Question 1

Characterize the four broad strategies often employed by market followers to meet their competitors.

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Question 2

Greyhound and Amtrak have seen profitability threatened by the rise of air travel.These companies have experienced the threat of ________.

Accepted Answer

The rise of air travel is a substitute product for both Greyhound and Amtrak, as it provides an alternative means of transportation. This has threatened their profitability as customers may choose to fly instead of taking a bus or train.

Question 3

Increases in ________ arise from increases in ________.

Accepted Answer

Increases in share of market often result from increases in share of mind and heart, as consumers become more aware and emotionally connected to a brand, leading to higher market share.

Question 4

Each marketing manager needs to be aware of the industry in which they compete.Industries can be classified according to all of the following EXCEPT ________.

Accepted Answer

The degree of usage of promotion is not a factor in classifying industries. The other options are commonly used to classify industries.

Question 5

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

Accepted Answer

The introduction of a new product line to attract customers who otherwise would not have patronized Starbucks suggests that the company is targeting a new market segment.

Question 6

INSEAD professors W.Chan Kim and Renée Mauborgne believe that too many firms engage in "red-ocean thinking"-seeking bloody,head-to-head battles with competitors based largely on incremental improvements in cost,quality,or both.They advocate engaging instead in "blue-ocean thinking." Explain the concept of blue-ocean strategy.

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Question 7

The market nicher is a specialist.Characterize five niche specialist roles that can be assumed by the market nicher.

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Question 8

In general,a company should monitor three variables when analyzing competitors.List and briefly characterize those three variables

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Question 9

Coca-Cola recognizes that its number-one competitor is tap water,not Pepsi.Which of the following statements most aptly fits with the competitive situation faced by Coca-Cola when it seeks optimum selection of competitors

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Question 10

When a buyer thinks of performance running shoes,the first name that comes to mind is Nike.In this example,Nike has a high ________.

Accepted Answer

Share of mind refers to the brand's level of awareness and association in the consumer's mind. In this scenario, Nike has a strong association with performance running shoes in the buyer's mind, indicating a high share of mind. Share of market refers to the brand's percentage of total sales in the market, share of heart refers to emotional attachment and loyalty, share of pocketbook refers to the amount of money spent on the brand, and share of innovation refers to the brand's level of innovation compared to competitors.

Question 11

Successful blue-ocean thinkers take advantage of three platforms on which value innovation can take place: physical product,service,and ________.

Accepted Answer

The three platforms for value innovation are physical product, service, and delivery. Option E, delivery, fits this category. Consumer perception, prestige, manufacturing, and advertising are not platforms for value innovation.

Question 12

Assume that you are the marketing manager for a market challenger that is seeking to attack the market leader with an encirclement attack.Describe the encirclement attack and evaluate probable success using this strategy.

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Question 13

When a regional computer-manufacturing firm began to seek out customers who lived outside of its traditional market boundaries,the firm was employing which of the following new-customer expansion strategies to expand its total market

Accepted Answer

The regional computer-manufacturing firm is expanding its customer base by seeking customers outside of its traditional market boundaries, which indicates it is implementing a geographic-expansion strategy to expand its total market.

Question 14

The market leader must work hard to stay on top of its market.Three strategies can be crafted to achieve this objective.Describe these three strategies and any relevant substrategies that are necessary for accomplishing the primary objective.

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Question 15

A market segment's attractiveness varies with the height of its entry and exit barriers.Which of the following forces as described by Michael Porter would most likely be the force being examined if the above situation were to be considered by a marketing manager

Accepted Answer

The situation described is related to the entry and exit barriers in a market segment, which falls under the "Threat of New Entrants" force in Michael Porter's Five Forces model. It refers to the level of difficulty that a new company faces when entering a market, and the height of the barriers depends on factors such as capital requirements, economies of scale, brand recognition, and government regulations. A marketing manager would need to consider the threat of new entrants when assessing the attractiveness of a market segment.

Question 16

Chevrolet competes with Ford,not with Ferrari.Which of the following statements most aptly fits with the competitive situation faced by Chevrolet when it seeks optimum selection of competitors

Accepted Answer

Chevrolet competes with Ford because they are close competitors in the same market segment, offering similar products to similar customer bases.

Question 17

Identify the seven steps of benchmarking.

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Question 18

Adam Morgan offers eight suggestions on how small brands can better compete in the marketplace.List five of them.

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Question 19

Michael Porter has identified five forces that determine the intrinsic long-run attractiveness of a market or market segment.Briefly list and characterize those forces.

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Question 20

Assume that your organization has chosen to pursue a market leader strategy of the flank defense.Describe what such a strategy might be.

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Quiz 11: Dealing with Competition