Question 1

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?

Accepted Answer

Ms. Seabrook is using an encirclement attack strategy, as she is launching attacks on her primary competitor from several fronts, including advertising, new store openings, and new distributor alliances, aiming to surround and attack the competitor from all sides.

Question 2

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?

Accepted Answer

The answer of As a brand manager of a firm...

Question 3

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

Accepted Answer

A frontal attacking strategy refers to directly challenging a competitor in areas such as price, product, and promotion, rather than identifying and filling gaps caused by shifts in the market.

Question 4

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?

Accepted Answer

The answer of If you were asked to develop a...

Question 5

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.

Accepted Answer

The marketing manager's decision to move into cutting-edge technologies is an example of bypass attack. In this type of attack, a company tries to avoid the competition altogether by changing the rules of the game or entering into a new market segment. The company does not confront the competition head-on but tries to find a way to go around it.

Question 6

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

Accepted Answer

The bypass attack strategy involves circumventing the competition and attacking areas where they are not strong or present. This allows a firm to diversify into unrelated products, new geographical markets, or new technologies without directly confronting competitors in their strongest areas.

Question 7

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.

Accepted Answer

This is an example of a flank attack, as Colgate identified a weakness in Pepsodent's product (lack of sensitivity protection) and launched a product that addressed that weakness in addition to offering the same benefits as Pepsodent.

Question 8

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

Accepted Answer

By attacking the market leader (Xerox), Canon was able to position itself as a strong competitor and establish itself as a viable alternative in the copier market. This allowed them to capture a large share of Xerox's market and gain a competitive advantage over other smaller competitors.

Question 9

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

Accepted Answer

The encirclement attack involves targeting multiple markets and aspects of the industry to take control of market share.

Question 10

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

Accepted Answer

The flank-geographic attack involves targeting an area where the opponent is weak or underperforming. This is a strategic move that focuses on exploiting the opponent's vulnerabilities by attacking from the side or rear. Encirclement involves surrounding the opponent from all sides, frontal attack involves attacking the opponent head-on, backwards-flank attack is not a commonly recognized tactic, and guerrilla attack involves surprise attacks and hit-and-run tactics. Therefore, the best choice for this scenario is C) flank-geographic attack.

Question 11

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

Accepted Answer

Market challengers are companies that try to take market share from the leader and other competitors through aggressive tactics such as lower prices, aggressive advertising, innovation, or targeting untapped markets.

Question 12

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.

Accepted Answer

The answer of Appy Juices, a company that manufactures bottled...

Question 13

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.

Accepted Answer

Flanking strategy involves identifying gaps in the market segments and quickly filling them. The term "flanking" refers to attacking on the sides rather than head-on. This strategy allows the company to take advantage of opportunities that competitors may have overlooked or have not yet capitalized on, allowing a company to develop strong segments.

Question 14

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

Accepted Answer

Selective price cuts, intense promotional blitzes, and occasional legal action are all tactics commonly used in guerilla attacks. Frontal attacks involve a direct assault on an opponent's strengths, while flank attacks involve attacking from the side. Bypass attacks involve avoiding an opponent's strengths altogether, and encirclement attacks involve surrounding the opponent. None of these descriptions match the tactics described in the question.

Question 15

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

Accepted Answer

Attacking the market leader can be successful and beneficial if the leader is not meeting the needs of the market, giving an opportunity for competitors to gain shares by offering better products or services. However, if the leader is already serving the market well, attacking them may not be successful or beneficial.

Question 16

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?

Accepted Answer

The answer of The cost of buying higher market share...

Question 17

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 ________.

Accepted Answer

A market follower is a firm that does not aggressively try to gain more market share but instead maintains its current position. A challenger would actively attack the leader and other competitors, a leader would try to maintain its position at the top, a nicher would focus on a specific niche market, and an entrant would be a completely new company entering the market.

Question 18

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

Accepted Answer

Attacking the market leader is a high risk but potentially high payoff strategy for a market challenger as it allows the challenger to gain significant market share and establish itself as a strong competitor. This strategy also helps the challenger to distance itself from other challengers who may be targeting smaller players in the market. While attacking a regional, underfinanced, or poorly performing firm may offer some benefits, the payoff would not be as significant as targeting the market leader. Attacking a firm of its own size could also be risky as it may lead to a stalemate without any significant gains for either party.

Question 19

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.

Accepted Answer

A frontal attack is when a company directly calls out its competitors and promotes its own products as superior. In this case, Epic Inc. is using comparative advertising to directly compare its chairs to those of its competitors, making it a frontal attack.

Question 20

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

Accepted Answer

In a frontal attack, the attacker goes head-to-head with the competitor, matching every aspect of their marketing mix including product, advertising, price, and distribution.

Quiz 12: Addressing Competition and Driving Growth