Creating Competitive Advantage (Marketing) Answer Key Part 1

Principles of Marketing Creating Competitive Advantage 1) A competitor analysis requires the assessment of all of the following EXCEPT the competitors' ________. A) objectives B) organizational hierarchy C) strategies D) strengths and weaknesses E) reaction patterns Answer: B 2) Strategies that strongly position a company against competitors and that give the company the best possible strategic advantage are ________ strategies. A) competitor analysis B) customer relationship C) competitive marketing D) competitive relationship E) customer identification Answer: C 3) Gaining ________ requires delivering more value and satisfaction to target consumers than competitors do. A) competitive advantage B) first-mover advantage C) economies of scale D) comparative advantage E) differentiation Answer: A 4) The first step in initiating competitive marketing strategies is to ________. A) balance customer and competitor orientations B) design broad competitive marketing strategies C) assess long-term organizational objectives D) conduct competitor analysis E) conduct transaction analysis Answer: D 5) ________ involves first identifying and assessing competitors and then selecting which competitors to attack or avoid. A) Competitor analysis B) Self-competition C) Blue ocean strategy D) Quantitative analysis E) Perfect competition Answer: A 6) To plan effective marketing strategies, a company needs to find out all it can about its competitors. It must constantly compare its marketing strategies, products, prices, channels, and promotions with those of close competitors. This is an example of ________. A) blue ocean strategy B) competitor analysis C) organizational evaluation D) perfect competition E) quantitative analysis Answer: B 7) The goal of performing a competitor analysis is to ________. A) learn more about the competitors' sales structures B) find flaws in the competitors' manufacturing processes C) copy the best features that the competitors offer D) find areas of potential competitive advantage and disadvantage E) develop products in markets that the competitors are not in Answer: D 8) Companies can identify their competitors from both ________ points of view. A) industry and market B) product and customer C) customer and location D) location and product E) product and strategy Answer: A 9) Companies can identify competitors from a(n) ________ point of view by defining competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group. A) customer B) blue ocean C) market D) myopic E) industry Answer: C 10) Companies can identify competitors from one of two points of view: ________. A) manufacturing or selling B) engineering or producing C) consumer or business D) industry or market E) unique or similar Answer: D 11) If a company identifies its competitors from an industry point of view, it must understand ________ if it hopes to be an effective player in that industry. A) the trends in the industry B) the primary customers C) the impact of technological changes D) the potential customers E) the competitive patterns Answer: E 12) A company is guilty of ________ if the company forgets latent competitors and only focuses on current competitors. A) perfect competition B) self-competition C) Cournot competition D) competitor backlinking E) competitor myopia Answer: E 13) Kodak's film business didn't lose out to direct competitor Fujifilm; it lost out to Sony, Canon, and other digital camera makers, along with a host of digital image developers and online image sharing services. This is an example of ________. A) a blue ocean strategy B) competitor backlinking C) self-competition D) competitor myopia E) marketing myopia Answer: D 14) Fosters and Mason House, two major coffee brands, competed neck and neck based on their product attributes and price promotions. They were soon blindsided by the arrival of Starcoffeez, which focused more on the coffee experience rather than the coffee. This resulted in major losses for the two companies. This is an example of ________. A) self-competition B) competitor myopia C) competitor backlinking D) marketing myopia E) perfect competition Answer: B 15) From a(n) ________ point of view, Pepsi might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands. From a(n) ________ point of view, however, the customer really wants "thirst quenching." A) market; industry B) market; consumer C) industry; competitive D) industry; market E) company's; consumer's Answer: D 16) Nintendo, producer of the Wii video game console, might define its competitors as other makers of physically interactive video games. But from a(n) ________ point of view, it would include all firms making physically interactive recreational products. A) industry B) market C) segment D) niche E) interdependent Answer: B 17) From a market point of view, Universal Pictures film studio might see its competition as ________. A) Paramount Pictures B) Warner Bros. Pictures C) Walt Disney Pictures D) 20th Century Fox E) Broadway Answer: E 18) From an industry point of view, Universal Pictures film studio might see its competition as ________. A) West End theatre B) Columbia Pictures C) Tomorrowland D) Summerfest E) HarperCollins Answer: B 19) What is the LEAST relevant question to ask when assessing a firm's main competitor? A) What are the competitor's objectives? B) What is the competitor's strategy? C) What are the competitor's strengths? D) What are the competitor's locations? E) What are the competitor's weaknesses? Answer: D 20) Each competitor has a mix of objectives. The company wants to know the relative importance that a competitor places on all of the following EXCEPT ________. A) company history B) current profitability C) market share growth D) cash flow E) technological leadership Answer: A 21) A company's objectives indicate its satisfaction with its current situation and ________. A) its strength with its current management B) in what areas it intends to develop further C) how strong it is financially D) how it might react to different competitive actions E) its areas of concern, if any Answer: A 22) A company that pursues ________ will react much more strongly to a competitor's cost reducing manufacturing breakthrough than to the same competitor's advertising increase. A) product differentiation B) low-cost leadership C) customer intimacy D) a middle-of-the-roaders strategy E) product leadership Answer: B 23) In the context of identifying competitors' strategies, the more that one firm's strategy resembles another firm's strategy, the more likely the two firms are to ________. A) merge B) compete C) globalize D) form a partnership E) become market leaders Answer: B 24) Companies need to know each competitor's product quality, features, and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs. These are all the dimensions that identify ________ groups within the industry. A) target B) focus C) control D) strategic E) experimental Answer: D 25) An analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers is known as ________. A) customer lifetime value B) customer value analysis C) quantitative analysis D) brand value proposition E) benchmarking Answer: B 26) In the audio equipment industry, Philips and Sony belong to the same ________. A) target group B) strategic group C) experimental group D) control group E) focus group Answer: B 27) Country Kitchen and Perkins are both a chain of family restaurants featuring diner-like menus with reasonably priced items. These companies are in the same ________. A) focus group B) control group C) strategic group D) target group E) experimental group Answer: C 28) Companies use secondary data, personal experience, and word of mouth to ________. A) identify competitors' target customers and strategies B) identify competitors' target locations and market share C) learn about their competitors' strengths and weaknesses D) select competitors to attack or avoid E) estimate competitors' sales projections Answer: C 29) ________ is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance. A) Segmenting B) Positioning C) Sales promotion D) Benchmarking E) Publicity Answer: D 30) Most companies will compete with ________ rather than ________. A) distant competitors; close competitors B) close competitors; distant competitors C) benchmarkers; distant competitors D) market challengers; market followers E) market challengers; market nichers Answer: B