Marketing Management, 14e (Kotler/Keller)
Chapter 11 Competitive Dynamics
1) The ________ has the largest market share and usually shows the way to other firms in price
changes, new-product introductions, distribution coverage, and promotional intensity.
A) market challenger
B) market entrant
C) market follower
D) market nicher
E) market leader
2) 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
3) When a firm looks for new users in groups that might use the product but do not, the firm is
using the ________ strategy.
A) new-market segment
B) market-penetration
C) geographical-expansion
D) product development
E) diversification
4) As the marketing manager of a company that manufactures floor tiles, Evans Smith is given a
target to achieve 500 new customers by the end of summer. He decides to search the market for
probable customers who might use the product but do not at present. Which of the following
strategies is Evans pursuing to increase the market demand for his product?
A) market-penetration strategy
B) new-market segment strategy
C) geographical-expansion strategy
D) needs-assessment strategy
E) consolidation strategy
5) When firms look for new users in groups that have never used the product before, the firm is
using the ________ strategy.
A) new-market segment
B) market-penetration
C) geographical-expansion
D) product development
E) diversification
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
7) Trendz Inc. is a leading brand of fashion clothing and accessories based in Houston. After
gaining a strong foothold in the U.S., the company wants to foray into foreign markets. The
management at Trends knows that people residing in other countries are likely to have different
tastes and preferences, so they may have to redesign some of their offerings. Which of the
following strategies is Trendz using?
A) market-penetration strategy
B) outsourcing strategy
C) geographic-expansion strategy
D) product differentiation strategy
E) ethnocentric strategy
8) A market leader on the look out for more usage from existing customers should focus on
increasing the frequency of consumption and ________.
A) decreasing the product price
B) the product line
C) the amount of consumption
D) decreasing production turnover time
E) diversifying into unrelated markets
9) Which of the following marketing strategies requires either identifying additional
opportunities to use the brand in the same basic way or identifying completely new and different
ways to use the brand?
A) increasing the amount of consumption
B) decreasing the level of consumption
C) increasing dedication to consumption
D) increasing product innovation
E) increasing frequency of consumption
10) When food product companies advertise recipes that use their branded products in entirely
different ways, they are increasing the ________ of the brand.
A) amount of consumption
B) level of consumption
C) dedication to consumption
D) frequency of consumption
E) awareness consumption
11) Oliver, a company that produces different types of olive oil, launched a promotional
campaign focusing on the alternative uses of olive oil. What strategy is the company
implementing to expand its total market demand?
A) using the new-market segment strategy to attract new customers
B) improving the current level of product performance
C) advertising new and different applications of the brand
D) protecting its market share
E) using the market-penetration strategy to attract new customers
12) Clorox runs ads stressing the many benefits of its bleach, such as how it eliminates kitchen
odors, in order to generate additional opportunities to use the brand in the same basic way. This
is an attempt to ________.
A) increase the amount of consumption
B) increase the level of consumption
C) increase the perception of consumption
D) increase the frequency of consumption
E) increase the emotional implications of consumption
13) Which of the following is the most constructive response a market leader can make when
defending its market share?
A) maintain basic cost control
B) innovate continuously
C) provide desired benefits
D) meet challengers with a swift response
E) provide expected benefits
14) To satisfy customers, a(n) ________ marketer finds a stated need and fills it.
A) creative
B) responsive
C) anticipative
D) laidback
E) inexperienced
15) A(n) ________ marketer looks ahead to needs customers may have in the near future.
A) laidback
B) creative
C) inexperienced
D) responsive
E) anticipative
16) A(n) ________ marketer discovers solutions customers did not ask for but to which they
enthusiastically respond.
A) laidback
B) responsive
C) inexperienced
D) creative
E) anticipative
17) ________ marketers are not just market-driven, they are proactive market-driving firms.
A) Creative
B) Responsive
C) Inexperienced
D) Laidback
E) Anticipative
18) Sony is an unusual market leader. It gives its customers new products that they have never
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
19) Which of the following is true about proactive marketing?
A) A company needs creative anticipation to see the writing on the wall.
B) Proactive companies create new offers to serve unmet and unknown consumer needs.
C) Proactive companies refrain from practicing uncertainty management.
D) A company needs responsive anticipation to devise innovative solutions.
E) Companies are winners when they are extremely risk-averse.
20) ________ defense involves occupying the most desirable market space in the minds of the
consumers and making the brand almost impregnable.
A) Position
B) Flank
C) Preemptive
D) Mobile
E) Contraction
21) 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
22) ________ is an aggressive maneuver where the firm attacks first, perhaps with guerrilla
action across the market and keeping everyone off balance.
A) Position defense
B) Flank defense
C) Contraction defense
D) Preemptive defense
E) Lateral defense
23) The defensive marketing strategy wherein a stream of new products are introduced by a firm
and are announced in advance are referred to as ________ defense.
A) mobile
B) counteroffensive
C) preemptive
D) contraction
E) flank
24) If Microsoft announces plans for a new-product development, smaller firms may choose to
concentrate their development efforts in other directions to avoid head-to-head competition. In
this example, Microsoft is employing a ________ strategy.
A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense
25) In a ________ defense strategy, the market leader can meet the attacker frontally and hit its
flank, or launch a pincer movement so that it’s forced to pull back to defend itself.
A) position
B) counteroffensive
C) preemptive
D) contraction
E) flank
26) After Olay entered and took over the Indian market with its anti-aging lotion, Ponds decided
to defend its home turf by investing heavily in a similar product, but that which used only natural
ingredients. This is an example of a ________.
A) position defense
B) flank defense
C) counteroffensive defense
D) contraction defense
E) mobile defense
27) In ________, the market leader stretches its domain over new territories that can serve as
future centers for defense and offense.
A) counteroffensive defense
B) flank defense
C) contraction defense
D) mobile defense
E) position defense
28) Market broadening and market diversification are likely tactics employed in ________
strategies.
A) position defense
B) flank defense
C) preemptive defense
D) counteroffensive defense
E) mobile defense
29) When “petroleum” companies such as BP sought to recast themselves as “energy”
companies, increasing their research into the oil, coal, nuclear, hydroelectric, and chemical
industries, these companies were employing a ________ strategy.
A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense
30) When large companies can no longer defend all their territory, they launch a ________
defense where they give up weaker markets and reassign resources to stronger ones.
A) contraction
B) preemptive
C) flank
D) mobile
E) position
31) In 2006, Sara Lee spun off products that accounted for a large percentage of the company’s
revenues, including its strong Hanes hosiery brand, so it could concentrate on its well-known
food brands. In this example, Sara Lee is employing a ________ strategy.
A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense
32) A firm that is willing to maintain its market share, and not attack the leader and other
competitors in an aggressive bid for further market share, is known as a ________.
A) market challenger
B) market leader
C) market follower
D) market nicher
E) market entrant
33) For a market challenger, attacking ________ is a high risk but potentially high payoff
strategy, which also allows it to distance itself from other challengers.
A) a firm of its own size
B) the market leader
C) a regional firm
D) an underfinanced firm
E) a poorly performing firm
34) In a pure ________ attack, the attacker matches its opponent’s product, advertising, price,
and distribution.
A) guerilla
B) bypass
C) encirclement
D) frontal
E) flank
35) Epic Inc., a firm that produces chairs for offices, uses comparative advertising to inform the
consumers that its products offer the same features and quality as the competitor’s. This is an
example of a(n) ________ attack.
A) guerilla
B) frontal
C) encirclement
D) bypass
E) flank
36) The ________ can be used when the challenger spots areas where the opponent is
underperforming.
A) encirclement attack
B) frontal attack
C) flank-geographic attack
D) backwards-flank attack
E) guerilla warfare
37) Pepsodent launched a new product that could whiten teeth, fight decay, and maintain fresh
breath. Observing that Pepsodent did not focus on the dental sensitivity aspect, Colgate
introduced a toothpaste which did all of the above and also protected sensitive teeth. This is an
example of a(n) ________ attack.
A) frontal
B) flank
C) guerrilla
D) encirclement
E) bypass
38) A(n) ________ is another name for identifying shifts in market segments that are causing
gaps to develop, then rushing in to fill the gaps and developing them into strong segments.
A) frontal attack strategy
B) flanking strategy
C) encircling strategy
D) counteroffensive strategy
E) bypass strategy
39) The ________ attack attempts to capture a significant share of the consumer market by
launching a grand offensive on several fronts.
A) frontal
B) bypass
C) flank
D) encirclement
E) guerrilla
40) Sally Seabrook is an up-and-coming marketing manager for a large department store chain.
Ms. Seabrook has distinguished herself with bold strategies such as launching attacks on her
primary competitor from several fronts, including advertising, new store openings, and new
distributor alliances. Which of the following market challenger attack strategies is Ms. Seabrook
using to attack her competition?
A) frontal attack
B) bypass attack
C) guerrilla warfare
D) flank attack
E) encirclement attack
41) The ________ attack offers the firm an opportunity to diversify into unrelated products, into
new geographical markets, and leapfrogging into new technologies.
A) bypass
B) flank
C) frontal
D) guerrilla
E) encirclement
42) Appy Juices, a company that manufactures bottled water, diversified into soft drinks before
any of its opponents could launch a diversified product. This would be an example of a(n)
________ attack.
A) flank
B) bypass
C) guerrilla
D) encirclement
E) frontal
43) A marketing manager has decided to “leapfrog” competition by moving into cutting-edge
technologies. This indirect approach to attacking competition can be characterized as ________.
A) flank attack
B) encirclement attack
C) bypass attack
D) guerrilla warfare
E) frontal attack
44) Selective price cuts, intense promotional blitzes, and occasional legal action are
commonplace in the strategic design of a(n) ________.
A) frontal attack
B) flank attack
C) bypass attack
D) encirclement attack
E) guerilla warfare
45) In his article, “Innovative Imitation”, Theodore Levitt argues that ________.
A) imitation is wrong and should be punished
B) product imitation might be as profitable as product innovation
C) innovation is not possible without substantial imitation
D) innovation cannot begin unless dissatisfaction with imitation occurs
E) imitation should be against the law because of the intellectual property decision involved
46) As a market follower strategy, the ________ duplicates the leader’s product and packages
and sells it on the black market or through disreputable dealers.
A) innovator
B) cloner
C) imitator
D) adapter
E) counterfeiter
47) Aron, a company manufacturing snack food and soft drinks, replicates its product taste and
packaging from Lay’s, a market leader in snack food industry. Later, it sells these imitated
products on the black market. This is an example of ________.
A) cloning
B) imitating
C) counterfeiting
D) adapting
E) innovating
48) As a market follower strategy, the ________ emulates the leader’s products, name, and
packaging, with slight variations.
A) counterfeiter
B) cloner
C) imitator
D) adapter
E) innovator
49) Amani, a company that manufactures cloth for suits, strives to be equal to Armani in product
design, brand name, and product packaging. This is an example of ________.
A) innovating
B) adapting
C) imitating
D) cloning
E) counterfeiting
50) Tasteeos, Fruit Rings, and Corn Flakes sell for nearly $1 a box less than leading cereal
brands. Which market follower strategy is being employed by the cereal manufacturer?
A) counterfeiter
B) cloner
C) imitator
D) adapter
E) reverse innovator
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51) The ________ copies some things from the leader but differentiates on packaging,
advertising, pricing, or location.
A) innovate
B) adapt
C) cloner
D) imitator
E) counterfeiter
52) As a(n) ________, BurgerJacks, a fast food chain selling low-price burgers, has
differentiated on location by setting up base in the Middle East, a market which the current
leader of the industry McDonalds has yet not exploited.
A) cloner
B) imitator
C) counterfeiter
D) adapter
E) innovator
53) The TelePizza chain, which operates in Europe and Latin America, has copied Domino’s
service model but maintains differentiation in terms of location. TelePizza is an example of a(n)
________.
A) counterfeiter
B) adopter
C) cloner
D) imitator
E) adapter
54) As a market follower, the ________ may choose to sell to different markets, but often it
grows into a future challenger.
A) imitator
B) adapter
C) cloner
D) counterfeiter
E) innovator
55) Redo is a market follower in the wristwatch industry. After noticing a shortfall in the market
leader’s product, Redo improves its product to suit consumer needs and becomes a challenger for
the market leader. This is an example of ________.
A) counterfeiter
B) cloner
C) imitator
D) adapter
E) innovator
56) An alternative to being a market follower in a large market is to be a leader in a small
market. This type of competitor is called a ________.
A) marketing king
B) market nicher
C) segment king
D) guerilla marketer
E) strategic clone
57) A firm that serves small market segments that are 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
58) The market leader strategy ensures high sales volume, whereas the market nicher strategy
allows firms to achieve ________.
A) high margin
B) low margin
C) high promotability
D) medium pricing
E) lower demand
59) Which of the following is true about market-nichers?
A) They are market followers in small markets.
B) They tend to have high manufacturing costs.
C) Their return on investment exceeds that in larger markets.
D) A nicher achieves high volume as against a mass marketer that achieves high margin.
E) They usually experience long-term losses.
60) The key idea in successful nichemanship is specialization. Which of the following specialists
would most closely be identified with the characterization of being an organization that limits its
selling to one customer?
A) end-user specialist
B) vertical-level specialist
C) customer-size specialist
D) specific-customer specialist
E) quality-price specialist
61) Newman Inc. is a company that manufactures saddles specifically for horses that race in
derbies in the U.S. and the UK. Within this context the firm is exhibiting the role of a ________
specialist.
A) vertical-level
B) customer-size
C) product-line
D) job-shop
E) service
62) A market nicher is considered to be a(n) ________ specialist if the firm specializes in
producing a certain type of product or product feature such as, Rent-a-Wreck, that rents only
“beat-up” cars.
A) end-user
B) vertical-level
C) customer-size
D) channel
E) product-feature