Question 1

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 ________.
A)market challenger
B)market leader
C)market follower
D)market nicher
E)market entrant

Accepted Answer

A market follower is a firm that does not actively seek to increase its market share but instead maintains its current position by keeping up with industry trends and strategies. They do not try to attack the market leader or other competitors aggressively.

Question 2

The ________ can be used when the challenger spots areas where the opponent is underperforming.
A)encirclement attack
B)frontal attack
C)flank-geographic attack
D)backwards-flank attack
E)guerilla attack

Accepted Answer

The flank-geographic attack is the most appropriate option when the challenger spots areas where the opponent is underperforming. This attack targets the weak spots of the opponent that could be related to geography, market, or demographics. It aims to take advantage of the lack of resources in that particular area by using a focused approach that would allow the challenger to outmaneuver the opponent.

Question 3

________ is an aggressive maneuver where the firm attacks first,perhaps with guerrilla action across the market and keeping everyone off balance.
A)Position defense
B)Flank defense
C)Contraction defense
D)Preemptive defense
E)Lateral defense

Accepted Answer

Preemptive defense is the aggressive maneuver where the firm attacks first, perhaps with guerrilla action across the market and keeping everyone off balance. This strategy involves preemption, where an attack is made before the competitor launches an attack. By doing so, it prevents the competitor from launching an attack and puts them off balance.

Question 4

After Olay entered and took over the Indian market with its anti-aging lotion,Ponds decided to defend its home turf by investing heavily in a similar product,but that which used only natural ingredients.This is an example of a ________.
A)position defense
B)flank defense
C)counteroffensive defense
D)contraction defense
E)mobile defense

Accepted Answer

The answer of After Olay entered and took over the...

Question 5

Market broadening and market diversification are likely tactics employed in ________ strategies.
A)position defense
B)flank defense
C)preemptive defense
D)counteroffensive defense
E)mobile defense

Accepted Answer

Market broadening and market diversification are key components of mobile defense strategies, where a company seeks to expand its market territory to secure a broader or more diversified position against competitors.

Question 6

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 ________ strategy.
A)preemptive defense
B)counteroffensive defense
C)mobile defense
D)flank defense
E)contraction defense

Accepted Answer

A preemptive defense strategy involves taking actions to prevent competitors from entering a market or gaining a foothold in the market. In this example, Microsoft is announcing its plans for new-product development, which could discourage smaller firms from entering the same market to avoid direct competition with Microsoft. This is an example of Microsoft using a preemptive defense strategy to protect its market position.

Question 7

Diageo acquired most of Seagram's brands in 2001 and spun off Pillsbury and Burger King so it could concentrate on powerhouse alcoholic beverage brands such as Smirnoff vodka,J&B scotch,and Tanqueray gin.In this example,Diageo is employing a ________ strategy.
A)preemptive defense
B)counteroffensive defense
C)mobile defense
D)flank defense
E)contraction defense

Accepted Answer

Diageo is employing a contraction defense strategy by divesting non-core businesses and focusing on its core alcoholic beverage brands.

Question 8

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

Accepted Answer

A frontal attack is where the attacker matches its opponent's product, advertising, price, and distribution. A guerrilla attack is characterized by unconventional tactics, bypass involves avoiding the competitor's stronghold, encirclement involves surrounding the competitor by launching products for every need and every segment, and a flank attack involves striking at a competitor's vulnerability.

Question 9

A(n)________ 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 strategy
B)flanking strategy
C)encircling strategy
D)counteroffensive strategy
E)bypass strategy

Accepted Answer

Flanking strategy is matching customers' needs with company products or services which are not currently addressed by competitors. This strategy involves identifying gaps in the market, and developing them into new market segments to gain a competitive advantage.

Question 10

Apple attacked RIM,the maker of Blackberry,through flanking.The next powerful innovation was not technological but the amazing ease of use and range of applications offered.This is an example of a(n)________ attack.
A)frontal
B)flank
C)guerrilla
D)encirclement
E)bypass

Accepted Answer

The description mentions that Apple attacked RIM through flanking, which is a type of attack that involves targeting a specific market segment or niche with a new innovation or product feature. The focus on ease of use and range of applications suggests that Apple was targeting a different customer base from RIM, rather than directly competing on technological features (frontal attack), using unconventional tactics (guerrilla attack), surrounding the competition (encirclement), or finding a new distribution channel (bypass).

Question 11

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 ________ strategy.
A)preemptive defense
B)counteroffensive defense
C)mobile defense
D)flank defense
E)contraction defense

Accepted Answer

This is an example of a mobile defense strategy, where a company expands its domain to protect its current market position. By diversifying into various energy sectors, these companies aim to remain competitive and safeguard against market changes.

Question 12

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

Accepted Answer

The encirclement attack involves attacking the market leader from multiple fronts simultaneously. This is the best fit for the given context where the company is attempting to capture a significant share of the consumer market by launching a grand offensive on several fronts.

Question 13

When large companies can no longer defend all their territory,they 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

Accepted Answer

Contraction refers to a strategy where companies give up weaker markets and reassign resources to stronger ones, which is exactly what is described in the given scenario. The other options - preemptive, flank, mobile, and position - do not accurately describe this strategy.

Question 14

Sally Sim is an up-and-coming marketing manager for a large department store chain. Ms.Sim 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.Sim using to attack her competition?
A)frontal attack
B)bypass attack
C)guerrilla attack
D)flank attack
E)encirclement attack

Accepted Answer

Ms. Sim is using an encirclement attack strategy, as indicated by her comprehensive approach of launching attacks on her primary competitor from several fronts, including advertising, new store openings, and new distributor alliances. This strategy involves attacking the competitor from all sides with the aim of gaining a significant market share.

Question 15

Epic Inc. ,a firm that produces chairs for offices,uses comparative advertising to inform the 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

Accepted Answer

This is an example of a frontal attack because Epic Inc. is directly comparing its products to those of its competitors.

Question 16

In ________,the market leader stretches its domain over new territories that can serve as future centers for defense and offense.
A)counteroffensive defense
B)flank defense
C)contraction defense
D)mobile defense
E)position defense

Accepted Answer

Mobile defense strategy involves the market leader expanding its territory to new areas that can act as bases for future strategic moves, both defensive and offensive. This approach is about moving beyond the current market boundaries to explore and secure new markets or segments.

Question 17

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

Accepted Answer

The term "flank defense" refers to the act of protecting the weaker sides of a product line or brand. The outposts are being erected to protect the less profitable brands, so this indicates a flank defense strategy is being employed. The other answer choices do not accurately describe the situation.

Question 18

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

Accepted Answer

The description provided fits the definition of preemptive defense, where a firm introduces a stream of new products that are announced in advance to preempt competitors' moves and maintain or increase market share.

Question 19

In a ________ defense strategy,the market leader can meet the attacker frontally and hit its flank,or launch a pincer movement so that it's forced to pull back to defend itself.
A)position
B)counteroffensive
C)preemptive
D)contraction
E)flank

Accepted Answer

A counteroffensive defense strategy involves actively engaging the attacking competitor, which can include hitting its flank or launching a pincer movement to force the attacker to defend itself. Position defense focuses on holding onto the current market position, while a preemptive defense involves attacking the competitor before it can attack you. Contraction defense involves pulling back and minimizing resources, which may not be effective against an attacking competitor. The term "flank" is referenced in the explanation for a counteroffensive strategy.

Question 20

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

Accepted Answer

Attacking the market leader is a high risk but potentially high payoff strategy as it can help the challenger to gain a significant market share and establish itself as a strong player in the industry. It also allows the challenger to distance itself from other challengers who may be targeting smaller or regional firms. However, attacking a market leader requires a lot of resources, effort, and innovation to overcome the leader's strengths and competitive advantages.

Quiz 11: Competitive Dynamics

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 ________.

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

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

After Olay entered and took over the Indian market with its anti-aging lotion,Ponds decided to defend its home turf by investing heavily in a similar product,but that which used only natural ingredients.This is an example of a ________.

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

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 ________ strategy.

Diageo acquired most of Seagram's brands in 2001 and spun off Pillsbury and Burger King so it could concentrate on powerhouse alcoholic beverage brands such as Smirnoff vodka,J&B scotch,and Tanqueray gin.In this example,Diageo is employing a ________ strategy.

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

A(n) ________ 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.

Apple attacked RIM,the maker of Blackberry,through flanking.The next powerful innovation was not technological but the amazing ease of use and range of applications offered.This is an example of a(n) ________ attack.

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 ________ strategy.

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

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

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

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

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.

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.

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

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