MKT 472 FINAL EXAM QUESTIONS
COMPLETE WITH 100% VERIFIED
ANSWERS
\.1. Explain the different ways that a company can achieve competitive advantage
in the areas of cost, differentiation, and marketing. For example, describe the
three ways that a differentiation advantage can be achieved. - ANSWERS-Cost:
Variable Costs: Volume is a key factor, economies of scale, the higher the volume
the lower the cost to the company. Purchasing economies creating a scale effect.
Greater opportunity for the learning effect.
Marketing Expenses: marketing scope effect adding different products means
cross selling is easier to your company
Operating Expenses: standardizing building design like walmart or mcdonalds
leaves less uniqueness to the buildings and more homoganizations which
translates into lower cost to operations.
Differentiation Advantage:
Product advantage: a products durability, reliability, performance, features,
appearance and conformance. In other words if a company can create a product
that has a longer life span for example, it can justify greater profit margins relative
to its competitive counterparts.
, Service advantage: same as the product advantage instea it is not relative to the
service industry. Think about the value of YOUR barber compared to super cuts,
you pay more at the barber because you know the service is almost always higher
quality than at super cuts.
Reputation Advantage: this satisfies a dimension of appeals that is most
important to image conscious consumers. Companies such as apple, Perrier nike,
have all developed reputation advantage which attracts a market that are less
price sensitive and willing to pay premium prices for their products, which
translates into higher profit margins for the company.
Marketing Advantage:
Market Share Advantage: a company taking a higher percentage of the market will
dominate those companies who have lower because of awareness, even though a
product of might be comparable or higher quality. The example explained in the
book is the company Nike and how they have developed a strong campaign ad
with the nike swoosh with careful consideratio
\.2. Explain how a company's intelligence about customer and competitors affects
the types of competitive strategies available to it. - ANSWERS-With a knowledge
advantage a business can devise a market based strategy to achieve desired gains
withouth sustaining excessive losses. Dependant on the level of customer and
competitor knowledge we can implement different strategies such as inside the
box, competitor reactive customer reactive and above all the oblique strategy.
\.3. How does competitor analysis differ from competitive benchmarking? -
ANSWERS-Competitive analyses focuses on the companies competitors strategies.
COMPLETE WITH 100% VERIFIED
ANSWERS
\.1. Explain the different ways that a company can achieve competitive advantage
in the areas of cost, differentiation, and marketing. For example, describe the
three ways that a differentiation advantage can be achieved. - ANSWERS-Cost:
Variable Costs: Volume is a key factor, economies of scale, the higher the volume
the lower the cost to the company. Purchasing economies creating a scale effect.
Greater opportunity for the learning effect.
Marketing Expenses: marketing scope effect adding different products means
cross selling is easier to your company
Operating Expenses: standardizing building design like walmart or mcdonalds
leaves less uniqueness to the buildings and more homoganizations which
translates into lower cost to operations.
Differentiation Advantage:
Product advantage: a products durability, reliability, performance, features,
appearance and conformance. In other words if a company can create a product
that has a longer life span for example, it can justify greater profit margins relative
to its competitive counterparts.
, Service advantage: same as the product advantage instea it is not relative to the
service industry. Think about the value of YOUR barber compared to super cuts,
you pay more at the barber because you know the service is almost always higher
quality than at super cuts.
Reputation Advantage: this satisfies a dimension of appeals that is most
important to image conscious consumers. Companies such as apple, Perrier nike,
have all developed reputation advantage which attracts a market that are less
price sensitive and willing to pay premium prices for their products, which
translates into higher profit margins for the company.
Marketing Advantage:
Market Share Advantage: a company taking a higher percentage of the market will
dominate those companies who have lower because of awareness, even though a
product of might be comparable or higher quality. The example explained in the
book is the company Nike and how they have developed a strong campaign ad
with the nike swoosh with careful consideratio
\.2. Explain how a company's intelligence about customer and competitors affects
the types of competitive strategies available to it. - ANSWERS-With a knowledge
advantage a business can devise a market based strategy to achieve desired gains
withouth sustaining excessive losses. Dependant on the level of customer and
competitor knowledge we can implement different strategies such as inside the
box, competitor reactive customer reactive and above all the oblique strategy.
\.3. How does competitor analysis differ from competitive benchmarking? -
ANSWERS-Competitive analyses focuses on the companies competitors strategies.
