marketing exam 2

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.

"value innovation"

An example of a company exhibiting blue-ocean thinking is ________.

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

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

Market challengers

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

attack;defend

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

bad competitor

________ is 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.

benchmarking

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 ________.

blue ocean strategy

Of the following successful marketing strategies in the past, today's Nike has learned that the most important is ________.

building deep community with customers

Most companies will compete with ________ rather than ________.

close competitors; distant competitors

Each competitor has a mix of objectives. The company wants to know the relative importance that a competitor places on all of the following EXCEPT ________.

company history

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

compete

To gain ________ requires delivering more value and satisfaction to target consumers than competitors do.

competitive advantage

There are specific kinds of information that companies need about their competitors. The ________ system first identifies the vital types of competitive information and the best sources of this information.

competitive intelligence

Strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage are ________.

competitive marketing strategies

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

competitiveness

The first step in initiating competitive marketing strategies is to conduct ________.

competitor analysis

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. This is an example of ________.

competitor analysis

________ involves first identifying and assessing competitors and then selecting which competitors to attack or avoid.

competitor analysis

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

competitor myopia

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. This is an example of ________.

competitor myopia

A positive aspect of a ________ is that the company develops a fighter orientation, watches for weaknesses in its own position, and searches out competitors' weaknesses.

competitor-centered company

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

competitors

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

creative side

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

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

customer value

Analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers is known as ________.

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 ________.

customer value analysis

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 ________.

earn higher profits; gain more market share

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?

entrepreneurial marketing

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. What stage in marketing strategy are these individuals in?

entrepreneurial marketing

Approaches to marketing strategy and practice often pass through which of the three following stages?

entrepreneurial marketing, formulated marketing, and intrepreneurial marketing

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.

formal

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 competitve strategies and programs.

formulated

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.

in-house

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."

industry; market

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. This is known as ________.

intrepreneurial marketing

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

learn about their competitors' strengths and weaknesses

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

low-cost; cost reducing

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.

market

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 ________ point of view, it would include all firms making recreational and educational products for children.

market

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

market follower

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

market leader

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

market leaders

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

market nichers

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

market-centered companies

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. Both companies are ________.

middle-of the roaders

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

middle-of-the-roaders

Part two of a competitor analysis is assessing :

objectives, strategies, strength and weaknesses, and reaction patterns

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

only well-behaved competitors

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

When a company provides superior value by leading its industry in price and convenience, it has obtained what is called ________.

operational excellence

Companies can pursue any of the following three strategies, called value disciplines, for delivering superior customer value:

operational excellence, customer intimacy, and product leadership

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. A) overall cost leadership

overall cost leadership

Michael Porter suggests four basic competitive positioning strategies that companies can follow-three winning strategies and one losing one. Which of the following are considered winning strategies?

overall cost leadership, differentiation, and focus

If 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 value discipline called ________.

product leadership

Companies need to know each competitor's product quality, features, and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs. These are all the dimensions that identify ________ groups within the industry.

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.

strategic

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

strategic sweet spot

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

strong

A company's close competitors are ________.

those that most resemble the company's operations

The leading firm normally gains the most when the ________.

total market expands

Most companies prefer to aim competition against ________.

weak competitors