Exam 18: Creating Competitive Advantage

Kodak's film business didn't suffer at the hands of direct competitor Fujifilm;it lost out to Sony,Canon,and other digital camera makers,along with a host of digital image developers and online image sharing services.This is an example of .

Computer mouse and interface device maker Logitech is only a fraction the size of giant Microsoft.Yet through skillful ,it dominates the PC mouse market,with Microsoft as its runner up.

The existence of competitors in a market may help a company increase total demand.

Refer to the scenario below to answer the following questions. Essentials is a rapidly growing brand of women's makeup,perfumes,and nail care products.The company has established itself as a high- end cosmetic product available at most national drug stores.In the past,almost all of the advertising for Essentials has been in women's fashion magazines. Essentials is now launching a new line of skin care products,ranging from facial cleansers to body lotion.These products are designed to be marketed to a broader audience,so the marketing team is exploring the effectiveness of different promotional mixes. -Before deciding to launch the new line of products,Essentials conducted extensive market research to make sure the products were optimally positioned.A complete marketing plan-including mobile advertising,magazine advertising,event sponsorship,and sales promotions-was established long before the products themselves were ready for market.In this case,Essentials was using _ .

To plan effective marketing strategies,the company needs to find out all it can about its competitors.It must constantly compare its marketing strategies,products,prices,channels,and promotion with those of close competitors.This is an example of _ .

Explain how the United States Postal Service has had "competitor myopia."

If the company's offer delivers greater value by exceeding the competitor's offer on important attributes,the company can charge a higher price and ,or it can charge the same price and .

Continuous innovation is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance.

Fifty percent of the market is in the hands of Company A.Another 30 percent is in the hands of Company B.Fifteen percent is in the hands of Company C,and the remaining five percent is in the hands of Company D.Based on these hypothetical numbers,Company D is the market .

Market leaders can expand the market by _ and more usage of the product.

Walmart,Costco,and Southwest Airlines serve customers who want reliable,good- quality products or services,but who want them cheaply and easily.These companies are all known for pursuing a value discipline known as .

The following are all examples of close competitors EXCEPT .

Lovelies is the leading workout center in its area for women.The regional chain of gyms has traditionally catered to women forty and older who are interested in strength and cardiovascular training.Lovelies has recently begun promotions to bring younger women into its gyms.This is an example of how the market leader .

Although competition is most intense within a strategic group,explain why there is also rivalry among groups.Give examples.

Many large and mature companies get stuck in formulated marketing.They pore over the latest Nielsen numbers,scan market research reports,and try to fine- tune their competitive strategies and programs.

Discuss formal and informal marketing strategies and give examples of companies that use both.

Gaining requires delivering more value and satisfaction to target consumers than competitors do.

An integrated group is a group of firms in an industry following the same or a similar strategy in a given target market.

A company that focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers is a .

Fifty percent of the market is in the hands of Company A.Another 30 percent is in the hands of Company B.Fifteen percent is in the hands of Company C,and the remaining five percent is in the hands of Company D.Based on these hypothetical numbers,Company B is the market .