Exam 2: Strategic Planning for Competitive Advantage

A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions is known as a(n):

As marketers gain more experience in marketing a product,costs tend to decrease,which is an example of the maturity effect.

_____ is a strategy that attempts to attract new customers to existing products.

Orange growers in Florida have lost millions of dollars due to hurricanes.As a result,some growers have decided to bulldoze their orange groves and put in freshwater lakes for raising shrimp,a product that has a strong popularity and is more weather-resistant.Former orange growers who are now raising shrimp are pursuing a _____ strategy.

Berkshire Hathaway Inc.,a large conglomerate holding company,owns a several insurance companies,a large chain of jewelry stores,and has recently purchased the BNSF Railway.Berkshire Hathaway uses a market penetration strategy.

In order to expand its sales into the U.S.market,BRL,an Australia-based winemaker,agreed to a merger with a U.S.-based wine distribution company.According to Ansoff's Strategic Opportunity Matrix,BRL would be implementing a _____ strategy.

An SBU:

All of the following are strategic alternatives that match products with markets EXCEPT:

NARRBEGIN: DeFeet International DeFeet International DeFeet International started as a cyclist sock company.The founder,Shane Cooper,said that the existing socks for cyclists were just not of great quality so he made socks for his cycling team by knitting them inside out.The socks were of special materials aimed at giving the cyclist the most comfortable fit.These socks were not the traditional white socks but bright,bold,and flashy colored socks with cool graphics.These high tech socks were priced around $10 a pair.Their web site says "DeFeet is Made for Driven Soles." Soon cycling elites like Lance Armstrong and Greg LeMond were sporting the DeFeet brand.The company branched into running,hiking and snow gear.Their products include socks,armskins,calfskins,boxer briefs,gloves,and shirts for the serious athlete.They also have a custom department where socks,armskins,and gloves can be customized with any motif including sponsor types of logos like Michelin,Pabst Blue Ribbon,or BP.Even kids can enjoy DeFeet's high quality socks.DeFeet's products can be found in retailers across the world,in more than twenty countries,like Israel,Australia,Belgium and the United States.More than two-dozen online retailers also carry their products. -Refer to DeFeet.What kind of competitive advantage would you say DeFeet has?

The company that manufactures Molson beer,which is typically consumed by males,launched an alcoholic lemonade beverage to attract more females.This launch of a new product to attract a new market for Molson's products is an illustration of a _____ strategy.

NARRBEGIN: DeFeet International DeFeet International DeFeet International started as a cyclist sock company.The founder,Shane Cooper,said that the existing socks for cyclists were just not of great quality so he made socks for his cycling team by knitting them inside out.The socks were of special materials aimed at giving the cyclist the most comfortable fit.These socks were not the traditional white socks but bright,bold,and flashy colored socks with cool graphics.These high tech socks were priced around $10 a pair.Their web site says "DeFeet is Made for Driven Soles." Soon cycling elites like Lance Armstrong and Greg LeMond were sporting the DeFeet brand.The company branched into running,hiking and snow gear.Their products include socks,armskins,calfskins,boxer briefs,gloves,and shirts for the serious athlete.They also have a custom department where socks,armskins,and gloves can be customized with any motif including sponsor types of logos like Michelin,Pabst Blue Ribbon,or BP.Even kids can enjoy DeFeet's high quality socks.DeFeet's products can be found in retailers across the world,in more than twenty countries,like Israel,Australia,Belgium and the United States.More than two-dozen online retailers also carry their products. -Refer to DeFeet.DeFeet's _____ is high-tech apparel,the packaging it comes in,the brand name,company image and value.

Strategic plans require:

Ocean Spray's development of Craisins sweetened dried cranberries to compete against raisins most directly affected the _____ element of the company's marketing mix.

A _____ is a study conducted by an organization to identify its internal strengths and weaknesses and also examine external opportunities and threats.

Kraft foods created a magazine full of recipes and coupons for customers as well as a web site with product and recipe information.The goal was to get current customers to purchase more of Kraft's products.These activities are representative of a _____ strategy.

Clay Market began as a retailer of terra cotta pots and garden figures imported from Turkey and Mexico.It has since added Turkish rugs and fabrics,leather trimmed purses,and a line of women's clothes for its customers.These activities are indicative of a _____ strategy.

Which of the following is a strategic alternative?

An advantage that cannot be copied by the competition is called a(n)_____ competitive advantage.

NARRBEGIN: Delta Faucet Delta Faucet Company Masco is the name of a well-recognized company in the construction industry.It produces cabinetry,furniture,lighting,and plumbing fixtures for the upper-end homeowner and builder.One of the divisions of Masco is the Delta Faucet Company,which is the leader in the faucet industry.Delta Faucet was founded in 1955.Over the decades,it has developed a legacy based on well-crafted,high-quality products.Since the 1970s,Delta has focused its energies on building loyalty with the builder marketplace.Research in 2002 showed that while builders respect the Delta faucet for its quality,durability,and dependability,household consumers were not enamored with Delta products.Due to the number of new magazines and television programs devoted to home style,homeowners wanted faucets that were chic and stylish.This was not the image of the Delta Faucet.To change its image,Delta Faucet began a marketing program in which it committed itself to developing new products to appeal to homeowners.It adopted a new slogan,"Beautifully Engineered." -Refer to Delta Faucet Company.The marketing program,which Delta designed to develop new products to appeal to homeowners,is an example of:

What is environmental scanning? Name four environmental forces that affect marketing decision-making.