Exam 2: Strategic Planning for Competitive Advantage

List the four basic strategies used once an organization has identified its SBUs in terms of the portfolio matrix.Describe when each is used.

Coca-Cola drink vending machines are found all over the world.The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink.The reason for the introduction of this new style vending machine is to "allow the company to interact more directly with its customers." According to a SWOT analysis,the technology used by these machines is an example of a(n):

Which of the following represents a business unit that shows rapid growth but poor profit margins?

Tub King is a small company that refinishes antique claw foot bathtubs,antique sinks,and provides training for bathtub refinishing.The company's management is currently conducting a formal study of its current strengths and weaknesses by looking at the company's profit and sales histories and searching for opportunities and threats by studying consumer trends.Tub King is conducting a(n):

The marketing of organic cotton tees for Life is Good's existing customers would be an example of a _____ strategy.

Russell Athleticwear,which is part of Berkshire Hathaway,Inc.,is a market leader in the sports apparel industry,an industry that is growing rapidly.Russell Athleticwear is an example of a(n)_____ according to the portfolio matrix.

iTunes has a(n)_____ as they have exclusive agreements with some of the most sought after music corporations that other digital music stores do not have.

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.Delta Faucet would most likely have gathered the information about how homeowners perceive its products through the use of a(n):

The marketing mix refers to a unique blend of marketing variables known as the four Ps.Name and briefly describe each of the 4 Ps.

Marketing plans should be written to do all of the following EXCEPT:

A diversification strategy entails increasing sales by introducing new products into new markets.

Earl is starting a new bank.Before their opening day Earl had a meeting with all employees.He discussed their mission,defined objectives for the bank for the coming years and shared who their target market is.He talked about their product offerings and where their future branches would be located.Earl is sharing the bank's _____.

A marketing audit helps management allocate marketing resources efficiently.

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.If you were to define DeFeet's mission which would be most appropriate?

Chrysler has a financial unit that is responsible for vehicle leases to consumers.It has a distinct mission,control over its resources,and plans independent of the other divisions of Chrysler.This financial unit is an example of a(n):

_____ is the process of gauging the extent to which marketing objectives have been achieved during a specified time period.

LVMH,a maker of luxury-goods,has expanded its products offerings into China,Russia,India and the Middle East.This exemplifies a _____ strategy.

Yildiz Holding of Turkey purchased Godiva Chocolates from Campbell's Soup Company.Campbell's sold one of its:

_____ provides the mechanism for evaluating marketing results in light of the marketing plan's goals and for correcting actions that do not help the marketing organization reach these objectives within the budget guidelines.

Land O'Lakes makes a light butter with Canola oil that has sixty percent less cholesterol and fifty percent less fat and calories than butter.This marketing gives the product a _____.