Exam 2: Strategic Planning for Competitive Advantage

_____ is a marketing strategy that creates new products for present markets.

Novartis Novartis,a Swiss drug maker,is planning to purchase a majority stake in Zhejiang Tianyuan Bio-Pharmaceutical Company,a Chinese vaccine maker.Novartis has agreed to pay $125 million for the company,which holds a 3 percent share of China's $1 billion vaccines market.The market for vaccines is growing 20 percent or more in the developing nations of Asia,Africa,and Austral ia.In the past,vaccine use has been limited to basic shots against diseases such as polio,tuberculosis,and measles,but as the economies of these countries grow,government and private healthcare spending focuses on preventing diseases such as hepatitis B,cholera and rotavirus,tetanus,and others.Some critics are against the acquisition,claiming that prices will increase.Novartis claims it is not interested in raising prices but rather in expanding Tianyuan's product offerings. -Refer to Novartis.Novartis assessed the opportunity presented by the growing potential markets in developing countries and determined it was consistent with its internal quality production processes and extensive research and development capabilities.The assessment process in which Novartis learned this about the environment is called a:

The development of a target market strategy begins with a marketing audit.

Novartis Novartis,a Swiss drug maker,is planning to purchase a majority stake in Zhejiang Tianyuan Bio-Pharmaceutical Company,a Chinese vaccine maker.Novartis has agreed to pay $125 million for the company,which holds a 3 percent share of China's $1 billion vaccines market.The market for vaccines is growing 20 percent or more in the developing nations of Asia,Africa,and Austral ia.In the past,vaccine use has been limited to basic shots against diseases such as polio,tuberculosis,and measles,but as the economies of these countries grow,government and private healthcare spending focuses on preventing diseases such as hepatitis B,cholera and rotavirus,tetanus,and others.Some critics are against the acquisition,claiming that prices will increase.Novartis claims it is not interested in raising prices but rather in expanding Tianyuan's product offerings. -Refer to Novartis.Tianyuan has a relatively small market share of a high-growth market in China.How would this company be classified in the Novartis portfolio matrix?

Which of the following strategies would be most appropriate for a dog?

Making sure products are available when and where customers want them is the job of which element of the marketing mix?

All of the following are basic strategies resulting from a portfolio analysis EXCEPT:

Market penetration occurs when:

Novartis Novartis,a Swiss drug maker,is planning to purchase a majority stake in Zhejiang Tianyuan Bio-Pharmaceutical Company,a Chinese vaccine maker.Novartis has agreed to pay $125 million for the company,which holds a 3 percent share of China's $1 billion vaccines market.The market for vaccines is growing 20 percent or more in the developing nations of Asia,Africa,and Austral ia.In the past,vaccine use has been limited to basic shots against diseases such as polio,tuberculosis,and measles,but as the economies of these countries grow,government and private healthcare spending focuses on preventing diseases such as hepatitis B,cholera and rotavirus,tetanus,and others.Some critics are against the acquisition,claiming that prices will increase.Novartis claims it is not interested in raising prices but rather in expanding Tianyuan's product offerings. -Refer to Novartis.One thing Novartis plans to do is increase sales to governments and to the United Nations agencies since these are the typical buyers of vaccines to distribute in poor countries.Thus,the company is willing to give up short-term profits to increase market share for this company.In terms of the portfolio matrix,which basic strategy will Novartis be implementing?

Canon began as a camera-making company but has since become a company that produces a wide range of office equipment in addition to cameras.Canon's managers evidently believe in growth through:

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

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 were 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.Products include socks,armskins,calfskins,boxer briefs,gloves,and shirts for the serious athlete.DeFeet has a custom department where socks,armskins,and gloves can be personalized 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 20 countries like Israel,Australia,Belgium,and the United States.More than two dozen online retailers also carry DeFeet products. -Refer to DeFeet International.DeFeet's _____ is what its customers give up to obtain their apparel.

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.

Jiffy Mixes does not do any type of traditional advertising or use fancy packaging in marketing its products.The company stores its own wheat and makes its own flour and little blue boxes.Jiffy is an example of a low-cost strategy based on:

The annual report of Albertson's grocery has the following statement: "Guided by relentless focus on our five imperatives,we will constantly strive to implement the critical initiatives required to achieve our vision.In doing this,we will deliver operational excellence in every corner of the Company and meet or exceed our commitments to the many constituencies we serve.All of our long-term strategies and short-term actions will be molded by a set of core values that are shared by each and every associate." This statement is an example of Albertson's:

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 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 respected 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 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 that Delta designed to develop new products to appeal to homeowners is an example of:

Zipcar is a car rental service found in many metropolitan areas.It targets people who take mass transit or carpool to work but who occasionally need a car to run errands,visit the doctor,or check on a sick child.Zipcar is one of a few companies currently providing cars that can be rented by the hour.Zipcar has created a(n)_____ advantage.

Which of the following is NOT a commonly studied macroenvironmental force?

The SBU acronym refers to:

Identify four common reasons for failing to achieve a marketing objective.