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Alaris Capture Pro Software UNIVERSITY OF TORONTO FACULTY OF APPLIED SCIENCE AND ENGINEERING FINAL EXAMINATION I Dec 21, 2018 JRE4I0 HIF - Markets and Competitive Strategy DURATION: 2 and % hrs Simple Calculator (non-programmable) allowed. Exam Type: A (Closed Book) Examiner - S. Chuang & B. Wig naIl STUDENT NAME: STUDENT NO.: This exam contains three parts which add up to 100 marks, the breakdown is: Part 1: Multiple Choice (13 marks) Part 2: Short Answer (70 marks) Part 3: Mini-Cases (17 marks) All answers must be written in this exam booklet and you may use the backside for more space; any additional pages MUST have your Student Number on it, and be or stapled on to the back. GRADES (To be used by markers. STUDENTS PLEASE DO NOT WRITE IN THIS SECTION): I Multiple Choice /13 1. 2. 3. 4. 5. 6. 7. 8. 9. Short Answer (170) 10. 11. 12. 13. 14. 1. 2. 3. 4. TOTAL Case (117) Page 1 of 14 GOOD LUCK © Page 2 of 14 Part I - MULTIPLE CHOICE QUESTIONS [1 mark each; total 13 marks Each multiple choice question is worth 1.0 point. Select the answer that best fits the question. There may be more than one answer that can be argued to fit the question; however, only the best answer will get the mark. Print your answers ALL IN CAPITAL LETTER here: 1 2 3 4 5 6 7 8 9 10 11 12 13 What marketing activities, initiatives or events did Harley Davidson NOT leverage in order to target the outreach groups? Print ads with strong brand distinction UFC Sponsorship Facebook presence Media ads advertising BueTi's reasonable price TV Product placement 2. Which of the following is NOT a global image that Sony VAIO has? A statement computer" Distinguished by its multimedia software A premium offering A computer for enterprises Attractive to those who highly value not only functional attributes but also intangible benefits 3. Which of the following is/are a value proposition of XM Radio for listeners Provides an option to filter the advertisements during broadcast Provides a more diverse content compared to conventional radio Better accessibility of signals compared to conventional radio Only Alla,b,c 4. If Colgate decided to place Automated Dispensing Machines at select drugstores to give potential customers samples of their newest toothpaste, this would best be described as an example of push marketing pull marketing trade show promotions public relations 5. Referring to the lecture, how did Starbucks enhance buyers' perception of its differentiated value? Advertised the experience of Starbucks store that customers fell in love with. Increased promotions during primetime TV and major sporting events on new coffee blends. Implemented word-of-mouth marketing by generating a buzz among its loyal fan base and reward influencers with limited Starbucks coffee blend Invested heavily on store external design by renovating the exterior signage as a way of advertisement to enhance brand value. Porter Airlines, based at the Toronto City Airport, offers convenience, comfort and better service. What type of strategy is Porter Airlines adopting? Focused differentiation Focused low-cost Broad market differentiation Broad market low-cost provider Best-cost Provider None of the above. Page 3 of 14 Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits? The industry's growth potential, whether competition appears destined to become stronger or weaker, how the industry's driving forces might affect overall industry profitability, the company's competitive position relative to rivals, and the company's proficiency in performing industry key success factors. An assessment of which firms in the industry have the best and worst competitive strategies, whether the number of strategic groups in the industry is increasing or decreasing, and whether economies of scale and experience curve effects are a key success factor Whether there are more than 5 key success factors and more than 5 barriers to entry Constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group Whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product 8. SWOT analysis is: A better form of Michael Porter's 5- Forces A better form of the BCG Matrix A key way to determine a company's competitively important Rs&Cs as part of an Internal Analysis A tool for organising information 9. What would be a good example of forward integration by an automotive manufacturer? Establishing new corporate-owned dealership/stores Acquiring parts suppliers to expedite production processes Extract raw materials via partnership with an explorations company Invest in human capital training for their employees to better serve customers None of the above 10. A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers Lacks powerful driving forces. Gives each industry competitor the best potential for building sustainable competitive advantage. Makes it hard for industry members to pursue a differentiation strategy. Is conducive to industry members earning attractive profits. Requires that industry members have low costs. 11. The payoff of good scouting reports on rivals is improved ability to Predict what strategic moves rivals are likely to make next (thereby allowing a company to prepare defensive countermoves and develop strategies to exploit rivals' missteps) and/or plot offensive moves against them. Determine which rivals are in the best strategic group. Figure out how many key success factors a rival has. Determine whether a rival is gaining or losing market share, whether rivals are increasing or decreasing R&D spending, and what new marketing promotions are in the works. Determine whether a rival has the best strategy and is the industry leader. 12. In which pace of market and technology change is it unlikely for the first mover to have an advantage? Both market and technology change slowly Market changes slowly, Technology changes fast Market changes fast, Technology changes slowly Both market and technology change fast 13. Disruptive technology is important to understand because they change: The competition between rivals The new entrants The source of value to customers The suppliers Page 4 of 14 Part II— SHORT ANSWER QUESTIONS [Total 70 marks 1. Identify and Describe four common forms of consumer sales promotion [4 marks] 2. Define direct marketing communication in the promotional mix (1 marks), identify two techniques or examples of specific types of direct marketing (2 marks), and comment on what we know about the feedback loop (in the channel model) when direct marketing is used (1 mark). Total 4 marks 3. Describe four marketing uses of packaging and labelling [4 marks]. Page 5 of 14 4. Identify and define the four bases for segmenting that we discussed in lecture [4 marks, 1/2 each for identifying and defining each one] 5. Explain how and why firms implement positioning strategies and how product differentiation plays a role. [4 marks] 6. Identify four aspects of business buying behaviour that are unique to the 13213 customer [4 marks] Page 6 of 14 7. Identify the 5 steps in the consumer buying decisions process (1/2 mark each, for 2.5 marks) and define each or list some attributes of that step (1 mark for each of the five definitions/attributes for 5 marks) [7.5 marks] 8. At what stage in the product life cycle is the North American motorcycle market? [1 mark]. Describe Harley Davidson's Marketing objective [1 mark], Pricing objective [1 mark], and Promotional objective [1 mark] = Total 4 marks. Page 7 of 14 9. Thinking about the Colgate case, what stage is it in the product life cycle (1 mark)? Identify and explain one pull tactic and one push tactic and explain why each of these tactic would be appropriate, given where Colgate is in the product life cycle [2 marks for pull, 2 marks for push)= Total 5 marks. 10. Define "personal selling" and "advertising" [2 marks]. Comment on the 'Receiver' and the 'Feedback loop' from the model covered in class for each (4 marks) = Total 6 marks [Hint, drawing the diagram would help] Page 8 of 14 11. Explain the concept of product life cycles [2 marks]. Please draw the product life cycle model with all axes, stages, and curves labeled. (2 marks). Explain marketing objectives for "promotions" for the first three phases (0.5 marks each; 1.5 marks) [Total = 5.5 marks] 12. The Environmental Filter Company is planning to sell air filter systems for $2,500 per unit. Variable costs are $1,500 per unit and total fixed operating costs are $1,000,000. What is the dollar value of sales necessary to break even? [3 marks] Page 9 of 14 13. Identify and describe the stages in the new-product development process. [7 marks] 14. Complete a SWOT analysis of Coke in the early 1990s: [2 marks each acronym, total 8 marks] Page 1Oaf 14 Part III —Mini Case [Total 17 marks How Low can you go? There is no consumer as fickle as the Canadian grocery The lower-price efforts started with Sobeys produce. Citing consumer. They want high-quality products at low prices—a improved economies of scale and scope from the 2013 contradiction and near impossibility for most firms. The purchase of Canadian Safeway, Empire was able to push the landscape for companies competing in the Canadian grocery price of fruits and vegetables lower in all of its Saskatchewan market is mostly controlled by large corporations: Costco, locations. However, this price reduction did not come with a Walmart, and Loblaws.
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