Question 1

Market broadening and market diversification are likely tactics employed in which of the following market leader defensive strategies
A) Position defense
B) Flank defense
C) Preemptive defense
D) Counteroffensive defense
E) Mobile defense

Accepted Answer

Market broadening and market diversification are tactics used in mobile defense, where a company seeks to expand its market or diversify its offerings to protect its market position.

Question 2

After FedEx watched UPS successfully invade its airborne delivery system,FedEx invested heavily in ground delivery service through a series of acquisitions to challenge UPS on its home turf.This is an example of a ________.
A) position defense
B) flank defense
C) counteroffensive defense
D) contraction defense
E) mobile defense

Accepted Answer

FedEx's response to UPS invading its airborne delivery system was to launch a counteroffensive defense by investing heavily in ground delivery service through a series of acquisitions. This strategy aims to challenge UPS on its home turf and regain lost market share.

Question 3

The "best defense is a good offense" would be a policy under which of the following market leader defensive strategies
A) Position defense
B) Flank defense
C) Contraction defense
D) Preemptive defense
E) Lateral defense

Accepted Answer

The "best defense is a good offense" policy suggests that a company can defend its market position by going on the offensive and taking actions that will make it difficult for competitors to challenge its position. This approach is part of a preemptive defense strategy, which involves taking aggressive actions to keep competitors at bay, instead of waiting for them to make a move. Therefore, the best choice is D, preemptive defense.

Question 4

Sony is an unusual market leader.It gives its customers new products that they have never even asked for (e.g.,Walkmans,VCRs,video cameras,CDs).This makes Sony a(n)________ firm.
A) market-driven
B) market-driving
C) operations-driven
D) vision-driven
E) virtually-driven

Accepted Answer

Sony is a market-driving firm because it is able to create new markets by introducing innovative products that customers did not even know they needed or wanted. This is in contrast to a market-driven firm which simply responds to existing customer demands and needs.

Question 5

A marketing manager has planned a strategy that will require the organization to erect outposts to protect its weak front-running brands.In this ________ defense,the outposts will be central to the organization's new competitive strategy.
A) position
B) flank
C) preemptive
D) counteroffensive
E) mobile

Accepted Answer

The term "flank defense" refers to a defensive strategy in which a company sets up outposts or mobile units to protect its weaker brands from attacks by competitors. This defensive measure is taken to ward off the competition that is attacking the weaker brands of the company.

Question 6

Being a market leader is often a difficult position to maintain and defend.The firm can try to increase its market share in the face of constant market size,protect its current market share through good defensive and offensive actions,or ________.
A) be a cost leader
B) find new, innovative technologies on a monthly basis
C) strive to win promotional awards
D) find ways to expand total market demand
E) pursue markets others do not want

Accepted Answer

Finding ways to expand total market demand is the best option as it not only helps in maintaining the current market share but also increases the size of the market, thereby creating more opportunities for the firm to grow. Option A is limiting as it focuses only on cost leadership, and options B and C do not necessarily contribute to maintaining or increasing market share. Option E may not always be feasible or profitable for the firm.

Question 7

Pushing for higher market share is less justified when ________.
A) there are obvious scale economies
B) attractive market segments exist
C) buyers want a single source of supply
D) exit barriers are low
E) there are few scale or experience economies

Accepted Answer

When there are few scale or experience economies, pushing for higher market share may be less justified as there are limited advantages to be gained through increased production and sales.

Question 8

One of the market leader strategies for expanding the total market is to focus on more usage.Two avenues are open for doing this: increasing the frequency of consumption or ________.
A) increasing adherence to everyday low pricing
B) decreasing the number of product returns
C) increasing the level or quantity of consumption
D) increasing the level of promotional expenditures relative to market share percentage
E) decreasing sales-related expenses

Accepted Answer

Increasing the level or quantity of consumption is the other avenue for expanding the total market. This can be done by encouraging customers to consume more of the product or increasing the size of products or packages, offering promotions like buy-one-get-one-free, or offering incentives for bulk purchases. Adherence to everyday low pricing, decreasing product returns, increasing promotional expenditures or decreasing sales-related expenses may not directly impact the frequency or level of consumption by customers.

Question 9

________ become market leaders through superior value delivery of unmet-and maybe even unknown-consumer needs.
A) Creative marketers
B) Anticipative marketers
C) Responsive marketers
D) Market-driving firms
E) Reactive marketers

Accepted Answer

Market-driving firms differentiate themselves by creating new market spaces and customer needs rather than just responding to existing ones. This requires a deep understanding of consumer needs and delivering superior value to meet those needs, often leading to market leadership. Creative marketers, anticipative marketers, and responsive marketers may also deliver value, but they are more focused on existing consumer needs and market trends. Reactive marketers are usually behind the curve and simply react to market changes rather than driving them.

Question 10

One approach to ________ is to identify completely new and different applications for the product.For example,food product companies have long advertised recipes that use their branded products in entirely different ways.
A) amount of consumption
B) level of consumption
C) dedication to consumption
D) awareness consumption
E) frequency of consumption

Accepted Answer

The sentence talks about identifying new applications for a product, which suggests a focus on increasing the frequency of consumption. Therefore, the most suitable term is "frequency of consumption." Out of the given options, only option E refers to frequency. Options A, B, C, and D do not fit the context of the sentence.

Question 11

As a marketing manager,you have decided to pursue new customers with your established products.Specifically,the new customers that you want are those who might use the product but do not at present.Which of the following strategies is recommended to pursue such a customer market
A) Market-penetration strategy
B) New-market segment strategy
C) Geographical-expansion strategy
D) Needs-assessment strategy
E) Consolidation strategy

Accepted Answer

The answer of As a marketing manager,you have decided to...

Question 12

Because the cost of buying higher market share may far exceed its revenue value,a company should consider four factors before pursuing increased market share.These include all of the following EXCEPT ________.
A) the possibility of provoking antitrust action
B) the likelihood that an award-winning promotional campaign can be generated
C) economic cost
D) pursuing the wrong marketing-mix strategy
E) the effect of increased market share on actual and perceived quality

Accepted Answer

The four factors to consider before pursuing increased market share include the possibility of provoking antitrust action, economic cost, pursuing the wrong marketing-mix strategy, and the effect of increased market share on actual and perceived quality. The likelihood of generating an award-winning promotional campaign is not a relevant factor to consider when pursuing increased market share.

Question 13

Market leaders are constantly under attack from large and small competitors alike.What is the most constructive response a market leader can make when defending its terrain
A) Basic cost control
B) Expanding expected benefits
C) Expanding desired benefits
D) Meet all challengers with a swift response
E) Continuous innovation

Accepted Answer

Continuous innovation allows market leaders to stay ahead by constantly improving their products or services, thus maintaining their competitive edge and making it harder for competitors to catch up.

Question 14

Some market leaders have increased profitability by selectively ________ market share in weaker areas.
A) decreasing
B) increasing
C) protecting
D) sharing
E) trading

Accepted Answer

By selectively decreasing market share in weaker areas, market leaders can focus their resources and efforts on stronger areas where they can increase profitability. This strategy often involves divesting or scaling back operations in underperforming markets or product lines.

Question 15

________ defense involves occupying the most desirable market space in the minds of the consumers,making the brand almost impregnable.
A) Position
B) Flank
C) Preemptive
D) Mobile
E) Contraction

Accepted Answer

Position defense involves creating a strong brand image and occupying a distinct position in the minds of the consumers, making it difficult for competitors to challenge or replace the brand. This is achieved through consistent branding, effective marketing, and offering unique value propositions that resonate with the target audience.

Question 16

A firm that serves small market segments not being served by bigger firms is known as a ________.
A) market challenger
B) market leader
C) market follower
D) market nicher
E) market entrant

Accepted Answer

A firm that serves small market segments not being served by bigger firms is known as a market nicher. They specialize in serving a particular customer segment and offer unique products or services to cater to the specific needs of that segment. Market nichers often have a competitive advantage because they have a better understanding of their niche and can more effectively fulfill their needs compared to larger firms that cater to a broader market.

Question 17

Increasing ________ requires either (1)identifying additional opportunities to use the brand in the same basic way or (2)identifying completely new and different ways to use the brand.
A) amount of consumption
B) level of consumption
C) dedication to consumption
D) awareness consumption
E) frequency of consumption

Accepted Answer

Increasing frequency of consumption involves finding more opportunities for consumers to use the brand, either in the same way or in new ways.

Question 18

Companies successfully gaining market share typically outperform competitors in which of the following areas
A) New-product activity
B) Relative product quality
C) Marketing expenditures
D) All of the above
E) None of the above

Accepted Answer

Companies that successfully gain market share often do so through a combination of new-product activity, high relative product quality, and strategic marketing expenditures. By taking a multi-faceted approach to improving their position in the market, these companies are able to establish a competitive advantage and capture a larger share of customer demand.

Question 19

In ________,the market leaders stretches its domain over new territories that can serve as future centers for defense and offense.
A) counteroffensive defense
B) flank defense
C) mobile defense
D) contraction defense
E) position defense

Accepted Answer

Mobile defense involves expanding into new territories to create future strategic positions for both defense and offense.

Question 20

When the total market expands,the ________ usually gains the most.
A) market challenger
B) market leader
C) market follower
D) market nicher
E) market entrant

Accepted Answer

When the total market expands, the market leader usually gains the most because they have the largest market share and resources to take advantage of the growth opportunities. They can invest in research and development, product innovation, and marketing to capture a larger share of the new demand.

Quiz 11: Dealing with Competition

Market broadening and market diversification are likely tactics employed in which of the following market leader defensive strategies

After FedEx watched UPS successfully invade its airborne delivery system,FedEx invested heavily in ground delivery service through a series of acquisitions to challenge UPS on its home turf.This is an example of a ________.

The "best defense is a good offense" would be a policy under which of the following market leader defensive strategies

Sony is an unusual market leader.It gives its customers new products that they have never even asked for (e.g.,Walkmans,VCRs,video cameras,CDs) .This makes Sony a(n) ________ firm.

A marketing manager has planned a strategy that will require the organization to erect outposts to protect its weak front-running brands.In this ________ defense,the outposts will be central to the organization's new competitive strategy.

Being a market leader is often a difficult position to maintain and defend.The firm can try to increase its market share in the face of constant market size,protect its current market share through good defensive and offensive actions,or ________.

Pushing for higher market share is less justified when ________.

One of the market leader strategies for expanding the total market is to focus on more usage.Two avenues are open for doing this: increasing the frequency of consumption or ________.

________ become market leaders through superior value delivery of unmet-and maybe even unknown-consumer needs.

One approach to ________ is to identify completely new and different applications for the product.For example,food product companies have long advertised recipes that use their branded products in entirely different ways.

As a marketing manager,you have decided to pursue new customers with your established products.Specifically,the new customers that you want are those who might use the product but do not at present.Which of the following strategies is recommended to pursue such a customer market

Because the cost of buying higher market share may far exceed its revenue value,a company should consider four factors before pursuing increased market share.These include all of the following EXCEPT ________.

Market leaders are constantly under attack from large and small competitors alike.What is the most constructive response a market leader can make when defending its terrain

Some market leaders have increased profitability by selectively ________ market share in weaker areas.

________ defense involves occupying the most desirable market space in the minds of the consumers,making the brand almost impregnable.

A firm that serves small market segments not being served by bigger firms is known as a ________.

Increasing ________ requires either (1) identifying additional opportunities to use the brand in the same basic way or (2) identifying completely new and different ways to use the brand.

Companies successfully gaining market share typically outperform competitors in which of the following areas

In ________,the market leaders stretches its domain over new territories that can serve as future centers for defense and offense.

When the total market expands,the ________ usually gains the most.