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61) Samsung and Apple are open to new ideas, relentlessly pursue new solutions, and work to
get new products to market quickly. They serve customers who want state-of-the-art products
and services, regardless of the costs in terms of price or inconvenience. Which of the following
value disciplines is illustrated from this example?
A) operational excellence
B) customer intimacy
C) product leadership
D) product activation
E) product binning
62) Which of the following is a competitive position or role that firms play in the target market?
A) surrogate consumer
B) market analyst
C) market maven
D) market nicher
E) laggard
63) Most of the market is in the hands of the ________, the firm with the largest market share.
A) market challenger
B) market follower
C) market leader
D) market nicher
E) market maven
64) ________ are those runner-up firms that are working to increase their market share in an
industry.
A) Market leaders
B) Market challengers
C) Market followers
D) Market mavens
E) Market nichers
65) 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
________.
A) leader
B) challenger
C) follower
D) nicher
E) maven
66) A runner-up firm that wants to hold its share in an industry without rocking the boat is a
________.
A) market follower
B) market maven
C) market challenger
D) market nicher
E) market leader
67) Firms that serve small segments not being pursued by other firms are called ________.
A) market followers
B) market mavens
C) market challengers
D) market nichers
E) market leaders
68) 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 D is the market
________.
A) leader
B) challenger
C) follower
D) nicher
E) maven
69) Which of the following is a market leader strategy?
A) expanding market share
B) multiple niching
C) full frontal attack
D) following at a distance
E) following closely
70) Which of the following are market challenger strategies?
A) expand total market and protect market share
B) expand market share and follow closely
C) full frontal attack and indirect attack
D) follow closely and follow at a distance
E) multiple niching and quality service
71) 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 ________.
A) focus exclusively on divestment
B) evaluate current employees and reduce costs through downsizing
C) run smaller companies out of business, causing them to sell out to larger firms
D) try to expand their market share further, even if market size remains constant
E) shut down current company locations and reopen in highly populated areas
72) The market leader normally gains the most when ________.
A) its total market diminishes
B) it achieves expanded market share
C) its personal communication channels expand
D) the niche marketing efforts by other firms expand
E) the major global competitors enter the market
73) Marketers can expand markets by discovering and promoting ________.
A) subliminal points of interest
B) the deficiencies of competitors
C) subtle advantages of the product
D) new uses of the product
E) green technologies
74) Market leaders can expand the market by ________ and more usage of the product.
A) identifying competitors
B) initiating monopolistic practices
C) developing new users
D) ensuring users adhere to higher standards
E) initiating new rules for product users
75) Lovelies is the leading workout and fitness center for women. The regional chain of gyms
has traditionally catered to women forty and older who are interested in strength and cardio-
vascular training. Lovelies has recently begun promotions to bring younger women into its gyms.
This is an example of how the market leader ________.
A) competes with mature products
B) changes its product line
C) develops new rules
D) develops new users
E) increases competition
76) Which of the following is the best response a company can make to competitive threats?
A) continuous innovation
B) surrender to the competitor
C) exit from the market
D) divestment
E) globalization
77) Profitability increases as a business gains share relative to competitors in its ________.
A) higher market
B) direct market
C) secondary market
D) served market
E) valued market
78) ________ can adopt one of two competitive strategies: they can challenge the leader or they
can play along with competitors and not rock the boat.
A) Runner-up firms
B) Market nichers
C) Global investors
D) Localized marketers
E) Market developers
79) 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.
A) "marketing myopia"
B) "second mover advantage"
C) "absolute advantage"
D) "blue ocean strategy"
E) "red ocean strategy"
80) A market challenger that matches the competitor's product, advertising, price, and
distribution efforts is most likely ________.
A) creating multiple niches
B) pursuing an indirect attack
C) launching a full frontal attack
D) exiting from the current market
E) implementing a blue ocean strategy
81) Rather than challenging head on, the challenger can make a(n) ________ on the competitor's
weaknesses or on gaps in the competitor's market coverage.
A) bypass attack
B) frontal attack
C) indirect attack
D) guerrilla attack
E) pre-emptive attack
82) Which of the following conditions would enable higher market share to produce higher
profits?
A) when unit costs drop as market share increases
B) when unit costs increase as market share increases
C) when production volume drops as market share increases
D) when production volume remains unaltered as market share increases
E) when the company fails to break-even
83) Cozy Country Market entered the candle business with a unique product: a line of candles
made from soy that produce less smoke and lasts up to twice as long as other candles. The firm
sold this unique product exclusively to a few niches. The candles were priced twice the cost
charged for normal candles. The product was also sold online and in unconventional outlets not
dominated by the market leaders. In this case, Cozy Country Market was using a(n) ________
against the market leaders.
A) pre-emptive attack
B) guerrilla attack
C) counter offensive attack
D) indirect attack
E) frontal attack
84) Which of the following statements is most likely true of market follower strategies?
A) Market followers have the resources to expand the market by developing new users, new
uses, and more usage of its products.
B) Market followers must expand internationally first to ensure distribution effectiveness, cost
savings, and quality control.
C) Market followers should conduct indirect attacks on competitor's weaknesses to gain market
share quickly and inexpensively.
D) Market followers benefit from pursuing subsegments of target markets due to their limited
resources.
E) Market followers must keep manufacturing costs and prices low or product quality and
services high.
85) Almost every industry includes firms that specialize in serving target subsegments called
market ________.
A) niches
B) mavens
C) baskets
D) indicators
E) mixes
86) Market niching is profitable because the company ________.
A) copies or improves on the leader's products and programs, usually with much less investment
B) bears the cost of developing new products and markets, expanding distribution, and educating
the market
C) knows the needs of the target customer segment better than other firms that casually attempt
to sell to the same segment
D) either keeps its manufacturing costs and prices low or its product quality and services high
E) can achieve economies of scale much faster by selling the same product to the global market
87) Whereas the mass marketer achieves ________, the nicher achieves ________.
A) low margins; low volume
B) low volume; high margins
C) high volume; high margins
D) high volume; low margins
E) high margins; high volume
88) Computer mouse and interface device maker AdvTechPRO is only a fraction the size of
software giant Terminal Time Softwares Inc. AdvTechPRO manufactures every variation of
computer mouse imaginable (for left-handed people, wireless mice, shaped like actual mice,
LED mice, etc.). Through skillful ________, the firm dominates the PC mouse market, with
Terminal Time Softwares as its runner up.
A) centralization techniques
B) niching
C) brand imaging
D) vertical integration
E) benchmarking
89) Which of the following is most critical for successful niching?
A) catering to global markets
B) buzz marketing
C) follow-up
D) specialization
E) mass appeal of one idea
90) A market nicher can most likely specialize along all of the following EXCEPT ________.
A) specific end users
B) unique products
C) customized services
D) quality-price
E) mass marketing
91) The market subsegment that a company exclusively caters to may dry up, or it might grow to
the point that it attracts larger competitors. This is why such companies practice ________.
A) multiple niching
B) mass marketing
C) overall cost leadership
D) low-price strategies
E) dumping
92) A company can become so ________ centered that it loses its even more important focus on
maintaining profitable ________ relationships.
A) customer; competitor
B) competitor; customer
C) market; customer
D) market; competitor
E) competitor; product
93) Which of the following is a positive aspect of a competitor-centered company?
A) It carries out its own customer relationship strategy.
B) It bases its own moves on competitors' moves.
C) It searches out competitors' weaknesses.
D) It concentrates its resources on delivering superior value to target customers.
E) It ends up seeking innovative ways to create more value for customers.
94) Which of the following is a negative aspect of a competitor-centered company?
A) It may end up simply matching industry practices.
B) It fails to identify competitors' weaknesses.
C) It becomes stable and unreactive.
D) It fails to notice weaknesses in its own position.
E) It fails to develop a fighter orientation.
95) A company that focuses on customer developments in designing its marketing strategies and
on delivering superior value to its target customers is a ________.
A) competitor-centered company
B) shell company
C) maquiladora
D) customer-centered company
E) dummy company
96) When companies watch both their buyers and their competitors, they are called ________.
A) shell companies
B) market-centered companies
C) customer-centered companies
D) dummy companies
E) maquiladoras
97) Greener-grass Inc. is a lawn care company providing landscaping and lawn maintenance
services to customers in and around Kansas City. The marketing team at Greener-grass carefully
tracks the moves of competing companies, watching for shifting strategies and new promotions.
The marketing team is also in constant touch with customers, using surveys and other feedback
methods to find out what kind of services customers value the most. Greener-grass is most
accurately described as having a ________ orientation.
A) market
B) product
C) customer
D) competitor
E) leadership
Refer to the scenario below to answer the following questions.
Essential-Beauty is a rapidly growing firm that manufactures women's makeup, perfumes, and
nail-care products. The company has established itself as a high-end cosmetic product brand
available at most national drug stores. In the past, almost all of the advertising for Essential-
Beauty has been in women's fashion magazines.
The firm 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.
98) Essential-Beauty considers one of its most important competitors to be Look-Lovely, another
marketer of high-end makeup and skin care products sold in drug stores. Based on this, it is most
accurate to say that Look-Lovely and Essential-Beauty are both ________.
A) niche marketers
B) in the same strategic group
C) distant competitors
D) overall cost leaders
E) market followers
99) Essential-Beauty e-mailed a survey to a group of its most frequent, loyal customers. The
survey asked what makeup and skin care characteristics were most important to them. The
company's marketing staff than ranked the performance of Essential-Beauty products in each of
these categories. Essentials was conducting a(n) ________.
A) customer lifetime value survey
B) entrepreneurial marketing strategy
C) intrepreneurial marketing strategy
D) customer value proposition
E) customer value analysis
100) Before deciding to launch the new line of products, Essential-Beauty 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, Essential-
Beauty was using ________.
A) cost leadership
B) entrepreneurial marketing
C) intrepreneurial marketing
D) formulated marketing
E) operational excellence
101) To plan effective marketing strategies, the company must ignore its competitors.
102) A competitive analysis involves first identifying and assessing competitors and then
selecting which competitors to attack or avoid.
