Question 1

Fifty percent of the market is in the hands of Company A.Another 30 percent is in the hands of Company B.Fifteen percent is in the hands of Company C,and the remaining five percent is in the hands of Company D.Based on these hypothetical numbers,Company B is the market .

Accepted Answer

Company B, with 30% of the market, is the market challenger as it holds the second-largest market share after Company A, which is the leader with 50%.

Question 2

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

Accepted Answer

Competitors fracturing the target market is not a benefit; it implies dividing the market into smaller segments, which can lead to reduced market share and increased competition for each segment.

Question 3

The purpose of is to find the place where a company meets customers' needs in a way that rivals can't.

Accepted Answer

Customer value analysis helps a company identify the unique value it provides to customers that competitors cannot match. This involves examining the benefits customers derive from the company's products or services, compared to their cost. By understanding this, the company can focus on meeting customers' needs in a way that differentiates it from its rivals.

Question 4

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

Accepted Answer

The sentence suggests that the company needs to make a decision on how to respond to major competitors. The options are to attack or defend. Therefore, the best choice is E - attack and defend.

Question 5

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.

Accepted Answer

The second mover advantage refers to the idea that a company who observes and learns from the successful strategies of the market leader can then improve upon those strategies and gain an advantage. This is a common approach used by challengers to eventually surpass the market leader.

Question 6

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

Accepted Answer

Employees are not a market, customer, product, or part of the marketing mix. Therefore, a market nicher cannot specialize along employee lines.

Question 7

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

Accepted Answer

If two firms have similar strategies, they are likely to compete with each other for the same market share and resources. This competition can make it more difficult for both firms to succeed and grow, as they are essentially splitting the same customer base.

Question 8

Refer to the scenario below to answer the following questions.
Essentials is a rapidly growing brand of women's makeup,perfumes,and nail care products.The company has established itself as a high- end cosmetic product available at most national drug stores.In the past,almost all of the advertising for Essentials has been in women's fashion magazines.
Essentials is now launching a new line of skin care products,ranging from facial cleansers to body lotion.These products are designed to be marketed to a broader audience,so the marketing team is exploring the effectiveness of different promotional mixes.
-Before deciding to launch the new line of products,Essentials conducted extensive market research to make sure the products were optimally positioned.A complete marketing plan-including mobile advertising,magazine advertising,event sponsorship,and sales promotions-was established long before the products themselves were ready for market.In this case,Essentials was using _ .

Accepted Answer

Essentials was using formulated marketing, which involves creating a complete marketing plan before the products are ready for market. The fact that they conducted extensive market research to determine optimal positioning for the new skin care line further supports the use of formulated marketing.

Question 9

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

Accepted Answer

Gaining a competitive advantage means being able to deliver more value and satisfaction to target consumers than competitors can. This allows a company to stand out and potentially capture a larger share of the market. A target advantage, competitor analysis, benchmarking, and market-center are not relevant terms for this definition.

Question 10

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

Accepted Answer

An indirect attack is the best choice in this situation because it allows the challenger to avoid direct confrontation and instead focus on the competitor's weaknesses or gaps in the market, which can be a more effective way to gain an advantage. It also minimizes the risk of retaliation from the competitor.

Question 11

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 .

Accepted Answer

The other options, such as running smaller companies out of business or shutting down current locations, may be unethical or not financially viable. Evaluating current employees or hiring and training new employees may be important actions, but they do not directly address the issue of remaining number one in the market. Expanding market share, even in a constant market size, can help a company stay ahead of competitors and maintain its position as the market leader.

Question 12

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

Accepted Answer

Competitor myopia refers to a situation where a company forgets latent competitors and only focuses on current competitors. This limits the company's ability to adapt to changes in the market and hampers their long-term success.

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?

Accepted Answer

According to Michael Porter, the winning strategies are overall cost leadership, differentiation, and focus. The losing strategy is middle-of-the-roader or stuck-in-the-middle, which means trying to pursue both cost leadership and differentiation at the same time without excelling in either. Choice A includes all three winning strategies and is therefore the best choice.

Question 14

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 .

Accepted Answer

The company can gain competitive advantage by offering superior customer value compared to its competitors. This can be achieved by providing better quality products, superior customer service, and competitive pricing. Focusing on customer value can help the company differentiate itself from its competitors and attract more customers. Target locations, employee value, employee service, and compensation may also be important factors, but they are less likely to be the primary sources of competitive advantage for the company.

Question 15

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

Accepted Answer

A company pursuing low-cost leadership focuses on minimizing costs and would be more concerned about a competitor's manufacturing breakthrough, which could lower production costs, than an increase in advertising.

Question 16

Which statement does NOT accurately describe a competitive intelligence system?

Accepted Answer

A competitive intelligence system is designed to collect and analyze information on competitors and market trends in order to make informed business decisions. It does not create a new brand image and marketing concept, that is the role of marketing departments or agencies.

Question 17

Refer to the scenario below to answer the following questions.
Essentials is a rapidly growing brand of women's makeup,perfumes,and nail care products.The company has established itself as a high- end cosmetic product available at most national drug stores.In the past,almost all of the advertising for Essentials has been in women's fashion magazines.
Essentials is now launching a new line of skin care products,ranging from facial cleansers to body lotion.These products are designed to be marketed to a broader audience,so the marketing team is exploring the effectiveness of different promotional mixes.
-Essentials e- mailed a survey to a group of its most frequent,high- volume customers.The survey asked what makeup and skin care characteristics were most important to consumers.The Essentials marketing staff than ranked the performance of Essentials products in each of these categories.Essentials was conducting a(n).

Accepted Answer

The scenario describes Essentials conducting a customer value analysis by surveying their most frequent, high-volume customers to determine their priorities and how Essentials products perform in those categories.

Question 18

Marketers can expand markets by discovering and promoting .

Accepted Answer

Marketers can expand markets by discovering and promoting new uses of the product, as this can attract new customers and increase sales by broadening the product's appeal.

Question 19

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

Accepted Answer

The answer of can adopt one of two competitive strategies:...

Question 20

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

Accepted Answer

Benchmarking helps a company identify its strengths and weaknesses in comparison to its competitors, allowing it to improve and become more competitive in the market. Therefore, benchmarking increases a company's competitiveness.

Quiz 18: Creating Competitive Advantage