MT1 - Chapter 18 Vocab

Question 1

competitive advantage

Answer 1

an advantage over competitors gained by offering customers greater value

Question 2

customer advantages

Answer 2

what customers see competitive advantages as, giving the company an edge over its competitors

Question 3

competitor analysis

Answer 3

identifying key competitors
assessing their objectives, strategies, strengths and weaknesses, and reaction patterns
selecting which competitors to attack/avoid

Question 4

competitive marketing strategies

Answer 4

strategies that strongly position the company against competitors and give the company the strongest possible strategic advantage

Question 5

competitor myopia

Answer 5

a company is more likely to be bankrupted by latent competitors than its current ones

Question 6

strategic group

Answer 6

group of firms in an industry following the same or a similar strategy

Question 7

benchmarking

Answer 7

comparing the company’s products and processes to those of competitors or leading firms on other industries in order to identify best practices and find ways to improve quality and performance

Question 8

customer value analysis

Answer 8

an analysis conducted to determine what benefits target consumers value and how they rate the relative value of various competitors’ offers

Question 9

blue ocean strategy

Answer 9

create products and services for which there are no direct competitors (Apple, Cirque du Soleil)

Question 10

3 stages of approaches to marketing strategy

Answer 10

entrepreneurial marketing
formulated marketing
intrepreneurial marketing

Question 11

basic competitive strategies (3 winning)

Answer 11

overall cost leadership (low cost)
differentiation (class leader)
focus (serve a few segments well)

Question 12

middle of the roaders

Answer 12

losers with no clear competitive strategy

Question 13

3 value disciplines

Answer 13

operational excellence (price, convenience leader)
customer intimacy (satisfaction tailored to customer needs)
product leadership (leading edge products)
note - attempting to be good at all can leave one best at none

Question 14

market leader

Answer 14

firm in an industry with largest market share

Question 15

market challenger

Answer 15

runner up firm that is fighting hard to increase market share in the industry

Question 16

market follower

Answer 16

runner up firm that wants to hold its share in the industry without rocking the boat

Question 17

market nicher

Answer 17

firm that serves small segments that other firms in the industry overlook or ignore

Question 18

market leader strategies

Answer 18

expand total demand
protect market share
expand market share

Question 19

competitor centered company

Answer 19

company whose moves are mainly based on competitors’ actions and reactions

Question 20

customer centered company

Answer 20

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

Question 21

market centered company

Answer 21

company that pays balanced attention to both customers and competitors in designing its marketing strategies

Question 22

product oriented company

Answer 22

company that pays little attention to either customers or competitors in designing its marketing strategies