Mqm 385 Ch 5 Test 2

Front 1

customer needs

Back 1

what is to be satisfied

the desires, wants, or cravings that can be satisfied through product attributes

Front 2

customer groups

Back 2

who is to be satisfied

Front 3

distinctive competencies

Back 3

how customers are to be satisfied

Front 4

Company's business model

Back 4

management's model of how strategy will allow the company to gain competitive advantage and achieve superior profitability

Front 5

customers choose a product based on

Back 5

the way the product is differentiated from other products of its type

the price of the product

Front 6

product differentiation

Back 6

designing products to satisfy customer's needs in ways that competing products cannot

Front 7

market segmentation

Back 7

the way customers can be grouped based on important differences in their needs or preferences

Front 8

main approaches to segmenting markets (3)

Back 8

ignore differences in customer segments

recognize difference between customer groups

target specific segments

Front 9

ignore differences in customer segments

Back 9

make a product for the typical or average customer

Front 10

recognize differences between customer groups

Back 10

make products that meet the needs of all or most customer groups

Front 11

target specific segments

Back 11

choose to focus on and serve just one or two selected segments

Front 12

no market segmentation

Back 12

a product is targeted at the "average customer"

Front 13

high market segmentation

Back 13

a different product is offered to each market segment

Front 14

focused market segmentation

Back 14

a product is offered to one or a few market segments

Front 15

to develop a successful business model

Back 15

how to DIFFERENTIATE their product
how to PRICE their product
how to SEGMENT their markets
how WIDE A RANGE of products to develop

Front 16

value creation frontier

Back 16

represents the maximum amount of value that the products of different companies inside an industry can give customers at any one time by using different business models

Front 17

cost leadership

Back 17

lowest cost structure allowing price flexibility and higher profitability

Front 18

focused cost leadership

Back 18

cost leadership in selected market niches where it has a local or unique cost advantage

Front 19

differentiation

Back 19

features important to customers and distinct from competitors that allow premium pricing

Front 20

focused differentiation

Back 20

distinctiveness in selected market niches where it better meets the needs of customers that the broad differentiators

Front 21

cost leadership strategic choices

Back 21

does not try to be the industry innovator

appeal to the average customer

increase efficiency and lower costs

Front 22

advantages of cost leadership strategies

Back 22

able to charge a lower price or are able to achieve superior profitability than their competitors at the same price

Front 23

differentiation strategic choices

Back 23

differentiate itself on as many dimensions as possible

quality, innovation, and responsiveness to customer needs

segment into many niches

concentrate on the organizational functions that provide a source of distinct advantages

Front 24

advantages of differentiation strategies

Back 24

brand loyalty

geared towards price not costs

create demand for their distinct products and charge a premium price

Front 25

focus strategic choices

Back 25

selects a specific market niche that may be based on
-geography
-type of customer
-segment of product line

either
-low cost
or
-differentiator

Front 26

retail industry dynamics

Back 26

many successful companies lose their position on the frontier at some point, to turn around they need to change their business models

Front 27

strategic groups strategic choices

Back 27

map their competitors

better understand changes in the industry

determine which strategies are successful

fine tune or radically alter business models and strategies to improve competitive position

Front 28

strategic groups

Back 28

groups of companies that follow a business model similar to other companies within their strategic group, but are different from that of other companies in other strategic groups

Front 29

failures in competitive positioning

Back 29

dont work continually to improve
dont perform strategic group analysis
fail to respond to Tand Os

Front 30

companies lose their position on the value frontier when

Back 30

they have lost their source of competitive advantage

their rivals have found ways to push out the value creation frontier and leave them behind