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30 Cards in this Set
- Front
- Back
customer needs
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what is to be satisfied
the desires, wants, or cravings that can be satisfied through product attributes |
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customer groups
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who is to be satisfied
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distinctive competencies
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how customers are to be satisfied
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Company's business model
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management's model of how strategy will allow the company to gain competitive advantage and achieve superior profitability
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customers choose a product based on
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the way the product is differentiated from other products of its type
the price of the product |
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product differentiation
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designing products to satisfy customer's needs in ways that competing products cannot
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market segmentation
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the way customers can be grouped based on important differences in their needs or preferences
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main approaches to segmenting markets (3)
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ignore differences in customer segments
recognize difference between customer groups target specific segments |
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ignore differences in customer segments
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make a product for the typical or average customer
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recognize differences between customer groups
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make products that meet the needs of all or most customer groups
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target specific segments
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choose to focus on and serve just one or two selected segments
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no market segmentation
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a product is targeted at the "average customer"
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high market segmentation
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a different product is offered to each market segment
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focused market segmentation
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a product is offered to one or a few market segments
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to develop a successful business model
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how to DIFFERENTIATE their product
how to PRICE their product how to SEGMENT their markets how WIDE A RANGE of products to develop |
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value creation frontier
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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
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cost leadership
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lowest cost structure allowing price flexibility and higher profitability
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focused cost leadership
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cost leadership in selected market niches where it has a local or unique cost advantage
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differentiation
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features important to customers and distinct from competitors that allow premium pricing
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focused differentiation
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distinctiveness in selected market niches where it better meets the needs of customers that the broad differentiators
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cost leadership strategic choices
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does not try to be the industry innovator
appeal to the average customer increase efficiency and lower costs |
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advantages of cost leadership strategies
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able to charge a lower price or are able to achieve superior profitability than their competitors at the same price
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differentiation strategic choices
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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 |
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advantages of differentiation strategies
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brand loyalty
geared towards price not costs create demand for their distinct products and charge a premium price |
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focus strategic choices
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selects a specific market niche that may be based on
-geography -type of customer -segment of product line either -low cost or -differentiator |
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retail industry dynamics
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many successful companies lose their position on the frontier at some point, to turn around they need to change their business models
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strategic groups strategic choices
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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 |
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strategic groups
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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
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failures in competitive positioning
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dont work continually to improve
dont perform strategic group analysis fail to respond to Tand Os |
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companies lose their position on the value frontier when
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they have lost their source of competitive advantage
their rivals have found ways to push out the value creation frontier and leave them behind |