SMM Test Bank Unit 6-10 PDF

lOMoARcPSD|7648752 Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies 1. The primary objective of the early share leader, usually the market pioneer, in a growth market is __...

lOMoARcPSD|7648752 Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies 1. The primary objective of the early share leader, usually the market pioneer, in a growth market is _____. A. share reduction B. share growth C. share maintenance D. mass-market penetration Answer: c Level of Difficulty: Easy Page: 221 2. Sony was the pioneer and early share leader in the videocassette recorder industry with its Betamax technology. But Matsushita's longer-playing and lower-priced VHS format equipment proved much more popular with consumers, and dethroned Sony as industry leader. This example underlines that: A. firms cannot always rely on their competencies to maintain share leadership in a market. B. the number of firms competing for a share of the market will decrease if there are few barriers to entry. C. market fragmentation will occur if potential customers have homogeneous functional needs. D. pioneers in new product-markets always manage to leverage their competitive advantages as the market grows. Answer: a Level of Difficulty: Medium Page: 224 3. Identify the share maintenance marketing objective for share leaders. A. Delineate into niche target markets in product growth stage. B. Stimulate selective demand among innovators. C. Retain existing customers and ensure brand loyalty. D. Stimulate secondary demand to help speed up overall market growth. Answer: c Level of Difficulty: Medium Page: 226 4. Identify a market leader's action aimed at stimulating selective demand among later adopters. A. Maintaining/improving customer satisfaction and loyalty B. Encouraging/simplifying repeat purchase C. Differentiated positioning against competitive offerings D. Reducing attractiveness of switching Answer: c Level of Difficulty: Medium Page: 227 5. The marketing action of developing a second product line with features that are more 1-49 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Downloaded by Bích Kha Ngô ([email protected])  lOMoARcPSD|7648752 Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies appealing to a specific segment of potential customers is characteristic of the _____ strategy. A. market expansion B. contraction C. flanker D. confrontation Answer: c Level of Difficulty: Easy Page: 227 6. Which of the following is characteristic of a market expansion strategy? A. Make product modifications or improvements to match or beat superior competitive offerings. B. Develop a second brand or product line with features or price more appealing to a specific segment of potential customers. C. Meet or beat lower prices or heavier promotional efforts by competitors when necessary to retain customers and when lower unit costs allow. D. Develop multiple-line extensions or brand offerings targeted to the needs of various potential user applications or geographical segments within the market. Answer: d Level of Difficulty: Medium Page: 227 7. Which of the following statements is associated with the fortress strategy? A. The market leader develops a strong position when potential customers have relatively homogeneous needs. B. The market leader develops a second brand to compete directly against the challenger's offering. C. The market leader changes the marketing program before a suspected competitive challenge occurs. D. The market leader defends its relative market share by expanding into a number of market segments. Answer: a Level of Difficulty: Medium Page: 228 8.Which of the following objectives can be achieved with a confrontation strategy for share maintenance? A. Appeal to late adopters with same attributes and benefits offered to early adopters. B. Improve ability to retain current customers as market fragments. C. Increase ability to attract new customers in selected high-growth segments by focusing resources on them. D. Improve ability to win new customers who might otherwise be attracted to competitor's offering. Answer: d Level of Difficulty: Hard Page: 229 1-50 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Downloaded by Bích Kha Ngô ([email protected])  lOMoARcPSD|7648752 Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies 9. Which of the following strategies is most effective in a market that is relatively homogeneous in relation to customer needs and purchase criteria? A. Fortress strategy B. Market expansion strategy C. Contraction strategy D. Flanker strategy Answer: a Level of Difficulty: Easy Page: 229 10. What action must a leader take to improve customer satisfaction as competitor enters or prepares to enter the market? A. It should take steps to improve the physical product and customers' perceptions of it as well. B. It should shift its sales promotion emphasis from building selective demand to stimulating primary demand. C. It should continue sales promotion efforts aimed only at stimulating trial among later adopters. D. It should shift its sales-force efforts from servicing existing customers to prospecting for new accounts. Answer: a Level of Difficulty: Medium Page: 230 11. Tokomo Motors has introduced a new line of cars aimed at creating an appeal for young car buyers looking for good quality, funky designs, and low-prices. Their intent is to protect their primary brands from direct competition in the same category and from low-price competitors. Identify the strategy employed by Tokomo Motors. A. Confrontation strategy B. Position defense strategy C. Flanker strategy D. Market expansion strategy Answer: c Level of Difficulty: Hard Page: 231-232 12. A firm develops line extensions, new brands, or alternative product forms utilizing similar technologies to appeal to multiple market segments. Identify the strategy employed here. A. Flanker strategy B. Fortress strategy C. Confrontation strategy D. Market expansion strategy Answer: d Level of Difficulty: Medium Page: 233 1-51 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Downloaded by Bích Kha Ngô ([email protected])  lOMoARcPSD|7648752 Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies 13. Strategic withdrawal is most likely when: A. a firm is unable to defend itself adequately in all segments due to competitors having more resources. B. a firm's primary objective is to capture a large share of new customers who may prefer something different from the initial offering. C. a competitor chooses to attack the leader head to head and attempts to steal customers in the target market. D. a firm tries to beat the attractive features of a competitor's offering only after the challenger's success has become obvious. Answer: a Level of Difficulty: Medium Page: 233 14. What is the major marketing objective for followers, particularly larger firms entering a product-market shortly after the pioneer? A. Defend market position B. Develop only a niche strategy C. Attain share growth D. Start discrete price wars Answer: c Level of Difficulty: Easy Page: 234 15. Which of the following share-growth strategies involves attacking the leader within its primary target market? A. Flanker strategy B. Frontal attack strategy C. Encirclement strategy D. Guerrilla attack strategy Answer: b Level of Difficulty: Medium Page: 236 16. Which of the following is an appropriate share-growth strategy in a relatively homogeneous market with respect to customers’ needs and purchase criteria? A. Guerrilla attack B. Encirclement C. Flank attack D. Frontal attack Answer: d Level of Difficulty: Easy Page: 237 17. Which of the following share-growth strategies is appropriate when the needs and preferences of customers in most segments are currently satisfied by competing brands? A. Leapfrog 1-52 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Downloaded by Bích Kha Ngô ([email protected])  lOMoARcPSD|7648752 Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies B. Flank attack C. Encirclement D. Guerrilla attack Answer: d Level of Difficulty: Easy Page: 237 18. What strategy would a challenger be pursuing if its primary objective is to capture a modest share of repeat purchases in several market segments? A. Frontal attack strategy B. Leapfrog strategy C. Guerrilla attack strategy D. Encirclement strategy Answer: c Level of Difficulty: Medium Page: 237 19. A _____ strategy is appropriate when the market can be broken into two or more large segments, when the leader and/or other major competitors hold a strong position in the primary segment, and when no existing brand fully satisfies the needs of customers in at least one other segment. A. frontal attack B. leapfrog C. guerrilla attack D. flank attack Answer: d Level of Difficulty: Easy Page: 240 20. A(n) _____ strategy involves targeting several smaller untapped or underdeveloped segments in the market simultaneously. A. encirclement B. guerrilla attack C. flank attack D. leapfrog Answer: a Level of Difficulty: Easy Page: 241 21. Sales promotion efforts (like coupon drops and merchandising deals), local advertising blitzes, and legal action are examples of the _____ strategy to achieve share growth. A. guerilla attack B. flank attack C. frontal attack D. leapfrog Answer: a 1-53 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Downloaded by Bích Kha Ngô ([email protected])