Important Competitive Marketing Strategy Interview Preparation Guide Download PDF
Competitive Strategy Marketing Interview Questions And Answers will Guide you that five forces analysis is a framework for the industry analysis and business strategy development. It uses concepts developed in Industrial Organization (IO) economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market. Learn more about Competitive Marketing Strategy or get preparation of Competitive Marketing Strategy Job Interview with this Guide.
34 Competitive Strategy Questions and Answers:
Table of Contents:
1 :: Market follower often gains many advantages without excessive expense, by following the market leader. Which type of market follower strategy is one whereby the market follower copies some things from the market leader but maintains some differentiation with its packaging, advertising, pricing and other factors?
1. Nicher
2. Adapter
3. Cloner
4. Imitator
Answer: Imitator
2. Adapter
3. Cloner
4. Imitator
Answer: Imitator
2 :: Market challengers use a range of offensive strategies to attack the market leaders and other competitors. Which of the following is a market challenger strategy that uses a diversification approach, often into new technological and geographical areas and unrelated areas to overcome the opposition?
1. Flanking attack
2. Encirclement attack
3. Guerilla attack
4. Bypass attack
5. Frontal attack
Answer: Bypass attack
2. Encirclement attack
3. Guerilla attack
4. Bypass attack
5. Frontal attack
Answer: Bypass attack
3 :: Defense strategies are utilized by market leaders against their attackers. When competitors attack the market leaders weaknesses, such as Japanese care manufacturers entering the USA market with smaller and cheaper cars, this is referred to as what type of defense strategy?
1. Flanking defence
2. Contraction defence
3. Position defence
4. Pre-emptive defence
5. Counter-offensive defence
6. Mobile defence
Answer: Flanking defence
2. Contraction defence
3. Position defence
4. Pre-emptive defence
5. Counter-offensive defence
6. Mobile defence
Answer: Flanking defence
4 :: Improving productivity means squeezing more profits out of the same volume of sales. Which of the following are not specifically productivity enhancing tactics?
1. Win customer loyalty by implementing customer-relationship management programs.
2. Reduce fixed costs, especially wages, through outsourcing.
3. Reduce variable costs through lean production mechanisms of Total Quality Management (TQM).
4. Reduce capital cost by implementing JIT and improving stock-holding and work in progress inventory levels.
Answer: Win customer loyalty by implementing customer-relationship management programs
2. Reduce fixed costs, especially wages, through outsourcing.
3. Reduce variable costs through lean production mechanisms of Total Quality Management (TQM).
4. Reduce capital cost by implementing JIT and improving stock-holding and work in progress inventory levels.
Answer: Win customer loyalty by implementing customer-relationship management programs
5 :: Which of the following strategies could a market leader implement to maintain its commanding leadership position?
1. Merger and acquisition of other organizations, especially if they are the opposition
2. The organization expands its activities to enlarge the market.
3. Reduce costs within the organization.
4. Expand total demand for the product.
5. All of the above
Answer: All of the above
2. The organization expands its activities to enlarge the market.
3. Reduce costs within the organization.
4. Expand total demand for the product.
5. All of the above
Answer: All of the above
6 :: A runner up in an industry that is fighting hard to increase its market share is referred to as.
1. Market challenger
2. Market leader
3. Market follower
4. Market nicher
5. None of the above
Answer: Market challenger
2. Market leader
3. Market follower
4. Market nicher
5. None of the above
Answer: Market challenger
7 :: Based upon rationality and mutual respect competitors can often exist harmoniously, however various predatory or retaliatory acts can disrupt this harmony. Which of the following are market disruptive strategies?
1. The use of product dumping tactics
2. The seeking of subsidies
3. Investment in over-capacity
4. Buying market share rather than earning it
5. All of the above
Answer: All of the above
2. The seeking of subsidies
3. Investment in over-capacity
4. Buying market share rather than earning it
5. All of the above
Answer: All of the above
8 :: A group of firms following the same or similar strategy is referred to as what-
1. A collusive group
2. A strategic group
3. A competitive group
4. An associative group
Answer: A strategic group
2. A strategic group
3. A competitive group
4. An associative group
Answer: A strategic group
9 :: The launch of store own brands such as Tescos Butter me up has had what effect on the competitive environment-
1. Increased price competitiveness
2. Increased pressure on market leading brands as it has eroded their market dominance.
3. Given the consumer an increased choice of products
4. Put additional pressure on the large manufacturers to provide further discount their original products to gain shelf space, instead of Tesco just stocking their own brand.
5. All of the above
Answer: All of the above
2. Increased pressure on market leading brands as it has eroded their market dominance.
3. Given the consumer an increased choice of products
4. Put additional pressure on the large manufacturers to provide further discount their original products to gain shelf space, instead of Tesco just stocking their own brand.
5. All of the above
Answer: All of the above
10 :: An industry is defined as which of the following-
1. Group of firms developing similar products
2. A group of firms that operate in a specific field of expertise
3. Group of firms that offer products that are close substitutes for each other
4. All of the above
5. None of the above
Answer: Group of firms that offer products that are close substitutes for each other
2. A group of firms that operate in a specific field of expertise
3. Group of firms that offer products that are close substitutes for each other
4. All of the above
5. None of the above
Answer: Group of firms that offer products that are close substitutes for each other
11 :: Volvo views Mercedes as prominent competitor, but does not view Rolls Royce as a competitor as these companies operate in different target markets. What type of competition does this represent?
1. Product competition
2. Product and service competition
3. Product phase competition
4. Product category competition
Answer: Product category competition
2. Product and service competition
3. Product phase competition
4. Product category competition
Answer: Product category competition
12 :: The process of identifying key competitors, assessing their objectives, strategies, strengths and weaknesses, reaction patterns and selection of which competitors to attack is part of what process?
1. Application of the GE Model
2. Competitor strength analysis
3. Application of the Ansoff Model
4. Competitor analysis
5. Porter's Analysis
Answer: Competitor analysis
2. Competitor strength analysis
3. Application of the Ansoff Model
4. Competitor analysis
5. Porter's Analysis
Answer: Competitor analysis
13 :: The analysis conducted to determine what features and benefits that BMW drivers prefer over the features and benefits of a Mercedes Benz and how customers rate the relative importance or value of these features, is a mechanism to conduct what type of analysis?
1. Customer value analysis
2. Customer audit
3. Performance rating
4. Customer review
5. Performance audit
Answer: Customer value analysis
2. Customer audit
3. Performance rating
4. Customer review
5. Performance audit
Answer: Customer value analysis
14 :: The process of comparing the company s products and processes to those of competitors or leading firms in other industries, to find ways to improve quality and performance, is referred to as:
1. Comparative analysis
2. Empirical testing
3. Benchmarking
4. Customer value analysis
Answer: Benchmarking
2. Empirical testing
3. Benchmarking
4. Customer value analysis
Answer: Benchmarking
15 :: What are sources of information when gathering market intelligence about competitors?
1. Personal experience
2. Customers
3. Suppliers and wholesalers
4. Secondary data
5. All of the above
Answer: All of the above
2. Customers
3. Suppliers and wholesalers
4. Secondary data
5. All of the above
Answer: All of the above
16 :: A marketing managers pricing decisions are often influenced by the competitions pricing and their marketing strategies. Which of the following need to be considered when determining price?
1. The extent to which competitors are trying to focus the consumer's attention on price
2. The perceived similarity between the products in terms of non-price based features, benefits and additional services.
3. The desired market positioning
4. The price sensitivity of the target segment
5. The number of competitors
6. All of the above
Answer: All of the above
2. The perceived similarity between the products in terms of non-price based features, benefits and additional services.
3. The desired market positioning
4. The price sensitivity of the target segment
5. The number of competitors
6. All of the above
Answer: All of the above
17 :: Define a penetration pricing strategy.
1. Strategy used to gain as much sales volume as possible as quickly as possible through undercutting competitors' prices.
2. Strategy used to maximize profit.
3. Strategy used to gain as many consumers as possible in the launch phase.
4. All of the above
5. None of the above
Answer: Strategy used to gain as much sales volume as possible as quickly as possible through undercutting competitors' prices.
2. Strategy used to maximize profit.
3. Strategy used to gain as many consumers as possible in the launch phase.
4. All of the above
5. None of the above
Answer: Strategy used to gain as much sales volume as possible as quickly as possible through undercutting competitors' prices.
18 :: Like Amazon.com and egg, the Internet bank, most e-commerce operations offer prices well below those in the high street or mall and are making huge losses. What are the Internet businesses hoping to achieve with their aggressive pricing and is their price advantage likely to be maintained? Which of the following statements are correct and relevant to this pricing strategy?
1. Start-up costs, which involve heavy promotion in conventional media, are likely to depress profits for the first ten years.
2. Internet companies are hoping to achieve economies of scale, since the marginal cost of an increase in business is small.
3. All of the above
4. None of the above
Answer: All of the above
2. Internet companies are hoping to achieve economies of scale, since the marginal cost of an increase in business is small.
3. All of the above
4. None of the above
Answer: All of the above
19 :: Marketers would use which pricing strategy to overcome a competitor that they felt did not have sufficient resources to sustain a price war.
1. Market skimming
2. Market penetration
3. Discounts and allowances
4. Product line pricing
5. Optional-product pricing
6. By-product pricing
Answer: Market penetration
2. Market penetration
3. Discounts and allowances
4. Product line pricing
5. Optional-product pricing
6. By-product pricing
Answer: Market penetration
20 :: Retail and wholesale markets take a far more rational approach to price interpretation than do consumer groups. Intermediaries must look in which two directions when deciding what price they can charge-
► 1) The banks
► 2) The manufacturers
► 3) The environment
► 4) The consumers
► 5) The authorities
1. 2, 3
2. 4, 5
3. 1, 2
4. 2, 4
5. 3, 4
Answer: 2, 4
2. 4, 5
3. 1, 2
4. 2, 4
5. 3, 4
Answer: 2, 4
21 :: Price sensitivity can be a meaningful way of doing which of the following between groups of customers.
1. Diffusing
2. Differentiating
3. Dividing
4. Distributing
5. Diverging
Answer: Differentiating
2. Differentiating
3. Dividing
4. Distributing
5. Diverging
Answer: Differentiating
22 :: For some products, competitive pressure may keep margins tight. To increase profit the organization may do which of the following-
1. Reduce marketing expenditure; reduce costs.
2. Reduce marketing expenditure; increase the price.
3. Reduce marketing expenditure; increase the price.
4. Reduce costs; increase output.
5. Increase the price; reduce costs.
Answer: Reduce costs; increase output
2. Reduce marketing expenditure; increase the price.
3. Reduce marketing expenditure; increase the price.
4. Reduce costs; increase output.
5. Increase the price; reduce costs.
Answer: Reduce costs; increase output
23 :: Competition can be viewed from different aspects. When an industry is defined as the set of all sellers of a product or service, this is referred to as what-
1. A customer perspective
2. A market perspective
3. An industry perspective
4. A competitive perspective
Answer: A market perspective
2. A market perspective
3. An industry perspective
4. A competitive perspective
Answer: A market perspective
24 :: Determining what drives competitor behavior is based upon establishing which of the following-
1. Determining the competitor profit levels
2. Satisfying profit goals versus maximizing profit goals
3. Defining the competitor's objectives
4. Short-term profits versus long-term profits
Answer: Defining the competitor's objectives
2. Satisfying profit goals versus maximizing profit goals
3. Defining the competitor's objectives
4. Short-term profits versus long-term profits
Answer: Defining the competitor's objectives
25 :: What is competitor myopia?
1. Company is focused only on the one major competitor.
2. Company is too focused on the major competitors.
3. Immediate competition blinds a company to latent competitors who can destroy the old ways of doing business.
4. All of the above
5. None of the above
Answer: Immediate competition blinds a company to latent competitors who can destroy the old ways of doing business.
2. Company is too focused on the major competitors.
3. Immediate competition blinds a company to latent competitors who can destroy the old ways of doing business.
4. All of the above
5. None of the above
Answer: Immediate competition blinds a company to latent competitors who can destroy the old ways of doing business.
