Question 1

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"

Accepted Answer

The described strategic moves are known as "value innovation" which involve finding new market spaces and creating new demand for innovative products that add value for both the firm and customers. Options A, B, D, and E do not accurately describe this concept.

Question 2

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.

Accepted Answer

A competitive intelligence system is designed to gather, analyze and distribute information about competitors, customers, and the overall market environment. Creating a new brand image and marketing concept is not a primary function of a competitive intelligence system.

Question 3

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

Accepted Answer

The description in the passage describes individuals who are in the stage of entrepreneurial marketing, where they are starting a company based on their own personal creativity and resourcefulness, and are willing to take risks to achieve success.

Question 4

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

Accepted Answer

Close competitors are those that offer similar products or services and target the same customer base. These competitors pose a greater threat to a company's market share and profitability than distant competitors who offer different products or serve a different market. Therefore, most companies will focus on competing with their close competitors rather than distant competitors.

Question 5

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

Accepted Answer

If a company's offer delivers greater value by exceeding the competitor's offer on important attributes, the company can charge a higher price and earn higher profits. Alternatively, it can charge the same price and gain more market share. This is because customers will be willing to pay more for a product that delivers more value or has better features. Alternatively, the company can keep the same price and gain more market share by attracting customers away from their competitors with their superior offer. Thus, the best choice is C, earn higher profits or gain more market share.

Question 6

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"

Accepted Answer

The concept described in the passage is known as the "blue ocean strategy." This term refers to the pursuit of creating new markets rather than competing in existing ones, thus avoiding the "red ocean" of competition. The other answer choices are not relevant to the concept described.

Question 7

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

Accepted Answer

Customer value analysis is specifically aimed at identifying what benefits customers value the most and how they perceive the value of competing offers. It is an important tool for understanding a company's competitive position and identifying areas for differentiation. Benchmarking, on the other hand, is a comparison of a company's performance against that of its peers, while entrepreneurial and intrapreneurial marketing are approaches to innovation and growth. Overall cost leadership is a strategy aimed at achieving low costs and high efficiency in operations.

Question 8

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

Accepted Answer

Competitive intelligence (CI) systems are designed to identify the types of information that companies need about their competitors. These systems determine the best sources of information and analyze the data to provide companies with a competitive advantage. Marketing research and marketing information systems are related to the collection and analysis of data related to customers and the marketplace, but they are not specific to competitor analysis. A global network and marketing database may be useful in gathering competitive intelligence, but they are not comprehensive systems for identifying and analyzing competitive information.

Question 9

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.

Accepted Answer

Competitors fracturing the target market is not a benefit; it implies dividing the market, which can lead to reduced market share and increased competition for the same customer base.

Question 10

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

Accepted Answer

Superior customer value is often the key factor in gaining a competitive advantage. By offering better value in terms of quality, features, service, or price, a company can attract and retain more customers than its competitors. Compensation, employee value, employee service, and target locations may all be important factors, but they are not as directly related to gaining a competitive advantage as customer value.

Question 11

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

Accepted Answer

Entrepreneurial marketing is a marketing approach that emphasizes innovation, creativity, and risk-taking. It is often used by small businesses and startups, but can also be used by larger companies that are looking to refresh their marketing strategies.

Question 12

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

Accepted Answer

Good competitors in an industry are those who play by the rules of the industry, maintain high ethical standards, and adhere to fair competition practices. They value excellent customer service and aim to offer high-quality products or services while respecting their competitors. Breaking the rules or dominating the market are not necessarily indicators of a good competitor. Sharing marketing strategies may be beneficial, but it is not a defining characteristic of a good competitor.

Question 13

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

Accepted Answer

Michael Porter's three winning strategies are overall cost leadership, differentiation, and focus. The losing strategy is the middle-of-the-roader, meaning a company that tries to be everything to everyone and doesn't have a clear focus or competitive advantage. Therefore, the correct answer is D, which includes all three winning strategies and excludes the losing strategy.

Question 14

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

Accepted Answer

The formulated side of marketing involves structured strategies and plans, while the creative side focuses on innovative and imaginative approaches, creating a natural tension between the two.

Question 15

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

Accepted Answer

Companies that do all of these activities are using formal competitive marketing strategies, which involve extensive planning, research, and investment. Informal strategies would be much simpler and less structured, while blue ocean and red ocean are terms that describe the competitive landscape itself rather than the marketing strategies being used. Innovative strategies may or may not involve extensive planning and research, depending on the specific approach being taken.

Question 16

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

Accepted Answer

The three stages are entrepreneurial marketing, formulated marketing, and intrepreneurial marketing. Entrepreneurial marketing involves a flexible and proactive approach to creating new opportunities and products. Formulated marketing involves following established marketing plans and using data to make decisions. Intrepreneurial marketing involves fostering innovation and creativity within a company to create new marketing strategies.

Question 17

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

Accepted Answer

Close competitors are those that most resemble the company's operations. These are the companies that are likely to offer similar products or services, target similar customer segments, and operate in the same industry. They pose the greatest threat to the company as they compete for the same customers and resources. It is important for a company to closely monitor and analyze the strategies and actions of its close competitors to stay competitive in the market.

Question 18

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

Accepted Answer

Nike and Timberland are not close competitors as they primarily focus on different product categories; Nike is known for athletic footwear and apparel, while Timberland is known for outdoor footwear and apparel.

Question 19

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

Accepted Answer

As small companies grow, they tend to adopt more structured and systematic approaches to marketing, which is described as "formulated" marketing. This involves using data and research to guide their strategies.

Question 20

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

Accepted Answer

The answer of A manager who used to work for...

Quiz 18: Creating Competitive Advantage

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.

Which statement does NOT accurately describe a competitive intelligence system?

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?

Most companies will compete with rather than .

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 .

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 ________.

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

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.

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

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 ________.

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 ________.

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

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?

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

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.

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

A company's close competitors are ________.

The following are all examples of close competitors EXCEPT ________.

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 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.