Deck 4: Marketing Strategies for Competitive Advantage

Question 1

According to the text, which of the following viewpoints is MOST likely to provide the marketer with the broadest set of actual and potential competitors?

A) direct competition
B) industry perspective
C) strong competition
D) market perspective
E) none of the above

Answer 1

D

Question 2

Firms that serve smaller segments within an industry that others overlook is known as the market:

A) challengers.
B) followers.
C) leaders.
D) nichers.
E) structurers.

Answer 2

D

Question 3

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. This approach to strategy is BEST described as:

A) niche.
B) entrepreneurial.
C) formulated.
D) intrapreneurial.
E) none of the above

Answer 3

B

Question 4

Which of the following statements about smaller companies gathering competitive intelligence is TRUE?

A) Although smaller companies often cannot afford formal competitive intelligence, they can assign specific executives to monitor specific competitors.
B) Due to the paucity of valuable competitive intelligence, smaller companies are likely to be less competitive.
C) Smaller companies find it extremely difficult to collect competitor intelligence.
D) Smaller companies are more likely to pay expensive external consultancies to gather intelligence on their behalf.
E) None of the above are true.

Question 5

The competitive position known as market leader is characterised as the firm that:

A) is a runner- up in an industry but that wants to hold its market share without rocking the boat.
B) is a runner- up in an industry but that is fighting to increase its market share.
C) serves small segments within an industry that others overlook.
D) has the largest market share in an industry.
E) pays balanced attention to both customers and competitors in designing its marketing strategies.

Question 6

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:

A) focus.
B) middle- of- the- road.
C) differentiation.
D) price sensitivity.
E) overall cost leadership.

Question 7

Approaches to marketing strategy and practice often pass through stages. Which of the following is NOT one of the stages?

A) market maturity
B) entrepreneurial
C) intrapreneurial
D) formulated
E) none of the above

Question 8

As small companies achieve success, they inevitably develop formal marketing strategies and adhere to them closely. Typically, they have more to spend on advertising and promotion of their products or services. This approach to strategy is BEST described as:

A) intrapreneurial.
B) formulated.
C) entrepreneurial.
D) mature.
E) none of the above

Question 9

When a market challenger matches the competitor's product, advertising, price and distribution efforts, this is known as a(n):

A) frontal attack.
B) guerrilla attack.
C) flanking attack.
D) bypass attack.
E) encirclement attack.

Question 10

Competitors whose actions disrupt the market- place or who use strategies that challenge the existence of other competitors or cause harm to overall industry profitability are often known as competitors.

A) challenger
B) aggressive
C) guerilla
D) bad
E) flanker

Question 11

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

A) focus.
B) middle- of- the- road.
C) differentiation.
D) price sensitivity.
E) overall cost leadership.

Question 12

The firm with the largest market share in an industry is known as the market:

A) challenger.
B) follower.
C) leader.
D) nicher.
E) structure.

Question 13

The competitive position known as market nicher is characterised as a firm that:

A) serves small segments within an industry that others overlook.
B) is a runner- up in an industry but that is fighting to increase its market share.
C) is a runner- up in an industry but that wants to hold its market share without rocking the boat.
D) pays balanced attention to both customers and competitors in designing its marketing strategies.
E) has the largest market share in an industry.

Question 14

There are said to be distinct types of market followers. Which of the following is NOT one of these types?

A) adaptors
B) modifiers
C) imitators
D) cloners

Question 15

For a market leader, the best defence is a good offence. An effective market leader refuses to be content with the way things are and leads the industry in new products, customer services, distribution effectiveness, promotion and cost cutting in a process known as continuous:

A) new product development.
B) frontal attack.
C) indirect attack.
D) innovation.
E) all of the above.

Question 16

Which of the following is the last step in conducting a benchmark analysis?

A) collect data on performance and practices
B) select product, service or process for the analysis
C) adapt and implement best practices, setting reasonable goals and ensuring company- wide acceptance
D) choose companies or internal areas for the analysis
E) analyse and evaluate data and identify opportunities for improvement

Question 17

Indian company, Tata Chemicals has been developing a range of new product concepts to grow its share of the table salt market. One product line includes a range of flavoured salts marketed as Salt Flavoritz. Flavours include salt with lemon- coriander; red paprika and onion- garlic. At the time when these products were launched onto the market, there was no sub- category for flavoured salts within the mother category of table salt. Tata Chemicals' foray into flavoured salts could be considered as a:

A) pioneering strategy.
B) market leadership strategy.
C) market development.
D) red ocean strategy.
E) blue ocean strategy.

Question 18

According to a quotation in your text, "Tomorrow's leading companies will succeed not by battling competitors but by creating ' oceans' of uncontested market space."

A) red
B) yellow
C) vast
D) blue
E) green

Question 19

Many large and mature companies get stuck in deep analysis of numbers such as the latest Nielsen numbers, scan market research reports, which they use to try to fine- tune their competitive strategies and programmes. These companies are best described as:

A) intrapreneurial.
B) entrepreneurial.
C) multi- national.
D) formulated.
E) none of the above

Question 20

The steps involved in a benchmarking analysis do NOT include which of the following?

A) select product, service or process for the analysis
B) collect data on performance and practices
C) choose companies or internal areas for the analysis
D) analyse data and identify opportunities for improvement
E) contact external companies for permission to use their data

Question 21

The firm who is a runner- up in an industry but that is fighting to increase its market share is known as the market:

A) challenger.
B) follower.
C) leader.
D) nicher.
E) structure.

Question 22

Customer _ analysis is conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers.

A) strategy
B) value
C) positioning
D) market
E) attack

Question 23

It has been suggested that companies gain leadership positions through the pursuit of value disciplines such as:

A) customer intimacy.
B) overall cost leadership.
C) differentiation.
D) competition rivalry.
E) focus.

Question 24

The competitive positioning strategy whereby the company focuses its efforts on serving a few market segments well is known as:

A) focus.
B) middle- of- the- road.
C) differentiation.
D) price sensitivity.
E) overall cost leadership.

Question 25

The competitive position known as market follower is characterised as the firm that:

A) is a runner- up in an industry but that wants to hold its market share without rocking the boat.
B) serves small segments within an industry that others overlook.
C) is a runner- up in an industry but that is fighting to increase its market share.
D) has the largest market share in an industry.
E) pays balanced attention to both customers and competitors in designing its marketing strategies.

Question 26

The process of comparing the company's products and processes to those of competitors or leading firms in other industries in order to identify best practice and find ways to improve performance is known as:

A) value analysis.
B) benchmarking.
C) best practice analysis.
D) competitor analysis.
E) none of the above

Question 27

It has been suggested that companies gain leadership positions through the pursuit of value disciplines such as:

A) competition rivalry.
B) focus.
C) differentiation.
D) overall cost leadership.
E) product leadership.

Question 28

According to a study cited in the text, Treacy and Wiersema found that leading companies focus on and excel at a _ value discipline.

A) multiple
B) competitor- focussed
C) single
D) customer- focussed

Question 29

Romany Woman is a retail store operating in the Victorian beachside suburb of Williamstown, offering a rare specialisation. Among its eclectic range of merchandise is a large collection of hand- made bridal outfits, designed and made by local designers and featuring a distinctive Gothic style. The typical Gothic bridal outfit features bell shaped sleeves, intricate corsetry, dark coloured fabrics, lace- up boots and a variety of accessories. This store has developed such a strong reputation for its hand- made Gothic designs that "Goth" girls are willing to travel from Queensland, NSW and South Australia for fittings. Romany Woman's specialisation is an example of:

A) specific- customer.
B) customer size.
C) geographical.
D) quality- price.
E) vertical- level.

Question 30

Compared with manufacturers of packaged goods, B2B marketers often have problems collecting data for a competitor analysis. The MOST likely explanation for this is that:

A) most B2B companies are sole- traders and partnerships who are not required to publish annual reports.
B) the B2B sector is highly secretive and circumspect.
C) B2B businesses don't have access to the same syndicated data services.
D) there is no tradition of information sharing in the B2B sector.
E) All of the above are valid explanations.

Question 31

Some companies seek to identify unoccupied market spaces by developing products and services for which there are no competitors. According to the text, this is known as:

A) pioneering strategy.
B) market innovation.
C) market leadership.
D) red ocean strategy.
E) blue ocean strategy.

Question 32

The competitive positioning strategy whereby the company does not pursue a clear strategy and attempts to be good on all strategic counts is known as:

A) focus.
B) middle- of- the- road.
C) differentiation.
D) price sensitivity.
E) overall cost leadership.

Question 33

According to the text, which of the following is NOT one of the steps in a competitor analysis?

A) conducting a five forces analysis
B) identifying the company's competitors
C) assessing the competitors' strengths and strategies
D) selecting which competitors to attack or avoid
E) All of the above are steps in a competitor analysis.

Question 34

Which of the following strategies or tactics would NOT normally be used by a firm that is trying to expand the total market?

A) develop new users
B) full frontal attack on closest rival
C) increase product usage rates
D) develop new uses for the product
E) all of the above

Question 35

The first step in developing successful, customer value- based strategies is:

A) developing competitive strategy.
B) competitor analysis.
C) positioning the company against competitors.
D) conducting a five forces analysis.
E) determining the long- term growth strategy.

Question 36

The firm who is a runner- up in an industry but that wants to hold its market share without rocking the boat is known as the market:

A) challenger.
B) follower.
C) leader.
D) nicher.
E) structure.

Question 37

Which of the following strategies would NOT normally be indicated for a market leader?

A) expand market share
B) full frontal attack
C) protect market share
D) expand total market
E) all of the above

Question 38

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

A) strategic group
B) marketing group
C) competitive cartel
D) group alliance
E) competitive alliance

Question 39

One of the specialist roles that is open to a market nicher and involves the firm specialising in one specific type of customer is known as a(n) specialist.

A) end- user
B) customer size
C) quality- price
D) geographic
E) vertical

Question 40

By offering consumers greater value and satisfaction, companies may gain a(n) over their competitors.

A) competitor's strategy
B) market strategy
C) improved recall
D) competitive advantage
E) increase in suppliers

Question 41

Companies can identify their competitors from an industry viewpoint or a market viewpoint.

Question 42

A company exhibiting product leadership is one who provides superior value by offering leading- edge products that make its own and competitors' products obsolete.

Question 43

A company that has the opportunity to observe the market leader and then improve on the leader's strategies or products is said to have a advantage.

A) competitive
B) comparative
C) third- mover
D) second- mover
E) first- mover

Question 44

A company that pursues low- cost leadership will react much more strongly to a competitor's cost- reducing manufacturing breakthrough than to the same competitor's advertising increase.

Question 45

Acme Corporation had been receiving many complaints from customers about errors in billing. Although the problem was by no means critical, management decided to investigate those companies in other industries with excellent reputations for billing and invoicing. They soon identified American Express as a company with a global reputation for the accuracy of its invoicing and studied their processes with a view to translating some of American Express's techniques for their own use. Acme Corporation is engaged in which of the following?

A) customer value analysis
B) five forces analysis
C) industry analysis
D) benchmarking
E) competitor analysis

Question 46

It has been suggested that companies gain leadership positions through the pursuit of value disciplines such as:

A) focus.
B) operational excellence.
C) differentiation.
D) competition rivalry.
E) overall cost leadership.

Question 47

When a market challenger attacks the market leader on its weaknesses or seeks to exploit gaps in the competitor's market coverage, this is known as a(n) attack.

A) indirect
B) frontal
C) encirclement
D) bypass
E) flanking

Question 48

Market followers enjoy many advantages. Which of the following is NOT normally seen to be one of the market follower's advantages?

A) It can be a profitable position.
B) It has the opportunity to imitate or improve on the leader's products.
C) It does not bear the expense of developing new markets and new products.
D) It can normally overtake the market leader.
E) It can tap into an established distribution network.

Question 49

Many large and mature companies get stuck in formulated marketing in which they pore over the latest Nielsen numbers, scan market research reports, and try to fine- tune their competitive strategies and programmes, resulting in an overall loss of marketing creativity and passion.

Question 50

Many market nichers practise multiple niching as a hedge against the dangers of the market drying up or becoming attractive to larger competitors.

Question 51

In today's hyper competitive market- place, a company can never spend too much time tracking competitors.

Question 52

The process of identifying and assessing key competitors is known as a:

A) competitor identification.
B) strategic intent.
C) competitive marketing.
D) competitive advantage.
E) competitor analysis.

Question 53

A focus strategy involves a company focussing its effort on serving a few market segments well, rather than going after the whole market.

Question 54

The competitive position known as market challenger is characterised as the firm that:

A) is a runner- up in an industry but that wants to hold its market share without rocking the boat.
B) is a runner- up in an industry but that is fighting to increase its market share.
C) pays balanced attention to both customers and competitors in designing its marketing strategies.
D) has the largest market share in an industry.
E) serves small segments within an industry that others overlook.

Question 55

Basic competitive positioning strategies include all of the following EXCEPT:

A) differentiation.
B) focus.
C) value analysis.
D) middle- of- the- road.
E) overall cost leadership.

Question 56

Which of the following statements BEST describes the problem of "competitive myopia"?

A) overlooking close rivals
B) overlooking latent competitors
C) lack of rigour in the competitor analysis
D) overlooking global competitors
E) none of the above

Question 57

Most companies compete with close competitors; that is, those that resemble them the most.

Question 58

Market followers are those runner- up firms in an industry that want to hold their market share without rocking the boat.

Question 59

A market- oriented company is one that keeps a close eye on customer trends and customer preferences, but pays only minimal attention to competitors' activities.

Question 60

When conducting a competitor analysis, marketers use a variety of information sources. Which of the following is LEAST likely to be a useful source of information for the competitor analysis?

A) secondary data
B) marketing text books
C) primary research
D) personal experience
E) syndicated data

Question 61

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

Question 62

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

Question 63

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

Question 64

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

Question 65

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

Question 66

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

Question 67

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.

Question 68

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

Question 69

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

Question 70

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

Question 71

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

Question 72

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.

Question 73

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

Question 74

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.

Question 75

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

Question 76

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.

Question 77

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

Question 78

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