front 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. | back 1 E |
front 2 When the total market expands, the ________ usually gains the most.
| back 2 B |
front 3 When a firm looks for new users in groups that might use the product
but do not, the firm is using the ________ strategy. | back 3 B |
front 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? | back 4 A |
front 5 When firms look for new users in groups that have never used the
product before, the firm is using the ________ strategy. | back 5 A |
front 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. | back 6 B |
front 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? | back 7 C |
front 8 A market leader on the look out for more usage from existing
customers should focus on increasing the frequency of consumption and
________. | back 8 C |
front 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? | back 9 E |
front 10 When food product companies advertise recipes that use their branded
products in entirely different ways, they are increasing the ________
of the brand. | back 10 D |
front 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? | back 11 C |
front 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 ________. | back 12 D |
front 13 Which of the following is the most constructive response a market
leader can make when defending its market share? | back 13 B |
front 14 To satisfy customers, a(n) ________ marketer finds a stated need and
fills it. | back 14 B |
front 15 A(n) ________ marketer looks ahead to needs customers may have in the
near future. | back 15 E |
front 16 A(n) ________ marketer discovers solutions customers did not ask for
but to which they | back 16 D |
front 17 ________ marketers are not just market-driven, they are proactive
market-driving firms. | back 17 A |
front 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. | back 18 B |
front 19 Which of the following is true about proactive marketing? | back 19 B |
front 20 ________ defense involves occupying the most desirable market space
in the minds of the consumers and making the brand almost impregnable.
| back 20 A |
front 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. | back 21 B |
front 22 ________ is an aggressive maneuver where the firm attacks first,
perhaps with guerrilla action across the market and keeping everyone
off balance. | back 22 D |
front 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. | back 23 C |
front 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. | back 24 A |
front 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. | back 25 B |
front 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 ________. | back 26 C |
front 27 In ________, the market leader stretches its domain over new
territories that can serve as future centers for defense and offense.
| back 27 D |
front 28 Market broadening and market diversification are likely tactics
employed in ________ strategies. | back 28 E |
front 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. | back 29 C |
front 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. | back 30 A |
front 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. | back 31 E |
front 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 ________. | back 32 C |
front 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. | back 33 B |
front 34 In a pure ________ attack, the attacker matches its opponent's
product, advertising, price, and distribution. | back 34 D |
front 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. | back 35 B |
front 36 The ________ can be used when the challenger spots areas where the
opponent is underperforming. | back 36 C |
front 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. | back 37 B |
front 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. | back 38 B |
front 39 The ________ attack attempts to capture a significant share of the
consumer market by launching a grand offensive on several
fronts. | back 39 D |
front 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?
| back 40 E |
front 41 The ________ attack offers the firm an opportunity to diversify into
unrelated products, into new geographical markets, and leapfrogging
into new technologies. | back 41 A |
front 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.
| back 42 B |
front 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 ________. | back 43 C |
front 44 Selective price cuts, intense promotional blitzes, and occasional
legal action are commonplace in the strategic design of a(n) ________.
| back 44 E |
front 45 In his article, "Innovative Imitation", Theodore Levitt
argues that ________. | back 45 B |
front 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. | back 46 E |
front 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 ________. | back 47 C |
front 48 As a market follower strategy, the ________ emulates the leader's
products, name, and packaging, with slight variations. | back 48 B |
front 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 ________. | back 49 D |
front 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? | back 50 B |
front 51 The ________ copies some things from the leader but differentiates on
packaging, advertising, pricing, or location. | back 51 D |
front 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. | back 52 B |
front 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) ________. | back 53 D |
front 54 As a market follower, the ________ may choose to sell to different
markets, but often it grows into a future challenger. | back 54 B |
front 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 ________. | back 55 D |
front 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
________. | back 56 B |
front 57 A firm that serves small market segments that are not being served by
bigger firms is known as a ________. | back 57 D |
front 58 The market leader strategy ensures high sales volume, whereas the
market nicher strategy allows firms to achieve ________. | back 58 A |
front 59 Which of the following is true about market-nichers? | back 59 C |
front 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? | back 60 D |
front 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. | back 61 C |
front 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. | back 62 E |
front 63 A job-shop specialist ________. | back 63 B |
front 64 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 different from the other. Such nichemanship is an example of
________ specialist role. | back 64 D |
front 65 When a bank takes loan requests over the phone and hand-delivers the
money to the customer, it becomes a ________ specialist. | back 65 E |
front 66 ________ is the period of slow sales growth and nonexistent
profits. | back 66 D |
front 67 Campbell Soups is a newly established company that specializes in
preparing healthy but tasty food for children under the age of 5. It
is incurring huge productions costs, nonexistent profits, and slow
sales growth. The company is in the ________ phase of its life
cycle. | back 67 B |
front 68 ________ is a period of rapid market acceptance and substantial
profit improvement. | back 68 E |
front 69 A dance school in the Bronx teaches professional hip-hop and salsa.
It is experiencing an increase in student admissions, which is leading
to substantial improvement in profits. The school is going through the
________ phase of its life cycle. | back 69 C |
front 70 ________ is a slowdown in sales growth because the product has
achieved acceptance by most potential buyers. | back 70 E |
front 71 A music school in Boyles Height, LA, specializes in teaching the
guitar and the violin. After a spurt in growth and a few successful
years, the school is experiencing a slowdown in sales and stability in
its profits due to an increase in competition. The school is in the
________ stage of its life cycle. | back 71 D |
front 72 During the ________ stage of a product's life cycle, sales show a
downward drift and profits erode. | back 72 C |
front 73 After a couple of years of successful business, an experimental
theatre company based in Aurora is unable to sell tickets for its
theatre shows. They have been using profits from previous shows to run
the business. The company is in the ________ phase of its life
cycle. | back 73 E |
front 74 According to Peter Golder and Gerald Tellis, a(n) ________ is the
first to develop a working model of the product. | back 74 D |
front 75 One of the ways to change the course of a brand is to modify the
product. Under product modification, ________ adds size, weight,
materials, supplements, and accessories that expand the product's
performance, versatility, safety, or convenience. | back 75 A |
front 76 An alternate way to increase sales volume is to expand the number of
users. This can be done by ________. | back 76 E |
front 77 An alternate way to increase sales volume is to increase the usage
rate among users. This can be done by ________. | back 77 C |
front 78 ________ is a distribution strategy that can be effectively used
during the growth stage of the product life cycle. | back 78 D |
front 79 Which of the following strategies should be adopted by marketers
during a recession? | back 79 D |
front 80 Benz & Frendz Corp., a manufacturer of high end consumer
durables, experienced a sluggish sales growth in most of its product
categories during three consecutive quarters of 2009. However, market
analysis revealed that its competitors' sales had also slackened
during this period. Analysts pointed out that when all firms are
losing sales, it is extremely important to adopt strategies that are
aimed at retaining customers. This led the firm to reduce operation
costs while maintaining product quality. They also revamped their
marketing strategy to focus on the values created by their products.
Which of the following can be inferred from the strategies adopted by
the firm? | back 80 D |
front 81 When the total market expands, the dominant firm usually gains the most. | back 81 true |
front 82 The market leader should look for new customers or more usage from
existing customers. | back 82 true |
front 83 A market-penetration strategy is one where a company searches for new
customers in a group that has never used a product before. | back 83 false |
front 84 One way to increase the frequency of consumption of a product by
consumers is by introducing it in larger package sizes. | back 84 false |
front 85 Increasing amount of consumption requires identifying additional
opportunities to use the brand in the same basic way. | back 85 false |
front 86 A marketing program can communicate the appropriateness and
advantages of using the brand. | back 86 true |
front 87 The most constructive response to protecting market share is
continuous innovation. | back 87 true |
front 88 A responsive marketer looks ahead to needs customers may have in the
near future. | back 88 false |
front 89 An anticipative marketer finds a stated need and fills it. | back 89 false |
front 90 A creative marketer discovers solutions customers did not ask for but
to which they enthusiastically respond. | back 90 true |
front 91 Position defense means occupying the most desirable market space in
consumers' minds, making the brand almost impregnable. | back 91 true |
front 92 In counteroffensive marketing, the market leader can meet the
attacker frontally and hit its flank, or launch a pincer movement so
that it is forced to pull back to defend itself. | back 92 true |
front 93 In contraction defense, the leader stretches its domain over new
territories through market broadening and market diversification. | back 93 false |
front 94 Market diversification shifts the company's focus to unrelated industries. | back 94 true |
front 95 Market challengers are companies that attack the leader and other
competitors in an aggressive bid for further market share. | back 95 true |
front 96 Attacking the market leader proves successful and beneficial only
when the leader is not serving the market well. | back 96 true |
front 97 A frontal attacking strategy is another name for identifying shifts
that are causing gaps to develop, then rushing to fill the gaps. | back 97 false |
front 98 Encirclement attempts to capture a wide slice of territory by
launching a grand offensive on several fronts. | back 98 true |
front 99 Guerrilla attacks consist of small, intermittent attacks,
conventional and unconventional, including selective price cuts,
intense promotional blitzes, and occasional legal action. | back 99 true |
front 100 As a market-follower strategy, a counterfeiter emulates the leader's
products, name, and packaging, with slight variations. | back 100 false |
front 101 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. | back 101 false |
front 102 As a market-follower strategy, an adapter takes the leader's products
and adapts or improves them. | back 102 true |
front 103 Firms with low shares of the total market can become highly
profitable through smart niching. | back 103 true |
front 104 An alternative to being a follower in a large market is to be a
leader in a small market. | back 104 true |
front 105 The nicher achieves high sales volume, whereas the mass marketer
achieves high margin. | back 105 false |
front 106 The growth stage of a product's life cycle is a period of rapid
market acceptance and substantial profit improvement. | back 106 true |
front 107 During the maturity stage of a product life cycle, profits stabilize
or decline because of increased competition. | back 107 true |
front 108 A fashion is a basic and distinctive mode of expression appearing in
a field of human endeavor. | back 108 false |
front 109 Fads are fashions that come quickly into public view, are adopted
with great zeal, peak early, and decline very fast. | back 109 true |
front 110 An inventor is the first to develop a working model while a product
pioneer is the first to develop patents in a new-product category. | back 110 false |
front 111 Price, distribution, and communication are the nonproduct elements
that marketers modify to increase product sales. | back 111 true |
front 112 An alternate way to increase sales volume is to expand the number of
users by having them consume more of the product on each occasion. | back 112 false |
front 113 An alternate way to increase sales volume is to expand the number of
users by converting nonusers. | back 113 true |
front 114 An alternate way to increase sales volume is to increase the usage
rates among users by having consumers use the product in new ways. | back 114 true |
front 115 An alternate way to increase sales volume is to increase the usage
rates among users by entering new market segments. | back 115 false |
front 116 The prime objective, during the introduction stage of a product life
cycle, is to maximize market share. | back 116 false |
front 117 The product strategy during the maturity stage of the product life
cycle should be to build more intensive distribution. | back 117 false |
front 118 During economic downturn, the potential value and profitability of
some target consumers may change. | back 118 true |
front 119 Heavy focus on price reductions and discounts during recession allow
firms to improve long-term brand equity and price integrity. | back 119 false |