Chapter 18 Creating Competitive Advantage

Principles of Marketing, 19e (Kotler/Armstrong)
Chapter 18 Creating Competitive Advantage

1) A competitor analysis requires the assessment of all of the following EXCEPT the
competitors' .
A) objectives
B) organizational hierarchy
C) strategies
D) strengths and weaknesses
E) reaction patterns
Answer: B
AACSB: Analytical thinking
Skill: Concept
Objective: LO 18.1: Discuss the need to understand competitors as well as customers through
competitor analysis.
Difficulty: Challenging

2) Strategies that strongly position a company against competitors and that give the company
the best possible strategic advantage are strategies.
A) competitor analysis B)
customer relationship C)
competitive marketing
D) competitive relationship
E) customer identification
Answer: C
AACSB: Analytical thinking
Skill: Concept
Objective: LO 18.1: Discuss the need to understand competitors as well as customers through
competitor analysis.
Difficulty: Easy

3) Gaining requires delivering more value and satisfaction to target consumers than
competitors do.
A) competitive advantage
B) first-mover advantage
C) economies of scale
D) comparative advantage
E) differentiation
Answer: A
AACSB: Analytical thinking
Skill: Concept
Objective: LO 18.1: Discuss the need to understand competitors as well as customers through
competitor analysis.
Difficulty: Easy




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,4) The first step in initiating competitive marketing strategies is to .
A) balance customer and competitor orientations
B) design broad competitive marketing strategies
C) assess long-term organizational objectives
D) conduct competitor analysis
E) conduct transaction analysis
Answer: D
Skill: Concept
Objective: LO 18.1: Discuss the need to understand competitors as well as customers through
competitor analysis.
Difficulty: Easy

5) involves first identifying and assessing competitors and then selecting which
competitors to attack or avoid.
A) Competitor analysis
B) Self-competition
C) Blue ocean strategy
D) Quantitative analysis
E) Perfect competition
Answer: A
Skill: Concept
Objective: LO 18.1: Discuss the need to understand competitors as well as customers through
competitor analysis.
Difficulty: Easy

6) To plan effective marketing strategies, a company needs to find out all it can about its
competitors. It must constantly compare its marketing strategies, products, prices, channels, and
promotions with those of close competitors. This is an example of .
A) blue ocean strategy
B) competitor analysis
C) organizational evaluation
D) perfect competition
E) quantitative analysis
Answer: B
AACSB: Analytical thinking
Skill: Concept
Objective: LO 18.1: Discuss the need to understand competitors as well as customers through
competitor analysis.
Difficulty: Easy




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,7) The goal of performing a competitor analysis is to .
A) learn more about the competitors' sales structures
B) find flaws in the competitors' manufacturing processes
C) copy the best features that the competitors offer
D) find areas of potential competitive advantage and disadvantage
E) develop products in markets that the competitors are not in
Answer: D
Skill: Concept
Objective: LO 18.1: Discuss the need to understand competitors as well as customers through
competitor analysis.
Difficulty: Easy

8) Companies can identify their competitors from both points of view.
A) industry and market
B) product and customer
C) customer and location
D) location and product
E) product and strategy
Answer: A
Skill: Concept
Objective: LO 18.1: Discuss the need to understand competitors as well as customers through
competitor analysis.
Difficulty: Easy

9) Companies can identify competitors from a(n) point of view by defining
competitors as companies that are trying to satisfy the same customer need or build
relationships with the same customer group.
A) customer
B) blue ocean
C) market
D) myopic
E) industry
Answer: C
AACSB: Analytical thinking
Skill: Concept
Objective: LO 18.1: Discuss the need to understand competitors as well as customers through
competitor analysis.
Difficulty: Easy




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, 10) Companies can identify competitors from one of two points of view: .
A) manufacturing or selling
B) engineering or producing
C) consumer or business
D) industry or market
E) unique or similar
Answer: D
Skill: Concept
Objective: LO 18.1: Discuss the need to understand competitors as well as customers through
competitor analysis.
Difficulty: Moderate

11) If a company identifies its competitors from an industry point of view, it must understand
if it hopes to be an effective player in that industry.
A) the trends in the industry
B) the primary customers
C) the impact of technological changes
D) the potential customers
E) the competitive patterns
Answer: E
Skill: Concept
Objective: LO 18.1: Discuss the need to understand competitors as well as customers through
competitor analysis.
Difficulty: Easy

12) A company is guilty of if the company forgets latent competitors and only
focuses on current competitors.
A) perfect competition
B) self-competition
C) Cournot competition
D) competitor backlinking
E) competitor myopia
Answer: E
AACSB: Analytical thinking
Skill: Concept
Objective: LO 18.1: Discuss the need to understand competitors as well as customers through
competitor analysis.
Difficulty: Easy




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