Question 1

A market segment's attractiveness varies with the height of its entry and exit barriers.Which of the following forces as described by Michael Porter would most likely be the force being examined if the above situation were to be considered by a marketing manager?
A)Threat of intense segment rivalry
B)Threat of new entrants
C)Threat of substitute products
D)Threat of buyers' growing bargaining power
E)Threat of suppliers' growing bargaining power

Accepted Answer

The height of entry and exit barriers is related to the threat of new entrants. If entry barriers are high, it becomes difficult for new firms to enter the market, and if exit barriers are high, it becomes difficult for existing firms to leave the market. This affects the overall threat of new entrants into the market, making it more or less attractive to potential competitors. This force is a part of Michael Porter's Five Forces framework, which examines the competitive environment of a market.

Question 2

Adam Morgan offers eight suggestions on how small brands can better compete in the marketplace.List five of them.

Accepted Answer

The answer of Adam Morgan offers eight suggestions on how...

Question 3

Successful blue-ocean thinkers take advantage of three platforms on which value innovation can take place: physical product,service,and ________.
A)consumer perception
B)prestige
C)manufacturing
D)advertising
E)delivery

Accepted Answer

The three platforms on which value innovation can take place are physical product, service, and delivery. Therefore, option E "delivery" is the correct answer.

Question 4

Assume that you are the marketing manager for a market challenger that is seeking to attack the market leader with an encirclement attack.Describe the encirclement attack and evaluate probable success using this strategy.

Accepted Answer

The answer of Assume that you are the marketing manager...

Question 5

Each marketing manager needs to be aware of the industry in which they compete.Industries can be classified according to all of the following EXCEPT ________.
A)degree of usage of promotion
B)number of sellers
C)degree of product differentiation
D)degree of vertical integration
E)degree of globalization

Accepted Answer

The degree of usage of promotion is not a characteristic used to classify industries. The other options (B, C, D, and E) are all commonly used to classify industries.

Question 6

When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don't drink coffee,Starbucks was employing a ________ strategy
A)market-penetration
B)new-market segment
C)geographical-expansion
D)niche identification
E)blue-ocean

Accepted Answer

Starbucks introduced a new product line, Tazo Tea, to target a new market segment of customers who do not drink coffee. This is an example of a new-market segment strategy.

Question 7

Coca-Cola recognizes that its number-one competitor is tap water,not Pepsi.Which of the following statements most aptly fits with the competitive situation faced by Coca-Cola when it seeks optimum selection of competitors?
A)Compete with strong competitors.
B)Compete with distant competitors.
C)Compete with parallel competitors.
D)Compete with bad competitors.
E)Compete with close competitors.

Accepted Answer

The answer of Coca-Cola recognizes that its number-one competitor is...

Question 8

Identify the seven steps of benchmarking.

Accepted Answer

The answer of Identify the seven steps of benchmarking....

Question 9

The market nicher is a specialist.Characterize five niche specialist roles that can be assumed by the market nicher.

Accepted Answer

The answer of The market nicher is a specialist.Characterize five...

Question 10

When a buyer thinks of performance running shoes,the first name that comes to mind is Nike.In this example,Nike has a high ________.
A)share of market
B)share of mind
C)share of heart
D)share of pocketbook
E)share of innovation

Accepted Answer

Share of mind refers to the space a brand occupies in a consumer's mind when they think of a particular product category. In this case, when a buyer thinks of performance running shoes, Nike is the first brand that comes to mind. This indicates that Nike has a high share of mind in the performance running shoes category.

Question 11

Characterize the four broad strategies often employed by market followers to meet their competitors.

Accepted Answer

The answer of Characterize the four broad strategies often employed...

Question 12

Greyhound and Amtrak have seen profitability threatened by the rise of air travel.These companies have experienced the threat of ________.
A)buyers' growing bargaining power
B)suppliers growing bargaining power
C)new entrants
D)substitute products
E)intense segment rivalry

Accepted Answer

The rise of air travel is a substitute product for Greyhound and Amtrak, which has threatened their profitability.

Question 13

Chevrolet competes with Ford,not with Ferrari.Which of the following statements most aptly fits with the competitive situation faced by Chevrolet when it seeks optimum selection of competitors?
A)Compete with strong competitors.
B)Compete with distant competitors.
C)Compete with parallel competitors.
D)Compete with bad competitors.
E)Compete with close competitors.

Accepted Answer

The answer of Chevrolet competes with Ford,not with Ferrari.Which of...

Question 14

In general,a company should monitor three variables when analyzing competitors.List and briefly characterize those three variables?

Accepted Answer

The answer of In general,a company should monitor three variables...

Question 15

The market leader must work hard to stay on top of its market.Three strategies can be crafted to achieve this objective.Describe these three strategies and any relevant substrategies that are necessary for accomplishing the primary objective.

Accepted Answer

The answer of The market leader must work hard to...

Question 16

Increases in ________ arise from increases in ________.
A)share of heart;share of market
B)share of mind;share of heart
C)share of mind;share of market
D)share of market;share of mind and heart
E)none of the above

Accepted Answer

The answer of Increases in ________ arise from increases in...

Question 17

Michael Porter has identified five forces that determine the intrinsic long-run attractiveness of a market or market segment.Briefly list and characterize those forces.

Accepted Answer

The answer of Michael Porter has identified five forces that...

Question 18

INSEAD professors W.Chan Kim and Renée Mauborgne believe that too many firms engage in "red-ocean thinking"-seeking bloody,head-to-head battles with competitors based largely on incremental improvements in cost,quality,or both.They advocate engaging instead in "blue-ocean thinking." Explain the concept of blue-ocean strategy.

Accepted Answer

The answer of INSEAD professors W.Chan Kim and Renée Mauborgne...

Question 19

Assume that your organization has chosen to pursue a market leader strategy of the flank defense.Describe what such a strategy might be.

Accepted Answer

The answer of Assume that your organization has chosen to...

Question 20

When a regional computer-manufacturing firm began to seek out customers who lived outside of its traditional market boundaries,the firm was employing which of the following new-customer expansion strategies to expand its total market?
A)market-penetration strategy
B)new-market segment strategy
C)geographic-expansion strategy
D)product differentiation strategy
E)latent demand strategy

Accepted Answer

The regional computer-manufacturing firm is expanding its total market by seeking out customers who live outside of its traditional market boundaries. This is a geographic-expansion strategy.

Quiz 11: Dealing With Competition

A market segment's attractiveness varies with the height of its entry and exit barriers.Which of the following forces as described by Michael Porter would most likely be the force being examined if the above situation were to be considered by a marketing manager?

Adam Morgan offers eight suggestions on how small brands can better compete in the marketplace.List five of them.

Successful blue-ocean thinkers take advantage of three platforms on which value innovation can take place: physical product,service,and ________.

Assume that you are the marketing manager for a market challenger that is seeking to attack the market leader with an encirclement attack.Describe the encirclement attack and evaluate probable success using this strategy.

Each marketing manager needs to be aware of the industry in which they compete.Industries can be classified according to all of the following EXCEPT ________.

When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don't drink coffee,Starbucks was employing a ________ strategy

Coca-Cola recognizes that its number-one competitor is tap water,not Pepsi.Which of the following statements most aptly fits with the competitive situation faced by Coca-Cola when it seeks optimum selection of competitors?

Identify the seven steps of benchmarking.

The market nicher is a specialist.Characterize five niche specialist roles that can be assumed by the market nicher.

When a buyer thinks of performance running shoes,the first name that comes to mind is Nike.In this example,Nike has a high ________.

Characterize the four broad strategies often employed by market followers to meet their competitors.

Greyhound and Amtrak have seen profitability threatened by the rise of air travel.These companies have experienced the threat of ________.

Chevrolet competes with Ford,not with Ferrari.Which of the following statements most aptly fits with the competitive situation faced by Chevrolet when it seeks optimum selection of competitors?

In general,a company should monitor three variables when analyzing competitors.List and briefly characterize those three variables?

The market leader must work hard to stay on top of its market.Three strategies can be crafted to achieve this objective.Describe these three strategies and any relevant substrategies that are necessary for accomplishing the primary objective.

Increases in arise from increases in .

Michael Porter has identified five forces that determine the intrinsic long-run attractiveness of a market or market segment.Briefly list and characterize those forces.

Assume that your organization has chosen to pursue a market leader strategy of the flank defense.Describe what such a strategy might be.

When a regional computer-manufacturing firm began to seek out customers who lived outside of its traditional market boundaries,the firm was employing which of the following new-customer expansion strategies to expand its total market?