Chapter 8: Marketing strategies in Life Cycles

Question 1

Capability of an organisation

Answer 1

the combination of various resources available to an organisation that are used to develop a competitive advantage

Question 2

Competitive advantage

Answer 2

the successful formulation and execution of business strategies that are different from and ultimately create more value for an organisation than the strategies of competitors

Question 3

Co-operation

Answer 3

• an organisation must initiate or participate in collaborative agreements with other businesses

Question 4

Co-option

Answer 4

collaboration between different parties or organisations to create competitive advantages by eliminating threats or seizing opportunities.
- Co-option could also occur between two rivals who collude to share a market or to deter another competitor.

Question 5

Core competence

Answer 5

resources and capabilities that are useful, rare, hard to copy, and cannot be replaced by something else.

Question 6

Disruption

Answer 6

disruption in a business or industry occurs through innovation that results in new markets and value-adding. This eventually results in the disruption of the existing market, replacing businesses and products and services that have been around for a long time.

Question 7

Diversification

Answer 7

a growth strategy that involves moving into new products and competitive advantage.

Question 8

Market development

Answer 8

growth strategies to introduce a current product to a new market by means of geographical expansion or targeting new segments and target markets.
- geographical and global expansion

Question 9

Market penetration

Answer 9

a growth strategy to increase market share of an organisation or increase the usage of a product within an existing market.
- growth in existing product market

Question 10

Product development

Answer 10

presenting a new product within a current market by means of product refinement, the expansion of the product line, or introducing new generation and/or innovative products.
- new products to existing customer base

Question 11

Sustainable competitive advantage (SCA)

Answer 11

a SCA occurs when an organisation implements a value-creating strategy that other companies are unable to duplicate or find too costly to imitate.

Question 12

Testing strategies

Answer 12

evaluating the available marketing strategy options.

Question 13

SCA

Answer 13

sustainable competitive advantage

Question 14

Creation and innovation

Answer 14

• the process where by an idea or invention is transformed into product or service that creates value for the customer

Question 15

Competition

Answer 15

• competitive action against a rival or rivals

Question 16

Global competitive advantage

Answer 16

• competition
• creation and innovation
• cooperation
• co option

Question 17

related diversification

Answer 17

Diversifying into business lines in the same industry

Question 18

unrelated diversification

Answer 18

Diversifying into new industries