Question 1

In the face of P&G's relentless assault,Unilever finally threw in the towel and recently put its detergents business up for sale.

Accepted Answer

The sentence clearly states that Unilever "put its detergents business up for sale" in response to P&G's attack, indicating that they gave up in the competition.

Question 2

Market leaders can grow by increasing their market shares further.

Accepted Answer

Market leaders can increase their market share by developing new products, improving existing ones, expanding distribution networks, increasing advertising and other promotions, offering better customer service, and lowering prices. This can lead to increased revenue and profits, as well as a stronger competitive position in the market.

Question 3

A company's profitability increases as a business gains share relative to competitors in its served market.

Accepted Answer

This statement is generally true, as a company with a larger market share can benefit from economies of scale, increased bargaining power, and greater brand recognition, all of which can improve their profitability. However, there may be exceptions where a company with a smaller market share may be more profitable due to niche positioning, lower costs, or other factors.

Question 4

Bob's boss criticized him for having ________.His boss believes this because Bob forgets about latent competitors and only focuses on current competitors.

Accepted Answer

The answer of Bob's boss criticized him for having ________.His...

Question 5

Bill,in his role as regional manager needs to carefully conduct a ________ which involves first identifying and assessing competitors and then selecting which competitors to attack or avoid

Accepted Answer

The answer of Bill,in his role as regional manager needs...

Question 6

Niching carries no risks.

Accepted Answer

Niching can carry risks because it involves targeting a specific market, which may limit the customer base and potentially lead to missed opportunities in other markets. Additionally, if the chosen niche is not profitable or sustainable, it can negatively impact the business's finances.

Question 7

Many large and mature companies get stuck in formulated marketing.They pore over the latest Nielsen numbers,scan market research reports,and try to fine-tune their competitive strategies and programs.

Accepted Answer

The statement describes a common phenomenon in the marketing industry where established companies rely too heavily on data and analysis, leading to a lack of creativity and innovation in their marketing strategies.

Question 8

A company can become so competitor-centred that it loses its even more important focus on maintaining profitable customer relationships.

Accepted Answer

Focusing too much on competitors can lead a company to neglect its customer relationships, thus hampering its profitability.

Question 9

Logitech has a depth of focus and knowledge that no other company in the world-including Microsoft-can match.

Accepted Answer

This is a statement that highlights Logitech's strengths and expertise compared to other companies in the world, including Microsoft.

Question 10

Bill has just received a promotion within his company.As the western regional manager in charge of British Columbia,Alberta,Saskatchewan,and Manitoba,he wants to initiate a new competitive marketing strategy.He should start with ________.

Accepted Answer

The answer of Bill has just received a promotion within...

Question 11

In fact,challengers seldom become market leaders by imitating and improving on the ideas of pioneering processors.

Accepted Answer

Challengers can become market leaders by imitating and improving on the ideas of pioneering processors, as they can capitalize on existing innovations and enhance them to gain a competitive advantage.

Question 12

The challenger must choose its opponents carefully and have a clearly defined and attainable objective.

Accepted Answer

Choosing opponents carefully and having a clearly defined and attainable objective is essential for the success of a challenger.

Question 13

After reading the latest text in marketing,Bill now realizes that strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage are ________.

Accepted Answer

The answer of After reading the latest text in marketing,Bill...

Question 14

Not all runner-up companies want to challenge the market leader.

Accepted Answer

Some runner-up companies may be content with occupying a smaller market share or niche and may not necessarily want to challenge the market leader.

Question 15

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

The answer of To plan effective marketing strategies,the company needs...

Question 16

Studies have shown that,on average,profitability rises with increasing market share.

Accepted Answer

It is generally true that profitability rises with increasing market share. This is because having a larger market share often allows a company to benefit from economies of scale, reduce costs, and potentially earn higher prices for their products or services. However, there can be exceptions to this rule, such as when a company's growth strategy involves heavy investment in gaining market share but not necessarily generating immediate profits.

Question 17

Service nichers sell only in a certain locality,region,or area of the world.

Accepted Answer

Service nichers can focus on a specific service for a particular market segment, not limited to geographical areas. They might specialize in a type of service for a specific industry, type of client, or service offering, rather than just a locality or region.

Question 18

FedEx is rare because it excels at more than one value discipline.

Accepted Answer

FedEx has managed to excel at all three value disciplines: operational excellence, customer intimacy, and product leadership.

Question 19

In an effort to protect market share,Campbell's urges people to eat soup and other Campbell's products more often by running ads containing new recipes.

Accepted Answer

The answer of In an effort to protect market share,Campbell's...

Question 20

By trying to be good at all of the value disciplines,a company usually ends up being best at none.

Accepted Answer

By trying to excel in all three value disciplines (operational excellence, product leadership, and customer intimacy) at the same time, a company might spread itself too thin and end up not truly excelling in any particular one. It's better to focus on one or two value disciplines and excel in them to differentiate oneself from competitors.

Quiz 18: Creating Competitive Advantage