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1、Chapter 11: Dealing with CompetitionChapter 11: Dealing with CompetitionGENERAL CONCEPT QUESTIONSMultiple Choice 1. Michael Porter has identified five forces that determine the intrinsic long-run attractiveness of a market or market segment. Which of the following would NOT be among Porters five for

2、ces? a. Industry competitorsb. Technological partnersc. Substitutesd. Buyerse. Potential entrantsAnswer: bPage: 342Level of difficulty: Medium2. Which of the following would be the most likely threat that is associated with potential new entrants in Porters segment structural attractiveness model? a

3、. Threat of positioningb. Threat of responsec. Threat of delayed actiond. Threat of role reversale. Threat of mobilityAnswer: ePage: 342Level of difficulty: Hard3. A segment is unattractive when there are actual or potential _ for the product. a. contenders b. competitorsc. substitutesd. unclear dem

4、ande. profit fluctuation Answer: cPage: 343 Level of difficulty: Medium4. Wal-Mart is perhaps one of the best illustrations of the threat of _ found in Porters model. a. intense segment rivalryb. new entrantsc. substitute productsd. buyers growing bargaining power e. suppliers growing bargaining pow

5、erAnswer: dPage: 343Level of difficulty: Hard5. A segment is unattractive if the companys suppliers are able to raise prices or reduce quantity supplied. Which of the following is the best illustration of the threat of suppliers growing bargaining power? a. Wal-Mart has almost no competitors in its

6、market space.b. Oil companies must purchase a significant amount of their product from OPEC.c. McDonalds is the largest fast food franchise and is still growing.d. The U.S. Post Office has merged package operations with FedEx.e. Sears unsuccessfully attempted to compete with Wal-Mart and Kmart.Answe

7、r: bPage: 343Level of difficulty: Hard6. A(n) _ is a group of firms that offer a product or class of products that are close substitutes for one another. a. industryb. cartelc. cooperatived. monopolye. demand fieldAnswer: aPage: 344Level of difficulty: Easy7. When only one firm provides a certain pr

8、oduct or service in a certain country or area a _ exists. a. duopolyb. monopoly c. oligopolyd. monopolistic competitione. pure competitionAnswer: bPage: 344 Level of difficulty: Easy8. Which of the following would be the best illustration of a pure oligopoly? a. Autosb. Camerasc. Steeld. Pharmaceuti

9、calse. High fashion clothingAnswer: cPage: 344 Level of difficulty: Hard9. Which of the following is often considered to be a good illustration an industry structure type known as pure competition? a. Oilb. Plasticsc. Pharmaceuticalsd. High fashion clothinge. Stock marketAnswer: ePage: 344 Level of

10、difficulty: Medium10. All of the following are considered to be major entry barriers in markets EXCEPT _. a. high capital requirementsb. economies of scalec. patents and licensing requirementsd. product or service linee. reputation requirementsAnswer: dPage: 345 Level of difficulty: Medium11. If a m

11、arketer is facing government restrictions, high vertical integration, emotional barriers, low asset-salvage value due to obsolescence, and legal obligations to creditors, the marketer is most likely facing what are called _ barriers in a marketplace. a. exitb. entrancec. competitive d. virtuale. con

12、trivedAnswer: a Page: 345Level of difficulty: Medium12. Major oil producers carry on oil exploration, oil drilling, oil refining, chemical manufacture, and service-station operation. When an organization does all of these separate tasks within a distribution channel they can be said to have achieved

13、 what is called _. a. vertical integrationb. horizontal integrationc. concentric integrationd. parallel marketinge. conglomerate marketingAnswer: aPage: 346Level of difficulty: Medium13. Using the market approach, _ are companies that satisfy the same customer need. a. partnersb. competitorsc. entre

14、preneursd. innovators e. followers Answer: bPage: 346 Level of difficulty: Easy14. A group of firms following the same strategy in a given target market is called _. a. cartel b. cabalc. cooperatived. informal alliancee. strategic groupAnswer: ePage: 347Level of difficulty: Easy15. An example of a s

15、trategic group in the appliance industry would be one where _. a. there was a large franchised dealer systemb. a common promotional theme usedc. competitors had broad lines, medium manufacturing costs, low service responsibility, and low pricesd. multinational operations are mandatede. a value orien

16、tation rather than a cost orientationAnswer: cPage: 347 Level of difficulty: Medium16. Once a company has identified its main competitors and their strategies, it must next ask: _?a. What are the competitors objectivesb. What are the competitive brand attributesc. What are the competitive promotion

17、schemesd. What is the attrition rate in the markete. What are the subtle market entrance requirementsAnswer: aPage: 347Level of difficulty: Hard17. In general, a company should monitor the following variables when analyzing competitors: _, share of mind, and share of market. a. share of demandb. sha

18、re of profitsc. share of promotiond. share of universee. share of heartAnswer: e Page: 348Level of difficulty: Medium18. _ is the percentage of customers who named the competitor in responding to the statement, “Name the company from which you would prefer to buy the product.” a. Share of marketb. S

19、hare of mindc. Share of heartd. Share of competitive spacee. Share of psychological fieldAnswer: cPage: 348 Level of difficulty: Medium19. Most companies aim their competitive shots at _ competitors, because this requires fewer resources per share point gained. a. strongb. weakc. distantd. “good” e.

20、 unacknowledgedAnswer: bPage: 348Level of difficulty: Easy20. _ competitors try to buy market share rather than earn it; take large risks; invest in overcapacity; and upset industrial equilibrium. a. “Bad” b. “Good” c. Distantd. Closee. StrongAnswer: aPage: 349 Level of difficulty: Hard21. In genera

21、l, a market leader will have about _ of the total market in relation to other competitors. a. 60 percentb. 50 percentc. 40 percent d. 30 percente. 75 percentAnswer: c Page: 349Level of difficulty: Medium22. The market nicher serves small market segments not being served by larger firms. Nichers acco

22、unt for about _ of the market in relation to other competitors. a. 30 percentb. 25 percentc. 20 percentd. 15 percente. 10 percent Answer: ePage: 349Level of difficulty: Hard23. The aim of benchmarking is to copy or improve on _, either within an industry or across industries. a. profitabilityb. manu

23、facturingc. ideationd. aggressiveness e. “best practices”Answer: ePage: 349Level of difficulty: Medium24. Being a market leader is often a difficult position to maintain and defend. The market leader must protect its current market share through good defensive and offensive actions. Second, the firm

24、 can try to increase its market share, even if the market size remains constant. What is the third course of action recommended for market leaders? a. The firm must find be a cost leader.b. The firm must find new, innovative technologies on a monthly basis.c. The firm must strive to win promotional

25、awards.d. The firm must find ways to expand total market demand.e. The firm must pursue markets others do not want.Answer: dPage: 350Level of difficulty: Medium25. As a marketing manager, you have decided to pursue new customers with your established products. Specifically, the new customers that yo

26、u want are those who might use the product but do not at present. Which of the following strategies is recommended to pursue such a customer market? a. Market-penetration strategyb. New-market segment strategyc. Geographical-expansion strategy d. Needs-assessment strategye. Consolidation strategyAns

27、wer: aPage: 350Level of difficulty: Hard26. One of the market leader strategies for expanding the total market is to focus on more usage. Two avenues are open for doing this: increasing the frequency of consumption or _. a. increasing adherence to everyday low pricingb. decreasing the number of prod

28、uct returnsc. increasing the level or quantity of consumptiond. increasing the level of promotional expenditures relative to market share percentagee. decreasing sales-related expensesAnswer: cPage: 350Level of difficulty: Hard27. To counter value-based players, it will be necessary to focus on area

29、s where their business models give other companies room to maneuver. For example, instead of directly competing with Wal-Mart and other retailers, Walgreens emphasizes convenience across all elements of its business. Which of the following general strategies is Walgreens using as its main competitiv

30、e focus? a. Execution b. Implementationc. Vertical integrationd. Differentiatione. Cost leadershipAnswer: dPage: 351Level of difficulty: Medium28. Market leaders are constantly under attack from large and small competitors alike. What is the most constructive response a market leader can make when d

31、efending its terrain? a. Basic cost control.b. Expanding expected benefits.c. Expanding desired benefits.d. Meet all challengers with a swift response.e. Continuous innovation.Answer: ePage: 352 Level of difficulty: Medium 29. Caterpillar has become dominant in the construction-equipment industry de

32、spite charging a premium price and being challenged by a number of able competitors. All of the following have been cited as policies used by Caterpillar to meet its competitors EXCEPT _. a. limited-line strategyb. premium performancec. superior serviced. extensive and efficient dealership systeme.

33、good financingAnswer: aPage: 352Level of difficulty: Hard 30. Sony is an unusual market leader. It gives its customers new products that they have never even asked for (e.g., Walkmans, VCRs, video cameras, CDs). This makes Sony a(n) _ firm. a. market-drivenb. market-drivingc. operations-drivend. vis

34、ion-drivene. virtually-drivenAnswer: bPage: 353Level of difficulty: Medium31. _ defense involves occupying the most desirable market space in the minds of the consumers, making the brand almost impregnable. a. Positionb. Flankc. Preemptived. Mobilee. ContractionAnswer: aPage: 353Level of difficulty:

35、 Medium32. A marketing manager has planned a strategy that will require that the organization erect outposts to protect its weak front-running brands. Because these outposts will be central to the organizations new competitive strategy, we can say that a _ defense is being used. a. positionb. flank

36、c. preemptive d. counteroffensivee. mobileAnswer: bPage: 354Level of difficulty: Medium33. The “best defense is a good offense” would be a policy under which of the following market leader defensive strategies? a. Position defenseb. Flank defensec. Contraction defensed. Preemptive defensee. Lateral

37、defenseAnswer: dPage: 354Level of difficulty: Medium 34. Market broadening and market diversification are likely tactics employed in which of the following market leader defensive strategies? a. Position defenseb. Flank defensec. Preemptive defensed. Counteroffensive defense e. Mobile defenseAnswer:

38、 ePage: 354Level of difficulty: Hard35. 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. All of the following would be among those four factors EXCEPT _. a. the possibility of provoking ant

39、itrust actionb. economic costc. pursuing the wrong marketing-mix strategyd. the likelihood that an award-winning promotional campaign can be generatede.the effect of increased market share on actual and perceived qualityAnswer: dPage: 355Level of difficulty: Medium36. Some market leaders have increa

40、sed profitability by selectively _ market share in weaker areas. a. decreasing b. increasingc. protectingd. sharinge. tradingAnswer: a Page: 355Level of difficulty: Medium37. All of the following companies have been characterized as being market challengers in their respective fields EXCEPT _. a. To

41、yotab. British Airwaysc. Boeingd. Honda e.Proctor & Gamble Answer: cPage: 355Level of difficulty: Easy38. A market challenger must decide who to attack. All of the following are considered as likely possible targets (as per information found in the text) EXCEPT _. a. it can attack the market leader

42、b. it can attack firms its own size that are not doing the jobc. it can attack firms its own size that are underfinanced d. it can attack a global conglomerate that is market hungry e.it can attack small local firmsAnswer: d Page: 356Level of difficulty: Medium39. All of the following are considered

43、 to be viable attack strategies that can be employed by a market challenger EXCEPT _. a. counteroffensive attackb. frontal attackc. flank attackd. bypass attacke. guerilla warfareAnswer: aPages: 356358 Level of difficulty: Hard40. According to attack strategies available to the market challenger, th

44、e _ can be used when the challenger spots areas where the opponent is underperforming. a. encirclement attackb. frontal attackc. flank-geographic-attackd. backwards-flank-attacke. guerilla warfareAnswer: cPage: 356 Level of difficulty: Medium41. Sally Seabrook is an up-and-coming marketing manager f

45、or 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, price cuts, new distributor alliances, and creative merchandising). Her “blitz” is compar

46、able to any done by the military in time of war. Which of the following market challenger attack strategies is Ms. Seabrook using to attack her competition? a. Frontal attackb. Bypass attackc. Guerrilla warfared. Flank attacke. Encirclement attackAnswer: ePage: 357 Level of difficulty: Hard42. A mar

47、keting manager of a market challenger-type organization has decided to “leapfrog” competition by moving into cutting-edge technologies. This indirect approach to attacking competition can be characterized as being what is called the _. a. flank attackb. encirclement attackc. bypass attackd. guerrill

48、a warfaree. frontal attackAnswer: cPage: 357Level of difficulty: Medium43. A market challenger strategist must carefully consider all attack options before moving forwards. If the strategist chooses the _ approach, selective price cuts, intense promotional blitzes, and occasional legal action will p

49、robably be commonplace in the strategic design. a. frontal attack b. flank attackc. bypass attackd. encirclement attacke. guerilla warfare Answer: ePage: 358Level of difficulty: Hard44. All of the following are considered to be valid market challenger attack strategies EXCEPT _. a. price discountsb.

50、 lower price goodsc. prestige goodsd. partnerships with rival market leaderse. product proliferation Answer: dPages: 358359 Level of difficulty: Medium45. Avon became a major cosmetics company by perfecting door-to-door selling instead of battling other cosmetic firms in conventional stores. This is

51、 an example of which of the following specific market challenger attack strategies? a. Manufacturing-cost reductionb. Intensive advertising promotionc. Distribution innovationd. Product innovatione. Product proliferationAnswer: cPage: 359Level of difficulty: Medium46. Which of the following best des

52、cribes the premise of Theodore Levitts “Innovative Imitation” article? a. Imitation is wrong and should be punished.b. Product imitation might be as profitable as a strategy of product innovation.c. Innovation is not possible without substantial imitation.d. Innovation cannot begin unless dissatisfa

53、ction with imitation occurs.e. Imitation should be against the law because of the intellectual property decision involved.Answer: bPage: 359Level of difficulty: Hard47. Many companies prefer to follow rather than challenge the market leader. Patterns of _ are common in capital-intensive, homogeneous

54、-product industries, such as steel, fertilizers, and chemicals. Competitors present similar offers to buyers, usually by copying the leader. Market shares show high stability. a. “conscious parallelism”b. “feature fashion”c. “covert security analysis”d. “supply delay”e. “predatory pricing” Answer: a

55、Page: 360Level of difficulty: Hard48. All of the following are considered to be viable market follower strategies EXCEPT _. a. counterfeiterb. clonerc. imitatord. innovatore. adapterAnswer: dPages: 360361 Level of difficulty: Medium49. As a market follower strategy, the _ emulates the leaders produc

56、ts, name, and packaging, with slight variations. a. counterfeiterb. clonerc. imitatord. adaptere. innovatorAnswer: bPage: 361Level of difficulty: Hard50. As a market follower strategy, the _ copies some things from the leader but maintains differentiation in terms of packaging, advertising, pricing,

57、 or location. This strategy is tolerated by the market leader as long as the followers aggressiveness does not mount. a. counterfeiterb. clonerc. imitatord. adaptere. innovatorAnswer: cPage: 361Level of difficulty: Medium 51. An alternative to being a market follower in a large market is to be a lea

58、der in a small market. This type of competitor is called a(n) _. a. marketing knaveb. market nicherc. segment kingd. guerilla marketere. strategic cloneAnswer: bPage: 362Level of difficulty: Medium52. Which of the following tennis shoe companies is considered to be a market nicher? a. New Balanceb.

59、Adidasc. Reebokd. Wal-Mart brand tennis shoese. NikeAnswer: aPage: 362Level of difficulty: Medium53. In terms of comparisons with a market leader, whereas the market leader achieves high volume, the market nicher achieves _. a. high marginb. low marginc. high promotabilityd. medium pricinge. lower d

60、emandAnswer: aPage: 362Level of difficulty: Medium54. The key idea in successful nichemanship is specialization. Which of the following specialists would most closely be identified with the characterization of being an organization that limits its selling to one customer? a. End-user specialistb. Ve

61、rtical-level specialistc. Customer-size specialistd. Specific-customer specialiste. Quality-price specialistAnswer: dPage: 364Level of difficulty: Medium55. A market nicher is considered to be a _ specialist if the firm specializes in producing a certain type of product or product feature such as Rent-a-Wreck that rents only “beat-up” cars. a. end-user b. vertical-levelc. customer-sized. channel e.product-featureAnswer: ePage: 364Level of difficulty: Easy56. Which of the following strategies for entering a market held by incumbent firms would be best if the desire was to position away f