Question 1

In his article,"Innovative Imitation",Theodore Levitt argues that ________.
A) imitation is wrong and should be punished
B) product imitation might be as profitable as product innovation
C) innovation is not possible without substantial imitation
D) innovation cannot begin unless dissatisfaction with imitation occurs
E) imitation should be against the law because of the intellectual property decision involved

Accepted Answer

Levitt argues that product imitation can be just as profitable as product innovation, as long as the imitator can create a product that is just as good or better than the original. He gives the example of Japanese car companies, who became successful by imitating American car companies and producing cars with better quality and lower prices. Levitt does not argue that imitation is wrong or should be punished, nor does he suggest that innovation is not possible without imitation. He also does not argue that imitation should be against the law.

Question 2

After Olay entered and took over the Indian market with its anti-aging lotion,Ponds decided to defend its home turf by investing heavily in a similar product,but that which used only natural ingredients.This is an example of a ________.
A) position defense
B) flank defense
C) counteroffensive defense
D) contraction defense
E) mobile defense

Accepted Answer

Ponds deciding to invest heavily in a similar product but with natural ingredients is an example of a counteroffensive defense strategy. Ponds is defending itself against Olay's invasion of its home market by launching a counterattack with a similar product.

Question 3

The ________ attack offers the firm an opportunity to diversify into unrelated products,into new geographical markets,and leapfrogging into new technologies.
A) bypass
B) flank
C) frontal
D) guerrilla
E) encirclement

Accepted Answer

The bypass attack strategy involves circumventing the competition and attacking areas where they are not strong or present. This allows a firm to diversify into unrelated products, new geographical markets, or new technologies without directly confronting competitors in their strongest areas.

Question 4

A marketing manager has decided to "leapfrog" competition by moving into cutting-edge technologies.This indirect approach to attacking competition can be characterized as ________.
A) flank attack
B) encirclement attack
C) bypass attack
D) guerrilla warfare
E) frontal attack

Accepted Answer

The marketing manager's decision to move into cutting-edge technologies is an example of a bypass attack, as they are not directly confronting the competition but rather finding a new way to compete.

Question 5

When "petroleum" companies such as BP sought to recast themselves as "energy" companies,increasing their research into the oil,coal,nuclear,hydroelectric,and chemical industries,these companies were employing a ________ strategy.
A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense

Accepted Answer

The answer of When "petroleum" companies such as BP sought...

Question 6

When large companies can no longer defend all their territory,they launch a ________ defense where they give up weaker markets and reassign resources to stronger ones.
A) contraction
B) preemptive
C) flank
D) mobile
E) position

Accepted Answer

This refers to a contraction defense or strategic withdrawal, where companies reduce their scope and focus on their core competencies by pulling out of weaker markets, thereby reassigning resources to the stronger markets.

Question 7

In 2006,Sara Lee spun off products that accounted for a large percentage of the company's revenues,including its strong Hanes hosiery brand,so it could concentrate on its well-known food brands.In this example,Sara Lee is employing a ________ strategy.
A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense

Accepted Answer

Sara Lee is using a contraction defense strategy by shedding certain product lines (such as Hanes hosiery) in order to focus on its core business of food brands.

Question 8

Sally Seabrook is an up-and-coming marketing manager for a large department store chain.Ms.Seabrook has distinguished herself with bold strategies such as launching attacks on her primary competitor from several fronts,including advertising,new store openings,and new distributor alliances.Which of the following market challenger attack strategies is Ms.Seabrook using to attack her competition?
A) frontal attack
B) bypass attack
C) guerrilla warfare
D) flank attack
E) encirclement attack

Accepted Answer

The answer of Sally Seabrook is an up-and-coming marketing manager...

Question 9

The ________ attack attempts to capture a significant share of the consumer market by launching a grand offensive on several fronts.
A) frontal
B) bypass
C) flank
D) encirclement
E) guerrilla

Accepted Answer

The encirclement attack is the only one mentioned that involves a grand offensive on several fronts. Frontal, bypass, flank and guerrilla attacks all involve focusing on one specific aspect or weakness of the competition, while encirclement involves surrounding and attacking on multiple fronts.

Question 10

The ________ can be used when the challenger spots areas where the opponent is underperforming.
A) encirclement attack
B) frontal attack
C) flank-geographic attack
D) backwards-flank attack
E) guerilla warfare

Accepted Answer

The flank-geographic attack is the most appropriate option, as it involves attacking from the side where the opponent is weakest or underperforming, which is exactly what the challenger is looking to exploit. The other options are not as applicable in this scenario.

Question 11

Appy Juices,a company that manufactures bottled water,diversified into soft drinks before any of its opponents could launch a diversified product.This would be an example of a(n)________ attack.
A) flank
B) bypass
C) guerrilla
D) encirclement
E) frontal

Accepted Answer

The answer of Appy Juices,a company that manufactures bottled water,diversified...

Question 12

A firm that is willing to maintain its market share,and not attack the leader and other competitors in an aggressive bid for further market share,is known as a ________.
A) market challenger
B) market leader
C) market follower
D) market nicher
E) market entrant

Accepted Answer

A market follower is a firm that is content with maintaining its current market share and not engaging in aggressive tactics to gain further market share from the leader or competitors. They typically focus on serving their existing customers and improving their products and services to maintain customer loyalty.

Question 13

Market broadening and market diversification are likely tactics employed in ________ strategies.
A) position defense
B) flank defense
C) preemptive defense
D) counteroffensive defense
E) mobile defense

Accepted Answer

The answer of Market broadening and market diversification are likely...

Question 14

In a pure ________ attack,the attacker matches its opponent's product,advertising,price,and distribution.
A) guerilla
B) bypass
C) encirclement
D) frontal
E) flank

Accepted Answer

In a pure frontal attack, the attacker matches its opponent's product, advertising, price, and distribution.

Question 15

A(n)________ is another name for identifying shifts in market segments that are causing gaps to develop,then rushing in to fill the gaps and developing them into strong segments.
A) frontal attack strategy
B) flanking strategy
C) encircling strategy
D) counteroffensive strategy
E) bypass strategy

Accepted Answer

A flanking strategy is exactly what has been described in the question. It involves identifying gaps in a market segment and filling those gaps with new products or services. This allows companies to develop strong segments and gain a competitive advantage. The other options (frontal attack strategy, encircling strategy, counteroffensive strategy, and bypass strategy) do not specifically relate to identifying gaps in market segments and filling them.

Question 16

Epic Inc.,a firm that produces chairs for offices,uses comparative advertising to inform the consumers that its products offer the same features and quality as the competitor's.This is an example of a(n)________ attack.
A) guerilla
B) frontal
C) encirclement
D) bypass
E) flank

Accepted Answer

This is an example of a frontal attack because Epic Inc. is directly comparing their products with their competitor's products in terms of features and quality.

Question 17

Selective price cuts,intense promotional blitzes,and occasional legal action are commonplace in the strategic design of a(n)________.
A) frontal attack
B) flank attack
C) bypass attack
D) encirclement attack
E) guerilla warfare

Accepted Answer

The description of selective price cuts, intense promotional blitzes, and occasional legal action is characteristic of guerilla warfare. Guerilla warfare is a type of competitive strategy where smaller firms use unconventional tactics to level the playing field against larger, more established competitors.

Question 18

Pepsodent launched a new product that could whiten teeth,fight decay,and maintain fresh breath.Observing that Pepsodent did not focus on the dental sensitivity aspect,Colgate introduced a toothpaste which did all of the above and also protected sensitive teeth.This is an example of a(n)________ attack.
A) frontal
B) flank
C) guerrilla
D) encirclement
E) bypass

Accepted Answer

This is an example of a flank attack, as Colgate identified a weakness in Pepsodent's product (lack of focus on dental sensitivity) and marketed their own product as superior by including that feature. Flank attacks involve targeting a competitor's weakness and competing in that specific area.

Question 19

For a market challenger,attacking ________ is a high risk but potentially high payoff strategy,which also allows it to distance itself from other challengers.
A) a firm of its own size
B) the market leader
C) a regional firm
D) an underfinanced firm
E) a poorly performing firm

Accepted Answer

Attacking the market leader is a high-risk strategy as they typically have a strong brand, customer loyalty, and deep pockets. However, if successful, it can provide substantial benefits such as increased market share, higher profits, and differentiation from other challengers. By targeting the market leader, the challenger can also establish itself as a serious player in the industry.

Question 20

In ________,the market leader stretches its domain over new territories that can serve as future centers for defense and offense.
A) counteroffensive defense
B) flank defense
C) contraction defense
D) mobile defense
E) position defense

Accepted Answer

The answer of In ________,the market leader stretches its domain...

Quiz 9: Crafting the Brand Positioning and Competing Effectively

In his article,"Innovative Imitation",Theodore Levitt argues that ________.

After Olay entered and took over the Indian market with its anti-aging lotion,Ponds decided to defend its home turf by investing heavily in a similar product,but that which used only natural ingredients.This is an example of a ________.

The ________ attack offers the firm an opportunity to diversify into unrelated products,into new geographical markets,and leapfrogging into new technologies.

A marketing manager has decided to "leapfrog" competition by moving into cutting-edge technologies.This indirect approach to attacking competition can be characterized as ________.

When "petroleum" companies such as BP sought to recast themselves as "energy" companies,increasing their research into the oil,coal,nuclear,hydroelectric,and chemical industries,these companies were employing a ________ strategy.

When large companies can no longer defend all their territory,they launch a ________ defense where they give up weaker markets and reassign resources to stronger ones.

In 2006,Sara Lee spun off products that accounted for a large percentage of the company's revenues,including its strong Hanes hosiery brand,so it could concentrate on its well-known food brands.In this example,Sara Lee is employing a ________ strategy.

The ________ attack attempts to capture a significant share of the consumer market by launching a grand offensive on several fronts.

The ________ can be used when the challenger spots areas where the opponent is underperforming.

Appy Juices,a company that manufactures bottled water,diversified into soft drinks before any of its opponents could launch a diversified product.This would be an example of a(n) ________ attack.

A firm that is willing to maintain its market share,and not attack the leader and other competitors in an aggressive bid for further market share,is known as a ________.

Market broadening and market diversification are likely tactics employed in ________ strategies.

In a pure ________ attack,the attacker matches its opponent's product,advertising,price,and distribution.

A(n) ________ is another name for identifying shifts in market segments that are causing gaps to develop,then rushing in to fill the gaps and developing them into strong segments.

Epic Inc.,a firm that produces chairs for offices,uses comparative advertising to inform the consumers that its products offer the same features and quality as the competitor's.This is an example of a(n) ________ attack.

Selective price cuts,intense promotional blitzes,and occasional legal action are commonplace in the strategic design of a(n) ________.

For a market challenger,attacking ________ is a high risk but potentially high payoff strategy,which also allows it to distance itself from other challengers.

In ________,the market leader stretches its domain over new territories that can serve as future centers for defense and offense.