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74) 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
75) A marketing manager has decided to "leapfrog" the competition by moving into cutting-edge
technologies. This indirect approach to attacking competition can be characterized as a(n)
________ attack.
A) flank
B) encirclement
C) bypass
D) guerrilla
E) frontal
76) Selective price cuts, intense promotional blitzes, and occasional legal action are
commonplace in the strategic design of a(n) ________ attack.
A) frontal
B) flank
C) bypass
D) encirclement
E) guerilla
77) When Canon grabbed a large chunk of Xerox's market by introducing desk copiers, it
distanced itself from other challengers by ________.
A) attacking a regional firm
B) attacking a firm of its own size that was underfinanced
C) attacking the market leader
D) attacking a firm of its own size that was not doing the job well
E) acquiring guppies
78) Market challengers are companies that attack the leader and other competitors in an
aggressive bid for further market share.
79) Attacking the market leader proves successful and beneficial only when the leader is not
serving the market well.
80) A frontal attacking strategy is another name for identifying shifts that are causing gaps to
develop, then rushing to fill the gaps.
81) Encirclement attempts to capture a wide slice of territory by launching a grand offensive on
several fronts.
82) Guerrilla attacks consist of small, intermittent attacks, conventional and unconventional,
including selective price cuts, intense promotional blitzes, and occasional legal action.
83) Pepsi used flank attacks when it launched Aquafina nationally (before Coca-Cola's launch of
Dasani); purchased orange juice giant Tropicana in 1998; and purchased the owner of Gatorade
sports drink in 2000.
84) Describe the four broad strategies often employed by market followers to meet their
competitors.
85) Who are the ideal opponents of a market challenger?
86) Describe frontal attack as a general market-challenger attack strategy.
87) Assume that you are the marketing manager of a firm that manufactures athletic shoes. How
will you launch an encirclement attack on your competitor?
88) The marketing manager of a firm that manufactures cotton cloth has chosen the bypass attack
as a means of responding to an industry leader. How will the manager go about launching this
type of attack?
89) What is a guerilla attack?
90) How can a firm choose a specific attack?
91) 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
92) 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
93) 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
94) 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
95) 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
96) 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
97) 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
98) As a(n) ________, BurgerJacks, a fast food chain selling low-price burgers, has
differentiated itself by setting up base in a market not yet exploited by McDonald's.
A) cloner
B) imitator
C) counterfeiter
D) adapter
E) innovator
99) 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
100) 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
101) 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(n) ________.
A) counterfeiter
B) cloner
C) imitator
D) adapter
E) innovator
102) 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
103) A firm that serves small market segments that are not being served by bigger firms is
known as a market ________.
A) challenger
B) leader
C) follower
D) nicher
E) entrant
104) 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
105) 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.
106) 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
107) Newman Inc. is a company that manufactures saddles specifically for horses that race in
derbies in the United States and the United Kingdom. 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
108) 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
109) A job-shop specialist ________.
A) sells only in a certain locality, region, or area of the world
B) customizes its products for individual customers
C) operates at the low- or high-quality ends of the market
D) offers one or more services not available from other firms
E) specializes in serving only one channel of distribution
110) A firm that is based in France designs jewelry and takes custom orders from around the
world. They do not design more than 15 pieces of jewelry in a year and ensure that each design
uses unique stones and is unique. Such nichemanship is an example of ________ specialist role.
A) customer-size
B) product
C) product-feature
D) job-shop
E) quality-price
111) When a bank takes loan requests over the phone and hand-delivers the money to the
customer, it becomes a ________ specialist.
A) geographic
B) job-shop
C) quality-price
D) channel
E) service
112) A niche specialist that specializes in one type of customer, like a value-added reseller that
customizes computer hardware and software for a specific customer segment and earns a price
premium in the process, is a(n) ________ specialist.
A) geographic
B) quality-price
C) product-feature
D) end-user
E) channel
113) As a market-follower strategy, a counterfeiter emulates the leader's products, name, and
packaging, with slight variations.
114) As a market-follower strategy, an imitator duplicates the leader's product and packages and
sells it on the black market or through disreputable dealers.
115) Firms with low shares of the total market can become highly profitable through smart
niching.
116) An alternative to being a follower in a large market is to be a leader in a small market.
117) The nicher achieves high sales volume, whereas the mass marketer achieves high margin.
