Kotler mm14 tif11test bank for marketing management Koter PDF

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Marketing Management, 14e (Kotler/Keller) Chapter 11 Competitive Dynamics 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 Answer: E Page Ref: 299 Objective: 1 AACSB: Analytic skills Difficulty: Easy 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 Answer: B Page Ref: 301 Objective: 1 AACSB: Analytic skills Difficulty: Easy 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 Answer: B Page Ref: 301 Objective: 1 Difficulty: Easy

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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 Answer: A Page Ref: 301 Objective: 1 AACSB: Analytic skills Difficulty: Moderate 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 Answer: A Page Ref: 301 Objective: 1 Difficulty: Easy 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 Answer: B Page Ref: 301 Objective: 1 Difficulty: Easy

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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 Answer: C Page Ref: 301 Objective: 1 AACSB: Analytic skills Difficulty: Moderate 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 Answer: C Page Ref: 301 Objective: 1 Difficulty: Easy 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 Answer: E Page Ref: 302 Objective: 1 AACSB: Analytic skills Difficulty: Easy

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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 Answer: D Page Ref: 302 Objective: 1 AACSB: Analytic skills Difficulty: Easy 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 Answer: C Page Ref: 302 Objective: 1 AACSB: Analytic skills Difficulty: Moderate 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 Answer: D Page Ref: 302 Objective: 1 AACSB: Analytic skills Difficulty: Easy

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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 Answer: B Page Ref: 302 Objective: 1 AACSB: Reflective thinking Difficulty: Easy 14) To satisfy customers, a(n) ________ marketer finds a stated need and fills it. A) creative B) responsive C) anticipative D) laidback E) inexperienced Answer: B Page Ref: 302 Objective: 1 Difficulty: Easy 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 Answer: E Page Ref: 302 Objective: 1 Difficulty: Easy 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 Answer: D Page Ref: 302 Objective: 1 Difficulty: Easy 5 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

17) ________ marketers are not just market-driven, they are proactive market-driving firms. A) Creative B) Responsive C) Inexperienced D) Laidback E) Anticipative Answer: A Page Ref: 302 Objective: 1 Difficulty: Easy 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 Answer: B Page Ref: 302 Objective: 1 Difficulty: Easy 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. Answer: B Page Ref: 302-303 Objective: 1 Difficulty: Easy 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 Answer: A Page Ref: 303 Objective: 1 Difficulty: Easy

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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 Answer: B Page Ref: 303 Objective: 1 AACSB: Analytic skills Difficulty: Easy 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 Answer: D Page Ref: 303 Objective: 1 AACSB: Reflective thinking Difficulty: Easy 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 Answer: C Page Ref: 303 Objective: 1 Difficulty: Easy

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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 Answer: A Page Ref: 303 Objective: 1 Difficulty: Easy 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 Answer: B Page Ref: 303 Objective: 1 Difficulty: Easy 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 Answer: C Page Ref: 303 Objective: 1 AACSB: Analytic skills Difficulty: Moderate

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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 Answer: D Page Ref: 303 Objective: 1 AACSB: Analytic skills Difficulty: Easy 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 Answer: E Page Ref: 303 Objective: 1 AACSB: Analytic skills Difficulty: Easy 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 Answer: C Page Ref: 303 Objective: 1 AACSB: Analytic skills Difficulty: Easy

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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 Answer: A Page Ref: 304 Objective: 1 Difficulty: Easy 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 Answer: E Page Ref: 304 Objective: 1 Difficulty: Easy 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 Answer: C Page Ref: 305 Objective: 2 Difficulty: Easy

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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 Answer: B Page Ref: 305 Objective: 2 Difficulty: Easy 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 Answer: D Page Ref: 306 Objective: 2 Difficulty: Easy 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 Answer: B Page Ref: 306 Objective: 2 AACSB: Analytic skills Difficulty: Moderate

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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 Answer: C Page Ref: 306 Objective: 2 AACSB: Reflective thinking Difficulty: Easy 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 Answer: B Page Ref: 306 Objective: 2 AACSB: Analytic skills Difficulty: Easy 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 Answer: B Page Ref: 306 Objective: 2 AACSB: Analytic skills Difficulty: Easy

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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 Answer: D Page Ref: 306 Objective: 2 Difficulty: Easy 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 Answer: E Page Ref: 306 Objective: 2 AACSB: Analytic skills Difficulty: Moderate 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 Answer: A Page Ref: 306 Objective: 2 Difficulty: Easy

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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 Answer: B Page Ref: 306 Objective: 2 AACSB: Analytic skills Difficulty: Moderate 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 Answer: C Page Ref: 306 Objective: 2 Difficulty: Easy 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 Answer: E Page Ref: 306 Objective: 2 AACSB: Analytic skills Difficulty: Easy

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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 Answer: B Page Ref: 307 Objective: 3 AACSB: Analytic skills Difficulty: Easy 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 Answer: E Page Ref: 307 Objective: 3 Difficulty: Easy 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 Answer: C Page Ref: 307 Objective: 3 AACSB: Analytic skills Difficulty: Easy

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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 Answer: B Page Ref: 307 Objective: 3 AACSB: Analytic skills Difficulty: Easy 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 Answer: D Page Ref: 307 Objective: 3 AACSB: Analytic skills Difficulty: Easy 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 Answer: B Page Ref: 307 Objective: 3 AACSB: Reflective thinking Difficulty: Easy

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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 Answer: D Page Ref: 307 Objective: 3 Difficulty: Easy 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 Answer: B Page Ref: 307 Objective: 3 AACSB: Analytic skills Difficulty: Moderate 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 Answer: D Page Ref: 307 Objective: 3 AACSB: Analytic skills Difficulty: Easy

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54) As a mar...