Question 1

Gaining ________ requires delivering more value and satisfaction to target consumers than competitors do.

Accepted Answer

Competitive advantage is gained by delivering more value and satisfaction to target consumers than competitors do. This can be achieved through various strategies like offering better quality, lower prices, superior customer service, unique features, or innovative products. By providing something that sets them apart in the market, companies can create a competitive advantage that helps them attract and retain customers.

Question 2

In the context of identifying competitors' strategies, the more that one firm's strategy resembles another firm's strategy, the more likely the two firms are to ________.

Accepted Answer

If two firms have similar strategies, they are likely targeting the same customer segments and competing for the same resources and market share. This increases the likelihood of direct competition between the two firms.

Question 3

To plan effective marketing strategies, a company needs to find out all it can about its competitors. It must constantly compare its marketing strategies, products, prices, channels, and promotions with those of close competitors. This is an example of ________.

Accepted Answer

Competitor analysis involves gathering and analyzing information about a company's competitors in order to inform marketing strategy. This includes comparing factors such as products, prices, channels, and promotions with those of competitors. Blue ocean strategy refers to creating a new market space instead of competing in existing markets, while organizational evaluation and quantitative analysis are broad concepts that may include competitor analysis but are not specific to it. Perfect competition refers to a theoretical market structure where all firms are price-takers and have no market power.

Question 4

A company is guilty of ________ if the company forgets latent competitors and only focuses on current competitors.

Accepted Answer

Competitor myopia refers to the situation where a company only focuses on its current competitors and fails to realize the potential threat from other companies that may enter the market in the future. This can lead to missed opportunities and a loss in market share.

Question 5

What is the LEAST relevant question to ask when assessing a firm's main competitor?

Accepted Answer

The location(s) of the competitor may not be as relevant when assessing their main strengths, weaknesses, objectives and strategy.

Question 6

Nintendo, producer of the Wii video game console, might define its competitors as other makers of physically interactive video games. But from a(n) ________ point of view, it would include all firms making physically interactive recreational products.

Accepted Answer

The question is asking for the perspective from which Nintendo would define its competitors. From a market perspective, Nintendo would consider all firms making physically interactive recreational products as competitors, not just those within the video game industry.

Question 7

Each competitor has a mix of objectives. The company wants to know the relative importance that a competitor places on all of the following EXCEPT ________.

Accepted Answer

Company history is not a measure of current or future performance or goals, it is a static characteristic that does not affect competitive behavior.

Question 8

From a market point of view, Universal Pictures might see its competition as ________.

Accepted Answer

The answer of From a market point of view, Universal...

Question 9

Strategies that strongly position the company against competitors and that give the company the best possible strategic advantage are ________ strategies.

Accepted Answer

Competitive marketing strategies are focused on positioning the company against competitors and gaining a strategic advantage over them. This involves analyzing the strengths and weaknesses of competitors, identifying opportunities for differentiation, and developing unique value propositions and marketing campaigns that highlight the company's strengths and competitive advantages. Customer relationship strategies and customer identification strategies are focused on building relationships with customers and identifying their needs, while competitor analysis strategies are focused on analyzing competitors but do not necessarily involve developing specific marketing strategies to gain a competitive advantage. Competitive relationship strategies are not a common term in marketing.

Question 10

From an industry point of view, Universal Pictures might see its competition as ________.

Accepted Answer

As a film studio, Universal Pictures would likely see other film studios as their primary competition. Columbia Pictures is a major film studio and competitor of Universal Pictures in the movie industry. The other options, including West End theatre (live theatre), Tomorrowland (a theme park), Summerfest (a music festival), and HarperCollins (a publishing company), are not direct competitors in the film industry.

Question 11

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

Accepted Answer

A company pursuing a low-cost leadership strategy focuses on reducing costs to offer products at a lower price than competitors. Therefore, a competitor's cost reducing manufacturing breakthrough would threaten their competitive advantage and they would react strongly to it. In contrast, if the competitor increases their advertising, it may not impact the low-cost leader's position in the market as significantly.

Question 12

Kodak's film business didn't lose out to direct competitor Fujifilm; it lost out to Sony, Canon, and other digital camera makers, along with a host of digital image developers and online image sharing services. This is an example of ________.

Accepted Answer

The answer of Kodak's film business didn't lose out to...

Question 13

Companies can identify their competitors from both ________ points of view.

Accepted Answer

Companies can identify their competitors by examining both the industry in which they operate and the market they serve. This helps them understand the competitive landscape and make strategic decisions about how to position themselves within it. Examining competitors from a product or customer perspective may miss important players in the broader industry or market. Location and strategy may also be useful factors to consider, but industry and market are the most fundamental.

Question 14

Companies need to know each competitor's product quality, features, and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs. These are all the dimensions that identify ________ groups within the industry.

Accepted Answer

The dimensions listed in the question are all related to strategic factors that differentiate competitors within the industry. Therefore, the correct choice is strategic.

Question 15

The first step in initiating competitive marketing strategies is to ________.

Accepted Answer

The first step in initiating competitive marketing strategies is to conduct competitor analysis, which involves identifying and assessing the strengths and weaknesses of competitors in order to develop effective marketing strategies. A thorough understanding of the competition is necessary in order to design broad competitive marketing strategies, balance customer and competitor orientations, and assess long-term organizational objectives. Conducting transaction analysis may also be helpful, but it is not the first step in initiating competitive marketing strategies.

Question 16

________ involves first identifying and assessing competitors and then selecting which competitors to attack or avoid.

Accepted Answer

Competitor analysis involves identifying and assessing competitors, and then deciding whether to attack or avoid them. This is an important step in developing an effective marketing strategy. Self-competition, blue ocean strategy, quantitative analysis, and perfect competition are not directly related to identifying and assessing competitors.

Question 17

Companies can identify competitors from a(n) ________ point of view by defining competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group.

Accepted Answer

Identifying competitors from a market point of view means defining them as companies that are operating in the same market or industry and trying to satisfy the same customer need or build relationships with the same customer group. This approach allows companies to have a broader perspective on their competition and helps them to understand market trends and opportunities. It also helps to avoid myopic thinking and encourages companies to look beyond their current industry boundaries. The other choices (customer, blue ocean, industry, and myopic) do not encompass all possible competitors or provide a comprehensive view of the market.

Question 18

From a(n) ________ point of view, Pepsi might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands. From a(n) ________ point of view, however, the customer really wants "thirst quenching."

Accepted Answer

From an industry point of view, Pepsi sees its competition as other soft drink brands. From a market point of view, the focus is on fulfilling the customer's need for "thirst quenching."

Question 19

A competitor analysis requires the assessment of all of the following EXCEPT the competitors' ________.

Accepted Answer

Organizational hierarchy is not relevant information to assess in a competitor analysis. The other options (objectives, strategies, strengths and weaknesses, and reaction patterns) are crucial to understand in order to gain a competitive advantage.

Question 20

Fosters and Mason House, two major coffee brands, competed neck and neck based on their product attributes and price promotions. They were soon blindsided by the arrival of Starcoffeez, which focused more on the coffee experience rather than the coffee. This resulted in major losses for the two companies. This is an example of ________.

Accepted Answer

The answer of Fosters and Mason House, two major coffee...

Quiz 18: Creating Competitive Advantage