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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. Page: 299 2 When the total market expands, the ________ usually gains the most. Page: 301 3 When a firm looks for new users in groups that might use the product but do not, the firm is using the ________ strategy. Page: 301 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? Page: 301 5
When firms look for new users in groups that have never used the product before, the firm is using the ________ strategy. Page: 301 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. Page: 301 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? Page: 301 8 A market leader on the look out for more usage from existing customers should focus on increasing the frequency of consumption and ________. Page: 301 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? Page: 302 10 When food product companies advertise recipes that use their branded products in entirely different ways, they are increasing the ________ of the brand. Page: 302 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? Page: 302 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 ________. Page: 302 13 Which of the following is the most constructive response a market leader can make when defending its market share? Page: 302 14 To satisfy customers, a(n) ________ marketer finds a stated need and
fills it. Page: 302 15 A(n) ________ marketer looks ahead to needs customers may have in the near future. Page: 302 16 A(n) ________ marketer discovers solutions customers did not ask for but to which they Page: 302 17 ________ marketers are not just market-driven, they are proactive market-driving firms. Page: 302 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. Page: 302 19 Which of the following is true about proactive marketing? Page: 302-303 20 ________ defense involves occupying the most desirable market space in the minds of the consumers and making the brand almost impregnable. Page: 303 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. Page: 303 22 ________ is an aggressive maneuver where the firm attacks first, perhaps with guerrilla action across the market and keeping
everyone off balance. Page: 303 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. Page: 303 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. Page: 303 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. Page: 303 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 ________. Page: 303 27 In ________, the market leader stretches its domain over new territories that can serve as future centers for defense and offense. Page: 303 28 Market
broadening and market diversification are likely tactics employed in ________ strategies. Page: 303 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. Page: 303 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. Page: 304 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. Page: 304 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 ________. Page: 305 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. Page: 305 34 In a pure ________ attack, the attacker matches its opponent's product, advertising, price, and distribution. Page: 306 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. Page: 306 36 The ________ can be used when the challenger spots areas where the opponent is underperforming. Page: 306 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. Page: 306 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. Page: 306 39 The ________ attack attempts to capture a significant share of the consumer market by launching a grand offensive on several fronts. Page: 306 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? Page: 306 41 The ________ attack offers the firm an opportunity to diversify into unrelated products, into new geographical markets, and leapfrogging into new technologies. Page: 306 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. Page: 306 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 ________. Page: 306 44 Selective price cuts, intense promotional blitzes, and occasional legal action are commonplace in the strategic design of a(n) ________. Page: 306 45 In his article, "Innovative Imitation", Theodore Levitt argues
that ________. Page: 307 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. Page: 307 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 ________. Page: 307 48 As a market follower strategy, the ________ emulates the leader's products, name, and packaging, with slight variations. Page: 307 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 ________. Page: 307 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? Page: 307 51 The
________ copies some things from the leader but differentiates on packaging, advertising, pricing, or location. Page: 307 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. Page: 307 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) ________. Page: 307 54 As a market follower, the ________ may choose to sell to
different markets, but often it grows into a future challenger. Page: 307 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 ________. Page: 307 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 ________. Page: 308 57 A firm that serves small market segments that are not being served by bigger firms is known as a ________.
Page: 302 58 The market leader strategy ensures high sales volume, whereas the market nicher strategy allows firms to achieve ________. Page: 308 59 Which of the following is true about
market-nichers? Page: 309 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? Page: 309 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. Page: 309 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. Page: 309 63 A job-shop specialist ________. Page: 309 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. Page: 309 65 When a bank takes loan requests over the phone and hand-delivers the money to the customer, it becomes a ________ specialist. Page: 309 66 ________ is the period of slow sales growth and nonexistent profits. Page: 310 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. Page: 310 68 ________ is a period of rapid market acceptance and substantial profit improvement. Page: 310 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. Page: 310 70 ________ is a slowdown in sales growth because the product has achieved acceptance by most potential buyers. Page: 310 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. Page: 310 72 During the ________ stage of a product's life cycle, sales show a downward drift and profits erode. Page: 310 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. Page: 310 74 According to Peter Golder and Gerald Tellis, a(n) ________ is the first to develop a working model of the product. Page: 313 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. Page: 314 76 An alternate way to increase sales volume is to expand the number of users. This can be done by ________. Page: 315 77 An alternate way to increase sales volume is to increase the usage rate among users. This can be done by ________. Page: 315 78 ________ is a distribution strategy that can be effectively used during the growth stage of the product life cycle. Page: 317 79 Which of the following strategies should be adopted by marketers during a recession? Page: 318-319 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? Page: 318-320 81 When the total market expands, the dominant firm usually gains the most. Page: 301 82 The market leader should look for new customers or more usage from existing customers. Page: 301 83 A market-penetration strategy is one where a company searches for new customers in a group that has never used a product before. Page: 301 84 One way to increase the frequency of consumption of a product by consumers is by introducing it in larger package sizes. Page: 302 85 Increasing amount of consumption requires identifying additional opportunities to use the brand in the same basic way. Page: 302 86 A marketing program can communicate the appropriateness and advantages of using the brand. Page: 302 87 The most constructive response to protecting market share is continuous innovation. Page: 302 88 A responsive marketer looks ahead to needs customers may have in the near future. Page: 302 89 An anticipative marketer finds a stated need and fills it. Page: 302 90 A creative marketer discovers solutions customers did not ask for but to which they enthusiastically respond. Page: 302 91 Position defense means occupying the most desirable market space in consumers' minds, making the brand almost impregnable. Page: 303 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. Page: 303 93 In contraction defense, the leader stretches its domain over new territories through market broadening and market diversification. Page: 303-304 94 Market diversification shifts the company's focus to unrelated industries. Page: 304 95 Market challengers are companies that attack the leader and other competitors in an aggressive bid for further market share. Page: 305 96 Attacking the market leader proves successful and beneficial only when the leader is not serving the market well. Page: 305 97 A frontal attacking strategy is another name for identifying shifts that are causing gaps to develop, then rushing to fill the gaps. Page: 306 98 Encirclement attempts to capture a wide slice of territory by launching a grand offensive on several fronts. Page: 306 99 Guerrilla attacks consist of small, intermittent attacks, conventional and unconventional, including selective price cuts, intense promotional blitzes, and occasional legal action. Page: 306 100 As a market-follower strategy, a counterfeiter emulates the leader's products, name, and packaging, with slight variations. Page: 307 101 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. Page: 307 102 As a market-follower strategy, an adapter takes the leader's products and adapts or improves them. Page: 307 103 Firms with low shares of the total market can become highly profitable through smart niching. Page: 308 104 An alternative to being a follower in a large market is to be a leader in a small market. Page: 308 105 The nicher achieves high sales volume, whereas the mass marketer achieves high margin. Page: 308 106 The growth stage of a product's life cycle is a period of rapid market acceptance and substantial profit improvement. Page: 310 107 During the maturity stage of a product life cycle, profits stabilize or decline because of increased competition. Page: 310 108 A fashion is a basic and distinctive mode of expression appearing in a field of human endeavor. Page: 311 109 Fads are fashions that come quickly into public view, are adopted with great zeal, peak early, and decline very fast. Page: 311 110 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. Page: 312 111 Price, distribution, and communication are the nonproduct elements that marketers modify to increase product sales. Page: 314 112 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. Page: 315 113 An alternate way to increase sales volume is to expand the number of users by converting nonusers. Page: 315 114 An alternate way to increase sales volume is to increase the usage rates among users by having consumers use the product in new ways. Page: 315 115 An alternate way to increase sales volume is to increase the usage rates among users by entering new market segments. Page: 315 116 The prime objective, during the introduction stage of a product life cycle, is to maximize market share. Page: 317 117 The product strategy during the maturity stage of the product life cycle should be to build more intensive distribution. Page: 317 118 During economic downturn, the potential value and profitability of some target consumers may change. Page: 319 119 Heavy focus on price reductions and discounts during recession allow firms to improve long-term brand equity and price integrity. Page: 319 How can market leaders defend market share?Defending market share strategy:
In this strategy, the leader firm must keep its costs down, and its price must be consistent with the value that customers see in the product.
What are the top three strategies that a market leader can accomplish to stay on top of the competition select all that apply?There are three competitive strategies that you can implement across your business: Cost-leadership strategies, differentiation strategies, and focus strategies.
In which of the following defense the market leader can meet the attacker frontally and hit its flank?In a counteroffensive, the market leader can meet the attacker frontally and hit its flank, or launch a pincer movement so it will have to pull back to defend itself.
Which of the following defense strategies induces a market leader to erect outposts to protect a weak front of business?(b)Flank defense: The market leader should erect outposts to protect a weak front or support a possible counter attack.
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