Question 1

Freulia Inc.manufactures and sells stationery and office supplies.It is beginning to lose its competitive advantage with the entry of new competitors.In this case,to gain a sustainable competitive advantage,what should Freulia do?

Accepted Answer

Developing the skills and assets of the organization can lead to unique capabilities and innovations, providing a sustainable competitive advantage.

Question 2

Which of the following encompasses the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets?

Accepted Answer

A marketing strategy involves selecting and describing target markets and developing a marketing mix to create satisfying exchanges with those markets.

Question 3

A statement of what is to be accomplished through marketing activities is called __________.

Accepted Answer

A marketing objective is a statement of what is to be accomplished through marketing activities.

Question 4

A company's skills include patents,copyrights,and technology that are superior to those of the competition.

Accepted Answer

The answer of A company's skills include patents,copyrights,and technology that...

Question 5

SharpSheets is a paper manufacturing company that sells products made of recycled materials.Because no other paper manufacturing company in the market has the ability to replicate its products,it can be said that SharpSheets has a competitive advantage.

Accepted Answer

A competitive advantage occurs when a company can produce goods or services better or more uniquely than its competitors, which SharpSheets achieves by using recycled materials that others cannot replicate.

Question 6

Nessca Inc.is a pharmaceutical company that designs its products to suit the needs of a group of people with similar characteristics.In this case,Nessca should target which of the following market segments?

Accepted Answer

Nessca Inc. should target a group of individuals who are diabetic because they share a specific health-related characteristic that the pharmaceutical products are designed to address.

Question 7

Product/service differentiation competitive advantage means that an organization provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition.

Accepted Answer

Product/service differentiation involves offering unique features or benefits that set a product or service apart from competitors, providing value beyond just lower pricing.

Question 8

A firm's assets are functions-customer service and promotions-that the firm performs better than its competitors.

Accepted Answer

A firm's assets typically refer to resources it owns, such as cash, equipment, or property, rather than functions or activities like customer service and promotions.

Question 9

A competitive advantage is a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition.

Accepted Answer

A competitive advantage refers to attributes that allow a company to outperform its competitors, often through unique features or perceived superiority in the market.

Question 10

Which of the following statements is true of a niche strategy?

Accepted Answer

A niche strategy involves targeting a specific, well-defined segment of the market, allowing companies to focus their efforts on serving the unique needs of that segment.

Question 11

Imitation by competitors indicates a lack of competitive advantage and almost ensures mediocre performance.

Accepted Answer

Imitation by competitors suggests that a company's products or services are not unique or differentiated, making it difficult to achieve a competitive advantage and leading to mediocre performance.

Question 12

Which of the following actions is primarily associated with a niche strategy?

Accepted Answer

A niche strategy focuses on targeting a specific, often smaller segment of the market that is not the main focus of larger competitors, allowing a company to serve that segment more effectively.

Question 13

Which of the following is correct about a sustainable competitive advantage?

Accepted Answer

A sustainable competitive advantage is one that cannot be easily copied or replicated by competitors, allowing a company to maintain its market position over time.

Question 14

Drafi Arts Corp.makes and sells original handicraft products.The management of the company has been successfully using a niche strategy for years.In this case,which of the following is the most likely to be true of Drafi Arts Corp.?

Accepted Answer

A niche strategy often involves targeting a specific, limited segment of the market, which can include serving a limited geographic area.

Question 15

Providing something to a target market that is unique and valuable beyond simply offering a lower price than that of the competition is called ________.

Accepted Answer

Product/service differentiation involves offering unique and valuable features that set a product or service apart from competitors, beyond just competing on price.

Question 16

Imitating a rival's competitive advantage requires a company to first identify the rival's competitive advantage.

Accepted Answer

To imitate a rival's competitive advantage, a company must first identify what that advantage is in order to understand and replicate it effectively.

Question 17

Market segments cannot be differentiated by ethnicity and multicultural aspects.

Accepted Answer

Market segments can indeed be differentiated by ethnicity and multicultural aspects, as these factors can influence consumer preferences and behaviors.

Question 18

Which of the following strategies seeks to target and effectively serve a single segment of the market?

Accepted Answer

A niche competitive advantage focuses on targeting and serving a specific segment of the market, tailoring products or services to meet the unique needs of that segment.

Question 19

Which of the following firms is most likely to follow a niche strategy?

Accepted Answer

Relish, by focusing on handcrafted chocolates in a specific city, targets a narrow market segment, which is characteristic of a niche strategy.

Question 20

Which of the following is characteristic of companies that embrace a niche market strategy?

Accepted Answer

Companies that embrace a niche market strategy often do so because they have limited resources and focus on a specific segment to effectively compete.

Quiz 2: Strategic Planning and Competitive Advantage