Question 1

When companies serve customers who are willing to pay a premium to get precisely what they want and the company responds quickly to satisfy these customers' needs, the company has achieved ________.
A) customer intimacy
B) product differentiation
C) operational excellence
D) product leadership
E) focus

Accepted Answer

Customer intimacy refers to prioritizing the needs and preferences of individual customers and developing a deep understanding of their unique requirements. This requires the company to respond quickly to satisfy these customers' needs, and they may also be willing to pay a premium for the customized products or services they receive. Product differentiation focuses on creating unique and superior products, while operational excellence aims to achieve efficiency and cost savings in production and delivery. Product leadership refers to being a leader in innovation and developing cutting-edge products. Focus involves targeting a specific market segment or niche.

Question 2

According to Michael Porter, what are three effective competitive positioning strategies?
A) middle-of-the-roaders, focus, and overall cost leadership
B) focus, differentiation, and middle-of-the-roaders
C) overall cost leadership, differentiation, and middle-of-the-roaders
D) overall cost leadership, differentiation, and focus
E) differentiation, market segmentation, and focus

Accepted Answer

According to Michael Porter's generic strategies, the three effective competitive positioning strategies are overall cost leadership, differentiation, and focus. Middle-of-the-roaders and market segmentation are not among Porter's generic strategies.

Question 3

Companies that have been in existence for some time often lose the marketing creativity and passion that they had at the start. They often need to refresh their marketing strategies and try new approaches, known as ________.
A) multi-level marketing
B) formulated marketing
C) ambush marketing
D) intrapreneurial marketing
E) affinity marketing

Accepted Answer

The term "intrapreneurial marketing" refers to companies empowering their employees to take on entrepreneurial roles within the company, including developing and implementing new marketing strategies. This approach can help refresh a company's marketing efforts and bring back the passion and creativity that may have been lost over time.

Question 4

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 ________.
A) overall cost leadership
B) product activation
C) product binning
D) product leadership
E) customer intimacy

Accepted Answer

The value discipline described in the scenario is product leadership, which focuses on continually improving and innovating products to stay ahead of competitors and meet the demands of customers who seek the latest and best products available. Overall cost leadership (A) prioritizes offering the lowest prices, while customer intimacy (E) prioritizes building close relationships with customers and tailoring products and services to their specific needs. Binning (C) and activation (B) are not related to value disciplines in business strategy.

Question 5

As small companies achieve success, they inevitably move toward more ________ marketing. They adopt more-developed marketing tools and adhere to them closely.
A) ambush
B) formulated
C) entrepreneurial
D) intrepreneurial
E) multi-level

Accepted Answer

Formulated marketing is a more structured approach to marketing, which is often implemented by larger companies with greater resources. Small companies that achieve success often adopt more-developed marketing strategies and tools, which can be characterized as formulated marketing.

Question 6

When Gary Hirshberg started the Stonyfield Farm yogurt company, he stated that his company could do better with less advertising, less marketing research, and more guerrilla marketing. He came up with innovative marketing ideas to promote his products such as having sales personnel dress up as large yogurt cartons to distribute free yogurt samples. Which of the following marketing strategies was being implemented by Hirshberg?
A) formulated marketing
B) entrepreneurial marketing
C) ambush marketing
D) undercover marketing
E) intrapreneurial marketing

Accepted Answer

Hirshberg was using entrepreneurial marketing, which involves taking risks and being innovative in order to create new markets or disrupt existing ones. This is evident in his decision to rely on guerrilla marketing tactics instead of traditional advertising and marketing research.

Question 7

When a company provides superior value by leading its industry in price and convenience, it has obtained ________.
A) product leadership
B) focus
C) operational excellence
D) customer intimacy
E) differentiation

Accepted Answer

Operational excellence refers to providing superior value by leading industry in price and convenience.

Question 8

What are the stages that the approaches to marketing strategy and practice usually pass through?
A) ambush marketing, multi-level marketing, and guerrilla marketing
B) guerrilla marketing, ambush marketing, and affinity marketing
C) multi-level marketing, undercover marketing, and evangelism marketing
D) entrepreneurial marketing, formulated marketing, and intrapreneurial marketing
E) undercover marketing, affinity marketing, and ambush marketing

Accepted Answer

The stages that the approaches to marketing strategy and practice usually pass through are entrepreneurial marketing, formulated marketing, and intrapreneurial marketing. These stages represent the evolution of a company's marketing strategy from a highly innovative and unpredictable approach to a more structured and consistent approach within the organization. Option A, B, and E are not the correct stages. Option C includes terms that are not typically used in marketing strategy and practice.

Question 9

Sears and Holiday Inn encountered difficult times because they did not stand out as the lowest in cost, highest in perceived value, or best in service of their primary target market segment. Both companies are ________.
A) niches
B) jack-of-all-trades
C) middle-of the roaders
D) red oceans
E) laggards

Accepted Answer

Sears and Holiday Inn were both middle-of-the-roaders, meaning they did not excel in any particular area and did not stand out among competitors.

Question 10

Companies that pursue a clear strategy will likely perform well. Firms that do not pursue a clear strategy are called ________.
A) jack-of-all-trades
B) middle-of-the-roaders
C) niches
D) red oceans
E) laggards

Accepted Answer

The term "middle-of-the-roaders" is used to describe firms that do not pursue a clear strategy and instead try to be everything to everyone, which can lead to mediocre performance.

Question 11

Walmart, Costco, and Southwest Airlines serve customers who want reliable, good-quality products or services that are also reasonable and easily available. These companies are all known for pursuing a value discipline known as ________.
A) operational excellence
B) customer intimacy
C) product differentiation
D) product leadership
E) focus

Accepted Answer

The value discipline being pursued by Walmart, Costco and Southwest Airlines is operational excellence. This means they focus on providing reliable, good-quality products or services that are also reasonably priced and easily available, while striving to be the most efficient and productive in their industry.

Question 12

Companies that operate large marketing departments, conduct expensive marketing research, spell out elaborate competitive strategies, and spend huge sums on advertising are using ________ marketing strategies.
A) informal
B) formulated
C) entrepreneurial
D) intrepreneurial
E) blue ocean

Accepted Answer

Companies that have large marketing departments, conduct expensive marketing research, and spend huge sums on advertising are likely using very formulated marketing strategies. These strategies are carefully planned and calculated, involving a great deal of research and analysis. The other options, such as informal, entrepreneurial or intrepreneurial, do not accurately describe the level of planning and strategy that would be involved in such a marketing approach. Blue ocean strategy is a specific type of strategy that focuses on creating new markets rather than competing in existing ones, but it is not necessarily related to the level of planning and resources involved in the marketing strategy overall.

Question 13

Most companies are started by individuals who live by their wits. They visualize an opportunity, take risks, and knock on every door to gain attention. Which of the following stages in marketing strategy is being illustrated here?
A) exponential marketing
B) formulated marketing
C) entrepreneurial marketing
D) affinity marketing
E) ambush marketing

Accepted Answer

The description is typical of entrepreneurial marketing, where the focus is on taking advantage of opportunities and using creativity and risk-taking to build a successful business. The other options do not apply here; exponential marketing refers to rapidly increasing sales through a viral effect, formulated marketing involves a structured approach based on market research, affinity marketing targets specific groups of consumers with shared interests, and ambush marketing is a controversial tactic involving the unauthorized use of another company's brand to promote your own product.

Question 14

Bosch is a German firm that manufactures home appliances such as dishwashers, ovens, and ranges. It competes with companies such as GE Elite and LG. Bosch is perceived as the class of the industry. Bosch pursues a(n) ________ strategy.
A) focus
B) blue ocean
C) overall cost leadership
D) differentiation
E) middle-of-the-road

Accepted Answer

Bosch is perceived as the class of the industry, indicating that it seeks to differentiate itself from competitors by offering premium products and services. Therefore, Bosch pursues a differentiation strategy.

Question 15

Which of the following are value discipline strategies?
A) operational excellence, overall cost leadership, and differentiation
B) customer intimacy, operational excellence, and focus
C) employee relations, product leadership, and overall cost leadership
D) product leadership, customer intimacy, and focus
E) operational excellence, customer intimacy, and product leadership

Accepted Answer

Operational excellence, customer intimacy, and product leadership are the three value discipline strategies according to Treacy and Wiersema's strategic framework. Option E includes all three, while the other options do not.

Question 16

American Express will do almost anything to build long-term customer loyalty and to capture customer lifetime value. Which of the following competitive marketing strategies is being pursued by American Express?
A) consumer capitalism
B) customer equity
C) product differentiation
D) product leadership
E) customer intimacy

Accepted Answer

American Express is pursuing the competitive marketing strategy of customer intimacy, as they prioritize building long-term customer loyalty and capturing customer lifetime value through personalized and customized experiences.

Question 17

Porsche is a German automobile manufacturer that competes against BMW and Audi, but only in the sports car and SUV segments of the automobile market. Porsche utilizes a(n) ________ strategy.
A) overall cost leadership
B) focus
C) middle-of-the-roaders
D) market segmentation
E) blue ocean

Accepted Answer

Porsche's strategy is focused on specific segments of the automobile market, namely sports car and SUV segments, which is characteristic of a focus strategy.

Question 18

Dell produces and delivers PCs of competitive quality at lower costs. The company constantly aims to achieve low production and distribution costs to win a large market share. Dell utilizes a(n) ________ strategy very effectively.
A) overall cost leadership
B) differentiation
C) focus
D) blue ocean
E) market segmentation

Accepted Answer

Dell's aim to achieve low production and distribution costs to win a large market share is consistent with an overall cost leadership strategy.

Question 19

Many approaches to developing effective competitive marketing strategies exist. There may be ________ between the formulated side of marketing and the creative side, as creativity and passion help build and maintain success.
A) collaboration
B) strong disagreements
C) managerial conflicts
D) productive meetings
E) constant tension

Accepted Answer

The answer of Many approaches to developing effective competitive marketing...

Question 20

Samsung and Apple actively generate new ideas, relentlessly pursue new solutions, and quickly work to get new products to market. They serve customers who want state-of-the-art products and services, regardless of the costs in terms of price or inconvenience. Which of the following value disciplines is illustrated from this example?
A) operational excellence
B) customer intimacy
C) product leadership
D) product activation
E) product binning

Accepted Answer

The example illustrates the value discipline of product leadership, as both Samsung and Apple prioritize innovation and bringing cutting-edge products to market. They may not necessarily prioritize operational efficiency or building deep relationships with customers, but instead focus on being leaders in terms of developing new technology and products.

Quiz 18: Creating Competitive Advantage

When companies serve customers who are willing to pay a premium to get precisely what they want and the company responds quickly to satisfy these customers' needs, the company has achieved ________.

According to Michael Porter, what are three effective competitive positioning strategies?

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

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 ________.

As small companies achieve success, they inevitably move toward more ________ marketing. They adopt more-developed marketing tools and adhere to them closely.

When a company provides superior value by leading its industry in price and convenience, it has obtained ________.

What are the stages that the approaches to marketing strategy and practice usually pass through?

Sears and Holiday Inn encountered difficult times because they did not stand out as the lowest in cost, highest in perceived value, or best in service of their primary target market segment. Both companies are ________.

Companies that pursue a clear strategy will likely perform well. Firms that do not pursue a clear strategy are called ________.

Walmart, Costco, and Southwest Airlines serve customers who want reliable, good-quality products or services that are also reasonable and easily available. These companies are all known for pursuing a value discipline known as ________.

Companies that operate large marketing departments, conduct expensive marketing research, spell out elaborate competitive strategies, and spend huge sums on advertising are using ________ marketing strategies.

Most companies are started by individuals who live by their wits. They visualize an opportunity, take risks, and knock on every door to gain attention. Which of the following stages in marketing strategy is being illustrated here?

Bosch is a German firm that manufactures home appliances such as dishwashers, ovens, and ranges. It competes with companies such as GE Elite and LG. Bosch is perceived as the class of the industry. Bosch pursues a(n) ________ strategy.

Which of the following are value discipline strategies?

American Express will do almost anything to build long-term customer loyalty and to capture customer lifetime value. Which of the following competitive marketing strategies is being pursued by American Express?

Porsche is a German automobile manufacturer that competes against BMW and Audi, but only in the sports car and SUV segments of the automobile market. Porsche utilizes a(n) ________ strategy.

Dell produces and delivers PCs of competitive quality at lower costs. The company constantly aims to achieve low production and distribution costs to win a large market share. Dell utilizes a(n) ________ strategy very effectively.

Many approaches to developing effective competitive marketing strategies exist. There may be ________ between the formulated side of marketing and the creative side, as creativity and passion help build and maintain success.