Deck 18: Creating Competitive Advantage

Question 1

The first step in initiating competitive marketing strategies is to conduct ________.

A) a private screening
B) a competitive advantage analysis
C) management modifications
D) competitor analysis
E) absolute advantage processing

Answer 1

competitor analysis

Question 2

Knowing how major competitors react gives the company clues on how best to ________ competitors or how best to ________ the company's current positions.

A) remove; decrease
B) attack; increase
C) attack; defend
D) value; change
E) decrease; defend

Answer 2

attack; defend

Question 3

Companies need to know each competitor's product quality,features,and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs.These are all the dimensions that identify ________ groups within the industry.

A) target
B) leading
C) geographic
D) strategic
E) competing

Answer 3

strategic

Question 4

Benchmarking has become a powerful tool for increasing a company's ________.

A) brand image
B) mass appeal
C) employee training services
D) distribution channels
E) competitiveness

Question 5

The more that one firm's strategy resembles another firm's strategy,the more likely the two firms are to ________.

A) compete
B) join
C) grow
D) partner
E) succeed

Question 6

Gaining ________ requires delivering more value and satisfaction to target consumers than competitors do.

A) competitive advantage
B) competitor analysis
C) benchmarking
D) a market-center
E) a target advantage

Question 7

From a(n)________ point of view,Pepsi might see its competition as Coca-Cola,Dr Pepper,7UP,and the makers of other soft drink brands.From a(n)________ point of view,however,the customer really wants "thirst quenching."

A) market; industry
B) market; consumer's
C) industry; competitive
D) industry; market
E) company's; consumer's

Question 8

Strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage are ________.

A) competitor analyses
B) customer relationship strategies
C) competitive marketing strategies
D) competitive relationship strategies
E) universal strategy analyses

Question 9

Analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers is known as ________.

A) customer value analysis
B) competitive customer analysis
C) power analysis
D) advertising specialty analysis
E) benchmarking

Question 10

________ involves first identifying and assessing competitors and then selecting which competitors to attack or avoid.

A) Competitor analysis
B) Benchmarking
C) Customer-centered analysis
D) Market leading
E) The marketing management process

Question 11

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 ________.

A) benchmarking
B) competitor analysis
C) customer value analysis
D) product leadership
E) continuous innovation

Question 12

Companies can identify competitors from a ________ point of view by defining competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group.

A) customer's
B) market nicher's
C) market
D) database
E) industry

Question 13

A firm should compete with ________ competitors in order to sharpen its abilities.Succeeding against these competitors often provides greater returns.

A) strong
B) international
C) weak
D) distant
E) smaller

Question 14

A company is guilty of ________ if the company forgets latent competitors and only focuses on current competitors.

A) marketing myopia
B) misdirected segmentation
C) competitor synergy
D) competitor phobia
E) competitor myopia

Question 15

________ is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance.

A) Competitive advantage
B) Advertising synergy
C) Sales promotion
D) Benchmarking
E) Publicity

Question 16

Companies can identify ________ from both the industry and market point of view.

A) competitors
B) products
C) customers
D) locations
E) employees

Question 17

Part two of a competitor analysis is assessing all of the following EXCEPT a company's ________.

A) objectives
B) employees
C) strategies
D) strengths and weaknesses
E) reaction patterns

Question 18

Most companies prefer to aim competition against ________.

A) their biggest competitor
B) the market leader
C) weak competitors
D) new competitors
E) distant competitors

Question 19

Each competitor has a mix of objectives.The company wants to know the relative importance that a competitor places on all of the following EXCEPT ________.

A) company history
B) current profitability
C) market share growth
D) cash flow
E) technological and service leadership

Question 20

A company that pursues ________ leadership will react much more strongly to a competitor's ________ manufacturing breakthrough than to the same competitor's advertising increase.

A) high-cost; cost reducing
B) low-cost; cost reducing
C) service; cost reducing
D) high-cost; efficiency improving
E) market share; efficiency improving

Question 21

Tomorrow's leading companies will succeed by seeking out unoccupied positions in uncontested market spaces.Such strategic moves,termed ________,create powerful leaps in value for both the firm and its buyers,creating new demand for new products.

A) "strategic sweet spots"
B) "common platforms"
C) "value innovation"
D) "strategic platforms"
E) "service nichers"

Question 22

Which statement does NOT accurately describe a competitive intelligence system?

A) The system identifies the vital types of competitive information needed and the best sources of this information.
B) The system creates a new brand image and marketing concept.
C) The system collects information from the field and from published data.
D) The system checks information for validity and reliability, interprets it, and organizes it in an appropriate way.
E) The system sends key information to relevant decision makers and responds to inquiries from managers about competitors.

Question 23

Most companies are started by individuals who live by their wits.They visualize an opportunity,construct flexible strategies on the backs of envelopes,and knock on every door to gain attention.What stage in marketing strategy are these individuals in?

A) exponential marketing
B) formulated marketing
C) entrepreneurial marketing
D) intrepreneurial marketing
E) innovative marketing

Question 24

Most companies will compete with ________ rather than ________.

A) distant competitors; close competitors
B) close competitors; distant competitors
C) benchmarkers; distant competitors
D) market challengers; market followers
E) market challengers; market nichers

Question 25

If the company's offer delivers greater value by exceeding the competitor's offer on important attributes,the company can charge a higher price and ________,or it can charge the same price and ________.

A) earn lower profits; gain higher profits
B) earn higher profits; lose profits
C) earn higher profits; gain more market share
D) lose profits; gain more market share
E) lose profits; gain higher profits

Question 26

Rather than competing head to head with established competitors,many companies seek out unoccupied positions in uncontested market spaces.They try to create products and services for which there are no direct competitors.This is called a ________.

A) "red ocean strategy"
B) "strategic sweet spot"
C) "common platform"
D) "blue ocean strategy"
E) "strategic platform"

Question 27

The purpose of ________ is to determine the benefits that targeted customers value and how customers rate the relative value of various competitors' offers.

A) customer value analysis
B) benchmarking
C) entrepreneurial marketing
D) intrapreneurial marketing
E) overall cost leadership

Question 28

There are specific kinds of information that companies need about their competitors.The ________ system first identifies the vital types of competitive information and the best sources of this information.

A) marketing information
B) global network
C) competitive intelligence
D) marketing research
E) marketing database

Question 29

All of the following statements identify benefits from the existence of competitors EXCEPT?

A) Competitors may share the costs of market and product development.
B) Competitors help legitimize new technologies.
C) Competitors serve less-attractive segments or lead to more product differentiation.
D) Competitors fracture the target market.
E) Competitors may help increase total demand.

Question 30

Having identified and evaluated its major competitors,the company now must design broad competitive marketing strategies by which it can gain competitive advantage through superior ________.

A) customer value
B) compensation
C) employee value
D) employee service
E) target locations

Question 31

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

A) network marketing
B) formulated marketing
C) entrepreneurial marketing
D) intrepreneurial marketing
E) blue sky marketing

Question 32

An industry often contains "good" and "bad" competitors.Good competitors ________.

A) break the rules of fair competition
B) value excellent customer service
C) play by the rules of the industry
D) dominate the market
E) share their marketing strategies

Question 33

Michael Porter suggests four basic competitive positioning strategies that companies can follow-three winning strategies and one losing one.Which of the following are considered winning strategies?

A) middle-of-the-roader, focus, and overall cost leadership
B) focus, differentiation, and middle-of-the-roader
C) overall cost leadership, differentiation, and middle-of-the-roader
D) overall cost leadership, differentiation, and focus
E) differentiation, operational excellence, and focus

Question 34

There will be a constant tension between the formulated side of marketing and the ________.

A) creative side
B) competitor side
C) customer side
D) overall cost leadership
E) product value

Question 35

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

A) informal
B) formal
C) blue ocean
D) red ocean
E) innovative

Question 36

Approaches to marketing strategy and practice often pass through which of the three following stages?

A) formulated marketing, intrepreneurial marketing, and innovative marketing
B) entrepreneurial marketing, intrepreneurial marketing, and innovative marketing
C) entrepreneurial marketing, formulated marketing, and strategic marketing
D) entrepreneurial marketing, formulated marketing, and intrepreneurial marketing
E) innovative marketing, strategic marketing, and formulated marketing

Question 37

A company's close competitors are ________.

A) considered "bad" competitors
B) those that least resemble the company's operation
C) those that most resemble the company's operations
D) a negligible threat
E) the sole focus of successful companies

Question 38

The following are all examples of close competitors EXCEPT ________.

A) Nike and Adidas
B) Walmart and Target
C) Pepsi and Coca-Cola
D) Singapore Airlines and Qatar Airways
E) Nike and Timberland

Question 39

As small companies achieve success,they inevitably move toward more ________ marketing.They pore over the latest Nielsen numbers,scan market research reports,and try to fine-tune their competitive strategies and programs.

A) niched
B) formulated
C) entrepreneurial
D) intrepreneurial
E) targeted

Question 40

A manager who used to work for a competitor might follow that competitor closely to see what it does in the marketplace.Such a manager would be considered your company's ________ expert.

A) market leader
B) market follower
C) strategy
D) in-house
E) technical

Question 41

When customers are willing to pay a premium to get precisely what they want and a company responds quickly to satisfy customer needs,the company has achieved what is called ________.

A) customer intimacy
B) employee intimacy
C) operational excellence
D) promotional intimacy
E) marketing intelligence

Question 42

Most of the market is in the hands of the ________,the firm with the largest market share.

A) market challenger
B) market follower
C) market leader
D) market nicher
E) market provider

Question 43

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

A) product leadership
B) employee excellence
C) operational excellence
D) employee intimacy
E) focus leadership

Question 44

The market leader normally gains the most when the ________.

A) rest of the market follows far behind
B) total market expands
C) personal communication channels expand
D) niche marketing effort expands
E) major competitors enter the market

Question 45

Marketers can expand markets by discovering and promoting ________.

A) subliminal points of interest
B) the deficiencies of competitors
C) subtle advantages of the product
D) new uses of the product
E) new employees

Question 46

A runner-up firm that wants to hold its share in an industry without rocking the boat is a ________.

A) market follower
B) direct marketer
C) market challenger
D) market nicher
E) market leader

Question 47

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

A) challenger risk-takers
B) middle-of-the-roaders
C) nichers
D) analyzers
E) overall cost leaders

Question 48

Firms that serve small segments not being pursued by other firms are called ________.

A) market followers
B) direct marketers
C) market challengers
D) market nichers
E) market leaders

Question 49

Which of the following are market challenger strategies?

A) expand total market and protect market share
B) expand market share and follow closely
C) full frontal attack and indirect attack
D) follow closely and follow at a distance
E) multiple niching

Question 50

________ are those runner-up firms that are working to increase their market share in an industry.

A) Market leaders
B) Market challengers
C) Market followers
D) Market analyzers
E) Market nichers

Question 51

The ________ usually leads the other firms in price changes,new product introductions,distribution coverage,and promotion spending.

A) market leader
B) direct leader
C) market challenger
D) target leader
E) market nicher

Question 52

Holiday Inn encountered difficult times because it did not stand out as the lowest in cost,highest in perceived value,or best in serving some market segment.The companies is a _______.

A) nicher
B) challenger risk-taker
C) middle-of the roader
D) differentiated
E) formulated

Question 53

________ can adopt one of two competitive strategies: they can challenge the leader or they can play along with competitors and not rock the boat.

A) Runner-up firms
B) Market nichers
C) Market followers
D) Localized marketers
E) Market developers

Question 54

Market leaders can expand the market by ________ and more usage of the product.

A) developing competitors
B) initiating monopolistic practices
C) developing new users
D) developing higher standards
E) initiating new rules

Question 55

To remain number one,leading firms can take any of three actions.First,they can find ways to expand total demand.Second,they can protect their current market share through good defensive and offensive actions.Third,they can ________.

A) hire and train new employees
B) evaluate current employees
C) run smaller companies out of business, causing them to sell out to larger companies
D) try to expand their market share further, even if market size remains constant
E) shut down current company locations and reopen in highly populated areas

Question 56

Companies can pursue any of which of the following three strategies,called value disciplines,for delivering superior customer value?

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

Question 57

Profitability increases as a business gains share relative to competitors in its ________.

A) higher market
B) direct market
C) communication market
D) served market
E) valued market

Question 58

Which of the following is NOT an example of the competitive positions or roles that firms play in the target market?

A) market leader
B) market challenger
C) market follower
D) market nicher
E) market provider

Question 59

Expanding the total market,protecting market share,and expanding market share are all strategies for ________.

A) market leaders
B) market challengers
C) market followers
D) market nichers
E) market providers

Question 60

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) captive-product innovation
B) promotional innovation
C) new product innovation
D) product leadership
E) market leadership

Question 61

A negative side of the ________ is that the company becomes too reactive.Rather than carry out its own customer relationship strategy,it bases its own moves on competitors' moves.

A) competitor-centered company
B) customer-centered company
C) market-centered company
D) dual marketing strategy
E) image-centered company

Question 62

A market nicher can specialize along all of the following market,customer,product,or marketing mix lines EXCEPT?

A) end users
B) customer-size groups
C) geographic market
D) quality price
E) employees

Question 63

The market niche may dry up,or it might grow to the point that it attracts larger competitors.That is why many companies practice ________.

A) multiple niching
B) single niching
C) specific niching
D) service niching
E) market niching

Question 64

The market challenger may launch a full ________,matching the competitor's product,advertising,price,and distribution efforts.It attacks the competitor's strengths rather than its weaknesses.

A) indirect attack
B) direct attack
C) frontal attack
D) multiple attack
E) strength attack

Question 65

All of the below choices are company orientations EXCEPT which one?

A) central-orientation
B) competitor-orientation
C) customer-orientation
D) product orientation
E) market-orientation

Question 66

Rather than challenging head on,the challenger can make ________ on the competitor's weaknesses or on gaps in the competitor's market coverage.

A) a direct attack
B) a frontal attack
C) an indirect attack
D) an individual attack
E) a leadership attack

Question 67

Although it might seem that the market leader has the most going for it,challengers often have what some strategists call a ________.The challenger observes what has made the leader successful and improves upon it.

A) "competitor myopia"
B) "second mover advantage"
C) "strategic sweet spot"
D) "blue ocean strategy"
E) "red ocean strategy"

Question 68

Most competitors in the music download industry see Apple's iTunes Music Store as a ________ because it created a closed system with mass appeal.

A) good competitor
B) marginal competitor
C) bad competitor
D) benchmarked competitor
E) distant competitor

Question 69

A positive aspect of a(n)________ is that the company develops a fighter orientation,watches for weaknesses in its own position,and searches out competitors' weaknesses.

A) market-centered company
B) customer-centered company
C) competitor-centered company
D) branding-centered company
E) image-centered company

Question 70

PepsiCo conducts a survey of Coca-Cola drinkers to assess the Pepsi's and Coke's strengths and weaknesses in product qualities valued by both company's target customers.PepsiCo is using a(n)________.

A) innovative market analysis
B) global marketing strategy
C) competitive marketing strategy
D) customer value analysis
E) blue ocean strategy

Question 71

________ is profitable because the company knows the needs of the target customer segment better than other firms that casually attempt to sell to the same segment.

A) Benchmarking
B) Undifferentiated marketing
C) Market niching
D) Vertical marketing
E) Dynamic marketing

Question 72

The market follower must keep its manufacturing costs and prices ________ or its product quality and services ________.

A) stable; low
B) low; high
C) high; low
D) fair; low
E) low; fair

Question 73

Kodak's film business didn't suffer at the hands of direct competitor Fujifilm; it lost out to Sony,Canon,and other digital camera makers,along with a host of digital image developers and online image sharing services.This is an example of ________.

A) a blue ocean strategy
B) benchmarking
C) competitor phobia
D) competitor myopia
E) marketing myopia

Question 74

Whereas the mass marketer achieves ________,the nicher achieves ________.

A) low margins; low volume
B) low volume; high margins
C) high volume; high margins
D) high volume; low margins
E) high margins; high volume

Question 75

Nintendo,producer of the Wii video game console,might define its competitors as other makers of physically interactive video games.But from a(n)________ point of view,it would include all firms making physically interactive recreational products.

A) industry
B) market
C) segment
D) niche
E) interdependent

Question 76

A company that focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers is a ________.

A) market-centered company
B) geographic-centered company
C) target-centered company
D) customer-centered company
E) branding-centered company

Question 77

A company can become so ________ centered that it loses its even more important focus on maintaining profitable ________ relationships.

A) customer; competitor
B) competitor; customer
C) market; customer
D) market; competitor
E) competitor; product

Question 78

Almost every industry includes firms that specialize in serving target sub-segments called ________.

A) market niches
B) benchmarkers
C) customer databases
D) hotbox markets
E) local markets

Question 79

Hans and Nandos are both chain casual family restaurants featuring diner-like menus with reasonably priced items.These companies are in the same ________ group.

A) leading
B) strategic
C) branding
D) profitability
E) technology

Question 80

When companies watch both their customers and their competitors,they are called ________.

A) promotion-centered companies
B) market-centered companies
C) competitor-centered companies
D) customer-centered companies
E) analytically-centered companies