Sales promotion efforts (like coupon drops and merchandising deals), local advertising
blitzes, and legal action are examples of the _____ strategy to achieve share growth.
A. guerilla attack
B. flank attack
C. frontal attack
D. leapfrog
Pioneers that are able to maintain their preeminent position well into the market’s
growth stage have supported their early status with one or more marketing strategy
elements. Identify the strategy that allows firms to expand their volumes quickly and
achieve the benefits of
experience-curve effects before major competitors can confront them.
A.Broad product lines
B.Heavy promotional expenditures
C.Large entry scale
D.High product quality
“A business may survive and prosper during the growth stage even though it has neither
differentiated its offering from competitors nor attained the lowest-cost position in its
industry. But during the transition period, such is not the case.” Which of the following
strategic traps leads to such a state?
A. Failure to recognize the events signaling the beginning of the shakeout period
B. Getting caught in the transition period without a clear strategic advantage
C. Failure to recognize the declining importance of product differentiation and the
increasing importance of service
D. Giving up market share too easily in favor of short-run profit
Which of the following statements is true of behavioral segmentation?
A. It is useful in assessing the size and market potential of a market segment defined by
a particular trade area.
B. It identifies a common purchasing structure across all organizational markets.
C. It is based on who the target customers are and where they live.
D. It identifies new markets even among homogeneous demographic groups when
segmented by lifestyle.
A group of firms that offer a product or class of products that are similar and are close
substitutes for one another is referred to as a(n) _____.
A.sector
B.channel
C.industry
D.concern
In which of the following situations are prospector business units and their marketing
departments most likely to perform better?
A.When the decision-making authority is rigidly centralized
B.When rigid rules and policies dominate managerial discretion
C.When there is a high degree of formalization
D.When the units are highly specialized
A(n) _____ strategy tries to protect its domain by offering lower prices, higher quality,
or better service than competitors.
A.prospector
B.analyzer
C.defender
D.reactor
Flick Software lets its customers download its products directly from its website.
Online support is also available round the clock, creating great value to customers
everywhere. This illustrates that:
A.there is a negative network effect.
B.there are decreasing returns to scale.
C.rules-based personalization has been implemented.
D.a global reach exists for these services.
Which of the following is true of principle-oriented consumers?
A.They are motivated by abstract and idealized criteria.
B.They shop for products that demonstrate the consumer’s success.
C.They are guided by the need for social or physical activity and variety.
D.They are motivated by risk-taking.
The marketing action of developing a second product line with features that are more
appealing to a specific segment of potential customers is characteristic of the _____
strategy.
A.market expansion
B.contraction
C.flanker
D.confrontation
In e-commerce business models, a(n) _____ refers to a website that provides news
articles in electronic form and delivers them to other sites, each of which appeals to a
different target audience.
A. originator
B.syndicator
C. contractor
D.optimizer
The costs of occupancy, general management, and the management of the sales-force
are all _____ for a multiproduct company.
A.marginal costs
B.standard costs
C.direct costs
D.indirect costs
High advertising and sales promotion expenditures have a negative impact on ROI for
_____ businesses.
A. prospector
B. differentiated defender
C. low-cost defender
D. analyzer
Which of the following types of business strategies for evaluation and reward systems
comprises high incentives based on sales and share growth?
A.Differentiated defender
B.Prospector
C.Low-cost defender
D.Reactor