Deck 12: Addressing Competition and Driving Growth

Question 1

Which of the following marketing strategies requires either identifying additional opportunities to use the brand in the same basic way or identifying completely new and different ways to use the brand?

A) increasing the amount of consumption
B) decreasing the level of consumption
C) increasing dedication to consumption
D) increasing product innovation
E) increasing frequency of consumption

Answer 1

E

Question 2

When firms look for new users in groups that have never used the product before, the firm is using the ________ strategy.

A) new-market segment
B) market-penetration
C) geographical-expansion
D) product development
E) diversification

Answer 2

A

Question 3

Growth strategies are "either/or" propositions; a focus on core businesses means foregoing new market opportunities.

Answer 3

False

Question 4

When a firm looks for new users in groups that might use a product but do not already use the product, the firm is using the ________ strategy.

A) new-market segment
B) market-penetration
C) geographical-expansion
D) product development
E) diversification

Question 5

WD40 offers a Smart Straw version of its popular multipurpose lubricant with a built-in straw that pops up for use. This is an example of which of the following main strategies for growing the core of the business?

A) Make the core of the brand as distinctive as possible.
B) Drive distribution through both existing and new channels.
C) Offer the core product in new formats or versions.
D) Increase costs and revenue.
E) Expand to another geographic region.

Question 6

When the total market expands, the market ________ usually gains the most.

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

Question 7

When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don't drink coffee, Starbucks was employing a ________ strategy.

A) market-penetration
B) new-market segment
C) geographical-expansion
D) niche identification
E) blue-ocean

Question 8

As the marketing manager for a floor tile manufacturer, Evans Smith is given a target to achieve 500 new customers by the end of summer. He decides to search the market for probable customers who might use the product but currently do not. Which of the following strategies is Evans pursuing to increase the market demand for his product?

A) market-penetration strategy
B) new-market segment strategy
C) geographical-expansion strategy
D) needs-assessment strategy
E) consolidation strategy

Question 9

Which of the following brands generates only 6 percent outside North America, with very little of that in fast-growing emerging markets like India, China, and Brazil, which may represent opportunities for its growth?

A) UPS
B) Under Armour
C) FedEx
D) Nike
E) Adidas

Question 10

Growing the core can be a less risky alternative than expansion into new product categories.

Question 11

When food product companies advertise recipes that use their branded products in entirely different ways, they are increasing the ________ consumption of the brand.

A) amount of
B) level of
C) dedication to
D) frequency of
E) awareness of

Question 12

Identify five general strategies for growth.

Question 13

Identify the three main strategies for growing a company's core, as noted by UK marketing guru David Taylor, and provide an example for each.

Question 14

Trendz Inc. is a leading brand of fashion clothing and accessories based in Houston. After gaining a strong foothold in the US, the company wants to foray into foreign markets. The management at Trendz knows that people residing in other countries are likely to have different tastes and preferences, so they may have to redesign some of their offerings. Which of the following strategies is Trendz using?

A) market-penetration strategy
B) outsourcing strategy
C) geographic-expansion strategy
D) product differentiation strategy
E) ethnocentric strategy

Question 15

The market ________ has the largest market share and usually shows the way to other firms in price changes, new-product introductions, distribution coverage, and promotional intensity.

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

Question 16

Galaxy chocolate has successfully competed with Cadbury by positioning itself as "your partner in chocolate indulgence" and featuring smoother product shapes, more refined taste, and sleeker packaging, which represents which of the following main strategies for growing the core of the business?

A) Make the core of the brand as distinctive as possible.
B) Drive distribution through both existing and new channels.
C) Offer the core product in new formats or versions.
D) Increase costs and revenue.
E) Expand to another geographic region.

Question 17

Clorox runs ads stressing the many benefits of its bleach, such as how it eliminates kitchen odors, in order to generate additional opportunities to use the brand in the same basic way. This is an attempt to ________ of consumption.

A) increase the amount
B) increase the level
C) increase the perception
D) increase the frequency
E) increase the emotional implications

Question 18

Vancouver, Canada's Fortuna Silver Mines has focused on its two fully owned, fully integrated silver mines in Peru and Mexico to spur organic growth while looking for a third mine to drive further growth because the existing mines are not expandable.

Question 19

Oliver, a company that produces different types of olive oil, launched a promotional campaign focusing on the alternative uses of olive oil. What strategy is the company implementing to expand its total market demand?

A) using the new-market segment strategy to attract new customers
B) improving the current level of product performance
C) advertising new and different applications of the brand
D) protecting its market share
E) using the market-penetration strategy to attract new customers

Question 20

A market leader on the look out for more usage from existing customers should focus on increasing the frequency of consumption and ________.

A) decreasing the product price
B) the product line
C) the amount of consumption
D) decreasing production turnover time
E) diversifying into unrelated markets

Question 21

Sony is an unusual market leader. It gives its customers new products that they have never asked for (e.g., Walkmans, VCRs, video cameras, CDs). This makes Sony a(n) ________ firm.

A) market-driven
B) market-driving
C) operations-driven
D) vision-driven
E) virtually-driven

Question 22

When "petroleum" companies such as BP sought to recast themselves as "energy" companies, increasing their research into the oil, coal, nuclear, hydroelectric, and chemical industries, these companies were employing a ________ defense strategy.

A) preemptive
B) counteroffensive
C) mobile
D) flank
E) contraction

Question 23

After Olay entered and took over the Indian market with its anti-aging lotion, Ponds invested heavily in a similar product which used only natural ingredients. This is an example of a ________ defense.

A) position
B) flank
C) counteroffensive
D) contraction
E) mobile

Question 24

The defensive marketing strategy wherein a stream of new products are introduced by a firm and are announced in advance are referred to as ________ defense.

A) mobile
B) counteroffensive
C) preemptive
D) contraction
E) flank

Question 25

A(n) ________ marketer looks ahead to needs customers may have in the near future.

A) laidback
B) creative
C) inexperienced
D) responsive
E) anticipative

Question 26

Which of the following is the most constructive response a market leader can make when defending its market share?

A) maintain basic cost control
B) innovate continuously
C) provide desired benefits
D) meet challengers with a swift response
E) provide expected benefits

Question 27

When large companies can no longer defend their full territory, they can launch a ________ defense where they give up weaker markets and reassign resources to stronger ones.

A) contraction
B) preemptive
C) flank
D) mobile
E) position

Question 28

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ defense strategy.

A) preemptive
B) counteroffensive
C) mobile
D) flank
E) contraction

Question 29

A(n) ________ marketer discovers solutions customers did not ask for but to which they enthusiastically respond.

A) laidback
B) responsive
C) inexperienced
D) creative
E) anticipative

Question 30

Which of the following is true about proactive marketing?

A) A company needs creative anticipation to see the writing on the wall.
B) Proactive companies create new offers to serve unmet and unknown consumer needs.
C) Proactive companies refrain from practicing uncertainty management.
D) A company needs responsive anticipation to devise innovative solutions.
E) Companies are winners when they are extremely risk-averse.

Question 31

A marketing manager has planned a strategy that will require the organization to erect outposts to protect its weak front-running brands. In this ________ defense, the outposts will be central to the organization's new competitive strategy.

A) position
B) flank
C) preemptive
D) counteroffensive
E) mobile

Question 32

In a ________ defense strategy, the market leader can meet the attacker frontally and hit its flank or launch a pincer movement so that the attacker is forced to pull back to defend itself.

A) position
B) counteroffensive
C) preemptive
D) contraction
E) flank

Question 33

Market broadening and market diversification are likely tactics employed in ________ defense strategies.

A) position
B) flank
C) preemptive
D) counteroffensive
E) mobile

Question 34

________ marketers are not just market-driven, they are proactive market-driving firms.

A) Creative
B) Responsive
C) Inexperienced
D) Laidback
E) Anticipative

Question 35

________ defense is an aggressive maneuver where the firm attacks first, perhaps with guerrilla action across the market and keeps everyone off balance.

A) Position
B) Flank
C) Contraction
D) Preemptive
E) Lateral

Question 36

In a ________ defense, the market leader stretches its domain over new territories that can serve as future centers for defense and offense.

A) counteroffensive e
B) flank
C) contraction
D) mobile
E) position

Question 37

In 2006, Sara Lee spun off products that accounted for a large percentage of the company's revenues, including its strong Hanes hosiery brand, so it could concentrate on its well-known food brands. In this example, Sara Lee is employing a ________ defense strategy.

A) preemptive
B) counteroffensive
C) mobile
D) flank
E) contraction

Question 38

Market ________ generally have a smaller market share than other players and they are willing to maintain their share and not rock the boat.

A) challengers
B) leaders
C) nichers
D) rivals
E) followers

Question 39

To satisfy customers, a(n) ________ marketer finds a stated need and fills it.

A) creative
B) responsive
C) anticipative
D) laidback
E) inexperienced

Question 40

________ defense involves occupying the most desirable market space in the minds of the consumers and making the brand almost impregnable.

A) Position
B) Flank
C) Preemptive
D) Mobile
E) Contraction

Question 41

When Starbucks extended its brand into coffee drinks and ice creams to reach customers who did not use its brand, it was using a(n) ________ strategy.

A) geographical-expansion
B) new-market segment
C) market-penetration
D) larger package size
E) increased frequency

Question 42

Market diversification shifts the company's focus to unrelated industries.

Question 43

What is counteroffensive defense? Explain with an example.

Question 44

An anticipative marketer finds a stated need and fills it.

Question 45

The most constructive response to protecting market share is continuous innovation.

Question 46

Your marketing manager has asked you to develop a new customer strategy for your company. Additionally, you have been asked to develop, specifically, a market-penetration strategy to assist in gaining new customers. Describe a market-penetration strategy in this context.

Question 47

When Procter & Gamble used Gain and Cheer laundry detergents as outposts to protect a weak front or support a possible counterattack, they were using a ________ defense.

A) flank
B) position
C) preemptive
D) counteroffensive
E) mobile

Question 48

The market leader should look for new customers or more usage from existing customers.

Question 49

A creative marketer discovers solutions customers did not ask for but to which they enthusiastically respond.

Question 50

In contraction defense, the leader stretches its domain over new territories through market broadening and market diversification.

Question 51

A responsive marketer looks ahead to needs customers may have in the near future.

Question 52

Position defense means occupying the most desirable market space in consumers' minds, making the brand almost impregnable.

Question 53

Assume that your firm is a market leader in manufacturing detergent. How would the firm use position defense as a defensive marketing strategy to maintain its share?

Question 54

Which three groups of customers can help expand a firm's market demand?

Question 55

When the total market expands, the dominant firm usually gains the most.

Question 56

Which three groups of marketers help satisfy a customer's needs?

Question 57

Describe the three strategies that are necessary for a market leader to accomplish to stay on top.

Question 58

One way to increase the frequency of consumption of a product by consumers is by introducing it in larger package sizes.

Question 59

In counteroffensive marketing, the market leader can meet the attacker frontally and hit its flank, or launch a pincer movement so that it is forced to pull back to defend itself.

Question 60

A market-penetration strategy is one where a company searches for new customers in a group that has never used a product before.

Question 61

If you were asked to develop a mobile defense for your products that are likely to come under attack from a market challenger, what would you suggest?

Question 62

Selective price cuts, intense promotional blitzes, and occasional legal action are commonplace in the strategic design of a(n) ________ attack.

A) frontal
B) flank
C) bypass
D) encirclement
E) guerilla

Question 63

As a brand manager of a firm that manufactures denim jeans, how will you implement a preemptive defense marketing strategy to meet an anticipated competitive challenge?

Question 64

When Canon grabbed a large chunk of Xerox's market by introducing desk copiers, it distanced itself from other challengers by ________.

A) attacking a regional firm
B) attacking a firm of its own size that was underfinanced
C) attacking the market leader
D) attacking a firm of its own size that was not doing the job well
E) acquiring guppies

Question 65

The ________ attack offers the firm an opportunity to diversify into unrelated products, into new geographical markets, and leapfrogging into new technologies.

A) bypass
B) flank
C) frontal
D) guerrilla
E) encirclement

Question 66

The ________ attack can be used when the challenger spots areas where the opponent is underperforming.

A) encirclement
B) frontal
C) flank-geographic
D) backwards-flank
E) guerilla

Question 67

In a pure ________ attack, the attacker matches its opponent's product, advertising, price, and distribution.

A) guerilla
B) bypass
C) encirclement
D) frontal
E) flank

Question 68

Pepsodent launched a new product that could whiten teeth, fight decay, and maintain fresh breath. Observing that Pepsodent did not focus on the dental sensitivity aspect, Colgate introduced a toothpaste which did all of the above and also protected sensitive teeth. This is an example of a(n) ________ attack.

A) frontal
B) flank
C) guerrilla
D) encirclement
E) bypass

Question 69

Attacking the market leader proves successful and beneficial only when the leader is not serving the market well.

Question 70

Appy Juices, a company that manufactures bottled water, diversified into soft drinks before any of its opponents could launch a diversified product. This would be an example of a(n) ________ attack.

A) flank
B) bypass
C) guerrilla
D) encirclement
E) frontal

Question 71

Market challengers are companies that attack the leader and other competitors in an aggressive bid for further market share.

Question 72

A(n) ________ strategy is another name for identifying shifts in market segments that are causing gaps to develop, then rushing in to fill the gaps and developing them into strong segments.

A) frontal attack
B) flanking
C) encircling
D) counteroffensive
E) bypass

Question 73

A frontal attacking strategy is another name for identifying shifts that are causing gaps to develop, then rushing to fill the gaps.

Question 74

Sally Seabrook is an up-and-coming marketing manager for a large department store chain. Ms. Seabrook has distinguished herself with bold strategies such as launching attacks on her primary competitor from several fronts, including advertising, new store openings, and new distributor alliances. Which of the following market challenger attack strategies is Ms. Seabrook using to attack her competition?

A) frontal attack
B) bypass attack
C) guerrilla attack
D) flank attack
E) encirclement attack

Question 75

Epic Inc., a firm that produces chairs for offices, uses comparative advertising to inform consumers that its products offer the same features and quality as the competitor's. This is an example of a(n) ________ attack.

A) guerilla
B) frontal
C) encirclement
D) bypass
E) flank

Question 76

The cost of buying higher market share through acquisition may far exceed its revenue value. Which are the four factors a company should consider before doing so?

Question 77

A marketing manager has decided to "leapfrog" the competition by moving into cutting-edge technologies. This indirect approach to attacking competition can be characterized as a(n) ________ attack.

A) flank
B) encirclement
C) bypass
D) guerrilla
E) frontal

Question 78

The ________ attack attempts to capture a significant share of the consumer market by launching a grand offensive on several fronts.

A) frontal
B) bypass
C) flank
D) encirclement
E) guerrilla

Question 79

A firm that is willing to maintain its market share, and not attack the leader and other competitors in an aggressive bid for further market share, is known as a market ________.

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

Question 80

For a market challenger, attacking ________ is a high risk but potentially high payoff strategy, which also allows it to distance itself from other challengers.

A) a firm of its own size
B) the market leader
C) a regional firm
D) an underfinanced firm
E) a poorly performing firm