Question 1

A group of firms following the same strategy in a given target market is called a(n)________.

Accepted Answer

A)  cartel 
B)  cabal 
C)  cooperative 
D)  informal alliance 
E)  strategic group

Question 2

The aims of defensive strategy are to reduce the probability of attack,divert attacks to less-threatening areas,and lessen their intensity.

Accepted Answer

A) True 
 B)False

Question 3

One approach to ________ is to identify completely new and different applications for the product.For example,food product companies have long advertised recipes that use their branded products in entirely different ways.

Accepted Answer

A)  amount of consumption 
B)  level of consumption 
C)  dedication to consumption 
D)  awareness consumption 
E)  frequency of consumption

Question 4

An example of a strategic group in the appliance industry would be one where ________.

Accepted Answer

A)  there is a large franchised dealer system 
B)  a common promotional theme is used 
C)  competitors have broad lines, medium manufacturing costs, low service responsibility, and low prices 
D)  multinational operations are mandated 
E)  there is a value orientation rather than a cost orientation

Question 5

Identify the two requirements that must be satisfied to create a successful low-cost operation.

Accepted Answer

The answer of Identify the two requirements that must be...

Question 6

Because the cost of buying higher market share may far exceed its revenue value,a company should consider four factors before pursuing increased market share.These include all of the following EXCEPT ________.

Accepted Answer

A)  the possibility of provoking antitrust action 
B)  the likelihood that an award-winning promotional campaign can be generated 
C)  economic cost 
D)  pursuing the wrong marketing-mix strategy 
E)  the effect of increased market share on actual and perceived quality

Question 7

Profitability always rises with market share gains.

Accepted Answer

A) True 
 B)False

Question 8

After FedEx watched UPS successfully invade its airborne delivery system,FedEx invested heavily in ground delivery service through a series of acquisitions to challenge UPS on its home turf.This is an example of a ________.

Accepted Answer

A)  position defense 
B)  flank defense 
C)  counteroffensive defense 
D)  contraction defense 
E)  mobile defense

Question 9

Increasing ________ requires either (1)identifying additional opportunities to use the brand in the same basic way or (2)identifying completely new and different ways to use the brand.

Accepted Answer

A)  amount of consumption 
B)  level of consumption 
C)  dedication to consumption 
D)  awareness consumption 
E)  frequency of consumption

Question 10

Some market leaders have increased profitability by selectively ________ market share in weaker areas.

Accepted Answer

A)  decreasing 
B)  increasing 
C)  protecting 
D)  sharing 
E)  trading

Exam 11: Dealing with Competition

A group of firms following the same strategy in a given target market is called a(n) ________.