Exam 2: Strategic Planning for Competitive Advantage

General Motors Corporation has a goal of launching an electric vehicle soon.The car has been in test drives and they are in the process of working out any bugs that may occur.GM is in the process of working toward mass production of the vehicle.They are in what stage of the marketing plan?

Fujisawa is Japan's seventh-largest pharmaceutical company.It sells drugs for organ transplant patients to increase the probability the new organ will operate efficiently and not be rejected.Currently,the only products Fujisawa makes are these organ transplant drugs,which it sells worldwide.Its patents protect it from competitors.Fujisawa has a:

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

A(n)_____ describes and estimates the size and sales potential of market segments of interest to the firm and assesses key competitors in these market segments.

The SWOT acronym refers to a firm's analysis of its:

The _____ is a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.

Perhaps the broadest control device available to marketing management is the marketing audit.Describe this tool and its characteristics.

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

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 branched from making socks for cyclists to making apparel for skiing,hiking,corporate sponsors,and kids.This is an example of which of Ansoff's strategic alternatives?

Until spun off in 2007,Kraft was part of Altria Group,Inc. Kraft had its own management team,mission statement,and target markets different from Altria Group,Inc. Kraft was a _____ of Altria Group,Inc.

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

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

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

A market penetration strategy entails the creation of new products for current customers.

_____ is a strategy of increasing market share for present products in existing markets.

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

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):

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 that holds a 3% share of China's $1 billion vaccines market. The market for vaccines is growing 20% or more in developing nations of Asia, Africa, and Australasia. 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 to expand Tianyuan's product offerings. -Refer to Novartis.One thing Novarti plans to do is increase sales to governments and to the United Nations agencies because 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 Boston Consulting Group's portfolio matrix,which basic strategy will Novartis be implementing?

Niche competitive advantages are quite common.

_____ 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.