Question 1

Attacking the market leader proves successful and beneficial only when the leader is not serving the market well.

Accepted Answer

A) True 
 B)False  True

Question 2

What is the criticism of the product life-cycle concept?

Accepted Answer

The product life-cycle theory has its share of critics,who claim life-cycle patterns are too variable in shape and duration to be generalized,and that marketers can seldom tell what stage their product is in.A product may appear mature when it has actually reached a plateau prior to another upsurge.Critics also charge that,rather than an inevitable course,the product life-cycle pattern is the self-fulfilling result of marketing strategies,and that skillful marketing can in fact lead to continued growth.

Question 3

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.

Accepted Answer

A) market-penetration 
B) new-market segment 
C) geographical-expansion 
D) niche identification 
E) blue-ocean 
A) market-penetration 
B) new-market segment 
C) geographical-expansion 
D) niche identification 
E) blue-ocean B

Question 4

Heavy focus on price reductions and discounts during recession allow firms to improve long-term brand equity and price integrity.

Accepted Answer

A) True 
 B)False

Question 5

Assume that you are the marketing manager of a firm that manufactures athletic shoes.How will you launch an encirclement attack on your competitor?

Accepted Answer

Encirclement attempts to capture a wide

Question 6

An alternate way to increase sales volume is to expand the number of users by converting nonusers.

Accepted Answer

A) True 
 B)False

Question 7

________ defense involves occupying the most desirable market space in the minds of the consumers and making the brand almost impregnable.

Accepted Answer

A) Position 
B) Flank 
C) Preemptive 
D) Mobile 
E) Contraction 
A) Position 
B) Flank 
C) Preemptive 
D) Mobile 
E) Contraction

Question 8

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.

Accepted Answer

A) True 
 B)False

Question 9

Increasing amount of consumption requires identifying additional opportunities to use the brand in the same basic way.

Accepted Answer

A) True 
 B)False

Question 10

Your marketing manager has asked you to develop a new customer strategy for your company.Additionally,you have been asked to develop,specifically,a market-penetration strategy to assist in gaining new customers.Describe a market-penetration strategy in this context.

Accepted Answer

The market-penetration strateg

Question 11

Which three groups of marketers help satisfy a customer's needs?

Accepted Answer

In satisfying customer needs,one can dra

Question 12

Theodore Levitt argues that ________.

Accepted Answer

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 
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

Question 13

________ is a period of rapid market acceptance and substantial profit improvement.

Accepted Answer

A) Stagnancy 
B) Introduction 
C) Maturity 
D) Decline 
E) Growth 
A) Stagnancy 
B) Introduction 
C) Maturity 
D) Decline 
E) Growth

Question 14

Guerrilla attacks consist of small,intermittent attacks,conventional and unconventional,including selective price cuts,intense promotional blitzes,and occasional legal action.

Accepted Answer

A) True 
 B)False

Question 15

After a couple of years of successful business,an experimental theatre company based in Japan 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.

Accepted Answer

A) maturity 
B) obsolescence 
C) introduction 
D) growth 
E) decline 
A) maturity 
B) obsolescence 
C) introduction 
D) growth 
E) decline

Question 16

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 ________.

Accepted Answer

A) counterfeiter 
B) cloner 
C) imitator 
D) adapter 
E) innovator 
A) counterfeiter 
B) cloner 
C) imitator 
D) adapter 
E) innovator

Question 17

Sanjiv and Sons 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?

Accepted Answer

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. 
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.

Question 18

When the total market expands,the ________ usually gains the most.

Accepted Answer

A) market challenger 
B) market leader 
C) market follower 
D) market nicher 
E) market entrant 
A) market challenger 
B) market leader 
C) market follower 
D) market nicher 
E) market entrant

Question 19

Describe the three strategies that are necessary for a market leader to accomplish to stay on top.

Accepted Answer

The three primary strategies that may be

Question 20

Fads are fashions that come quickly into public view,are adopted with great zeal,peak early,and decline very fast.

Accepted Answer

A) True 
 B)False

Exam 11: Competitive Dynamics

Attacking the market leader proves successful and beneficial only when the leader is not serving the market well.

What is the criticism of the product life-cycle concept?

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.

Heavy focus on price reductions and discounts during recession allow firms to improve long-term brand equity and price integrity.

Assume that you are the marketing manager of a firm that manufactures athletic shoes.How will you launch an encirclement attack on your competitor?

An alternate way to increase sales volume is to expand the number of users by converting nonusers.

________ defense involves occupying the most desirable market space in the minds of the consumers and making the brand almost impregnable.

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.

Increasing amount of consumption requires identifying additional opportunities to use the brand in the same basic way.

Your marketing manager has asked you to develop a new customer strategy for your company.Additionally,you have been asked to develop,specifically,a market-penetration strategy to assist in gaining new customers.Describe a market-penetration strategy in this context.

Which three groups of marketers help satisfy a customer's needs?

Theodore Levitt argues that ________.

________ is a period of rapid market acceptance and substantial profit improvement.

Guerrilla attacks consist of small,intermittent attacks,conventional and unconventional,including selective price cuts,intense promotional blitzes,and occasional legal action.

After a couple of years of successful business,an experimental theatre company based in Japan 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.

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 ________.

When the total market expands,the ________ usually gains the most.

Describe the three strategies that are necessary for a market leader to accomplish to stay on top.

Fads are fashions that come quickly into public view,are adopted with great zeal,peak early,and decline very fast.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Gathering Information and Forecasting Demand

Conducting Marketing Research

Creating Customer Value,satisfaction,and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Marketing Channels and Value Networks

Managing Retailing,wholesaling,and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, sales Promotions, events, and Public Relations

Managing Digital Communications: Online, social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization

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