Marketing Test 2

benefits from the existence of competitors

-Competitors may share the costs of market and product development. -Competitors help legitimize new technologies. -Competitors serve less-attractive segments or lead to more product differentiation. -Competitors may help increase total demand.

factors of the competitive intelligence system

-The system identifies the vital types of competitive information needed and the best sources of this information. -The system collects information from the field and from published data. -The system checks information for validity and reliability, interprets it, and organizes it in an appropriate way. -The system sends key information to relevant decision makers and responds to inquiries from managers about competitors.

fundamental questions that a marketing management team considers when assessing competitors

-What are competitors' objectives and what does each seek in the marketplace? -What is each competitor's strategy? -What are various competitors' strengths? -What are various competitors' weaknesses?

competitor; customer

A company can become so ________ centered that it loses its even more important focus on maintaining profitable ________ relationships.

competitor myopia

A company is guilty of ________ if the company forgets latent competitors and only focuses on current competitors.

low-cost; cost reducing

A company that pursues ________ leadership will react much more strongly to a competitor's ________ manufacturing breakthrough than to the same competitor's advertising increase.

strategic sweet spot

A company wants to find the ________ , the place where it meets customers' needs in a way that rivals can't.

strong

A firm should compete with ________ competitors in order to sharpen its abilities. Succeeding against these competitors often provides greater returns.

in-house

A manager who used to work for a competitor might follow that competitor closely to see what it does in the marketplace. Such a manager would be considered to be your company's ________ expert.

employees

A market nicher can specialize along all of the following market, customer, product, or marketing mix lines EXCEPT?

market niches

Almost every industry includes firms that specialize in serving target subsegments called ________.

second mover advantage

Although it might seem that the market leader has the most going for it, challengers often have what some strategists call a ________. The challenger observes what has made the leader successful and improves upon it.

play by the rules

An industry often contains "good" and "bad" competitors. Good competitors ________.

formulated

As small companies achieve success, they inevitably move toward more ________ marketing. They pore over the latest Nielsen numbers, scan market research reports, and try to fine-tune their competitive strategies and programs.

competitiveness

Benchmarking has become a powerful tool for increasing a company's ________

example of a company exhibiting blue-ocean thinking

Cirque du Soleil's reinvention of the circus as a higher form of modern entertainment

competitors

Companies can identify ________ from both the industry and market point of view.

market

Companies can identify competitors from a ________ point of view. Here they define competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group.

dimensions that identify strategic groups within the industry

Companies need to know - each competitor's product quality, features, and mix - customer services - pricing policy - distribution coverage - sales force strategy - advertising and sales promotion programs

intrepreneurial marketing

Companies that have been in existence for some time often lose the marketing creativity and passion that they had at the start. They now need to refresh their marketing strategies and try new approaches.

formal

Companies that operate large marketing departments, conduct expensive marketing research, spell out elaborate competitive strategies, and spend huge sums on advertising are using ________ competitive marketing strategies.

middle-of-the-roaders

Companies that pursue a clear strategy will likely perform well. Firms that do not pursue a clear strategy are called ________.

learn about their competitors' strengths and weaknesses

Companies use secondary data, personal experience, benchmarking, and word of mouth to ________.

niching

Computer mouse and interface device maker Logitech is only a fraction the size of giant Microsoft. Yet through skillful ________, it dominates the PC mouse market, with Microsoft as its runner-up.

market leaders

Expanding the total market, protecting market share, and expanding market share are all strategies for ________.

market nichers

Firms that serve small segments not being pursued by other firms are called ________.

challenger

Forty percent of the market is in the hands of Company A. Another 30 percent is in the hands of Company B. Twenty percent is in the hands of Company C, and the remaining 10 percent is in the hands of Company D. Based on these hypothetical numbers Company B is the market ________.

nicher

Forty percent of the market is in the hands of Company A. Another 30 percent is in the hands of Company B. Twenty percent is in the hands of Company C, and the remaining 10 percent is in the hands of Company D. Based on these hypothetical numbers Company D is the market ________.

industry; market

From a/an ________ point of view, Pepsi might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands. From a/an ________ point of view, however, the customer really wants "thirst quenching."

entrepreneurial marketing

Gary Hirshberg of Stonyfield Farm yogurt company stated that "companies can do better with less advertising, less marketing research, more guerilla marketing, and more acting from the gut." At this point, Hirshberg was following which marketing strategy?

strategic

General Electric and Whirlpool each produce a full line of medium-price appliances supported by good service. In contrast, Sub-Zero and Viking produce a narrower line of higher quality appliances, offer a higher level of service, and charge a premium price. The first group and second group of companies are in the same ________ group.

market point of view

Hallmark's Binney & Smith, maker of Crayola crayons, might define its competitors as other makers of crayons and children's drawing supplies. But from a/an ________ , it would include all firms making recreational and educational products for children.

customer value

Having identified and evaluated its major competitors, the company now must design broad competitive marketing strategies by which it can gain competitive advantage through superior ________.

unit costs

Higher shares tend to produce higher profits only when ________ fall with increased market share.

earn higher profits; gain more market share

If the company's offer delivers greater value by exceeding the competitor's offer on important attributes, the company can charge a higher price and ________, or it can charge the same price and ________.

attack; defend

Knowing how major competitors react gives the company clues on how best to ________ competitors or how best to ________ the company's current positions.

competitor myopia example

Kodak's film business didn't suffer at the hands of direct competitor Fujifilm; it lost out to Sony, Canon, and other digital camera makers, along with a host of digital image developers and online image sharing services.

follow; challenge

Many firms prefer to ________ rather than ________ the leader.

developing new users

Market leaders can expand the market by ________, new uses, and more usage of the product.

new uses of the product

Marketers can expand markets by discovering and promoting ________.

entrepreneurial marketing stage

Most companies are started by individuals who live by their wits. They visualize an opportunity, construct flexible strategies on the backs of envelopes, and knock on every door to gain attention.

weak competitors

Most companies prefer to aim competition against ________

close competitors; distant competitors

Most companies will compete with ________ rather than ________.

bad competitor

Most competitors in the music download industry see Apple's iTunes Music Store as a ________ because they created a closed system with mass appeal.

market leader

Most of the market is in the hands of the ________, the firm with the largest market share.

examples of close competitors

Nike and Adidas Wal-Mart and K-Mart Pepsi and Coca-Cola Neiman Marcus and Nordstom

building deep community with customers

Nike has learned that the most important successful marketing strategy is ____.

product leadership

Nokia and Apple are open to new ideas, relentlessly pursue new solutions, and work to get new products to market quickly. They serve customers who want state-of-the-art products and services, regardless of the costs in terms of price or inconvenience. These companies are offering what value discipline?

customer intimacy competitive marketing strategy

Nordstrom, Lexus, American Express, British Airways, and Ritz-Carlton Hotels will do almost anything to build long-term customer loyalty and to capture customer lifetime value. These companies are pursuing ____.

develops new users

NutriSystem has typically targeted its weight loss programs toward women. Recently, however, it stepped up its efforts to attract male customers. This is an example of how the market leader ________.

customer value analysis

PepsiCo conducts a survey on all Coca-Cola drinkers to assess the company's strengths and weaknesses upon their target customers. PepsiCo is using a/an ________.

served market

Profitability increases as a business gains share relative to competitors in its ________.

an indirect attack

Rather than challenging head-on, the challenger can make ________ on the competitor's weaknesses or on gaps in the competitor's market coverage.

blue ocean strategy

Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. This is called a ________.

an indirect attack example

Red Bull entered the U.S. soft drinks market with a niche product: a carbonated energy drink retailing at about twice what you would pay for a Coke or Pepsi. Their product was sold in unconventional outlets not dominated by the market leaders.

middle-of-the-roaders example

Sears and Holiday Inn encountered difficult times because they did not stand out as the lowest in cost, highest in perceived value, or best in serving some market segment.

continuous innovation

The best response to competitive threats is ________.

only well-behaved competitors

The implication suggested by strategic actions of "good competitor companies" is that they would like to shape an industry that consists of ________.

specialization

The key to successful niching is ________.

total market expands

The leading firm normally gains the most when the ________.

frontal attack

The market challenger may launch a full ________, matching the competitor's product, advertising, price, and distribution efforts. It attacks the competitor's strengths rather than its weaknesses.

low; high

The market follower must keep its manufacturing costs and prices ________ or its product quality and services ________.

multiple niching

The market niche may dry up, or it might grow to the point that it attracts larger competitors. That is why many companies practice ________.

compete

The more that one firm's strategy resembles another firm's strategy, the more the two firms ________.

creative side

There will be a constant tension between the formulated side of marketing and the ________.

competitor analysis example

To plan effective marketing strategies, the company needs to find out all it can about its competitors. It must constantly compare its marketing strategies, products, prices, channels, and promotion with those of close competitors.

try to expand their market share further, even if market size remains constant

To remain number one, leading firms can take any of three actions. First, they can find ways to expand total demand. Second, they can protect their current market share through good defensive and offensive actions. Third, they can ________.

value innovation

Tomorrow's leading companies will succeed by creating "blue oceans" of uncontested market space. Such strategic moves, termed ________ , create powerful leaps in value for both the firm and its buyers, creating all new demand and rendering rivals obsolete.

differentiation

Wal-Mart, Texas Instruments, and Dell all achieve the lowest production and distribution costs to win a large market share. They utilize a(n) ________ strategy very effectively.

operational excellence

Wal-Mart, Washington Mutual, and Southwest Airlines serve customers who want reliable, good-quality products or services, but who want them cheaply and easily. They are all known for pursuing a value discipline known as ________.

operational excellence definition

When a company provides superior value by leading its industry in price and convenience

market-centered companies

When companies watch both their customers and their competitors, they are called ________.

customer intimacy

When customers are willing to pay a premium to get precisely what they want and company respond quickly to satisfy customer needs, the company has achieved what is called ________.

customer intimacy

When it comes to creating ________, Ritz-Carlton sets the gold standard. "It's all about providing a unique, personal, memorable experience."

high volume; high margins

Whereas the mass marketer achieves ________, the nicher achieves ________.

runner-up firms

________ can adopt one of two competitive strategies: they can challenge the leader or they can play along with competitors and not rock the boat.

market niching

________ is profitable because the needs of the target customer segment are better met than when other firms casually attempt to sell to the same segment.

customer-centered company

a company that focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers is a ________.

market follower

a runner-up firm that wants to hold its share in an industry without rocking the boat

evolving company orientations

competitor-orientation customer-orientation product orientation market-orientation

The company wants to know the relative importance that a competitor places on

current profitability market share growth cash flow technological and service leadership

customer value analysis is conducted to

determine what benefits target customers value and how they rate the relative value of various competitors' offers

stages approaches to marketing strategy and practice often pass through

entrepreneurial marketing, formulated marketing, and intrepreneurial marketing

market challenger strategies

full frontal attack and indirect attack

competitor analysis involves

identifying and assessing competitors and then selecting which to attack or avoid

competitive positions or roles that firms play in the target market

market leader market challenger market follower market nicher

part 2 of competitor analysis assesses

objectives, strategies, strengths, weaknesses and reaction patterns

value disciplines

operational excellence, customer intimacy, and product leadership

winning strategies

overall cost leadership, differentiation, and focus

competitive advantage

requires delivering more value and satisfaction to target consumers than competitors do

market challengers

runner-up firms that are working to increase its market share in an industry.

competitive marketing strategies

strategies that strongly position the company against competitors and give the company the strongest possible strategic advantage

competitive intelligence

system that first identifies the vital types of competitive information and the best sources of this information

positive aspect of a competitor-centered company

that the company develops a fighter orientation, watches for weaknesses in its own position, and searches out competitors' weaknesses.

negative aspect of a competitor-centered company

the company becomes too reactive. Rather than carry out its own customer relationship strategy, it bases its own moves on competitors' moves.

competitor analysis

the first step in initiating competitive marketing strategies is to conduct ___.

benchmarking

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

a company's close competitors are ____

those that most resemble the company's operations

market leader

usually leads the other firms in price changes, new product introductions, distribution coverage, and promotion spending.

product leadership value discipline

when a company's aim is to make its own and competing products obsolete and serve customers who want state-of-the-art products and services, it is using a ____