ESLSCAMARKETING 1

MULTIPLE CHOICE.

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.

1. 1. market challenger
   2. market entrant
   3. market follower
   4. market nicher
   5. market leader

2. When the total market expands, the                usually gains the most.
   1. market challenger
   2. market leader
   3. market follower
   4. market nicher
   5. market entrant

3. When a firm looks for new users in groups that might use the product but do not, the firm is using the

                   strategy.

1. 1. new-market segment
   2. market-penetration
   3. geographical-expansion
   4. product development
   5. diversification

5. When firms look for new users in groups that have never used the product before, the firm is using the

                   strategy.

1. 1. new-market segment
   2. market-penetration
   3. geographical-expansion
   4. product development
   5. diversification

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.
   1. market-penetration
   2. new-market segment
   3. geographical-expansion
   4. niche identification
   5. blue-ocean

8. A market leader on the look out for more usage from existing customers should focus on increasing the frequency of consumption and               .
   1. decreasing the product price
   2. the product line
   3. the amount of consumption
   4. decreasing production turnover time
   5. diversifying into unrelated markets

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?
   1. increasing the amount of consumption
   2. decreasing the level of consumption
   3. increasing dedication to consumption
   4. increasing product innovation
   5. 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.
    1. amount of consumption
    2. level of consumption
    3. dedication to consumption
    4. frequency of consumption
    5. awareness consumption

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?
    1. using the new-market segment strategy to attract new customers
    2. improving the current level of product performance
    3. advertising new and different applications of the brand
    4. protecting its market share
    5. using the market-penetration strategy to attract new customers

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                                                                                                                                                                                                            .
    1. increase the amount of consumption
    2. increase the level of consumption
    3. increase the perception of consumption
    4. increase the frequency of consumption
    5. increase the emotional implications of consumption

14. To satisfy customers, a(n)                  marketer finds a stated need and fills it.
    1. creative
    2. responsive
    3. anticipative
    4. laidback
    5. inexperienced

15. A(n)                    marketer looks ahead to needs customers may have in the near future.
    1. laidback
    2. creative
    3. inexperienced
    4. responsive
    5. anticipative

16. A(n)                    marketer discovers solutions customers did not ask for but to which they enthusiastically respond.

1. 1. laidback
   2. responsive
   3. inexperienced
   4. creative
   5. anticipative

17.                    marketers are not just market-driven, they are proactive market-driving firms.
    1. Creative
    2. Responsive
    3. Inexperienced
    4. Laidback
    5. Anticipative

19. Which of the following is true about proactive marketing?
    1. A company needs creative anticipation to see the writing on the wall.
    2. Proactive companies create new offers to serve unmet and unknown consumer needs.
    3. Proactive companies refrain from practicing uncertainty management.
    4. A company needs responsive anticipation to devise innovative solutions.
    5. Companies are winners when they are extremely risk-averse.

20.                    defense involves occupying the most desirable market space in the minds of the consumers and making the brand almost impregnable.
    1. Position
    2. Flank
    3. Preemptive
    4. Mobile
    5. Contraction

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.
    1. position
    2. flank
    3. preemptive
    4. counteroffensive
    5. mobile

22.                    is an aggressive maneuver where the firm attacks first, perhaps with guerrilla action across the market and keeping everyone off balance.
    1. Position defense
    2. Flank defense
    3. Contraction defense
    4. Preemptive defense
    5. Lateral defense

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.
    1. mobile
    2. counteroffensive
    3. preemptive

1. 4. contraction
   5. flank

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.
    1. preemptive defense
    2. counteroffensive defense
    3. mobile defense
    4. flank defense
    5. contraction defense

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.

1. 1. position
   2. counteroffensive
   3. preemptive
   4. contraction
   5. flank

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                  .

1. 1. position defense
   2. flank defense
   3. counteroffensive defense
   4. contraction defense
   5. mobile defense

27. In                   , the market leader stretches its domain over new territories that can serve as future centers for defense and offense.
    1. counteroffensive defense
    2. flank defense
    3. contraction defense
    4. mobile defense
    5. position defense

28. Market broadening and market diversification are likely tactics employed in                  strategies.
    1. position defense
    2. flank defense
    3. preemptive defense
    4. counteroffensive defense
    5. mobile defense

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.

1. 1. preemptive defense
   2. counteroffensive defense
   3. mobile defense

1. 4. flank defense
   5. contraction defense

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.
    1. contraction
    2. preemptive
    3. flank
    4. mobile
    5. position

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.
    1. preemptive defense
    2. counteroffensive defense
    3. mobile defense
    4. flank defense
    5. contraction defense

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       .
    1. market challenger
    2. market leader
    3. market follower
    4. market nicher
    5. market entrant

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.
    1. a firm of its own size
    2. the market leader
    3. a regional firm
    4. an underfinanced firm
    5. a poorly performing firm

34. In a pure                    attack, the attacker matches its opponent's product, advertising, price, and distribution.
    1. guerilla
    2. bypass
    3. encirclement
    4. frontal
    5. flank

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.
    1. guerilla
    2. frontal
    3. encirclement
    4. bypass

1. 5. flank

36. The                    can be used when the challenger spots areas where the opponent is underperforming.
    1. encirclement attack
    2. frontal attack
    3. flank-geographic attack
    4. backwards-flank attack
    5. guerilla warfare

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.
    1. frontal
    2. flank
    3. guerrilla
    4. encirclement
    5. bypass

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.
    1. frontal attack strategy
    2. flanking strategy
    3. encircling strategy
    4. counteroffensive strategy
    5. bypass strategy

39. The                    attack attempts to capture a significant share of the consumer market by launching a grand offensive on several fronts.
    1. frontal
    2. bypass
    3. flank
    4. encirclement
    5. guerrilla

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?
    1. frontal attack
    2. bypass attack
    3. guerrilla warfare
    4. flank attack
    5. encirclement attack

41. The                    attack offers the firm an opportunity to diversify into unrelated products, into new geographical markets, and leapfrogging into new technologies.
    1. bypass
    2. flank
    3. frontal
    4. guerrilla

1. 5. encirclement

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.
    1. flank
    2. bypass
    3. guerrilla
    4. encirclement
    5. frontal

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 .
    1. flank attack
    2. encirclement attack
    3. bypass attack
    4. guerrilla warfare
    5. frontal attack

44. Selective price cuts, intense promotional blitzes, and occasional legal action are commonplace in the strategic design of a(n) .
    1. frontal attack
    2. flank attack
    3. bypass attack
    4. encirclement attack
    5. guerilla warfare

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.
    1. innovator
    2. cloner
    3. imitator
    4. adapter
    5. counterfeiter

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                .
    1. cloning
    2. imitating
    3. counterfeiting
    4. adapting
    5. innovating

48. As a market follower strategy, the                  emulates the leader's products, name, and packaging, with slight variations.
    1. counterfeiter
    2. cloner
    3. imitator
    4. adapter
    5. innovator

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     .
    1. innovating
    2. adapting
    3. imitating
    4. cloning
    5. counterfeiting

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?
    1. counterfeiter
    2. cloner
    3. imitator
    4. adapter
    5. reverse innovator

51. The                    copies some things from the leader but differentiates on packaging, advertising, pricing, or location.
    1. innovate
    2. adapt
    3. cloner
    4. imitator
    5. counterfeiter

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.
    1. cloner
    2. imitator
    3. counterfeiter
    4. adapter
    5. innovator

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)        .
    1. counterfeiter
    2. adopter
    3. cloner
    4. imitator
    5. adapter

54. As a market follower, the                  may choose to sell to different markets, but often it grows into a future challenger.
    1. imitator
    2. adapter
    3. cloner
    4. counterfeiter
    5. innovator

55. 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    .
    1. counterfeiter
    2. cloner
    3. imitator
    4. adapter
    5. innovator

56. An alternative to being a market follower in a large market is to be a leader in a small market. This type of competitor is called a   .
    1. marketing king
    2. market nicher
    3. segment king
    4. guerilla marketer
    5. strategic clone

57. A firm that serves small market segments that are not being served by bigger firms is known as a              .
    1. market challenger
    2. market leader
    3. market follower
    4. market nicher
    5. market entrant

58. The market leader strategy ensures high sales volume, whereas the market nicher strategy allows firms to achieve  .
    1. high margin
    2. low margin
    3. high promotability
    4. medium pricing
    5. lower demand

59. Which of the following is true about market-nichers?
    1. They are market followers in small markets.
    2. They tend to have high manufacturing costs.
    3. Their return on investment exceeds that in larger markets.
    4. A nicher achieves high volume as against a mass marketer that achieves high margin.
    5. They usually experience long-term losses.

66.                    is the period of slow sales growth and nonexistent profits.
    1. Growth
    2. Decline
    3. Maturity
    4. Introduction
    5. Stagnancy

67. Campbell Soups is a newly established company that specializes in preparing healthy but tasty food for children under the age of 5. It is incurring huge productions costs, nonexistent profits, and slow sales growth. The company is in the        phase of its life cycle.

1. 1. stagnancy
   2. introduction
   3. maturity
   4. decline
   5. growth

68.                    is a period of rapid market acceptance and substantial profit improvement.
    1. Stagnancy
    2. Introduction
    3. Maturity
    4. Decline
    5. Growth

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.
    1. decline
    2. stagnancy
    3. growth
    4. introduction
    5. maturity

70.                    is a slowdown in sales growth because the product has achieved acceptance by most potential buyers.
    1. Obsolescence
    2. Introduction
    3. Growth
    4. Decline
    5. Maturity

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 its life cycle.
    1. introduction
    2. growth
    3. decline
    4. maturity
    5. obsolescence

72. During the                    stage of a product's life cycle, sales show a downward drift and profits erode.
    1. introduction
    2. growth
    3. decline
    4. obsolescence
    5. maturity

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

1. 1. maturity
   2. obsolescence
   3. introduction
   4. growth
   5. decline

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.

1. 1. feature improvement
   2. quality improvement
   3. style improvement
   4. size improvement
   5. technological improvement

76. An alternate way to increase sales volume is to expand the number of users. This can be done by            .
    1. having consumers use the product on more occasions
    2. having consumers use more of the product on each occasion
    3. having consumers use the product in new ways
    4. remaining in the current market segment
    5. attracting competitors' customers

77. An alternate way to increase sales volume is to increase the usage rate among users. This can be done by

                  .

1. 1. converting nonusers
   2. having consumers use less of the product on each occasion
   3. having consumers use the product on more occasions
   4. attracting competitors' customers
   5. entering new market segments

78.                    is a distribution strategy that can be effectively used during the growth stage of the product life cycle.
    1. Building product awareness
    2. Phasing out unprofitable outlets
    3. Building selective distribution
    4. Building intensive distribution
    5. Stressing on brand differences

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

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

82. The market leader should look for new customers or more usage from existing customers.

83. A market-penetration strategy is one where a company searches for new customers in a group that has never used a product before.

84. One way to increase the frequency of consumption of a product by consumers is by introducing it in larger package sizes.

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

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

89. An anticipative marketer finds a stated need and fills it.

90. A creative marketer discovers solutions customers did not ask for but to which they enthusiastically respond.

91. Position defense means occupying the most desirable market space in consumers' minds, making the brand almost impregnable.

92. 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.

93. In contraction defense, the leader stretches its domain over new territories through market broadening and market diversification.

94. Market diversification shifts the company's focus to unrelated industries.

95. Market challengers are companies that attack the leader and other competitors in an aggressive bid for further market share.

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

97. A frontal attacking strategy is another name for identifying shifts that are causing gaps to develop, then rushing to fill the gaps.

98. Encirclement attempts to capture a wide slice of territory by launching a grand offensive on several fronts.

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

100. As a market-follower strategy, a counterfeiter emulates the leader's products, name, and packaging, with slight variations.

101. As a market-follower strategy, an imitator duplicates the leader's product and packages and sells it on the