Question 1

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

The given scenario is an example of a frontal attack, where the company directly compares its products with the competitors and highlights the similarities or advantages.

Question 2

________ is an aggressive maneuver where the firm attacks first, perhaps with guerrilla action across the market and keeping everyone off balance.
A) Position defense
B) Flank defense
C) Contraction defense
D) Preemptive defense
E) Lateral defense

Accepted Answer

Preemptive defense is the aggressive maneuver where the firm attacks first to keep everyone off balance. This type of defense aims to deter or discourage attackers from further action. The other options listed are types of defensive strategies, but they do not involve attacking first.

Question 3

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 given description refers to an encirclement attack, where the company tries to capture the market by attacking from multiple fronts simultaneously. A frontal attack would refer to a direct assault on the competitors' strengths. A bypass attack would involve avoiding the competition altogether and focusing on uncontested markets. A flank attack would entail attacking the competition on their sides rather than head-on. A guerrilla attack would involve small, intermittent attacks on the competition.

Question 4

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

This strategy is known as a flanking strategy, where a company identifies gaps in market segments that are not being fulfilled by competitors and rushes in to fill them. By doing so, they can develop these segments into strong areas of their business. The other options listed are not applicable to this particular definition.

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

Mobile defense involves broadening the company's domain by diversifying into new areas, which is what these companies are doing by expanding their research into various energy sectors.

Question 6

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 frontal attack, the attacker goes head-to-head with the competitor, matching every aspect of their marketing mix including product, advertising, price, and distribution.

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 selling off a significant portion of its business to focus on its core food brands. A contraction defense strategy involves reducing the size or scope of a company's operations to improve efficiency and profitability.

Question 8

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

Mobile defense involves expanding into new territories to create future strategic positions for both defense and offense.

Question 9

In a ________ defense strategy, the market leader can meet the attacker frontally and hit its flank, or launch a pincer movement so that it's forced to pull back to defend itself.
A) position
B) counteroffensive
C) preemptive
D) contraction
E) flank

Accepted Answer

Only the counteroffensive strategy involves meeting the attacker frontally or launching a pincer movement to force them to defend themselves, which is described in the statement. The other options do not necessarily involve directly engaging with the attacker.

Question 10

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

Mobile defense strategies involve expanding the market by broadening or diversifying to protect against competitive threats.

Question 11

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

Contraction defense strategy involves giving up weaker markets and reallocating resources to stronger ones, which fits the description given in the question. Preemptive defense is about attacking the competitors before they attack, flank defense is about focusing on the weaker side of the competitors, mobile defense is about constantly changing or moving the defense, and position defense is about holding the fort in the current position without change.

Question 12

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 focused on a specific aspect (dental sensitivity) that Pepsodent did not address in their product.

Question 13

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 used when the challenger spots areas where the opponent is underperforming. This type of attack targets the weaker areas of the opponent's business operations, such as their supply chain or distribution network. By attacking the opponent's flank, the challenger can gain an advantage and potentially weaken their overall position.

Question 14

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ strategy.
A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense

Accepted Answer

Microsoft is taking preemptive action by announcing their plans for new-product development, which may deter smaller firms from entering the same market and competing head-to-head with Microsoft. Preemptive defense involves taking strategic actions to prevent or deter competitors from entering a market or competing in a certain way.

Question 15

A marketing manager has planned a strategy that will require the organization to erect outposts to protect its weak front-running brands. In this ________ defense, the outposts will be central to the organization's new competitive strategy.
A) position
B) flank
C) preemptive
D) counteroffensive
E) mobile

Accepted Answer

The term "flank defense" is used when an organization plans to establish outposts to protect its weak front-running brands. These outposts will be positioned on the flanks of the organization's main target or front-running brands, which are vulnerable to attacks from competitors. The flank defense strategy aims to protect these vulnerable brands and gain a competitive advantage by ensuring that the organization's products or services are more attractive than those of its rivals.

Question 16

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 but potentially high payoff strategy because it allows the market challenger to capture a larger share of the market and differentiate itself from other challengers. However, this strategy requires a significant investment in marketing and advertising, and there is no guarantee of success.

Question 17

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 does not aggressively try to capture more market share and instead focuses on maintaining its current market share. Market challengers, on the other hand, actively try to gain market share from the leader and other competitors. A market leader is the company occupying the largest market share in the industry, while a market nicher focuses on a small, specialized segment of the market. A market entrant is a new company entering the market.

Question 18

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

This is an example of a counteroffensive defense, where Ponds is responding to Olay's market entry by launching a competing product to defend its market position.

Question 19

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

Ms. Seabrook is using an encirclement attack strategy, which involves launching multiple attacks on a competitor from various fronts to overwhelm them.

Question 20

The defensive marketing strategy wherein a stream of new products are introduced by a firm and are announced in advance are referred to as ________ defense.
A) mobile
B) counteroffensive
C) preemptive
D) contraction
E) flank

Accepted Answer

The defensive marketing strategy described in the question is known as preemptive defense, where a company releases a stream of new products and announces them in advance to preempt any potential attacks from competitors.

Quiz 11: Competitive Dynamics

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.

________ is an aggressive maneuver where the firm attacks first, perhaps with guerrilla action across the market and keeping everyone off balance.

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

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.

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.

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

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.

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

In a ________ defense strategy, the market leader can meet the attacker frontally and hit its flank, or launch a pincer movement so that it's forced to pull back to defend itself.

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

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.

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

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ strategy.

A marketing manager has planned a strategy that will require the organization to erect outposts to protect its weak front-running brands. In this ________ defense, the outposts will be central to the organization's new competitive strategy.

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 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 ________.

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 defensive marketing strategy wherein a stream of new products are introduced by a firm and are announced in advance are referred to as ________ defense.