Question 1

An overall cost leadership strategy involves a company concentrating on creating a highly differentiated product line and marketing programme.

Accepted Answer

An overall cost leadership strategy is focused on achieving the lowest cost of production and distribution in the industry. This typically involves streamlining operations, reducing expenses, and leveraging economies of scale. Therefore, it does not involve creating a highly differentiated product line or marketing programme, as these activities generally add cost to the business.

Question 2

One of the dangers for a competitor- centred company is that it can tend to become overly reactive.

Accepted Answer

Competitor-centred companies tend to focus too much on their competitors and their actions, which can lead to being overly reactive and not proactive in their decision-making. This can result in a company constantly playing catch-up rather than innovating and leading their industry.

Question 3

Middle- of- the- road strategy has been said to be a recipe for "strategic mediocrity." Do you agree with this view? Give your reasons.

Accepted Answer

The answer of Middle- of- the- road strategy has been...

Question 4

Defensive strategies for a marketer follower are likely to include full frontal attack and indirect attack.

Accepted Answer

Defensive strategies for a marketer follower are likely to include defensive and flanking maneuvers rather than full frontal attack and indirect attack. Full frontal attack and indirect attack are aggressive strategies often used by market challengers.

Question 5

Discuss the four (4) basic competitive strategies that companies can follow.

Accepted Answer

The answer of Discuss the four (4) basic competitive strategies...

Question 6

A truly market- oriented company does not need to understand competitors' strategies.

Accepted Answer

A market-oriented company understands its competitors' strengths, weaknesses, and strategies to position itself effectively in the marketplace. It is important to gather information on competitors' strategies to identify opportunities for differentiation and to stay competitive.

Question 7

Competitive positions are classified based on the role each firm plays in the target market. What are the four (4) typical roles and what are their characteristics? Provide one example, from your own experience, of each position.

Accepted Answer

The answer of Competitive positions are classified based on the...

Question 8

Market leaders are those firms with the largest market share in an industry.

Accepted Answer

Market leaders are defined as firms with the largest market share in an industry.

Question 9

A strategic group is a group of firms in an industry following the same or a similar strategy.

Accepted Answer

A strategic group is a collection of companies in the same industry that have similar business models or strategies.

Question 10

Identifying competitors' strategies is the first step in competitor analysis.

Accepted Answer

The first step in competitor analysis is identifying who your competitors are. Identifying their strategies comes after knowing who you are analyzing.

Question 11

A differentiation strategy involves a company working hard to achieve the lowest costs of production so that it can price lower than its competitors.

Accepted Answer

A differentiation strategy focuses on creating unique and valuable products or services that stand out from the competition, rather than simply lowering prices.

Question 12

A cloner is a market follower who copies the leader's products or services, while maintaining some differentiation in terms of packaging, advertising or other factors such as service levels.

Accepted Answer

The answer of A cloner is a market follower who...

Question 13

A particular danger for the market nicher is that the market may dry up as a result of environmental or technological changes.

Accepted Answer

Market nichers focus on a specific segment of the market, so if that segment disappears due to changes in the environment or technology, it can threaten the viability of the business.

Question 14

Most companies are started by individuals who live by their wits, and work hard to develop value for customers and suppliers, while spending very little on advertising or formal strategy development.

Accepted Answer

Many companies, especially small businesses, are started by entrepreneurs who rely on their own creativity and hard work to build their business, rather than investing heavily in advertising or formal strategy development.

Question 15

As smaller companies achieve success, they inevitably move towards more- formulated marketing in which they develop formal marketing strategies and adhere to them closely.

Accepted Answer

As companies grow and become more established, they tend to move towards more structured and planned marketing strategies in order to sustain and further their success.

Question 16

The competitive positioning strategy whereby the company works hard to achieve the lowest costs of production and distribution so that it can price lower than its competitors is known as overall cost leadership.

Accepted Answer

This is the definition of overall cost leadership.

Question 17

The competitive positioning strategy whereby the company concentrates on creating a highly differentiated product line and marketing programme is known as differentiation.

Accepted Answer

This statement accurately describes the differentiation strategy, which focuses on creating unique and distinct products or services that stand out from competitors in the market. This is achieved through various means such as design, technology, features, and customer experience, which are then highlighted in the marketing program to build a strong brand identity and attract customers who value these differences.

Question 18

A firm's competitive advantage involves designing offers that can be bettered by their competitors.

Accepted Answer

A firm's competitive advantage involves designing offers that are more valuable and unique to customers than those offered by competitors. The goal is to create a lasting competitive advantage that cannot be easily imitated or surpassed by competitors.

Quiz 4: Marketing Strategies for Competitive Advantage