Business Marketing Strategy

What is a diversification strategy?

Taking new products into new markets.

Why is a diversification strategy considered the riskiest?

It involves taking new products into new markets and creating a completely new business.

What is the purpose of a marketing plan?

To outline business goals and strategies to reach them in the current market.

What is a marketing plan similar to?

A business plan. Signup and view all the answers

What is the first element of a marketing plan?

Description of the product or service. Signup and view all the answers

What is the purpose of a marketing budget?

To determine the exact financial needs for marketing and advertising. Signup and view all the answers

What is included in the pricing details of a marketing plan?

Pricing breakdown, cost of production, competitor prices, and justification of pricing. Signup and view all the answers

Why is it important to continually review and update a marketing plan?

So the business can stay on track and adjust to changes in the market. Signup and view all the answers

What is a key assumption in a duopoly?

The product sold by the two firms is homogeneous and there is no substitute for it. Signup and view all the answers

What is the impact of collusion on the market in a duopoly?

It can have the same impact as a monopoly. Signup and view all the answers

What is the focus of the Bertrand model in a duopoly?

The game produced with the companies' price levels. Signup and view all the answers

How do companies react to each other's production in the Cournot model?

They react to the changes that occur in the other one's production. Signup and view all the answers

What is the main goal of companies in the Stackelberg model?

To completely dominate the market. Signup and view all the answers

What is commercialization in the context of business?

The process of bringing new products or services to market. Signup and view all the answers

What is required for commercialization to occur?

A small business has grown and scaled its operations and reach levels that allow it to successfully reach a larger market. Signup and view all the answers

What is a key component of a commercialization strategy?

A carefully-developed three-tiered product roll-out and marketing strategy. Signup and view all the answers

What type of marketing strategy involves selling current products to existing customers?

Market penetration strategy Signup and view all the answers

What type of marketing strategy involves selling current products in new markets?

Market development strategy Signup and view all the answers

What type of marketing strategy involves developing new products for existing markets?

Product development strategy Signup and view all the answers

Why might a company use price promotions in a market penetration strategy?

To encourage competitors' customers to try the firm's product Signup and view all the answers

Why are loyalty programs effective in a market penetration strategy?

Because they help retain existing customers Signup and view all the answers

What is an example of a company that has used a product development strategy?

A cable television company that expands into Internet and telephone services Signup and view all the answers

Why might a company need to modify its product when using a market development strategy?

To better match the needs of the local market Signup and view all the answers

What is an advantage of using a market penetration strategy?

Investments in marketing should pay back more quickly Signup and view all the answers