SMM Unit 6 - 10
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Questions and Answers

What are the four ways a challenger can target its competitors?

Attack the market-share leader within its primary target market, attack another follower who has an established position, attack smaller competitors with limited resources, avoid direct attacks on established competitors

What is a primary marketing objective of all competitors in mature markets?

  • Increase market penetration
  • Hold their existing customers (correct)
  • Market their products to a new market
  • Increase price to maximize profits

    • Match the following product quality dimensions with their descriptions:

    Reliability = Consistency of performance over time Performance = Attributes like handling, acceleration, and comfort Durability = Product's lifespan Serviceability = Ease of maintaining or repairing a product

    During the growth stage, a firm can prosper without differentiating its offerings or achieving the lowest-cost position.

    <p>False</p> Signup and view all the answers

    The gap between management perceptions and service quality specifications occurs when a firm’s policies concerning customer service are _______ or haphazardly enforced.

    <p>unclear</p> Signup and view all the answers

    What factor determines the strategic attractiveness of declining product-markets?

    <p>Conditions of demand</p> Signup and view all the answers

    Product management organizations are characterized by:

    <p>Decentralized decision making and increased product specialization</p> Signup and view all the answers

    Which statement relates to a market management organization?

    <p>A product manager plans and implements national marketing programs</p> Signup and view all the answers

    The matrix form of organization is most characterized by being:

    <p>Specialized</p> Signup and view all the answers

    All self-managing teams are based on the concept of:

    <p>Empowerment</p> Signup and view all the answers

    Based on the market attractiveness/competitive position matrix, what strategy should a firm consider when the market attractiveness is high and the competitive position is strong?

    <p>It should invest more to grow at a maximum rate and concentrate on maintaining strengths.</p> Signup and view all the answers

    What is true of a mass-market strategy?

    <p>It involves designing a single product-and-marketing program that will appeal to the largest number of consumers.</p> Signup and view all the answers

    Which market strategy is often favored by smaller companies to avoid direct confrontations with larger firms while building volume and share?

    <p>A growth-market strategy</p> Signup and view all the answers

    What are the steps in a market segmentation process?

    <p>There are three important steps in the market segmentation process: 1) Identify a homogeneous segment that differs from other segments, 2) Specify criteria that define the segment, 3) Determine segment size and potential.</p> Signup and view all the answers

    Briefly discuss the market attractiveness and competitive position factors.

    <p>Market Attractiveness Factors involve assessing market size, growth rate, and trends. Competitive Position Factors focus on industry attractiveness, differentiation from competitors, and resource acquisition.</p> Signup and view all the answers

    Explain niche-market and growth-market strategies with relevant examples.

    <p>Niche-market strategy targets specialized segments while growth-market strategy targets fast-growing segments. Examples include gourmet coffee sales and smaller companies targeting fast-growth segments.</p> Signup and view all the answers

    What does brand positioning refer to?

    <p>The marketer's decision making intended to create that position.</p> Signup and view all the answers

    Identify a limitation of physical positioning.

    <p>Customers' attitudes toward a product are often based on social or psychological attributes.</p> Signup and view all the answers

    What is characteristic of perceptual positioning analysis of a brand?

    <p>R&amp;D implications need to be interpreted</p> Signup and view all the answers

    Which of the following is characteristic of physical positioning analysis of a brand?

    <p>Represents impact of product specs</p> Signup and view all the answers

    Which of the following is a characteristic of physical positioning?

    <p>Large number of dimensions</p> Signup and view all the answers

    What is a difference between physical and perceptual positioning?

    <p>Perceptual positioning has a consumer orientation while physical positioning has a technical orientation.</p> Signup and view all the answers

    What best illustrates perceptual positioning?

    <p>Colgate's toothpaste with enhanced freshness of breath and sparkly teeth</p> Signup and view all the answers

    Marketing decision makers endow products with attributes such as speed of a computer system or roominess of a car. What type of categorization is this based on?

    <p>Complex physically based attributes</p> Signup and view all the answers

    A firm obtains customer perceptions of a new product concept relative to substitute products. What stage of the product positioning process is this?

    <p>Identifying relevant set of competitive products serving a target market</p> Signup and view all the answers

    What is the objective of a strategy that aims to generate cash quickly by maximizing cash flow over a relatively short term?

    <p>Harvesting</p> Signup and view all the answers

    In a declining market, what is the primary objective of focusing on strengthening position in one or a few relatively substantial segments with potential for future profits?

    <p>Focusing on strengthening position in one or a few relatively substantial segments with potential for future profits</p> Signup and view all the answers

    What is the most probable marketing action by a firm to implement a harvesting strategy in a declining market?

    <p>Eliminate R&amp;D expenditures and capital investments related to the business</p> Signup and view all the answers

    List some causes of market decline.

    <p>Technological advances, changing customer demographics, changing customer tastes or lifestyles, development of substitutes</p> Signup and view all the answers

    Explain the profitable survivor strategy.

    <p>The profitable survivor strategy involves investing enough to increase its share position and establish itself as the industry leader for the remainder of the market’s decline. It is suitable for a business that has a strong share position and a sustainable competitive advantage in a declining product-market.</p> Signup and view all the answers

    What concept is illustrated when people share something they like on the web or on their mobile phones?

    <p>Viral marketing</p> Signup and view all the answers

    What role does a firm play when it provides its search engine technology to many branded search engine sites?

    <p>Originator</p> Signup and view all the answers

    ______ involves the sale of the same good to many customers, who then combine it with information from other sources and distribute it.

    <p>Syndication</p> Signup and view all the answers

    Match the following personalization techniques with their descriptions:

    <p>Collaborative filtering = Enables firms to compare a consumer's past purchase to recommend a personalized newer purchase options. Rules-based personalization = Enables firms to identify formal decision rules in the way consumers behave. Mass-customization = Allows customers to specify the nature of what is offered to them. Disintermediation = Eliminates the need for intermediaries in the supply chain.</p> Signup and view all the answers

    Which of the following refers to products that supplement a firm’s established product line?

    <p>Additions to existing product lines</p> Signup and view all the answers

    Which of the following observations best describes new-to-the-world products?

    <p>They try to build primary demand by creating product awareness.</p> Signup and view all the answers

    Which of the following is an appropriate strategic objective for repositionings?

    <p>Provide a cash generator</p> Signup and view all the answers

    Defending a current market-share position is an appropriate strategic objective for improvements or revisions to existing products.

    <p>False</p> Signup and view all the answers

    Which advantage of being a pioneer explains why the pioneer's brand can become the standard of reference customers use to evaluate other brands?

    <p>First choice of market segments and positions</p> Signup and view all the answers

    Which of the following advantages of pioneers is particularly pronounced when the product is technically sophisticated and involves high development costs?

    <p>Economies of scale and experience</p> Signup and view all the answers

    Identify the strategy that allows firms to expand their volumes quickly and achieve the benefits of experience-curve effects before major competitors can confront them.

    <p>Large entry scale</p> Signup and view all the answers

    Which of the following elements belongs to the successful late entrants' market strategy?

    <p>Focusing on peripheral target markets or niches</p> Signup and view all the answers

    Identify the firm characteristic of a new product pioneer pursuing the mass-market penetration strategy.

    <p>It should have the ability to shift from stimulation of primary demand to stimulation of selective demand.</p> Signup and view all the answers

    What is a primary objective of mass-market penetration strategies?

    <p>Maximize the number of triers and adopters in the total market.</p> Signup and view all the answers

    Which marketing program is used by pioneers as a niche penetration strategy to increase the customers' ability to buy?

    <p>Starting with high price but bringing out lower-priced versions in anticipation of competitive entries</p> Signup and view all the answers

    What is the simplest way to enter a foreign market because it involves the least commitment and risk?

    <p>Exporting</p> Signup and view all the answers

    Which of the following grants the right to use the company's name, trademarks, and technology?

    <p>Franchising</p> Signup and view all the answers

    What involves a company providing technical know-how and components in return for a share of the output that it must sell?

    <p>Coproduction</p> Signup and view all the answers

    What are the major issues to be considered while designing marketing databases?

    <p>The cost of collecting the data, the economic benefits of using the data, the ability to keep the data current, and the rapid advances in technology.</p> Signup and view all the answers

    What is the process by which a market is divided into distinct subsets of customers with similar needs and characteristics?

    <p>Market segmentation</p> Signup and view all the answers

    Which process entails designing product offerings and marketing programs to establish a unique brand image in the customer's mind?

    <p>Brand positioning</p> Signup and view all the answers

    Identify the scenario emphasizing the impact of income on consumer markets segmented demographically:

    <p>Cyan Mobiles creating ultra-exclusive mobiles</p> Signup and view all the answers

    AdventureBikes targeting wilderness enthusiasts and PowerDrink's focus on tennis players are examples of segmentation based on:

    <p>Behavior</p> Signup and view all the answers

    In which market segmentation, customers are grouped by characteristics of individuals who influence purchasing decisions?

    <p>Microsegmentation</p> Signup and view all the answers

    When consumers evaluate product alternatives based on desired characteristics, what is this referred to as?

    <p>Choice criteria</p> Signup and view all the answers

    What is true of behavioral segmentation?

    <p>Identifies new markets among demographic groups based on lifestyle</p> Signup and view all the answers

    What is true of principle-oriented consumers?

    <p>Motivated by abstract and idealized criteria</p> Signup and view all the answers

    What type of consumer shops for products that demonstrate consumer's success?

    <p>Status-oriented</p> Signup and view all the answers

    What is the degree to which buying activity is centralized and emphasizes cost savings?

    <p>Purchasing structure</p> Signup and view all the answers

    What describes a recurring buying situation handled on a routine basis?

    <p>Straight rebuy</p> Signup and view all the answers

    When does a modified rebuy situation occur?

    <p>When client-supplier relationship elements change</p> Signup and view all the answers

    What is the first step in constructing a market attractiveness/competitive position matrix?

    <p>Selecting attractiveness and position factors</p> Signup and view all the answers

    In which step of evaluating target markets is the market-attractiveness/competitive-position matrix plotted?

    <p>Rating segments</p> Signup and view all the answers

    Which strategy should a firm consider when market attractiveness is moderate and competitive position is weak?

    <p>Expand without high risk</p> Signup and view all the answers

    What strategy should a firm consider when market attractiveness is low and competitive position is strong?

    <p>Protect current strengths</p> Signup and view all the answers

    In which stage of the consumer experience process does cash flow from the producer to the consumer?

    <p>Product return or disposal</p> Signup and view all the answers

    Which of the following is the first stage of the customer experience process?

    <p>Customer insight</p> Signup and view all the answers

    In which of the following stages of the customer experience process does information flow from the producer to the customer?

    <p>Production promotion, customer acquisition, and brand building</p> Signup and view all the answers

    In which stage of the consumer experience process is information about price, terms, delivery, warranty, etc. shared between both the producer and the consumer?

    <p>Transaction</p> Signup and view all the answers

    If the customer likes an offering, a(n) _____ ensues, requiring that information about pricing, terms, delivery, and so on flows to the customer, and cash—either now or upon delivery—flows the other way.

    <p>Transaction</p> Signup and view all the answers

    In which of the following stages of the customer experience process do firms obtain data from social networking sites and instant messaging?

    <p>Customer insight</p> Signup and view all the answers

    Which controversial system gauges a customer's desire to buy, measures his means, and sets the price accordingly?

    <p>Dynamic pricing</p> Signup and view all the answers

    _____ involves companies carefully considering which burdens they can remove from the customer, using digital technologies, and which customers can perform, assessing costs and benefits to both parties.

    <p>Coproduction</p> Signup and view all the answers

    Which of the following types of business strategies for evaluation and reward systems comprises high incentives based on sales and share growth?

    <p>Prospector</p> Signup and view all the answers

    Which of the following types of business strategies is characterized by a moderate level of SBU autonomy?

    <p>Differentiated defender</p> Signup and view all the answers

    Which of the following relates to shared programs and synergy for a low-cost defender business strategy?

    <p>High level of synergy and shared programs</p> Signup and view all the answers

    Which of the following represents the functional coordination and conflict resolution factor for the successful implementation of a low-cost defender strategy?

    <p>SBU will perform best on ROI and cash flow dimensions when conflict resolution mechanisms are hierarchical.</p> Signup and view all the answers

    _____ refers to the division of tasks and activities across positions within the organizational unit.

    <p>Specialization</p> Signup and view all the answers

    Centralization refers to:

    <p>the location of decision authority and control within an organization's hierarchy.</p> Signup and view all the answers

    In which of the following situations are prospector business units and their marketing departments most likely to perform better?

    <p>When the units are highly specialized</p> Signup and view all the answers

    Identify the simplest and most bureaucratic form of organizational design.

    <p>Functional</p> Signup and view all the answers

    Highly structured business units and marketing departments are:

    <p>unlikely to be very innovative.</p> Signup and view all the answers

    Volvo's emphasis on safety, Toyota's emphasis on reliability, and Norelco's promising a 'close and comfortable shave' highlights which determinant attribute?

    <p>Benefits</p> Signup and view all the answers

    Which of the following positioning bases typically includes 'who made it' and 'prior products'?

    <p>Parentage</p> Signup and view all the answers

    Which of the following positioning bases is illustrated by a clothing manufacturer’s claim of their shirts being made from pure organic cotton?

    <p>Ingredients</p> Signup and view all the answers

    Which of the following is an example of using product features as a determinant attribute in positioning?

    <p>&quot;This is the quietest dishwasher made in America.&quot;</p> Signup and view all the answers

    Rex and Tens, a food manufacturing company, has the following tagline in its ad for a new health drink—Speedheal. 'Find out why thousands of nutritionists across America are recommending Speedheal to their clients.' Which positioning base is used in this Speedheal ad?

    <p>Endorsements</p> Signup and view all the answers

    A bank positions itself using its deposit safety as an attribute. Why would this positioning not create an impact in the consumer's mind?

    <p>Because most consumers perceive all banks to be about equally safe</p> Signup and view all the answers

    Two stores occupy positions comparable to one another on the positioning grid. This indicates that:

    <p>consumers consider them to be relatively alike</p> Signup and view all the answers

    Identify the limitation of a product positioning analysis.

    <p>It does not tell the marketer which positions are most appealing to customers</p> Signup and view all the answers

    Customers are surveyed and asked their preferences among various real or hypothetical product configurations, each with attributes that are systematically varied. This is an example of a:

    <p>conjoint analysis</p> Signup and view all the answers

    Both positioning statements and value propositions should reflect a:

    <p>unique selling proposition</p> Signup and view all the answers

    _____ is the term marketers use to refer to the value created by establishing customer preference for one’s brand.

    <p>Brand equity</p> Signup and view all the answers

    Which of the following results when companies create differences between their brands and other brands that consumers perceive as meaningful?

    <p>Brand equity</p> Signup and view all the answers

    Outline the elements involved with perceptual positioning.

    <p>The elements involved with perceptual positioning are: Consumer orientation, Perceptual attributes, Perceptual measures, Need for marketing research, Perceptual brand positions and positioning intensities, Limited number of dimensions, Represents impact of product specs and communication, R&amp;D implications need to be interpreted.</p> Signup and view all the answers

    Explain how the result of a brand positioning analysis affects the final decision about where to position a new brand or reposition an existing one.

    <p>The chosen position should match the preferences of a particular market segment and should take into account the current positions of competing brands. It should reflect the current and future attractiveness of the target market and the relative strengths and weaknesses of competitors. Most successful products are positioned based on one or two determinant attributes. Documenting the desired positioning for the product provides a clear understanding of what is intended for the product and where it will fit in its competitive set.</p> Signup and view all the answers

    What are positioning statements and value propositions? Briefly explain their features.

    <p>A positioning statement is a succinct statement that identifies the target market for which the product is intended and the product category in which it competes and states the unique benefit the product offers. A value proposition states what the product does for the customer, includes information about pricing relative to competitors. Both statements should reflect a unique selling proposition (USP) that the product embodies. A value proposition typically looks like this: (1) target market; (2) benefits offered (and not offered); (3) price range (relative to competitors). Both these statements should state benefits of the product, rather than its features. When used internally and by others, they are typically not written in catchy consumer language, though catchy slogans and tag lines for communication with customers often follow. They are most commonly written for a product line or a brand, but sometimes for a single product or for a business as a whole. When used at the business level, they should articulate the strategic direction for the company.</p> Signup and view all the answers

    In which of the following stages of the product life cycle do sales increase at a progressively faster rate as more people learn about the product and it becomes readily available?

    <p>Growth stage</p> Signup and view all the answers

    _____ is designed to obtain as much margin per unit as possible and also enables the company to recover its new product investments more quickly.

    <p>Skimming</p> Signup and view all the answers

    Which of the following is true of the introductory stage in a product life cycle?

    <p>Skimming is one of the pricing strategies applied at this stage</p> Signup and view all the answers

    Which of the following pricing strategies is appropriate during the maturity stage of the product life cycle?

    <p>Hold or reduce selectively</p> Signup and view all the answers

    Identify the appropriate response by a firm when its product line is in the mature life cycle stage.

    <p>Hold length of line</p> Signup and view all the answers

    The shakeout stage in a product life cycle is signaled by:

    <p>a drop in the overall growth rate and substantial price cuts</p> Signup and view all the answers

    New-to-the-world products can be defined as:

    <p>true innovations that are new to the firm and create an entirely new market</p> Signup and view all the answers

    Identify the share maintenance marketing objective for share leaders?

    <p>Retain existing customers and ensure brand loyalty</p> Signup and view all the answers

    Identify a market leader's action aimed at stimulating selective demand among later adopters?

    <p>Differentiated positioning against competitive offerings</p> Signup and view all the answers

    What is characteristic of a market expansion strategy?

    <p>Develop multiple-line extensions or brand offerings targeted to the needs of various potential user applications or geographical segments within the market</p> Signup and view all the answers

    Which strategy involves developing a second product line with features appealing to a specific segment of potential customers?

    <p>Flanker</p> Signup and view all the answers

    What does a market leader aim to achieve with the fortress strategy?

    <p>The market leader develops a strong position when potential customers have relatively homogeneous needs</p> Signup and view all the answers

    Which objective can be achieved with a confrontation strategy for share maintenance?

    <p>Improve ability to win new customers who might otherwise be attracted to competitor's offering</p> Signup and view all the answers

    What strategy is most effective in a market with relatively homogeneous customer needs and criteria?

    <p>Fortress strategy</p> Signup and view all the answers

    What action should a leader take to improve customer satisfaction as competitors enter the market?

    <p>It should take steps to improve the physical product and customers' perceptions of it</p> Signup and view all the answers

    Identify the strategy employed by Tokomo Motors to protect their primary brands from direct competition.

    <p>Flanker strategy</p> Signup and view all the answers

    What strategy is employed by a firm that develops line extensions, new brands, or alternative product forms utilizing similar technologies to appeal to multiple market segments?

    <p>Market expansion strategy</p> Signup and view all the answers

    In what scenario is strategic withdrawal most likely?

    <p>A firm is unable to defend itself adequately in all segments due to competitors having more resources</p> Signup and view all the answers

    What is the major marketing objective for followers, particularly larger firms entering a product-market shortly after the pioneer?

    <p>Attain share growth</p> Signup and view all the answers

    Which share-growth strategy involves attacking the leader within its primary target market?

    <p>Frontal attack strategy</p> Signup and view all the answers

    What is an appropriate share-growth strategy in a relatively homogeneous market in relation to customer needs and purchase criteria?

    <p>Frontal attack</p> Signup and view all the answers

    Which share-growth strategy is appropriate when customer needs in most segments are already satisfied by competitors?

    <p>Guerrilla attack</p> Signup and view all the answers

    What strategy would a challenger pursue if its objective is to capture a modest share of repeat purchases in several market segments?

    <p>Guerrilla attack strategy</p> Signup and view all the answers

    What strategy is appropriate for a market that can be divided into multiple segments, where no brand fully satisfies the needs of customers in all segments?

    <p>Flank attack</p> Signup and view all the answers

    What strategy involves targeting several untapped segments in the market simultaneously?

    <p>Encirclement</p> Signup and view all the answers

    Which strategy involves using sales promotion efforts to achieve share growth?

    <p>Guerrilla attack</p> Signup and view all the answers

    Explain how share gains are worth more in a growth market than in a mature market.

    <p>Share gains are more valuable in a growth market because the earnings produced by each share point expand as the market grows. Holding relative share in a growing market depends on factors like positive network effects, future changes in technology, competitive industry structure, and market fragmentation.</p> Signup and view all the answers

    Explain the various ways a challenger can target competitors established in the market.

    <p>Challengers can target competitors through strategies like frontal attacks, encirclement, flank attacks, guerrilla attacks, leapfrogging, or by focusing on untapped segments. Each strategy aims to gain market share and competitive advantage.</p> Signup and view all the answers

    Study Notes

    Market-Oriented Perspectives

    • Successful corporate, business, and marketing strategies are based on market-oriented perspectives
    • Market-oriented perspectives consider the needs and wants of target customers and create value for them

    Designing Marketing Databases

    • Consider several major issues when designing marketing databases
      • Cost of collecting data
      • Economic benefits of using the data
      • Ability to keep data current in a mobile society
      • Rapid advances in technology to use data to maximum advantage
    • Collecting information costs money, and companies must weigh this cost against the value of the data

    Market Segmentation

    • Market segmentation is the process of dividing a market into distinct subsets of customers with similar needs and characteristics
    • Segmentation criteria include demographic, geographic, behavioral, and psychographic factors
    • Examples of segmentation:
      • Demographic segmentation: segmenting by age, income, education, and occupation
      • Geographic segmentation: segmenting by region, city, or country
      • Behavioral segmentation: segmenting by purchase behavior, usage rate, and loyalty
      • Psychographic segmentation: segmenting by lifestyle, personality, and attitudes

    Target Market Selection

    • Target market selection involves choosing the most attractive segment(s) to target
    • Factors to consider when selecting a target market:
      • Market size and growth potential
      • Competitive situation
      • Customer needs and wants
      • Company resources and capabilities

    Market Attractiveness and Competitive Position

    • Market attractiveness factors:
      • Market size and growth rate
      • Unmet customer needs
      • Trends influencing demand
    • Competitive position factors:
      • Degree of differentiation
      • Resources required to compete
      • Sustainable competitive advantage

    Niche-Market and Growth-Market Strategies

    • Niche-market strategy: serving one or more specialized segments with unique benefits
    • Growth-market strategy: targeting fast-growth segments, often favored by smaller companies
    • Examples:
      • Niche-market strategy: Starbucks targeting gourmet coffee lovers
      • Growth-market strategy: Apple targeting emerging user segments in the personal computer industry

    Differentiation and Brand Positioning

    • Brand positioning: the place a brand occupies in customers' minds relative to the competition
    • Differentiation: creating a unique brand image or position through product offerings and marketing programs
    • Physical positioning: based on physical characteristics of a product
    • Perceptual positioning: based on customers' attitudes and perceptions of a brand### Physical Positioning Analysis
    • Limited number of dimensions
    • Represents the impact of product specifications
    • Has a technical orientation

    Perceptual Positioning Analysis

    • Has a consumer orientation
    • Based on perceptual measures
    • Includes data that is not readily available

    Product Positioning

    • Involves identifying the target market and unique benefit of the product
    • Affects the final decision of where to position a new brand or reposition an existing one
    • Should reflect a unique selling proposition (USP)
    • Should match the preferences of a particular market segment and take into account the current positions of competing brands

    Brand Positioning

    • Refers to the value created by establishing customer preference for one's brand
    • Results from creating differences between one's brand and other brands that consumers perceive as meaningful

    Product Life Cycle

    • Introductory stage: sales increase at a progressively faster rate as more people learn about the product
    • Growth stage: sales increase at a progressively faster rate as more people learn about the product
    • Maturity stage: sales slow down as the market becomes saturated
    • Decline stage: sales decrease as the product becomes outdated

    Pricing Strategies

    • Skimming: designed to obtain as much margin per unit as possible and enables the company to recover its new product investments more quickly
    • Penetration pricing: aims to gain market share quickly by pricing low

    New Product Development

    • New-to-the-world products: true innovations that are new to the firm and create an entirely new market
    • Additions to existing product lines: supplement a firm's established product line
    • Repositionings: aim to build primary demand by creating product awareness
    • Improvements or revisions to existing products: exploit technology in a new way

    Advantages of Pioneers

    • Possibility of preempting scarce resources and suppliers
    • Distribution advantages
    • High switching costs for early adopters
    • Economies of scale and experience
    • First choice of market segments and positions

    Successful Late Entrants' Market Strategy

    • Focusing on peripheral target markets or niches
    • Leapfrogging the pioneer with superior product technology### Product Life Cycle
    • Introduction stage: large investments, short-term loss; sales increase rapidly in growth stage
    • Growth stage: substantial investments continue; profitability is depressed due to facility building
    • Firm with largest share during growth stage should have lowest per-unit costs due to scale and learning effects

    Market Penetration Strategies

    • Mass-market penetration strategy: primary objective is to maximize number of triers and adopters in total market
    • Stimulation of primary demand: aim to increase the number of people buying the product
    • Stimulation of selective demand: aim to increase the preference for a specific brand or product

    Entering Foreign Markets

    • Exporting: simplest way to enter a foreign market, involves least commitment and risk
    • Franchising: grants the right to use the company's name, trademarks, and technology
    • Joint ventures: involve joint ownership arrangement to produce or market goods in a foreign country

    Marketing Program Components for Skimming Strategy

    • Relatively high price to increase margins and revenues
    • Focus on customer groups who are least sensitive to price and most likely to be early adopters
    • Continuing product development efforts: focus on next generation of technology or identifying new application segments

    Share Maintenance and Growth

    • Share maintenance: primary objective is to retain existing customers and ensure brand loyalty
    • Share growth: primary objective is to increase market share
    • Market expansion strategy: develop multiple-line extensions or brand offerings targeted to the needs of various potential user applications or geographical segments within the market
    • Confrontation strategy: improve ability to win new customers who might otherwise be attracted to competitor's offering
    • Flanker strategy: develop a second brand or product line with features or price more appealing to a specific segment of potential customers
    • Fortress strategy: defend relative market share by expanding into a number of market segments

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