It depends what you mean by "beaten". They'll bring more traffic,
so in that way the keyword phrase will be beaten.
But *IF* somebody was to search for the exact phrase - yes, using
quotes - then the exact phrase would come out on top. So the
keywords phrase would then win, listings-wise. It's less likely to
happen in practice of course.
~~~~~~~
We're describing the way these "Guaranteed Top Ten Placement"
cowboys work. They'll show their clients their "top listings" for
long phrases like "Acme Superior Landscaping Developers" (including
the quotes) and claim they've given them a "Top Ten Listing".
Strictly true, but misleading.