Q: Within the 7 elements of the marketing mix, the product has a major role to

play.
Explain the meaning of a product and provide a detailed explanation about the
different levels of the Total Product Concept, you may choose to describe this
using a product example.

The marketing mix analysis helps entreprenuers to answer how to best serve the
potential customers and give marketer exercise control over creating an offering to
exchange. The marketing mix can be directly controlled by the organization, the
elements included Product, Price, Place, Promotion, People, Physical evidence,
Process.
A product is defined as a good, service, or idea offered to the market for exchange.
Without a product, a marketer has nothing to offer. On the other side of exchange,
potential customers require products to satisfy functional, social and psychological
needs, wants and demands. The core concept is both parties must gain value from the
exchange. Goods are physical, tangible offering that are capable of being delivered to
a customer; tangible product is you can see, touch, smell. E.g. car, make up, shoes.
And intangible products are services that cannot be touch or taste, customer will be
experience a service such as haircuts, legal representation. Products have many
different features that can provide value for customers, client, partners, society at
large. Marketer must ensure the product attribute satisfy the needs and wants of
potential buyers. To understand how the product value is perceived by customers, it is
useful to describe the product in term of its four level: core product, expected product,
augmented product and potential product, it called total product concept. The total
product concept is a way of viewing a product as the totality of value and benefits it
provides to the customer.
First, the core product comprises the fundamental benefit that responds to the
customer’s problem of an unsatisfied need or want. It is required to understand the
key benefit of the customer wants and needs, it is to ensure customers purchase from
the firm and not a competitor. For instance, for a mobile phone, the core benefit is
reliable, accessible communications, another example is car, its core benefit is speed
since customer want to travel around quickly.
Secondly, the expected product is a tangible good that attribute to deliver the benefit
that forms the core product. Marketers generally try to differentiate their offering
using fundamental characteristics such as branding, packaging and quality standard at
the expected product level. For a mobile phone, an expected product could be a
conveniently sized phone with easy to read screen, long lasting battery .
third, at the augmented product level, the product delivers a bundle of benefits that the
buyer may not require as part of the basic fulfilment of their needs. It enables
marketers to differentiate their offerings from competitors. It if often the augumented
product features that form the main reason for choosing a particular brand – include
support services such as guarantee. For mobile phone companies, augmented product
features include access to a variety of downloadable apps, wifi connectivity, 4G
compatible, expandable memory .
Lastly, the potential product comprises all possibilities that could become part of the
expected or augmented product. This includes features that are being developed,
planned, as well as features that has not yet been conceived. The potential product
features of a mobile phone could include digital television or contact less payment
capability. Potential product features are attractive to marketers as they offer new
ways to differentiate their product and attract value for customers.

c
A company's "macro-environment" refers to:
A.the industry and the competitive arena in which the company operates.
B.general economic conditions plus the factors driving change in the markets where a
company operates.
C.the strategically relevant factors outside a company's industry
boundaries—economic conditions, political factors, sociocultural forces,
technological factors, environmental factors, and legal/regulatory conditions.
D.the competitive market environment that exists between a company and its
competitors.
E.the dominant economic features of a company's industry.

c
Which of the following is part of a company's macro-environment?
A.Conditions outside the market
B.European culture, values, and lifestyles
C.The pace of technological change factors and legal and regulatory conditions
D.The industry and competitive environment arena outside the company's operating
territory
E.The company's resource strengths, resource weaknesses, and competitive
capabilities

e
Which of the following is NOT one of the principal components of strategic
significance in the PESTEL analysis?
A.Political factors including the extent to which government intervenes in the
economy
B.Economic conditions that include the general economic climate and specific factors
such as interest rates, inflation rate, and unemployment rate, as well as conditions in
the stock and bond markets that can affect consumer confidence
C.Sociocultural forces including societal values, attitudes, cultural factors, and
lifestyles that impact business
D.Technological factors that include the pace of change and technical developments
that have the potential for impacting society
E.Environmental forces that include the competitive structure, the degree of industry
fragmentation, and the mobility barriers that inhibit business

c
Which of the following is LIKELY to have the biggest strategy-shaping impact on
mobile service providers?
A.Coca-Cola launches mobile campaigns for community-connect and awareness.
B.Discovery Channel launches a mobile game to promote its Gold Rush TV show.
C.T-Mobile US signs a pact with Nokia Networks for greater spectrum support.
D.Hugo Boss announces the launch of its fall/winter collection via mobile.
E.Apple enters into a pact with PayPal to market its mobile wallet application.

a
Which of the following factors represents the strategically relevant political factors in
the macro-environment that will influence the performance of all firms across the
board?
A.The strength of the federal banking system
B.The exogenous forces related to the general environmental demand
C.Social factors that could fuel a political agenda and create greater transparency
D.Bailouts and energy policies that are industry-specific
E.Tax policy, fiscal policy, and tariffs providing impetus for anti-trust matters

c
The six principal components of the macro-environment are political, economic,
sociocultural, technological, environmental (concerning the natural environment), and
legal/regulatory. Rival firms are part of the immediate industry and competitive
environment.
Each of the following exemplifies the impact of the macro-environment on a
company's strategic opportunities EXCEPT:
A.sales of Smirnoff dwindle on account of new laws regulating the sale of liquor.
B.consumer confidence in GM rises as its stock price soars.
C.Nike considers Adidas its most potent rival in the industry.
D.footfalls at the outlets of Pizza Express increase following its drive to go vegan.
E.sales of Smooth Fitness Treadmills surge on account of a new feature that monitors
users' blood pressure.

a
The most powerful and widely used tool for diagnosing the principle competitive
pressures in a market is:
A.the five forces framework.
B.PESTEL.
C.the driving forces model.
D.strategic group mapping.
E.competitor analysis.

e
The five forces framework holds that competitive pressures on companies within an
industry come from five sources. These include (1) competition from rival sellers, (2)
competition from potential new entrants to the industry, (3) competition from
producers of substitute products, (4) supplier bargaining power, and (5) customer
bargaining power.
The competitive pressures on companies within an industry come from all of the
following, EXCEPT:
A.those associated with the market maneuvering and jockeying for buyer patronage
that goes on among rival firms in the industry.
B.those companies in other industries attempting to win buyers over to their substitute
products.
C.those associated with the threat of new entrants into the marketplace.
D.those associated with the bargaining power of suppliers and customers.
E.those associated with environmental factors such as water shortages.

a
The five forces framework holds that competitive pressures on companies within an
industry come from five sources. These include (1) competition from rival sellers, (2)
competition from potential new entrants to the industry, (3) competition from
producers of substitute products, (4) supplier bargaining power, and (5) customer
bargaining power
Which of the following is NOT one of the five typical sources of competitive
pressures?
A.The power and influence of industry driving forces
B.The bargaining power of suppliers and seller-supplier collaboration
C.The threat of new entrants into the market
D.The attempts of companies in other industries to win customers over to their own
substitute products
E.The market maneuvering and jockeying for buyer patronage that goes on among
rival sellers in the industry.

b
The most powerful of the five competitive forces is USUALLY:

A.the competitive pressures that stem from the ready availability of attractively priced
substitute products.
B.the competitive pressures associated with the market maneuvering and jockeying
for buyer patronage that goes on among rival sellers in the industry.
C.the benefits that emerge from close collaboration with suppliers and the competitive
pressures that such collaboration creates.
D.the competitive pressures associated with the potential entry of new competitors.
E.the bargaining power and leverage that large customers are able to exercise.

a
Using the five forces model of competition to determine the character and strength of
the competitive forces within a given industry involves:
A.building the picture of competition in three steps: (1) identify the different parties
involved, along with specific factors that bring about competitive pressures; (2)
evaluate how strong the pressures stemming from each of the five forces are (strong,
moderate or weak); and (3) determining whether the collective impact of the five
competitive forces is conducive to earning attractive profits in the industry.
B.building the picture of competition in two steps: (1) determining which rival has the
biggest competitive advantage and (2) assessing whether the competitive advantages
possessed by various industry members allow most industry members to earn
above-average profits.
C.evaluating whether competition is being intensified or weakened by the industry's
driving forces and key success factors.
D.assessing whether the collective impact of all five forces is weak enough to allow
industry members to go on the offensive or use a defensive strategy to insulate against
fierce competitive pressures.
E.gauging the overall strength of competition based on how many industry rivals are
operating with a competitive advantage and how many are operating at a competitive
disadvantage.

b
What makes the marketplace a competitive battlefield is:
A.
the race of industry members to build strong defenses against the industry's driving
forces.
B.
the constant rivalry of firms to strengthen their standing with buyers and win a
competitive edge over rivals.
C.
the ongoing race among rival sellers to have the highest-quality product.
D.
the ongoing efforts of industry members to introduce new and improved
products/services at a faster rate than their rivals.
E.
the ongoing race among rivals to achieve the fastest rate of growth in revenues and
profits.

e
Market maneuvering among industry rivals:
A.
determines whether the industry's strategic group map will be static or dynamic.
B.
centers around collaborative efforts to overcome the bargaining power of powerful
suppliers and powerful buyers.
C.
is usually an industry's strongest driving force.
D.
is usually one of the two or three weakest competitive forces because of the close
familiarity that rivals have for one another's likely next moves.
E.
is ongoing and dynamic, with moves and countermoves of rivals producing a
continually evolving competitive landscape that delivers winners and losers.

a
Rivalry among competing sellers increases:
A
when buyer demand is growing slowly.
B.
as it becomes more costly for buyers to switch brands.
C.
as the products of rival sellers become more strongly differentiated.
D.
when there is underproduction relative to demand..
E.
as the number of competitors decreases.

b
Factors that cause the rivalry among competing sellers to be weaker include:
A.
low buyer switching costs.
B.
low fixed costs or storage costs.
C.
many industry rivals of roughly equal size and competitive strength.
D.
weakly differentiated products among rival sellers.
E.
slow growth in buyer demand.

c
The rivalry among competing sellers tends to be less intense when:
A.
industry conditions tempt competitors to use price cuts or other competitive weapons
to boost unit sales.
B.
buyer demand is weak and many sellers have excess capacity and/or inventory.
C.
industry rivals are not particularly aggressive or active in making fresh moves to
improve their market standing and business performance.
D.
rivals have diverse strategies and objectives and are located in different countries.
E.
rival sellers have weakly differentiated products.

d
Rivalry among competing sellers is generally more intense when:
A.
there are relatively few industry key success factors.
B.
the industry's driving forces are strong and rivals have strongly differentiated products.
C.
barriers to entry are moderately high and the pool of likely entry candidates is small.
D.
rivals are active in making fresh moves to lower prices, introduce new products,
increase promotional efforts and advertising, and otherwise gain sales and market
share.
E.
barriers to entry are high and buyer switching costs are high.

b
In analyzing the strength of competition among rival firms, an important
consideration is:
A.
the potential for buyers to exercise strong bargaining power.
B.
the diversity of competitors in terms of long-term direction, objectives, strategies, and
countries of origin.
C.
the number of firms pursuing differentiation strategies versus the number pursuing
low-cost leadership strategies and focus strategies.
D.
the extent to which some rivals have more than two competitively valuable
competencies or capabilities.
E.
whether the industry is characterized by a strong learning/experience curve and
whether the industry is composed of many or few strategic groups.

e
Competitive pressures associated with the threat of entry are greater in all of the
following situations, EXCEPT when:
A.
incumbent firms are willing to strongly contest the entry of newcomers with moves
designed to make entry unprofitable.
B.
a large pool of potential entrants exists, some of which have the capabilities to
overcome high entry barriers.
C.
entry barriers are relatively low and buyer demand for the product is growing rapidly,
and newcomers can expect to earn attractive profits without inviting a strong reaction
from incumbents.
D.
existing industry members are looking to expand their market reach by entering
product segments or geographic areas where they currently do not have a presence.
E.
customers have low brand preferences and low degrees of loyalty to seller.

e
The best test of whether potential entry is a strong or weak competitive force is:
A.
the strength of buyer loyalty to existing brands.
B.
whether the industry's driving forces make it harder or easier for new entrants to be
successful.
C.
whether the strategies of industry members are well-matched to the industry's key
success factors.
D.
whether there are any vacant spaces on the industry's strategic group map.
E.
to ask if the industry's growth and profit prospects are strongly attractive to potential
entry candidates.

c
Which of the following is NOT a good example of a substitute product that triggers
stronger competitive pressures?
A.
A salad as a substitute for French fries
B.
Wireless phones as a substitute for wired telephones
C.
Coca-Cola as a substitute for Pepsi
D.
Snowboards as a substitute for snow skis
E.
Video-on-demand services from a cable TV company as a substitute for going to the
movies

a
The competitive pressures from substitute products tend to be stronger when:
A.
good substitutes are readily available.
B.
there are fewer number of substitute products.
C.
substitutes have lower performance features.
D.
buyers incur high costs in switching to substitutes.
E.
substitutes are priced above the market.

b
In which of the following instances are industry members NOT subject to stronger
competitive pressures from substitute products?
A.
The costs to buyers of switching over to the substitutes are low.
B.
Buyers are dubious about using substitutes.
C.
The quality and performance of the substitutes is well-matched to what buyers need to
meet their requirements.
D.
Buyer brand loyalty is weak.
E.
Substitutes are readily available at competitive prices.

a
Determining how strong the threat of substitutes will be entails:
A
identifying the relative price/performance relationship of the substitutes, the switching
costs, and the overall buyer demand for the substitute.
B.
identifying the attractiveness of other industries.
C.
measuring Coke as a substitute for Pepsi and applying dynamic simulation modeling
techniques.
D.
adopting a substitute product concentration factor to the buyer volume.
E.
judging whether industry members are capable of self-manufacturing their products.

b
The lower the user's switching costs, the:
A.
harder it is for the sellers of attractive substitutes to lure buyers to their offering.
B.
more intense the competitive pressures posed by substitute products.
C.
less intense the competitive pressures posed by substitute products.
D.
greater the bargaining power from both suppliers and influential customers.
E.
lesser the bargaining power from both suppliers and influential customers.
d
Whether supplier-seller relationships in an industry represent a strong or weak source
of competitive pressure is a function of:
A.
whether the profits of suppliers are relatively high or low.
B.
the average number of suppliers that each seller/industry member purchases from.
C.
how aggressively rival industry members are trying to differentiate their products.
D.
whether demand for supplier products is high and they are in short supply.
E.
whether the prices of the items being furnished by the suppliers are rising or falling.

a
The strength of competitive pressures that suppliers can exert on industry members is
MAINLY a function of:
A.
whether needed inputs are in short supply and whether suppliers provide
differentiated input that enhances performance of the product.
B.
whether suppliers self-manufacture what they supply or source their items from other
manufacturers.
C.
whether the industry's position in the growth cycle is favorable.
D.
whether technological change in the businesses of suppliers is rapid or slow.
E.
whether the needs and expectations of supplier-seller relationships are changing
slowly or rapidly.

a
The bargaining leverage of suppliers is greater when:
A.
the suppliers' products/services account for a small percentage of industry members'
costs.
B.
industry members incur low costs in switching their purchases from one supplier to
another.
C.
industry members account for a big fraction of supplier's sales.
D.
there is extensive seller-supplier collaboration.
E.
the supplier industry is composed of a large number of relatively small suppliers.

b
The higher the switching costs for industry members, the more it can:
A.
limit supplier bargaining power.
B.
enhance supplier bargaining power.
C.
enhance the quality of parts and components being supplied, and in effect reduce
defect rates.
D.
provide important cost savings for the collaborative supplier-seller relationship.
E.
limit the supply of products and/or services.

b
Whether buyer-seller relationships in an industry represent a strong or weak source of
competitive pressure is a function of:
A.
the speed with which general economic conditions and interest rates are changing.
B.
the extent to which buyers can exercise enough bargaining power to influence the
conditions of sale in their favor and whether strategic partnerships between certain
industry members can adversely affect other industry members.
C.
how many buyers purchase all of their requirements from a single seller versus how
many purchase from several sellers.
D.
the number of buyers versus the number of sellers.
E.
whether industry members are spending more or less on advertising.

e
Whether buyer bargaining power poses a strong or weak source of competitive
pressure on industry members depends in part on:
A.
the degree to which buyers have any bargaining preferences and the extent to which
buyers are price-sensitive.
B.
how many buyers are engaged in collaborative partnerships with sellers.
C.
whether entry barriers are high or low and the size of the pool of likely entry
candidates.
D.
whether the overall quality of the items being furnished by industry members is rising
or falling.
E.
whether demand-supply conditions represent a buyer's market or a seller's market.

b
Which of the following is NOT a factor that causes buyer bargaining power to be
stronger?
A.
Some buyers are a threat to integrate backward into the business of sellers and
become an important competitor.
B.
Buyers are small and numerous relative to sellers.
C.
Buyers have considerable discretion over whether and when they purchase the
product.
D.
Buyers purchase the item frequently and are well-informed about sellers' products,
prices, and costs.
E.
The costs incurred by buyers in switching to competing brands or to substitute
products are relatively low.

e
Buyer bargaining power is stronger when:
A.
winning the business of certain high-profile customers offers a seller important
market exposure or prestige.
B.
the extent and importance of collaborative partnerships and alliances between
particular sellers and buyers is credible.
C.
buyers cannot integrate backward into the product market of sellers.
D.
sellers' products are differentiated, making it easy and inexpensive for buyers to
switch to competing brands.
E.
the industry's products are standardized or undifferentiated.

b
Which of the following factors is NOT a relevant consideration in determining the
strength of buyer bargaining power?
A.
The relationship between the buyer market and seller market
B.
The degree to which the seller is a manufacturer of goods and services in substantial
quantities
C.
The degree to which buyers pose a credible threat to integrate backward into the
product market of sellers
D.
The degree to which buyers are well-informed about a seller's products, prices, and
costs
E.
The degree to which industry goods are standardized and undifferentiated

c
Collaborative relationships between particular sellers and buyers in an industry can
represent a source of strong competitive pressure when:
A.
virtually all buyers have strong brand attachments and are highly brand loyal.
B.
demand for the product is growing rapidly.
C.
sales are made to buyer groups with either strong bargaining power or high sensitivity.
D.
sellers are racing to add the latest and greatest performance features so as to attract the
patronage of important or prestigious buyers.

c
Competitive pressures stemming from buyer bargaining power tend to be weaker in
which of the following circumstances?
A.
Most consumers vary the brands they choose for their cookware and kitchen gadgets.
B.
There is a global decline in the demand for CD players.
C.
The investment banking industry offers highly differentiated products.
D.
The Internet offers a huge amount of information on a variety of products.
E.
Heinz owns a metal-can manufacturing subsidiary to cut back on supplier costs.

e
Buyers are in position to exert strong bargaining power in dealing with sellers when:
A.
their costs to switch to competing brands or to substitute products are relatively high.
B.
a particular seller's product delivers quality or performance that is very important to
the buyer and is not matched by other brands.
C.
they buy the product infrequently or in small quantities and are not particularly
well-informed about sellers' products, prices, and costs.
D.
buyer demand is growing rapidly.
E.
buyers are price-sensitive due to the product representing a significant fraction of their
purchases.

b
Not all buyers of an industry's product have equal degrees of bargaining power with
sellers, because:
A.
sellers in an industry provide similar products and generally their cost structures are
different because of competitive advantages in their operation.
B.
some sellers may be less sensitive than others to price, quality, or service differences
C.
along the various stages of the value chain sellers are conducive to earning attractive
profits.
D.
the industry is a highly cohesive structure with limited fragmentation and few industry
members.
E.
sellers are large and few in number relative to the number of buyers.

c
The "driving forces" in an industry:
A.
are usually triggered by changing technology or stronger learning/experience curve
effects.
B.
usually are spawned by growing demand for the product, the outbreak of price-cutting,
and big reductions in entry barriers.
C.
are major underlying causes of changing industry and competitive conditions and
have the biggest influences in reshaping the industry landscape and altering
competitive conditions.
D.
appear when an industry begins to mature but are seldom present during early stages
of the industry life cycle.
E.
are usually triggered by shifting buyer needs and expectations or by the appearance of
new substitute products.

d
Driving-forces analysis has three steps: (1) identifying what the driving forces are, (2)
assessing whether the drivers of change are, on the whole, acting to make the industry
more or less attractive, and (3) determining what strategy changes are needed to
prepare for the impact of the driving forces.
The task of driving-forces analysis is to:
A.
develop a comprehensive list of all the potential causes of changing industry
conditions.
B.
predict which new driving forces will emerge next.
C.
determine which of the five competitive forces is the biggest driver of industry change.
D.
identify the driving forces, assess whether their impact will make the industry more or
less attractive, and determine what strategy changes are needed to prepare for the
impacts of the driving forces.
E.
learn what the industry key success factors are and how they might change in the
future.

a
One of the steps of driving-forces analysis is to identify which:
A.
strategy changes a company may need to make to prepare for the impacts of the
driving forces.
B.
strategic group is the most powerful.
C.
industry member is likely to become (or remain) the industry leader and why.
D.
key success factors are most likely to help their company gain a competitive
advantage.
E.
of the five competitive forces will be the strongest driver of industry change.

a
The real payoff of driving forces is to help managers understand:
A.
what strategy changes are needed to prepare for the impacts of the driving forces.
B.
the overall strength of the five competitive forces.
C.
whether the industry's strategic group map will be static or dynamic.
D.
what conditions exist in the economy at large.
b
Which of the following is NOT an integral part of driving-forces analysis?
A.
Determining whether forces are acting to cause fundamental changes in industry
conditions and/or the industry's competitiveness
B.
Determining whether forces are acting to cause industry rivals to shift to a different
strategic group
C.
Determining whether forces are acting to strengthen or weaken market demand
D.
Determining whether forces are acting to make competition more or less intense

a
In analyzing driving forces, the strategist's role is to:
A.
identify the driving forces and evaluate their impact on (1) demand for the industry's
product, (2) the intensity of competition, and (3) industry profitability.
B.
predict future marketing innovations and how fast the industry is likely to globalize.
C.
evaluate what stage of the life cycle the industry is in and when it is likely to move to
the next stage.
D.
determine who is likely to exit the industry and what changes can be expected in the
industry's strategic group map.
E.
forecast fluctuations in product demand and how buyer needs will most likely change.

b
Evaluating the industry's driving forces, as a whole, requires understanding their
influence on the attractiveness of industry environment and generally are:
A.
determined by the sizes of strategic groups and the power of rival firms' competitive
strategies.
B.
defined in ways that will strengthen or weaken market demand, competition, and
industry profitability in future years.
C.
the cause of a reduction in the bargaining power of buyers.
D.
triggered by movement in the economy, higher or lower interest rates, or important
new strategic alliances.
E.
triggered by such factors as growing competitive pressures from substitute products,
and the efforts of rival firms to employ new or different offensive strategies.

a
Driving-forces analysis helps managers identify whether:
A.
the collective impact of the driving forces will act to increase/decrease market
demand, increase/decrease competition, and raise/lower industry profitability in the
years ahead.
B.
it will become more or less important to aim the company's strategy at being the
industry's low-cost producer.
C.
the driving forces will have a bigger impact on company profitability than competitive
forces.
D.
the industry is likely to become more or less vertically integrated and why.
E.
competitive advantages are likely to grow or diminish in importance

a
What is the best technique for revealing the different market or competitive position
that rival firms occupy in the industry?
A.
Strategic group mapping
B.
PESTEL analysis
C.
Five forces framework
D.
The value net framework
E.
Competitor analysis

c
A strategic group:

A.
consists of those industry members that are growing at about the same rate and have
similar product line breadth.
B.
includes all rival firms having comparable profitability.
C.
is a cluster of industry members with similar competitive approaches and market
positions in the market.
D.
consists of those firms whose market shares are about the same size.
E.
is made up of those firms having comparable profit margins.

c
Strategic group mapping is a visual technique for displaying:
A.
how many rivals are pursuing each type of strategy.
B.
which companies have the biggest market share and who the industry leader really is.
C.
the different market or competitive positions that rival firms occupy in an industry
and for identifying each rival's closest competitors.
D.
which companies have the highest degrees of brand loyalty.
E.
which companies have failing business models.

d
Which of the following pairs of variables is LEAST likely to be useful in drawing a
strategic group map?
A.
Geographic market scope and degree of vertical integration
B.
Brand name reputation and distribution channel emphasis
C.
Product quality and product-line breadth
D.
Level of profitability and size of market share
E.
Price/perceived quality and image range and the extent of buyer appeal

b
The concept of strategic groups is relevant to industry and competitive analysis
because:
A.
firms in the same strategic groups are rarely close competitors—a firm's closest
competitors are usually in distant strategic groups.
B.
strategic group maps help identify how each competing firm is positioned and the
relationship to their closest competitors.
C.
competition grows in intensity as the number and diversity of the strategic groups in
an industry increases.
D.
the profit potential of firms in the same strategic group is usually very similar.
c
In mapping strategic groups:
A.
one strategic variable and one financial variable should be used as axes for the map.
B.
it is important for the variables used as axes to be highly correlated.
C.
the best variables to use as axes for the map are those that identify the competitive
characteristics that delineate strategic approaches used in the industry.
D.
it is important to use price as the variable for the vertical axis.
E.
the primary objective is to determine which strategic groups are profitable and which
are not.

e
With the aid of a strategic group map, one can:
A.
identify easily the entry and exit barriers for each strategic group.
B.
pinpoint precisely which firms are in profitable strategic groups and which are not.
C.
identify which competitive forces are strong and which are weak.
D.
measure accurately whether across-group rivalry is stronger than within-group rivalry,
and vice versa.
E.
reveal which companies are close competitors and which are distant rivals, and that
not all positions on the map are equally attractive.

b
Having good competitive intelligence about rivals' strategies and moves to improve
their situation is important because:
A.
it identifies who the industry's current market share leaders are.
B.
it allows a company to anticipate what moves rivals are likely to make next and to
craft its own strategic moves with some confidence.
C.
it helps identify which rival is in which strategic group.
D.
it enables company managers to determine which rival has the worst strategy and how
to avoid making the same strategy mistakes.
E.
it enables more accurate predictions about how long it will take a particular rival to
copy most of what the strategy leader is doing.

e
Good intelligence about the strategic direction and likely moves of key competitors
allows a company to determine which competitors have all of the following, EXCEPT:
A.
the best strategy.
B.
flawed or weak strategies.
C.
strong performance objectives.
D.
reliable resources and capabilities.
E.
similar competitive approaches.

a
An industry's key success factors (KSFs) are those competitive factors that most
affect industry members' ability to survive and prosper in the marketplace: the
particular strategy elements, product attributes, operational approaches, resources, and
competitive capabilities that spell the difference between being a strong competitor
and a weak competitor—and between profit and loss.
The key success factors in an industry:
A.
are those competitive factors that most affect industry members' abilities to prosper in
the marketplace—the particular strategy elements, product attributes, operational
approaches, resources, and competitive capabilities that spell the difference between
being a strong competitor and a weak one, and between profit and loss.
B.
are determined by the industry's driving forces, which are essential to surviving and
thriving in the industry.
C.
hinge on how many different strategic groups the industry has operating within the
industry and their level of profitability and sustainable advantages.
D.
depend on how many rivals are trying to move from one strategic group to another
without losing momentum.
E.
are a function of such considerations as how many firms are in the industry, how
many have market shares above 5 percent, and whether the business models being
used are similar or diverse.

b
In identifying an industry's key success factors, strategists should:
A.
try to single out all factors that play a major role in shaping whether buyer demand
grows rapidly or slowly.
B.
consider on what basis customers choose between competing brands, what resources
and competitive capabilities firms need to be competitively successful, and what
shortcomings are almost certain to put a company at a significant competitive
disadvantage.
C.
consider whether the number of strategic groups is increasing or decreasing and
whether the five competitive forces are powerful or relatively weak.
D.
consider what it will take to overtake the company with the industry's overall best
strategy.
E.
focus their attention on what it will take to capitalize on the impacts of the industry's
driving forces.

a
Which of the following is NOT a question asked to deduce a marketing-related key
success factor?
A.
What are the industry product R&D capabilities and expertise in product design?
B.
On what basis do buyers choose between the competing brands of sellers?
C.
What product attributes and service characteristics are crucial?
D.
What resources must a company have to be competitive?
E.
What shortcomings are almost certain to put a company at a significant disadvantage?

d
Correctly diagnosing an industry's key success factors:
A.
points to those things that every firm in the industry needs to attend to in order to
develop product propositions.
B.
hints at the firm's ability to generate above-average profitability.
C.
reveals that the firm's capabilities and resources are aligned with operating practices
of industry participants.
D.
raises a company's chances of crafting a sound strategy.
c
Which of the following is part of a company's macro-environment?
A.
Conditions outside the market
B.
European culture, values, and lifestyles
C.
The pace of technological change factors and legal and regulatory conditions
D.
The industry and competitive environment arena outside the company's operating
territory
E.
The company's resource strengths, resource weaknesses, and competitive capabilities

a
Which of the following factors represents the strategically relevant political factors in
the macro-environment that will influence the performance of all firms across the
board?
A.
The strength of the federal banking system
B.
The exogenous forces related to the general environmental demand
C.
Social factors that could fuel a political agenda and create greater transparency
D.
Bailouts and energy policies that are industry-specific
E.
Tax policy, fiscal policy, and tariffs providing impetus for anti-trust matters