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.
A) market challenger
B) market entrant
C) market follower
D) market nicher
E) market leader
Page: 299
2
When the total market expands, the ________ usually gains the most.
A) market challenger
B) market leader
C) market follower
D) market nicher
E) market entrant
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.
A) new-market segment
B) market-penetration
C) geographical-expansion
D) product development
E) diversification
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?
A) market-penetration strategy
B) new-market segment strategy
C) geographical-expansion strategy
D) needs-assessment strategy
E) consolidation strategy
Page: 301
5
When firms look for new users in groups that have never used the product before, the firm is using the ________ strategy.
A) new-market segment
B) market-penetration
C) geographical-expansion
D) product development
E) diversification
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.
A)
market-penetration
B) new-market segment
C) geographical-expansion
D) niche identification
E) blue-ocean
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?
A) market-penetration strategy
B) outsourcing strategy
C) geographic-expansion strategy
D) product differentiation strategy
E) ethnocentric strategy
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 ________.
A) decreasing the product price
B) the
product line
C) the amount of consumption
D) decreasing production turnover time
E) diversifying into unrelated markets
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?
A) increasing the amount of consumption
B) decreasing the level of consumption
C) increasing dedication
to consumption
D) increasing product innovation
E) increasing frequency of consumption
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.
A) amount of consumption
B) level of consumption
C) dedication to consumption
D) frequency of consumption
E) awareness consumption
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?
A) using the new-market segment strategy to attract new customers
B) improving the current level of product performance
C) advertising new and different applications of the brand
D) protecting its market share
E) using the market-penetration strategy to
attract new customers
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 ________.
A) increase the amount of consumption
B) increase the level of consumption
C) increase the perception of consumption
D) increase the frequency of consumption
E) increase the emotional
implications of consumption
Page: 302
13
Which of the following is the most constructive response a market leader can make when defending its market share?
A) maintain basic cost control
B) innovate continuously
C) provide desired benefits
D) meet challengers with a swift response
E) provide expected benefits
Page: 302
14
To satisfy customers, a(n) ________ marketer finds a stated need and
fills it.
A) creative
B) responsive
C) anticipative
D) laidback
E) inexperienced
Page: 302
15
A(n) ________ marketer looks ahead to needs customers may have in the near future.
A) laidback
B) creative
C) inexperienced
D) responsive
E) anticipative
Page: 302
16
A(n) ________ marketer discovers solutions customers did not ask for but to which they
enthusiastically respond.
A)
laidback
B) responsive
C) inexperienced
D) creative
E) anticipative
Page: 302
17
________ marketers are not just market-driven, they are proactive market-driving firms.
A) Creative
B) Responsive
C) Inexperienced
D) Laidback
E) Anticipative
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.
A) market-driven
B) market-driving
C) operations-driven
D) vision-driven
E) virtually-driven
Page: 302
19
Which of the following is true about proactive marketing?
A) A company needs creative anticipation to see the writing on the wall.
B) Proactive companies create new offers to serve unmet and unknown consumer needs.
C) Proactive companies refrain from practicing uncertainty
management.
D) A company needs responsive anticipation to devise innovative solutions.
E) Companies are winners when they are extremely risk-averse.
Page: 302-303
20
________ defense involves occupying the most desirable market space in the minds of the consumers and making the brand almost impregnable.
A) Position
B) Flank
C) Preemptive
D) Mobile
E) Contraction
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.
A) position
B) flank
C) preemptive
D) counteroffensive
E) mobile
Page: 303
22
________ is an aggressive maneuver where the firm attacks first, perhaps with guerrilla action across the market and keeping
everyone off balance.
A) Position defense
B) Flank defense
C) Contraction defense
D) Preemptive defense
E) Lateral defense
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.
A) mobile
B) counteroffensive
C) preemptive
D) contraction
E) flank
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.
A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense
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.
A) position
B) counteroffensive
C) preemptive
D) contraction
E) flank
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 ________.
A)
position defense
B) flank defense
C) counteroffensive defense
D) contraction defense
E) mobile defense
Page: 303
27
In ________, the market leader stretches its domain over new territories that can serve as future centers for defense and offense.
A) counteroffensive defense
B) flank defense
C) contraction defense
D) mobile defense
E) position defense
Page: 303
28
Market
broadening and market diversification are likely tactics employed in ________ strategies.
A) position defense
B) flank defense
C) preemptive defense
D) counteroffensive defense
E) mobile defense
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.
A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense
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.
A) contraction
B) preemptive
C) flank
D) mobile
E) position
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.
A) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense
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 ________.
A) market challenger
B) market leader
C) market follower
D) market nicher
E) market entrant
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.
A) a firm of its own size
B) the market leader
C) a
regional firm
D) an underfinanced firm
E) a poorly performing firm
Page: 305
34
In a pure ________ attack, the attacker matches its opponent's product, advertising, price, and distribution.
A) guerilla
B) bypass
C) encirclement
D) frontal
E) flank
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.
A) guerilla
B) frontal
C) encirclement
D) bypass
E) flank
Page: 306
36
The ________ can be used when the challenger spots areas where the opponent is underperforming.
A) encirclement attack
B) frontal attack
C) flank-geographic attack
D) backwards-flank attack
E) guerilla warfare
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.
A) frontal
B) flank
C) guerrilla
D) encirclement
E) bypass
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.
A) frontal attack strategy
B) flanking strategy
C) encircling strategy
D) counteroffensive strategy
E) bypass strategy
Page: 306
39
The ________ attack attempts to capture a significant share of the consumer market by launching a grand offensive on several fronts.
A) frontal
B) bypass
C) flank
D)
encirclement
E) guerrilla
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?
A)
frontal attack
B) bypass attack
C) guerrilla warfare
D) flank attack
E) encirclement attack
Page: 306
41
The ________ attack offers the firm an opportunity to diversify into unrelated products, into new geographical markets, and leapfrogging into new technologies.
A) bypass
B) flank
C) frontal
D) guerrilla
E) encirclement
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.
A) flank
B) bypass
C) guerrilla
D) encirclement
E) frontal
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 ________.
A) flank attack
B) encirclement
attack
C) bypass attack
D) guerrilla warfare
E) frontal attack
Page: 306
44
Selective price cuts, intense promotional blitzes, and occasional legal action are commonplace in the strategic design of a(n) ________.
A) frontal attack
B) flank attack
C) bypass attack
D) encirclement attack
E) guerilla warfare
Page: 306
45
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
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.
A) innovator
B) cloner
C) imitator
D) adapter
E) counterfeiter
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 ________.
A) cloning
B)
imitating
C) counterfeiting
D) adapting
E) innovating
Page: 307
48
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
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 ________.
A) innovating
B) adapting
C) imitating
D) cloning
E) counterfeiting
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?
A) counterfeiter
B) cloner
C) imitator
D) adapter
E) reverse innovator
Page: 307
51
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
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.
A) cloner
B)
imitator
C) counterfeiter
D) adapter
E) innovator
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) ________.
A) counterfeiter
B) adopter
C) cloner
D) imitator
E) adapter
Page: 307
54
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
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 ________.
A) counterfeiter
B) cloner
C) imitator
D)
adapter
E) innovator
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 ________.
A) marketing king
B) market nicher
C) segment king
D) guerilla marketer
E) strategic clone
Page: 308
57
A firm that serves small market segments that are not being served by bigger firms is known as a ________.
A) market challenger
B) market leader
C) market follower
D) market nicher
E) market entrant
Page: 302
58
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
Page: 308
59
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.
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?
A) end-user specialist
B) vertical-level specialist
C) customer-size specialist
D) specific-customer specialist
E) quality-price specialist
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.
A) vertical-level
B) customer-size
C) product-line
D) job-shop
E) service
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.
A) end-user
B) vertical-level
C) customer-size
D) channel
E) product-feature
Page: 309
63
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
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.
A) customer-size
B) product
C) product-feature
D) job-shop
E) quality-price
Page: 309
65
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
Page: 309
66
________ is the period of slow sales growth and nonexistent profits.
A) Growth
B) Decline
C) Maturity
D) Introduction
E) Stagnancy
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.
A) stagnancy
B) introduction
C) maturity
D) decline
E) growth
Page: 310
68
________ is a period of rapid market acceptance and substantial profit improvement.
A) Stagnancy
B) Introduction
C) Maturity
D) Decline
E) Growth
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.
A) decline
B) stagnancy
C) growth
D) introduction
E) maturity
Page: 310
70
________ is a slowdown in sales growth because the product has achieved acceptance by most potential buyers.
A) Obsolescence
B) Introduction
C) Growth
D) Decline
E)
Maturity
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.
A) introduction
B) growth
C) decline
D) maturity
E) obsolescence
Page: 310
72
During the ________ stage of a product's life cycle, sales show a downward drift and profits erode.
A) introduction
B) growth
C) decline
D) obsolescence
E) maturity
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.
A) maturity
B) obsolescence
C) introduction
D) growth
E) decline
Page: 310
74
According to Peter Golder and Gerald Tellis, a(n) ________ is the first to develop a working model of the product.
A) developer
B) creative pioneer
C) market pioneer
D) product pioneer
E) inventor
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.
A) feature improvement
B) quality improvement
C) style improvement
D) size improvement
E) technological improvement
Page: 314
76
An alternate way to increase sales volume is to expand the number of users. This can be done by ________.
A) having consumers use the product on more
occasions
B) having consumers use more of the product on each occasion
C) having consumers use the product in new ways
D) remaining in the current market segment
E) attracting competitors' customers
Page: 315
77
An alternate way to increase sales volume is to increase the usage rate among users. This can be done by ________.
A) converting nonusers
B) having consumers use less of the product on each occasion
C) having consumers use the
product on more occasions
D) attracting competitors' customers
E) entering new market segments
Page: 315
78
________ is a distribution strategy that can be effectively used during the growth stage of the product life cycle.
A) Building product awareness
B) Phasing out unprofitable outlets
C) Building selective distribution
D) Building intensive distribution
E) Stressing on brand differences
Page: 317
79
Which of the following strategies should be adopted by marketers during a recession?
A) increase investment on marketing existing products
B) focus on expanding the customer base and not on the retention of existing customers
C) focus primarily on price reductions and discounts
D) concentrate on communicating the brand value and product quality to consumers
E) stick to the budget allocations adopted during the preceding years
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?
A) The company was trying to protect its market share and continue to operate as a market leader.
B) The company was focusing on geographical expansion.
C) The company was aiming to capture a new market segment.
D) The company was marketing its products amidst an economic downturn.
E) The
company was focusing on market penetration.
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