Question 1

An alternative to being a market follower in a large market is to be a leader in a small market.This type of competitor is called a(n)________.
A)marketing knave
B)market nicher
C)segment king
D)guerilla marketer
E)strategic clone

Accepted Answer

The given description best fits the definition of a market nicher, which refers to a company that targets a small, specialized segment of a larger market and tailors its products or services to meet the unique needs of that niche.

Question 2

Which of the following types of companies is felt to be in a better position to identify new opportunities?
A)Competitor centered
B)Customer centered
C)Service centered
D)Distribution centered
E)Niche centered

Accepted Answer

Customer-centered companies are more closely attuned to the needs and desires of their customers and can identify new opportunities based on their insights into customer behavior and preferences. Competitor-centered companies, on the other hand, may be more focused on responding to the actions of their rivals rather than proactively seeking out new opportunities. Service-centered and distribution-centered companies may have a limited perspective on industry trends and new opportunities, while niche-centered companies may have a narrow focus that prevents them from seeing the bigger picture.

Question 3

A marketing manager has decided to "leapfrog" competition by moving into cutting-edge technologies.This indirect approach to attacking competition can be characterized as ________.
A)flank attack
B)encirclement attack
C)bypass attack
D)guerrilla warfare
E)frontal attack

Accepted Answer

A bypass attack involves reaching a market by avoiding directly attacking competitors. In this case, the marketing manager is moving into cutting-edge technologies, which is a way of bypassing competitors who may not have yet adopted these technologies.

Question 4

In terms of comparisons with a market leader,whereas the market leader achieves high volume,the market nicher achieves ________.
A)high margin
B)low margin
C)high promotability
D)medium pricing
E)lower demand

Accepted Answer

A market nicher focuses on a specific segment of the market and aims to satisfy their unique needs, often with specialized products or services. While they may achieve lower volume than the market leader, they can achieve higher profit margins by charging premium prices for their unique offerings. Therefore, the market nicher achieves high margin.

Question 5

Which of the following types of companies is characterized as being "too reactive?"
A)Competitor centered
B)Customer centered
C)Service centered
D)Distribution centered
E)Niche centered

Accepted Answer

Competitor centered companies tend to be too reactive and focus on what their competitors are doing rather than taking initiative and being innovative themselves. These companies may become stagnant and struggle to differentiate themselves in the market.

Question 6

Patterns of ________ are common in capital-intensive,homogeneous-product industries,where competitors present similar offers to buyers and market shares show high stability.
A)"conscious parallelism"
B)"feature fashion"
C)"covert security analysis"
D)"supply delay"
E)"predatory pricing"

Accepted Answer

Conscious parallelism refers to the phenomenon where competitors in an industry, without any direct communication or collusion, tend to follow similar pricing and marketing strategies. This behavior is common in capital-intensive, homogeneous-product industries where the products are similar and there is little differentiation. The market shares of firms in such industries also tend to remain stable over time. Therefore, option A is the best choice.

Question 7

In a ________ company,the obsession of the company is with the customer,not the competition.
A)niche-centered
B)price-centered
C)cost-centered
D)customer-centered
E)promotion-centered

Accepted Answer

In a customer-centered company, the primary focus is on meeting the needs and desires of the customer, rather than on the actions of the competition or internal cost considerations. This approach is often associated with a strong commitment to customer service and building long-term relationships with clients.

Question 8

The key idea in successful nichemanship is specialization.Which of the following specialists would most closely be identified with the characterization of being an organization that limits its selling to one customer?
A)End-user specialist
B)Vertical-level specialist
C)Customer-size specialist
D)Specific-customer specialist
E)Quality-price specialist

Accepted Answer

A specific-customer specialist focuses exclusively on one particular customer, rather than just a specific type or level of customer. This type of specialist caters to the unique needs and preferences of a specific customer, and may even tailor their products or services to meet that customer's specific requirements.

Question 9

Selective price cuts,intense promotional blitzes,and occasional legal action are commonplace in the strategic design of a(n)________.
A)frontal attack
B)flank attack
C)bypass attack
D)encirclement attack
E)guerilla warfare

Accepted Answer

The question refers to tactics that are commonly used in guerilla warfare, such as selective price cuts and intense promotional blitzes, as well as occasional legal action. Therefore, the best choice is E, guerilla warfare. The other options (frontal, flank, bypass, and encirclement attacks) typically involve more direct and forceful approaches that are not as closely aligned with the described tactics.

Question 10

A market nicher is considered to be a(n)________ specialist if the firm specializes in producing a certain type of product or product feature such as Rent-a-Wreck that rents only "beat-up" cars.
A)end-user
B)vertical-level
C)customer-size
D)channel
E)product-feature

Accepted Answer

A market nicher that specializes in producing a certain type of product or product feature is best described as a product-feature specialist. Rent-a-Wreck is an example of such a market nicher as they specialize in renting out only "beat-up" cars.

Question 11

A market challenger must decide who to attack.All of the following are considered as likely possible targets (as per information found in the text)EXCEPT ________.
A)the market leader
B)firms its own size that are not doing the job
C)firms its own size that are underfinanced
D)a global conglomerate that is market hungry
E)small local firms

Accepted Answer

The answer of A market challenger must decide who to...

Question 12

Which of the following types of companies is characterized as having a "fighter orientation?"
A)Customer centered
B)Competitor centered
C)Distribution centered
D)Promotion centered
E)Niche centered

Accepted Answer

A competitor centered company has a "fighter orientation" as they are primarily focused on outperforming their competitors and gaining an advantage in the market.

Question 13

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 warfare
D)Flank attack
E)Encirclement attack

Accepted Answer

The answer of Sally Seabrook is an up-and-coming marketing manager...

Question 14

As a market follower strategy,the ________ emulates the leader's products,name,and packaging,with slight variations.
A)counterfeiter
B)cloner
C)imitator
D)adapter
E)innovator

Accepted Answer

The answer of As a market follower strategy,the ________ emulates...

Question 15

All of the following are considered to be viable attack strategies that can be employed by a market challenger EXCEPT ________.
A)counteroffensive attack
B)frontal attack
C)flank attack
D)bypass attack
E)guerilla warfare

Accepted Answer

The answer of All of the following are considered to...

Question 16

As a market follower strategy,the ________ copies some things from the leader but maintains differentiation in terms of packaging,advertising,pricing,or location.This strategy is tolerated by the market leader as long as the follower's aggressiveness does not mount.
A)counterfeiter
B)cloner
C)imitator
D)adapter
E)innovator

Accepted Answer

The strategy described is that of an imitator, not a counterfeiter or cloner. The imitator copies some things from the leader but maintains differentiation, whereas the cloner makes an exact copy of the leader's product. The imitator may adapt certain elements, but this is not the primary focus of the strategy. The innovator, on the other hand, seeks to create something new and different from the leader's offering.

Question 17

In his article,"Innovative Imitation," Theodore Levitt argues that ________.
A)imitation is wrong and should be punished
B)product imitation might be as profitable as a strategy of product innovation
C)innovation is not possible without substantial imitation
D)innovation cannot begin unless dissatisfaction with imitation occurs
E)imitation should be against the law because of the intellectual property decision involved

Accepted Answer

Levitt argues that product imitation can be as profitable as product innovation and that companies should not overlook the potential benefits of imitation. He believes that innovation does not always have to be original, but can also come from improving and refactoring existing ideas.

Question 18

Avon became a major cosmetics company by perfecting door-to-door selling instead of battling other cosmetic firms in conventional stores.This is an example of which of the following specific market challenger attack strategies?
A)Manufacturing cost reduction
B)Intensive advertising promotion
C)Distribution innovation
D)Product innovation
E)Product proliferation

Accepted Answer

Avon used a distribution innovation strategy by perfecting door-to-door selling to reach customers directly, rather than battling competitors in conventional stores.

Question 19

All of the following are considered market follower strategies EXCEPT ________.
A)counterfeiter
B)cloner
C)imitator
D)innovator
E)adapter

Accepted Answer

Innovator is not a market follower strategy, but rather a market leader strategy. Market follower strategies include counterfeiter, cloner, and imitator, all of which involve copying the products or strategies of a more established competitor. Adapter is another market follower strategy that involves making slight modifications to an existing product or strategy to better match consumer preferences or trends.

Question 20

According to attack strategies available to the market challenger,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 warfare

Accepted Answer

The flank-geographic attack can be used when the challenger identifies areas where the opponent is underperforming. This strategy involves attacking the opponent in areas where they are weak, such as specific geographic regions or market segments, rather than directly challenging them in their core markets or products. This allows the challenger to gain a foothold in the market and build their brand and reputation before moving into more competitive areas.

Quiz 11: Dealing With Competition

An alternative to being a market follower in a large market is to be a leader in a small market.This type of competitor is called a(n) ________.

Which of the following types of companies is felt to be in a better position to identify new opportunities?

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

In terms of comparisons with a market leader,whereas the market leader achieves high volume,the market nicher achieves ________.

Which of the following types of companies is characterized as being "too reactive?"

Patterns of ________ are common in capital-intensive,homogeneous-product industries,where competitors present similar offers to buyers and market shares show high stability.

In a ________ company,the obsession of the company is with the customer,not the competition.

The key idea in successful nichemanship is specialization.Which of the following specialists would most closely be identified with the characterization of being an organization that limits its selling to one customer?

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

A market nicher is considered to be a(n) ________ specialist if the firm specializes in producing a certain type of product or product feature such as Rent-a-Wreck that rents only "beat-up" cars.

A market challenger must decide who to attack.All of the following are considered as likely possible targets (as per information found in the text) EXCEPT ________.

Which of the following types of companies is characterized as having a "fighter orientation?"

As a market follower strategy,the ________ emulates the leader's products,name,and packaging,with slight variations.

All of the following are considered to be viable attack strategies that can be employed by a market challenger EXCEPT ________.

As a market follower strategy,the ________ copies some things from the leader but maintains differentiation in terms of packaging,advertising,pricing,or location.This strategy is tolerated by the market leader as long as the follower's aggressiveness does not mount.

In his article,"Innovative Imitation," Theodore Levitt argues that ________.

Avon became a major cosmetics company by perfecting door-to-door selling instead of battling other cosmetic firms in conventional stores.This is an example of which of the following specific market challenger attack strategies?

All of the following are considered market follower strategies EXCEPT ________.

According to attack strategies available to the market challenger,the ________ can be used when the challenger spots areas where the opponent is underperforming.