Marketing quốc tế 11 competitive dynamics

Which of the following strategies is Trendz using?8 A market leader on the look out for more usage from existing customers should focus on increasing the frequency of consumption and ___

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

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?

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?

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

10) When food product companies advertise recipes that use their branded products in entirely different ways, they are increasing the of the brand.

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

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

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

17) marketers are not just market-driven, they are proactive market-driving firms.A) Creative

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

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

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

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 naturalingredients This is an example of a

27) In , the market leader stretches its domain over new territories that can serve as future centers for defense and offense

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

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.

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

36) The can be used when the challenger spots areas where the opponent is

39) The attack attempts to capture a significant share of the consumer market by

launching a grand offensive on several fronts

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?

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

44) Selective price cuts, intense promotional blitzes, and occasional legal action are

commonplace in the strategic design of a(n)

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

48) As a market follower strategy, the emulates the leader's products, name, and packaging, with slight variations

51) The copies some things from the leader but differentiates on packaging,

advertising, pricing, or location

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

54) As a market follower, the may choose to sell to different markets, but often it grows into a future challenger.

57) A firm that serves small market segments that are not being served by bigger firms is known

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

Answer: C

Page Ref: 309

Objective: 3

Difficulty: Easy

60) The key idea in successful nichemanship is specialization Which of the following specialistswould most closely be identified with the characterization of being an organization that limits its selling to one customer?

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

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

65) When a bank takes loan requests over the phone and hand-delivers the money to the

customer, it becomes a specialist

66) is the period of slow sales growth and nonexistent profits.

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.

70) is a slowdown in sales growth because the product has achieved acceptance by

most potential buyers

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 itslife cycle

72) During the stage of a product's life cycle, sales show a downward drift and profits

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) 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

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

Answer: C

Page Ref: 315

Objective: 4

Difficulty: Easy

78) is a distribution strategy that can be effectively used during the growth stage of theproduct life cycle.

A) Building product awareness

B) Phasing out unprofitable outlets

C) Building selective distribution

D) Building intensive distribution

E) Stressing on brand differences

Answer: D

Page Ref: 317

Objective: 4

Difficulty: Easy

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

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

Answer: D

Page Ref: 318-320

Objective: 5

81) When the total market expands, the dominant firm usually gains the most.

84) One way to increase the frequency of consumption of a product by consumers is by

introducing it in larger package sizes

88) A responsive marketer looks ahead to needs customers may have in the near future.

95) Market challengers are companies that attack the leader and other competitors in an

aggressive bid for further market share

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.

106) The growth stage of a product's life cycle is a period of rapid market acceptance and

substantial profit improvement

108) A fashion is a basic and distinctive mode of expression appearing in a field of human

109) Fads are fashions that come quickly into public view, are adopted with great zeal, peak

early, and decline very fast

111) Price, distribution, and communication are the nonproduct elements that marketers modify

to increase product sales

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.

120) Which three groups of customers can help expand a firm's market demand?

Answer: Every product class has the potential to attract buyers who are unaware of the product

or are resisting it because of price or lack of certain features A company can search for new users among three groups: those who might use it but do not (market-penetration strategy), those who have never used it (new-market segment strategy), or those who live elsewhere

(geographical-expansion strategy)

Page Ref: 301

Objective: 1

Difficulty: Easy

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

Answer: In satisfying customer needs, one can draw a distinction between responsive marketing,

anticipative marketing, and creative marketing A responsive marketer finds a stated need and fills it An anticipative marketer looks ahead to needs customers may have in the near future A creative marketer discovers solutions customers did not ask for but to which they enthusiastically

respond Creative marketers are proactive market-driving firms, not just market-driven ones.Page Ref: 302

Objective: 1

Difficulty: Easy

122) What is counteroffensive defense? Explain with an example

Answer: In a counteroffensive, the market leader can meet the attacker frontally and hit its flank,

or launch a pincer movement so it will have to pull back to defend itself After FedEx watched UPS successfully invade its airborne delivery system, it invested heavily in ground delivery through a series of acquisitions to challenge UPS on its home turf

Another common form of counteroffensive is the exercise of economic or political clout The leader may try to crush a competitor by subsidizing lower prices for the vulnerable product with revenue from its more profitable products, or it may prematurely announce a product upgrade to prevent customers from buying the competitor's product Or the leader may lobby legislators to take political action to inhibit the competition

Answer: The key idea in successful nichemanship is specialization A firm that specializes in one type of end-use customer is an end-user specialist For example, a value-added reseller (VAR)customizes computer hardware and software for specific customer segments and earns a price premium in the process.

A firm that specializes at some vertical level of the production-distribution value chain is a vertical-level specialist A copper firm may concentrate on producing raw copper, copper components, or finished copper products

Page Ref: 309

Objective: 3

Difficulty: Easy

125) What is fashion?

Answer: Fashion is one of the three special categories of product life cycles A fashion is a

currently accepted or popular style in a given field Fashions pass through four stages:

distinctiveness, emulation, mass fashion, and decline The length of a fashion cycle is hard to predict One view is that fashions end because they represent a purchase compromise, and consumers soon start looking for the missing attributes Another explanation is that too many consumers adopt the fashion, thus turning others away Still another is that the length of a particular fashion cycle depends on the extent to which the fashion meets a genuine need, is consistent with other trends in the society, satisfies societal norms and values, and keeps within technological limits as it develops

Page Ref: 311

Objective: 4

Difficulty: Easy

126) What must the firm do to sustain rapid market share growth?

Answer: To sustain rapid market share growth now, the firm must:

• improve product quality and add new features and improved styling.

• add new models and flanker products (of different sizes, flavors, and so forth) to protect the

main product

• enter new market segments.

• increase its distribution coverage and enter new distribution channels.

• shift from awareness and trial communications to preference and loyalty communications.

• lower prices to attract the next layer of price-sensitive buyers.

By spending money on product improvement, promotion, and distribution, the firm can capture

a dominant position It can trade off maximum current profit for high market share and the hope

of even greater profits in the maturity stage

Page Ref: 313

Objective: 4

Difficulty: Easy