MKT 4385 FINAL EXAM QUESTIONS WITH VERIFIED
ANSWERS
Positioning Statement 1st step - Answers - To: Who is in the consumer target
Positioning Statement 2nd step - Answers - Your brand is the (category) Where do you
play? (what is the frame of reference that helps to define the space in the marketplace
that you compete in?
Positioning Statement 3rd step - Answers - That is the (benefit) Where do you win?
(what promise will you make to the consumer target, thinking about main benefit
(rational/emotional)
Positioning Statement 4th step - Answers - That's because (Support Points) Why should
they believe us? (what support points help to back up the main benefit?
How to figure out a companies marketing strategy - Answers - 1. who is being served
2. what is being served
3. How it is achieved successfully
Response to disruptive innovation - Answers - 1. ignore the innovation.
2. focus on traditional business.
3. disrupt the innovation.
4. Play both games at once.
5. embrace the innovation completely.
When to choose to ignore the innovation - Answers - This is a risky approach. It may
make sense if the disruptive innovation seems unlikely to affect your core business in
the short term or if it's an emerging technology that is not yet mainstream. Some
companies may choose to ignore innovations they feel don't align with their long-term
vision or market.
Risks to ignoring the innovation - Answers - can lead to a company being overtaken by
more agile competitors who adapt quicker. Over time, this can erode market share and
even lead to obsolescence.
Example of ignoring the innovation - Answers - Blockbuster's failure to embrace digital
streaming and on-demand services, ultimately being overtaken by Netflix.
When to choose to focus on your traditional business - Answers - If your traditional
business is still highly profitable and shows signs of long-term viability, you may decide
, to double down on your existing model. This can make sense if you believe the
disruptive innovation is niche or unlikely to significantly impact your core market.
Risks that come from focusing on your traditional business - Answers - This strategy
can be short-sighted if the disruptive innovation eventually matures and begins to
dominate the market. Companies that focus too much on traditional business might be
unprepared for significant shifts in consumer behavior or technology.
Example of focusing on your traditional business - Answers - Kodak's focus on film
photography while digital cameras and smartphones with cameras overtook the market.
When to choose to disrupt the innovation - Answers - If you believe your company has
the resources, innovation capacity, and agility to lead the disruptive innovation yourself,
you could try to take it head-on. This requires strong R&D capabilities, a willingness to
take risks, and a proactive mindset to outpace competitors.
Risks from disrupting the innovation - Answers - can be expensive and resource-
intensive. If your organization misjudges the market or the timing, you might invest
heavily without achieving the expected return. Also, it's challenging to predict what the
"disruptive" trend will look like in the future.
Example of disrupting the innovation - Answers - Apple disrupting the mobile phone
market with the iPhone, despite the existence of established players like Nokia and
Motorola.
When to choose play both games at once - Answers - This strategy involves trying to
continue thriving in your traditional business model while also investing in the new
disruptive innovation. It allows a company to hedge its bets and position itself in both
markets.
Risks from playing both games at once - Answers - Balancing two different business
models can stretch resources thin and lead to a lack of focus. Companies may also face
internal resistance, as employees and leadership try to manage the old and new
simultaneously.
Example of playing both games at once - Answers - Amazon is a good example of a
company that played both games by dominating e-commerce while also investing in
cloud computing (AWS), logistics, and other disruptive sectors.
When to choose to embrace the innovation completely - Answers - If the disruptive
innovation represents the future of your industry, embracing it completely can be the
best move. This is especially true if the innovation offers a more scalable, cost-effective,
or customer-friendly solution than your traditional business model.
Risks to embracing the innovation completely - Answers - Making a complete shift can
be jarring for your existing customers, partners, and employees, and it can be difficult to
ANSWERS
Positioning Statement 1st step - Answers - To: Who is in the consumer target
Positioning Statement 2nd step - Answers - Your brand is the (category) Where do you
play? (what is the frame of reference that helps to define the space in the marketplace
that you compete in?
Positioning Statement 3rd step - Answers - That is the (benefit) Where do you win?
(what promise will you make to the consumer target, thinking about main benefit
(rational/emotional)
Positioning Statement 4th step - Answers - That's because (Support Points) Why should
they believe us? (what support points help to back up the main benefit?
How to figure out a companies marketing strategy - Answers - 1. who is being served
2. what is being served
3. How it is achieved successfully
Response to disruptive innovation - Answers - 1. ignore the innovation.
2. focus on traditional business.
3. disrupt the innovation.
4. Play both games at once.
5. embrace the innovation completely.
When to choose to ignore the innovation - Answers - This is a risky approach. It may
make sense if the disruptive innovation seems unlikely to affect your core business in
the short term or if it's an emerging technology that is not yet mainstream. Some
companies may choose to ignore innovations they feel don't align with their long-term
vision or market.
Risks to ignoring the innovation - Answers - can lead to a company being overtaken by
more agile competitors who adapt quicker. Over time, this can erode market share and
even lead to obsolescence.
Example of ignoring the innovation - Answers - Blockbuster's failure to embrace digital
streaming and on-demand services, ultimately being overtaken by Netflix.
When to choose to focus on your traditional business - Answers - If your traditional
business is still highly profitable and shows signs of long-term viability, you may decide
, to double down on your existing model. This can make sense if you believe the
disruptive innovation is niche or unlikely to significantly impact your core market.
Risks that come from focusing on your traditional business - Answers - This strategy
can be short-sighted if the disruptive innovation eventually matures and begins to
dominate the market. Companies that focus too much on traditional business might be
unprepared for significant shifts in consumer behavior or technology.
Example of focusing on your traditional business - Answers - Kodak's focus on film
photography while digital cameras and smartphones with cameras overtook the market.
When to choose to disrupt the innovation - Answers - If you believe your company has
the resources, innovation capacity, and agility to lead the disruptive innovation yourself,
you could try to take it head-on. This requires strong R&D capabilities, a willingness to
take risks, and a proactive mindset to outpace competitors.
Risks from disrupting the innovation - Answers - can be expensive and resource-
intensive. If your organization misjudges the market or the timing, you might invest
heavily without achieving the expected return. Also, it's challenging to predict what the
"disruptive" trend will look like in the future.
Example of disrupting the innovation - Answers - Apple disrupting the mobile phone
market with the iPhone, despite the existence of established players like Nokia and
Motorola.
When to choose play both games at once - Answers - This strategy involves trying to
continue thriving in your traditional business model while also investing in the new
disruptive innovation. It allows a company to hedge its bets and position itself in both
markets.
Risks from playing both games at once - Answers - Balancing two different business
models can stretch resources thin and lead to a lack of focus. Companies may also face
internal resistance, as employees and leadership try to manage the old and new
simultaneously.
Example of playing both games at once - Answers - Amazon is a good example of a
company that played both games by dominating e-commerce while also investing in
cloud computing (AWS), logistics, and other disruptive sectors.
When to choose to embrace the innovation completely - Answers - If the disruptive
innovation represents the future of your industry, embracing it completely can be the
best move. This is especially true if the innovation offers a more scalable, cost-effective,
or customer-friendly solution than your traditional business model.
Risks to embracing the innovation completely - Answers - Making a complete shift can
be jarring for your existing customers, partners, and employees, and it can be difficult to
