Question 1

Refer to the scenario below to answer the following questions.
Essentials is a rapidly growing brand of women's makeup,perfumes,and nail care products.The company has established itself as a high- end cosmetic product available at most national drug stores.In the past,almost all of the advertising for Essentials has been in women's fashion magazines.
Essentials is now launching a new line of skin care products,ranging from facial cleansers to body lotion.These products are designed to be marketed to a broader audience,so the marketing team is exploring the effectiveness of different promotional mixes.
-Essentials considers one of its most important competitors to be Estee Lauder,another marketer of high- end makeup and skin care products sold in drug stores.Based on this,it is most accurate to say that Estee Lauder and Essentials are both .

Accepted Answer

Estee Lauder and Essentials are both high-end cosmetic brands that are marketed and sold in drug stores. This places them in the same strategic group, as they are competing for the same target audience and market share.

Question 2

According to management at hotel chain Ritz- Carlton,"It's all about providing a unique,personal,memorable experience" for guests.Ritz- Carlton most likely pursues which of the following strategies?

Accepted Answer

Ritz-Carlton's focus on providing a unique, personal, memorable experience for guests suggests a focus on customer intimacy, which involves tailoring products and services to meet the specific needs and preferences of individual customers.

Question 3

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

Accepted Answer

This is because the example given is of comparing the marketing strategies,products,prices,channels,and promotion with those of close competitors, which is an essential part of competitive analysis.

Question 4

Gary Hirshberg of Stonyfield Farm yogurt company stated that "companies can do better with less advertising,less marketing research,more guerilla marketing,and more acting from the gut." At this point,Hirshberg was following which marketing strategy?

Accepted Answer

Hirshberg is advocating for a more innovative and risk-taking approach to marketing, which aligns with the principles of entrepreneurial marketing.

Question 5

Walmart,Costco,and Southwest Airlines serve customers who want reliable,good- quality products or services,but who want them cheaply and easily.These companies are all known for pursuing a value discipline known as .

Accepted Answer

The value discipline of operational excellence focuses on delivering products or services that are reliable, good quality, and at a low cost. Walmart, Costco, and Southwest Airlines are all known for their operational efficiency and cost-saving measures, making this the best choice. Marketing insight, product leadership, and customer intimacy all prioritize different aspects of creating value for customers and do not necessarily prioritize cost-effectiveness to the same degree as operational excellence. "Middle-of-the-road" is not a recognized value discipline.

Question 6

Almost every industry includes firms that specialize in serving target subsegments called .

Accepted Answer

The concept of market niches refers to firms that specialize in serving specific target subsegments within an industry. These subsegments can be based on a variety of factors including demographics, psychographics, geography, behavior, and more. Firms that focus on serving these specific niches often have a competitive advantage over more generalized firms because they can offer tailored products or services that better meet the unique needs of their customers.

Question 7

If a company's aim is to make its own and competing products obsolete and serve customers who want state- of- the- art products and services,it is using a value discipline called .

Accepted Answer

The value discipline described in the question is product leadership, which focuses on creating state-of-the-art products and constantly improving them to stay ahead of the competition. This value discipline prioritizes innovation and has a strong focus on research and development.

Question 8

Most companies are started by individuals who live by their wits.They visualize an opportunity,construct flexible strategies on the backs of envelopes,and knock on every door to gain attention.What stage in marketing strategy are these individuals in?

Accepted Answer

These individuals are in the stage of entrepreneurial marketing, which involves taking a creative and opportunistic approach to marketing, typically seen in the early stages of a company's development. They are focused on identifying and seizing new opportunities, rather than adhering to a predetermined marketing plan or strategy. This approach is often necessary for startups and smaller businesses that need to be flexible and adaptive in order to succeed.

Question 9

Whereas the mass marketer achieves ,the nicher achieves _ .

Accepted Answer

The answer of Whereas the mass marketer achieves ,the nicher...

Question 10

Which of the following are market challenger strategies?

Accepted Answer

Market challenger strategies include aggressive tactics like full frontal attack and indirect attack to capture market share from competitors.

Question 11

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

The answer of From a(n)point of view,Pepsi might see its...

Question 12

A negative side of the is that the company becomes too reactive.Rather than carry out its own customer relationship strategy,it bases its own moves on competitors' moves.

Accepted Answer

A competitor-centered company is one that focuses on its competitors' strategies, moves, and actions rather than carrying out its customer relationship strategy. This approach can result in the company becoming too reactive, which may negatively affect its customer satisfaction level.

Question 13

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

Accepted Answer

The first step in initiating competitive marketing strategies is to conduct a competitor analysis. This involves identifying and analyzing the strengths and weaknesses of rival firms in the industry, as well as their products, pricing, distribution channels, and promotional strategies. By understanding the competitive landscape, a company can develop effective marketing strategies to position itself more favorably in the marketplace.

Question 14

Part two of a competitor analysis is assessing all of the following EXCEPT a company's .

Accepted Answer

Part two of a competitor analysis typically focuses on analyzing a company's strategies, strengths and weaknesses, objectives, and reaction patterns. While employees may be a factor to consider in the analysis, it is not typically a primary focus and therefore is not included as an option to choose EXCEPT from.

Question 15

Companies that have been in existence for some time often lose the marketing creativity and passion that they had at the start.They now need to refresh their marketing strategies and try new approaches.This is known as .

Accepted Answer

Entrepreneurial marketing is a marketing approach that emphasizes creativity, innovation, and risk-taking. It is often used by small businesses and startups, but can also be used by larger companies that are looking to refresh their marketing strategies.

Question 16

An example of a company exhibiting blue- ocean thinking is _.

Accepted Answer

The first digital tablet iPad by Apple created a new market space, representing blue-ocean thinking by offering a unique product that initially had no direct competition.

Question 17

Companies can identify competitors from a _ 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

The definition of competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group falls under the category of market-based view, which considers the competition from the perspective of the market. Therefore, the best choice is E, market.

Question 18

Walmart and Texas Instruments achieve the lowest production and distribution costs to win a large market share.They utilize a(n)strategy very effectively.

Accepted Answer

The statement mentions that Walmart and Texas Instruments achieve the lowest production and distribution costs, which means they are using an overall cost leadership strategy. This strategy focuses on producing and delivering products or services at a lower cost than competitors while maintaining a reasonable level of quality. This enables them to offer products that are competitively priced, which gives them an advantage in winning a large market share.

Question 19

There will be a constant tension between the formulated side of marketing and the .

Accepted Answer

Marketing often involves a balance between strategic planning and creative execution, with the creative side being essential for engaging and attracting customers.

Question 20

Expanding the total market,protecting market share,and expanding market share are all strategies for .

Accepted Answer

Expanding the total market, protecting market share, and expanding market share are all strategies usually employed by market leaders. Market leaders are the companies with the largest market share in an industry or product category. They can use these strategies to maintain their position or grow further. Market challengers, on the other hand, may aim to take market share away from the leader, while market followers typically strive to maintain a stable position. Market nichers focus on serving the needs of a small but specialized segment of the market, while market providers may encompass any type of company that provides goods or services for a particular market.

Quiz 18: Creating Competitive Advantage