further,even if market size remains constant
B)run smaller companies out of business,causing them to sell out to larger companies
C)evaluate current employees
D)shut down current company locations and reopen in highly populated areas
E)hire and train new employees

Question 72

A company is guilty of if the company forgets latent competitors and only focuses on current competitors.

A)competitor phobia
B)competitor myopia
C)marketing myopia
D)misdirected segmentation
E)competitor synergy

Question 73

Michael Porter suggests four basic competitive positioning strategies that companies can follow -three winning strategies and one losing one.Which of the following are considered winning strategies?

A)overall cost leadership,differentiation,and focus
B)overall cost leadership,differentiation,and middle- of- the- roader
C)focus,differentiation,and middle- of- the- roader
D)middle- of- the- roader,focus,and overall cost leadership
E)differentiation,operational excellence,and focus

Question 74

Having identified and evaluated its major competitors,the company now must design broad competitive marketing strategies by which it can gain competitive advantage through superior .

A)target locations
B)customer value
C)employee value
D)employee service
E)compensation

Question 75

A company that pursues _ leadership will react much more strongly to a competitor's manufacturing breakthrough than to the same competitor's advertising increase.

A)service;cost reducing
B)market share;efficiency improving
C)high- cost;cost reducing
D)high- cost;efficiency improving
E)low- cost;cost reducing

Question 76

Which statement does NOT accurately describe a competitive intelligence system?

A)The system creates a new brand image and marketing concept.
B)The system collects information from the field and from published data.
C)The system sends key information to relevant decision makers and responds to inquiries from managers about competitors.
D)The system checks information for validity and reliability,interprets it,and organizes it in an appropriate way.
E)The system identifies the vital types of competitive information needed and the best sources of this information.

Question 77

Refer to the scenario below to answer the following questions.
Essentials is a rapidly growing brand of women's makeup,perfumes,and nail care products.The company has established itself as a high- end cosmetic product available at most national drug stores.In the past,almost all of the advertising for Essentials has been in women's fashion magazines.
Essentials 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.
Essentials e- mailed a survey to a group of its most frequent,high- volume customers.The survey asked what makeup and skin care characteristics were most important to consumers.The Essentials marketing staff than ranked the performance of Essentials products in each of these categories.Essentials was conducting a(n).

A)intrepreneurial marketing strategy
B)entrepreneurial marketing strategy
C)customer value analysis
D)market follower survey
E)competitive intelligence system

Question 78

Marketers can expand markets by discovering and promoting .

A)new uses of the product
B)the deficiencies of competitors
C)new employees
D)subliminal points of interest
E)subtle advantages of the product

Question 79

can adopt one of two competitive strategies: they can challenge the leader or they can play along with competitors and not rock the boat.

A)Market nichers
B)Market followers
C)Localized marketers
D)Market developers
E)Runner- up firms

Question 80

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

A)brand image
B)mass appeal
C)competitiveness
D)distribution channels
E)employee training services