1. The role of competitive analysis in managerial decision making. (27 points)
In their 2005 Marketing science paper, Montgomery, Moore and Urbany look at the weight
competitive reasoning gets in managerial decisions making.
a. The authors distinguish between three types of competitive reasoning. What are these three
types?
b. Discuss for each of the three type why it would be important to integrate them in managerial
decision making. Add some insights on the extent to which managers do take each type into
account (in relative terms: which is most often used, which least often).
c. Which type of reasons is, according to the paper, most often quoted not to engage into
competitive reasoning? In the paper, the authors distinguish between two major types.
d. When the company carries out a strategic analysis of its environment, it can analyze strategic
groups and market segments, among others. To which of both types of analyses would you
link the insights of Montgomery, Moore and Urbany? Motivate your answer, thereby building
on the course content.
2. Companies and Innovation (31 points)
Companies can create value through innovation.
a. Why is this the case? How does innovation create value for companies?
b. Innovations can be ‘incremental’ or ‘radical’. What do we mean with these concepts?
Two important points in the diffusion of innovations are the so-called ‘tipping’ and ‘tripping points’.
c. What do we mean with these points?
d. Provide four examples of factors that will increase the pace of diffusion of innovations.
Make sure to include at least one supply-side determinant, and one demand-side
determinant.
e. These tipping and tripping points are even more important when network effects are
present. Why is this the case? Provide a well-chosen recent example of the impact of this
phenomenon.
3. Marketing mix effectiveness. (22 points)
When judging marketing mix effectiveness, different approaches have been taken when it
comes to the outcome variables on which one is judging the effectiveness. These can be hard
metrics like sales, but also soft metrics like so-called mindset metrics like Awareness,
Consideration and Liking.
a. Why would one be interested in these mindset metrics?
b. Do all 4 Ps have an equal effect on these three metrics? If not, show differences.
c. In the course we have covered the links between marketing mix actions, mindset
metrics and sales. We thereby distinguished between 4 different possible
scenarios. Discuss these scenarios, and show how/where things could/should be
improved. Indicate which scenario is best/worst, and provide arguments on why
this is the best/worst scenario for a company to be in.
4. Firm value (20 points)
In their 2005 Marketing science paper, Montgomery, Moore and Urbany look at the weight
competitive reasoning gets in managerial decisions making.
a. The authors distinguish between three types of competitive reasoning. What are these three
types?
b. Discuss for each of the three type why it would be important to integrate them in managerial
decision making. Add some insights on the extent to which managers do take each type into
account (in relative terms: which is most often used, which least often).
c. Which type of reasons is, according to the paper, most often quoted not to engage into
competitive reasoning? In the paper, the authors distinguish between two major types.
d. When the company carries out a strategic analysis of its environment, it can analyze strategic
groups and market segments, among others. To which of both types of analyses would you
link the insights of Montgomery, Moore and Urbany? Motivate your answer, thereby building
on the course content.
2. Companies and Innovation (31 points)
Companies can create value through innovation.
a. Why is this the case? How does innovation create value for companies?
b. Innovations can be ‘incremental’ or ‘radical’. What do we mean with these concepts?
Two important points in the diffusion of innovations are the so-called ‘tipping’ and ‘tripping points’.
c. What do we mean with these points?
d. Provide four examples of factors that will increase the pace of diffusion of innovations.
Make sure to include at least one supply-side determinant, and one demand-side
determinant.
e. These tipping and tripping points are even more important when network effects are
present. Why is this the case? Provide a well-chosen recent example of the impact of this
phenomenon.
3. Marketing mix effectiveness. (22 points)
When judging marketing mix effectiveness, different approaches have been taken when it
comes to the outcome variables on which one is judging the effectiveness. These can be hard
metrics like sales, but also soft metrics like so-called mindset metrics like Awareness,
Consideration and Liking.
a. Why would one be interested in these mindset metrics?
b. Do all 4 Ps have an equal effect on these three metrics? If not, show differences.
c. In the course we have covered the links between marketing mix actions, mindset
metrics and sales. We thereby distinguished between 4 different possible
scenarios. Discuss these scenarios, and show how/where things could/should be
improved. Indicate which scenario is best/worst, and provide arguments on why
this is the best/worst scenario for a company to be in.
4. Firm value (20 points)
