Exam 3: 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 GM is in the process of working out any bugs that may occur.GM also is in the process of working toward mass production of the vehicle.The company is in which stage of the marketing plan?

Tide laundry detergent is the market leader,but overall industry growth is low in this market.Tide would be classified as a _____ in the portfolio matrix.

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.While new home construction is not growing as rapidly as it once did,the number of homeowners who are remodeling bathrooms and kitchens is growing.According to the portfolio matrix,Masco would consider Delta a(n):

A business unit that usually generates more than it needs to maintain its market share is called a(n)_____ in the portfolio matrix.

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 product Fujisawa makes is these organ transplant drugs,which it sells worldwide.Its patents protect it from competitors.Fujisawa has a:

Lands' End guarantees its products for as long as you own them.The company would seem most concerned with which element of the marketing mix?

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 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 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:

Apple,Inc.is now offering the iPhone 3G for half its original price.This new strategy reflects a change in the _____ element of its marketing mix.

_____ show costs declining at a predictable rate as experience with a product increases.

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.

Each labor and delivery room at the new Dekalb County Medical Center has hardwood floors,soft lighting,and mission-style furniture.The facility also features a stone fireplace in the lobby,a bistro-style restaurant,and VIP suites for discerning mothers-to-be.This unique design and furnishings give the medical center a:

The focus of an organization's mission statement should be on:

Which of the following statements about marketing audits is true?

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:

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.

When a florist shop begins to sell burial caskets to its customers,it is engaged in product development.

Berkshire Hathaway Inc.,a large property insurance company,owns a large chain of jewelry stores and has recently purchased Russell Corporation,a manufacturer of sporting goods.Berkshire Hathaway uses a market penetration strategy.

Which of the following is NOT a type of competitive advantage?

Briggs & Stratton is a company that makes small engines.The company is looking at customer trends,its competitors,and the economy to see if there are any threats or opportunities on the horizon.It has also examined its production policies and sales histories to determine its strengths and weaknesses.Briggs & Stratton is conducting a(n):

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.What kind of competitive advantage would you say DeFeet has?