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| 1 | When developing marketing strategy firms need to be aware of: |
 | A) | Their own strengths and weaknesses. |
| B) | Customer needs. |
| C) | Competition. |
| D) | All of the above. |
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| 2 | Co-operation, co-existence, conflict, and competition, are all forms of: |
| A) | Strategic alliances |
| B) | Strategic withdrawal |
| C) | Generic strategy |
| D) | Competitive behaviour |
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| 3 | Firms that create new uses for their products, find new users for their products, or increase the frequency of purchase, are following which strategies? |
| A) | Market penetration strategy |
| B) | Market development strategy |
| C) | Product development strategy |
| D) | Market expansion strategy |
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| 4 | Organisations with ‘hold’ objectives often use a _________. This is characterised by the defence of a hitherto unprotected market segment. |
| A) | Position defence |
| B) | Flanking defence |
| C) | Strategic withdrawal |
| D) | Encirclement strategy |
| E) | Mobile defence |
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| 5 | When two or more firms enter into a joint venture and licensing agreement, they are carrying out a: |
| A) | Strategic alliance |
| B) | Market leader strategy |
| C) | Niche marketing |
| D) | Counteroffensive strategy |
| E) | Merger |
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| 6 | Firms that use unpredictable price discounts, or tactical sales promotions in a few market areas, are using which sort of strategy: |
| A) | Position defence |
| B) | Bypass attack |
| C) | Guerrilla attack strategy |
| D) | Mobile defence |
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| 7 | Where firms come to an agreement among themselves to limit competition it is called: |
| A) | Co-operation |
| B) | Competitive behaviour |
| C) | Co-existence |
| D) | Collusion |
| E) | An oligopoly |
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| 8 | Build, Hold, Harvest and Niche are all strategic thrust objectives. |
| A) | TRUE |
| B) | FALSE |
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| 9 | Build objectives are best suited to: |
| A) | Growth markets. |
| B) | Hi tech market segments. |
| C) | Mature markets. |
| D) | International markets. |
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| 10 | A firm practising Niche marketing seeks to avoid competitors and pursues small market segments. |
| A) | TRUE |
| B) | FALSE |
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| 11 | Firms adopting a ‘Harvest objective’ are attempting to improve sales. |
| A) | TRUE |
| B) | FALSE |
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| 12 | Which of the following authors identified five competitor confrontational strategies: |
| A) | Porter (1985) |
| B) | Sun Tzu (1963) |
| C) | Hooley, Saunders and Piercy (1998) |
| D) | Kotler and Singh (1981) |
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| 13 | A frontal attack involves the challenger taking on the defender head on. The challenger should have a distinct differential advantage to provide the basis for superior customer value. ___________ is necessary to delay the defender’s capability to respond. |
| A) | Patent protection |
| B) | Sustainability |
| C) | Pride |
| D) | Technological advancement. |
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| 14 | Acquisitions are more flexible than Strategic alliances. |
| A) | TRUE |
| B) | FALSE |
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| 15 | In a situation when the cost of attempting to increase sales and market share outweigh the potential benefits a suitable objective is: |
| A) | Build |
| B) | Hold |
| C) | Harvest |
| D) | Divest |
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| 16 | Which of the following would an organisation not focus on when pursuing a harvest objective: |
| A) | Eliminating R&D expenditure |
| B) | Rationalising product line |
| C) | Cutting marketing support |
| D) | Thinking small |
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| 17 | Military analogies are used to guide strategic thinking because of the need to attack and defend market territories against the competition. |
| A) | TRUE |
| B) | FALSE |
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| 18 | When pursuing a harvest objective which type of products are most likely to be dropped first? |
| A) | Stars |
| B) | Problem children |
| C) | Dogs |
| D) | Cash cows |
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| 19 | Which of the following is not part of the strategic focus when a company is pursuing a build objective: |
| A) | Exploitable corporate strengths |
| B) | Distribution innovation |
| C) | Product innovation |
| D) | Competitor confrontation |
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| 20 | Which type of attack strategy might Coca cola use against Pepsi? |
| A) | Encirclement |
| B) | Flanking |
| C) | Frontal |
| D) | Bypass |
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| 21 | The company is one component of the strategic triangle, name the other two components. |
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| 22 | Which objective is a consumer electronics company likely to set for its range of video recorders? |
| A) | Build |
| B) | Hold |
| C) | Harvest |
| D) | Divest |