Podcast
Questions and Answers
What is required for growth to be successful when selling previously unpurchased products/services to existing customers?
What is required for growth to be successful when selling previously unpurchased products/services to existing customers?
- Customers must only buy the cheapest options available.
- Customers must decrease their usage of currently purchased products.
- Customers must increase their product variety. (correct)
- Customers must reduce their overall spending.
What distinguishes a market development strategy from a share-building strategy?
What distinguishes a market development strategy from a share-building strategy?
- Market development involves reducing prices to gain customers.
- Share building attracts new customers from competitors. (correct)
- Market development focuses on increasing sales within existing customers.
- Share building requires developing new product lines.
Which of the following is NOT a method for increasing profits from current customers?
Which of the following is NOT a method for increasing profits from current customers?
- Broadening the product range purchased.
- Upselling to more expensive products.
- Reducing marketing efforts towards current customers. (correct)
- Increasing the frequency of purchases.
What may be required for businesses pursuing growth through new product development?
What may be required for businesses pursuing growth through new product development?
What is typically the primary approach to gaining new customers from your current market?
What is typically the primary approach to gaining new customers from your current market?
What can businesses do to broaden their customer base?
What can businesses do to broaden their customer base?
Which strategy focuses on educating potential customers about product benefits?
Which strategy focuses on educating potential customers about product benefits?
What is a key aspect of selling new products to existing customers?
What is a key aspect of selling new products to existing customers?
What is a primary characteristic of entering completely new markets with new products and services?
What is a primary characteristic of entering completely new markets with new products and services?
Which strategy involves searching for new markets for existing products or services?
Which strategy involves searching for new markets for existing products or services?
What factor often contributes to businesses successfully entering new markets?
What factor often contributes to businesses successfully entering new markets?
Why might a business choose to enter a new market on its own rather than through partnership?
Why might a business choose to enter a new market on its own rather than through partnership?
How did IKEA initially perform in the U.S. market during its first year after expansion?
How did IKEA initially perform in the U.S. market during its first year after expansion?
What differentiates the growth strategy of developing and selling new products from that of market expansion?
What differentiates the growth strategy of developing and selling new products from that of market expansion?
What is a key reason a business might choose to venture into new markets using new products?
What is a key reason a business might choose to venture into new markets using new products?
What risk is inherent in the approach of developing and selling new products in unfamiliar markets?
What risk is inherent in the approach of developing and selling new products in unfamiliar markets?
What is a primary function of Artificial Intelligence in business applications?
What is a primary function of Artificial Intelligence in business applications?
How has McDonald's utilized Artificial Intelligence to improve its operations?
How has McDonald's utilized Artificial Intelligence to improve its operations?
What percentage of leading companies expect AI to significantly innovate their businesses in the next three to five years?
What percentage of leading companies expect AI to significantly innovate their businesses in the next three to five years?
What is the main challenge faced by many businesses in developing AI applications?
What is the main challenge faced by many businesses in developing AI applications?
What role does Machine Learning play in the field of Artificial Intelligence?
What role does Machine Learning play in the field of Artificial Intelligence?
What distinguishes Technology Platforms in business?
What distinguishes Technology Platforms in business?
What percentage of sales do nearly half of the leading users of AI attribute to AI-generated outcomes?
What percentage of sales do nearly half of the leading users of AI attribute to AI-generated outcomes?
What industry practice has been noted among over half of the leading innovative companies regarding AI development?
What industry practice has been noted among over half of the leading innovative companies regarding AI development?
What advantage does digital marketing provide to traditional businesses that allows them to compete more effectively?
What advantage does digital marketing provide to traditional businesses that allows them to compete more effectively?
How has Zillow changed the real estate industry for consumers?
How has Zillow changed the real estate industry for consumers?
What is a key benefit for real estate agents using Zillow?
What is a key benefit for real estate agents using Zillow?
Which statement best describes the relationship between Zillow and physical real estate businesses?
Which statement best describes the relationship between Zillow and physical real estate businesses?
What aspect of customer service is improved for real estate agents using Zillow?
What aspect of customer service is improved for real estate agents using Zillow?
Which of the following is NOT an advantage of merging physical and digital marketing channels?
Which of the following is NOT an advantage of merging physical and digital marketing channels?
What capability do companies leveraging digital marketing typically possess that aids their market strategy?
What capability do companies leveraging digital marketing typically possess that aids their market strategy?
What technological element does Zillow provide to enhance the house-buying experience?
What technological element does Zillow provide to enhance the house-buying experience?
Which of the following best describes how ecosystems contribute to the development of new technologies, products, and services?
Which of the following best describes how ecosystems contribute to the development of new technologies, products, and services?
What is a significant advantage of organizations sharing Intellectual Property (IP) within collaborative ecosystems?
What is a significant advantage of organizations sharing Intellectual Property (IP) within collaborative ecosystems?
How does merging physical and digital marketing channels enhance value creation in ecosystems?
How does merging physical and digital marketing channels enhance value creation in ecosystems?
In the context of technology platforms (TPs), which example demonstrates a service-based platform effectively?
In the context of technology platforms (TPs), which example demonstrates a service-based platform effectively?
What role does the Cloud play in technological ecosystems according to the examples given?
What role does the Cloud play in technological ecosystems according to the examples given?
Which statement accurately reflects the advantages of leveraging existing technology platforms?
Which statement accurately reflects the advantages of leveraging existing technology platforms?
Which of the following is NOT a benefit mentioned in the context of collaborative ecosystems?
Which of the following is NOT a benefit mentioned in the context of collaborative ecosystems?
What is an example of a technology platform that enables easy accessibility to indexed information?
What is an example of a technology platform that enables easy accessibility to indexed information?
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Study Notes
Growth Strategies for Existing Customers
- Companies can grow by increasing sales to existing customers.
- To increase profits from existing customers, companies can:
- Increase usage of current products
- Purchase more types of products, without reducing purchases of their preferred products
- Purchase more expensive versions of products/services
Gaining New Customers
- Gaining new customers while retaining existing customers is called a “share-building” or “market development” strategy.
- “Share building” involves attracting customers who previously bought from competitors. This often uses sales and promotional programs.
- “Market development” involves targeting customers who have not purchased similar products in the past. This often uses advertising, promotions, and informational programs.
Selling New Products and Services
- Companies can grow by offering new products and services to existing and new customers.
- Companies can develop new products internally through research and development, or license or acquire products from third parties.
- This strategy often requires investing in:
- Product research and development
- Production and distribution development
- New product/service launch and promotion activities
- Legal and regulatory capabilities, such as patent, trademark, and liability protection
Selling Existing Products into New Markets
- This strategy involves finding new uses for existing products and expanding into new markets.
- This may require developing new distribution channels, or joint ventures with established businesses in new markets.
- It can also involve geographic expansion into previously unserved regions.
Entering New Markets with New Products and Services
- Companies can identify unique internal capabilities that can be applied to new industries.
- This strategy can involve acquiring businesses in new markets, joint ventures, or developing new businesses from scratch.
Emerging Growth Drivers
- Artificial Intelligence (AI) is increasingly being used by businesses to improve processes and increase sales.
- Machine Learning (ML) is an application of AI used to automate learning and improvement from experience.
- 30% of leading companies anticipate a high impact from AI in the next 3-5 years.
- While many businesses focus on using AI for internal improvements, a significant number are using it to generate sales.
- Many businesses rely on external vendors to build internal AI capabilities.
Technology Platforms (TPs)
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TPs provide a foundation for businesses to develop new offerings.
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Examples of TPs include:
- Computing: Operating systems
- Technology: Cloud storage services
- Services: Streaming services
- Content: Search engines
- Marketplaces: Online marketplaces
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Companies leveraging existing technology platforms can accelerate innovation by capitalizing on their capabilities.
Collaborative Ecosystems
- Ecosystems involve multiple organizations collaborating on developing new technologies, products and services.
- Benefits of collaborative ecosystems include:
- Sharing data collection efforts and costs, particularly when data is not a competitive advantage.
- Sharing intellectual property (IP) to accelerate development.
- Merging physical and digital marketing channels, as in the example of Zillow.
Zillow Ecosystem Example
- Zillow provides online access to real estate data, previously only available to licensed agents through the MLS.
- This benefits consumers by providing access to detailed listings and virtual tours, while benefiting agents by reducing their time and effort.
- The merging of physical and digital channels creates a more efficient experience for consumers.
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