Question 1

Which of the following observations is NOT TRUE of monopolistic competition?
A) A number of different firms offer marketing mixes that at least some customers see as different.
B) Marketing managers try to differentiate very similar products by relying on other elements of the marketing mix.
C) Each competitor tries to get a monopoly in its own target market.
D) Most marketing managers in developed economies do not face monopolistic competition.
E) Competition exists because some customers see various alternatives as substitutes.

Accepted Answer

Most marketing managers in developed economies actually do face monopolistic competition. This is because there are many industries where numerous firms compete by differentiating their products or services in some way, making monopolistic competition very common in these economies.

Question 2

When looking for attractive opportunities, a marketing manager should consider:
A) the firm's producing capability and flexibility.
B) the firm's financial strengths.
C) whether the firm has good relations with established intermediaries.
D) the firm's marketing strengths.
E) All of these should be considered.

Accepted Answer

All of these factors should be considered by a marketing manager when looking for attractive opportunities. The firm's producing capability and flexibility will determine its ability to meet changing consumer demands and stay competitive in the marketplace. The firm's financial strengths will enable it to invest in marketing initiatives and sustain its operations over time. Good relations with established intermediaries will ensure that the firm's products reach their intended target audience effectively. Finally, a marketing manager should also evaluate the firm's marketing strengths to see if they have the skills and resources necessary to execute effective marketing campaigns.

Question 3

When a firm is searching for attractive opportunities, a good manager should keep in mind that ___________ strength is very important.
A) financial
B) production and flexibility
C) marketing
D) pricing
E) all of these strengths are important

Accepted Answer

All of these strengths are important when searching for attractive opportunities. Financial strength is important for making investments or acquisitions. Production and flexibility is important for adapting to changing customer demands and market conditions. Marketing strength is important for developing and promoting products that appeal to customers. Pricing strength is important for setting competitive prices that attract customers while also generating profits for the firm. Overall, a good manager should consider all of these strengths when searching for opportunities that align with the company's goals and capabilities.

Question 4

When conducting a competitor analysis, it is important for managers to take the viewpoint of:
A) competitors.
B) the CEO.
C) target customers.
D) supply chain partners.
E) the industry leader.

Accepted Answer

Taking the viewpoint of target customers is crucial in understanding the strengths and weaknesses of competitors. This can help managers identify areas where they need to improve their offerings to better meet the needs and desires of their target customers. While understanding what competitors are doing is important, it should be viewed from the perspective of how well it serves the needs of the target customers.

Question 5

The number and types of competitors a marketing manager must face-and how they might behave-is called the ______________ environment.
A) cultural
B) competitive
C) economic
D) political
E) social

Accepted Answer

The competitive environment refers to the number and types of competitors that a marketing manager must face and how they might behave. This includes factors such as market share, pricing strategies, and product differentiation. The cultural, economic, political, and social environments all play a role in shaping the competitive environment, but they are not the same as the competitive environment itself.

Question 6

In a _____________ situation, competitors offer very similar products which customers see as close substitutes, and managers just compete with lower and lower prices as profit margins shrink.
A) capitalistic competition
B) pure competition
C) monopoly
D) monopolistic competition
E) collectivist competition

Accepted Answer

In a pure competition situation, there are many competitors who offer virtually identical products, leading to competition primarily on price because consumers see the products as close substitutes. This environment tends to drive down prices and reduce profit margins as businesses strive to attract customers by offering the lowest possible price.

Question 7

The competitive environment that most marketing managers experience in developed economies is:
A) monopoly.
B) monopolistic competition.
C) pure competition.
D) oligopoly.
E) regulated competition.

Accepted Answer

Most marketing managers in developed economies experience monopolistic competition, where many firms offer products or services that are similar but not perfect substitutes, allowing for differentiation and competition.

Question 8

A useful tool for organizing the competitor analysis is:
A) the table of competitive rivals.
B) rivals chart.
C) the oligopoly chart.
D) a competitor matrix.
E) the competitive summary.

Accepted Answer

A competitor matrix is a visual tool used to compare your company with your competitors based on various factors such as strengths, weaknesses, market position, pricing, and product/services offered. It helps in identifying opportunities and threats to your business and develop a strategic plan to stay ahead in the competition.

Question 9

An energy company that has expertise in drilling for oil would also likely have the resources to:
A) manufacture automobiles.
B) operate a chain of gas stations.
C) drill for natural gas.
D) sell office supplies.
E) make medical devices.

Accepted Answer

An energy company with expertise in drilling for oil would also likely have the resources to drill for natural gas, as both require similar expertise and equipment. However, manufacturing automobiles, operating a chain of gas stations, selling office supplies or making medical devices would not necessarily be within the scope of their expertise or resources.

Question 10

Which of the following is not a basic kind of market (competitive) situation?
A) Pure competition
B) Oligopoly
C) Capitalistic competition
D) Monopolistic competition
E) Monopoly

Accepted Answer

Capitalistic competition is not a basic kind of market situation. It is a vague term that can refer to any type of competition within a capitalist economy, and therefore does not qualify as a specific type of market structure. The other options (pure competition, oligopoly, monopolistic competition, and monopoly) are all well-defined types of market structures.

Question 11

Which of the following would NOT be a marketing strength for a local coffee shop?
A) A well-recognized brand.
B) A patented coffee blend.
C) Established relations with local businesses.
D) Access to large amounts of capital from a long-term relationship with a local bank.
E) Counter staff that knows and understands customer preferences.

Accepted Answer

Access to large amounts of capital is a financial strength, not a marketing strength. The other options listed all relate directly to marketing and building relationships with customers.

Question 12

A first step in evaluating marketing opportunities is to:
A) decide which markets the firm wishes to enter.
B) consider the objectives and resources of the firm.
C) hire a "futurist" as a marketing consultant.
D) estimate market and sales potentials.
E) find out if potential competitors are larger.

Accepted Answer

Before evaluating marketing opportunities, it is important to consider the objectives and resources of the firm. This helps to ensure that the marketing opportunities align with the overall goals of the company and that the necessary resources are available to pursue them effectively. Deciding which markets to enter and estimating potential sales are important steps in the process, but they should come after a thorough analysis of the firm's objectives and resources. Hiring a futurist as a marketing consultant and comparing the size of potential competitors are not necessary or relevant steps in evaluating marketing opportunities.

Question 13

Which of the following is not a marketing strength for a book publisher?
A) Flexible production facilities.
B) A stable of popular authors.
C) A good sales force.
D) An efficient online ordering system for customers.
E) Good relationships with book wholesalers and retailers.

Accepted Answer

Flexible production facilities are more related to manufacturing efficiency rather than a direct marketing strength. Marketing strengths for a book publisher typically involve ways to promote and sell books, such as having popular authors, a good sales force, an efficient online ordering system, and strong relationships with wholesalers and retailers.

Question 14

A(n) _______ is a marketing mix that customers see as better than a competitor's mix and cannot be quickly or easily copied.
A) resource combination
B) sustainable competitive advantage
C) objective-centered approach
D) competitor analysis plan
E) competitor matrix

Accepted Answer

A sustainable competitive advantage is a marketing mix that customers perceive as superior to that of a competitor and that cannot be easily replicated. It may be based on factors such as brand reputation, unique product features or technology, superior customer service, or efficient supply chain management. By possessing a sustainable competitive advantage, a company is better positioned to achieve long-term success and profitability.

Question 15

In monopolistic competition,
A) one firm completely controls a broad product-market.
B) each competitor tries to get control in its "own" target market.
C) competitors offer the same marketing mix.
D) different marketing mixes are nevertheless seen as the same by all customers.
E) all customers view various alternatives as substitutes.

Accepted Answer

Monopolistic competition is characterized by a large number of firms competing with each other in the same market, but each firm tries to differentiate its product from others in order to capture a larger share of the market. Therefore, each competitor tries to establish its own unique target market by offering a unique marketing mix that appeals to a particular group of customers. This leads to product differentiation and some degree of market power for each firm.

Question 16

Which of the following statements about the competitive environment is FALSE?
A) Competition-free environments are rare.
B) Marketing managers should choose strategies that avoid head-on competition.
C) A firm that has a marketing mix that its target market sees as better than its competitors' has a competitive advantage.
D) Over the long run, most product-markets tend toward monopolistic competition.
E) In a competitor analysis, the firm's first step should be to identify all potential competitors.

Accepted Answer

Over the long run, most product-markets tend toward perfect competition rather than monopolistic competition.

Question 17

Along with studying trends in the environment, a first step in looking for attractive opportunities is to:
A) understand the resources and objectives of the firm.
B) decide which product-markets the firm will enter.
C) find new markets for present products.
D) estimate product-market potentials.
E) hire a marketing strategy planner.

Accepted Answer

Before identifying attractive opportunities, it is important to understand the resources and objectives of the firm to ensure that any potential opportunities align with the company's capabilities and goals.

Question 18

Regarding the competitive environment, a marketing manager usually can:
A) choose strategies to avoid head-on competition.
B) control it with the help of the legal environment.
C) control it in the short run.
D) control it with the help of the political environment.
E) control it in the long run.

Accepted Answer

While a marketing manager cannot entirely control the competitive environment, they can choose strategies to avoid head-on competition. This may include identifying a unique selling proposition, niching down, or focusing on a specific target market.

Question 19

____ refers to market situation where one firm completely controls a broad product-market.
A) Monopoly
B) Oligopoly
C) Pure competition
D) Monopolistic competition
E) Collectivist competition

Accepted Answer

A monopoly refers to a market situation where one firm completely controls a broad product-market. This means that the firm does not face competition from any other firms in producing and selling a particular product or service. As a result, the monopolist has the power to control prices and output levels, which can lead to market inefficiencies and consumer welfare losses.

Question 20

Most product-markets head toward ______ over the long run.
A) pure competition
B) monopolistic competition
C) capitalistic competition
D) monopoly
E) collectivism

Accepted Answer

Pure competition is a market structure in which there are many buyers and sellers, and each firm produces an identical product. In the long run, most product-markets head toward pure competition because firms that are able to produce at a lower cost will drive out firms that are unable to do so.

Quiz 3: Evaluating Opportunities in the Changing Marketing Environment

Which of the following observations is NOT TRUE of monopolistic competition?

When looking for attractive opportunities, a marketing manager should consider:

When a firm is searching for attractive opportunities, a good manager should keep in mind that ___________ strength is very important.

When conducting a competitor analysis, it is important for managers to take the viewpoint of:

The number and types of competitors a marketing manager must face-and how they might behave-is called the ______________ environment.

In a _____________ situation, competitors offer very similar products which customers see as close substitutes, and managers just compete with lower and lower prices as profit margins shrink.

The competitive environment that most marketing managers experience in developed economies is:

A useful tool for organizing the competitor analysis is:

An energy company that has expertise in drilling for oil would also likely have the resources to:

Which of the following is not a basic kind of market (competitive) situation?

Which of the following would NOT be a marketing strength for a local coffee shop?

A first step in evaluating marketing opportunities is to:

Which of the following is not a marketing strength for a book publisher?

A(n) _______ is a marketing mix that customers see as better than a competitor's mix and cannot be quickly or easily copied.

In monopolistic competition,

Which of the following statements about the competitive environment is FALSE?

Along with studying trends in the environment, a first step in looking for attractive opportunities is to:

Regarding the competitive environment, a marketing manager usually can:

____ refers to market situation where one firm completely controls a broad product-market.

Most product-markets head toward ______ over the long run.