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Part 4: Building Strong Brands 138. How should a company deal w i t h c u s t o m e r s w h o a r e n e i t h e r v u l n e r a b l e n o r valuable? Suggested Answer: T h e s e u n p r o f i t a b l e c u s t o m e r s a r e h a p p y .

T h e c o m p a n y should try to make them valuable and then retain them, or make them vulnerableand encourage their departure.P a g e : 3 0 0 D i f f i c u l t y : M e d i u m A A C S B : R e f l e c t i v e T h i n k i n g 139. Identify the two requirements that must be satisfied to create a successful low-costoperation. Suggested Answer: Companies should set up low-cost operations only if: (1) thefirm’s existing business will be made more competitive as a result and (2) the newb u s i n e s s w i l l d e r i v e s o m e a d v a n t a g e s i t w o u l d n o t h a v e g a i n e d b y b e i n g independent.P a g e : 3 0 3 D i f f i c u l t y : H a r d A A C S B : R e f l e c t i v e T h i n k i n g 140. Your marketing manager has asked you to develop a new customer strategy for your company. Additionally, you have been asked to develop, specifically, amarketpenetration strategy to assist in gaining new customers. Describe am arket-penetration strategy in this context. Suggested Answer: The market-penetration strategy in this context would seek toget new customers from those customers who might use the product but as yet donot.P a g e : 3 0 4 D i f f i c u l t y : M e d i u m 1 4 1 . A s a b r a n d m a n a g e r , y o u h a v e d e c i d e d t o i m p l e m e n t a p r e e m p t i v e d e f e n s e t o meet an anticipated competitive challenge. Describe the preemptive defense. Suggested Answer: A preemptive defense is a more aggressive maneuver thathas as its purpose to attack before the enemy starts its offense. A company canlaunch a preemptive defense by waging a guerrilla action across the market; it cansend out signals to dissuade competitors from attacking; it can introduce a streamof new products. For additional details, see chapter section.P a g e : 3 0 7 D i f f i c u l t y : M e d i u m A A C S B : A n a l y t i c S k i l l s 142. If you were asked to develop a mobile defense for your products that are likely tocome under attack from a market challenger, what would you suggest? Suggested Answer: In mobile defense, the leader stretches its domain over newterritories that can serve as future centers for defense and offense through marketbroadening and market diversification. For additional information on these twostrategies, see the chapter section.P a g e : 3 0 7 D i f f i c u l t y : M e d i u m A A C S B : R e f l e c t i v e T h i n k i n g

C o n s i d e r t h a t y o u h a v e b e e n p l a c e d i n t h e r o l e o f b e i n g a m a r k e t c h a l l e n g e r . Publishing as Prentice Hall Chapter 11: Dealing with Competition 143. The leader does not mind the imitator as long as the imitator does not attack the leader aggressively. advertising. and stagnantprimary demand.51 Copyright © 2009 Pearson Education.P a g e : 3 1 0 D i f f i c u l t y : M e d i u m A A C S B : A n a l y t i c S k i l l s 147. If your company was labeled as an imitator (market follower). As a market follower. the imitator c o p i e s s o m e t h i n g s f r o m t h e l e a d e r b u t m a i n t a i n s d i f f e r e n t i a t i o n i n t e r m s o f packaging.P a g e : 3 0 8 D i f f i c u l t y : M e d i u m 1 4 4 . Where (toward which opponents) can you attack? Suggested Answer: You can attack: (1) the industry leader. Suggested Answer: The bypass attack is an indirect assault. the attacker matches its opponent’sproduct. what would your primary strategies for meeting competition be? Suggested Answer: According to information provided in the text. Suggested Answer: Competitive rivalry and price cutting have been shown to bemost intense in industries with high fixed costs. When a market challenger uses a frontal attack. you have been labeled as a counterfeiter. Characterize your label. pricing. high inventory costs. o r ( 3 ) s m a l l l o c a l a n d regional firms. Describe the ideas contained in the bypass attack.P a g e s : 3 0 8 – 3 0 9 D i f f i c u l t y : E a s y A A C S B : R e f l e c t i v e T h i n k i n g 145. Inc. price.P a g e : 3 1 2 D i f f i c u l t y : M e d i u m A A C S B : R e f l e c t i v e T h i n k i n g 148. or location. See chapter section for additional information. see chapter section.P a g e : 3 1 1 D i f f i c u l t y : M e d i u m A A C S B : A n a l y t i c S k i l l s . Describe the characteristics of an industry in which competitive rivalry and pricecutting are most intense. Your marketing manager has chosen the bypass attack as a means of responding toan industry leader. advertising. (2) firms of your owns i z e t h a t a r e n o t d o i n g t h e j o b a n d a r e u n d e r f i n a n c e d .P a g e : 3 0 9 D i f f i c u l t y : E a s y A A C S B : R e f l e c t i v e T h i n k i n g 146. F o r additional information. and distribution. what is the principle of force? Suggested Answer: In a pure frontal attack. It means bypassingt h e e n e m y a n d attacking easier markets to broaden one’s resource base. The principle of force says that theside with the greater resources will win. Suggested Answer: The counterfeiter duplicates the leader’s product andpackage and sells it on the black market or through disreputable dealers.

centered company to a customer-centered one. How can a firm with low share of the total market become highly profitable? Suggested Answer: Firms with low shares of the total market can become highlyp r o f i t a b l e t h r o u g h s m a r t n i c h i n g . given itsresources and objectives. S u c h c o m p a n i e s t e n d t o o f f e r h i g h v a l u e . Publishing as Prentice Hall 52 Part 4: Building Strong Brands 149.P a g e : 3 1 2 D i f f i c u l t y : M e d i u m A A C S B : A n a l y t i c S k i l l s 150. Publishing as Prentice Hall of 30 Leave a Comment Submit Characters: 400 kotler_13_tif_11 Download or Print 2.Copyright © 2009 Pearson Education. Inc. Inc.P a g e : 3 1 4 D i f f i c u l t y : M e d i u m A A C S B : R e f l e c t i v e T h i n k i n g 53 Copyright © 2009 Pearson Education. What are the advantages to makingsuch a switch? Suggested Answer: The advantages of the customer-centered company are that itis in a better position to identify new opportunities and set a course that promisesto deliver long-run profits. achieve lower manufacturing costs. and shape a strongcorporate culture and vision.308 Reads Info and Rating Uploaded by . it can decide whichcustomer groups and emerging needs are the most important to serve. charge a premium price. You are about to change the emphasis of your o r g a n i z a t i o n f r o m a c o m p e t i t o r . By monitoring customer needs.

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