Podcast
Questions and Answers
A primary marketing objective of all competitors in mature markets is simply to:
A primary marketing objective of all competitors in mature markets is simply to:
The transition from market growth to maturity typically begins:
The transition from market growth to maturity typically begins:
Which of the following strategic traps did Goliath Corp. fall into during the shakeout period?
Which of the following strategic traps did Goliath Corp. fall into during the shakeout period?
Which of the following strategic traps leads to a state where a business may struggle during the transition period?
Which of the following strategic traps leads to a state where a business may struggle during the transition period?
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Identify the product quality dimension emphasized by National Motors.
Identify the product quality dimension emphasized by National Motors.
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The _____ quality dimension refers to the consistency of performance from purchase to purchase.
The _____ quality dimension refers to the consistency of performance from purchase to purchase.
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The gap between management perceptions and service quality specifications occurs when:
The gap between management perceptions and service quality specifications occurs when:
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The production of no-frills goods to maintain a low-cost position:
The production of no-frills goods to maintain a low-cost position:
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In some labor-intensive industries, a business can achieve a cost advantage by gaining access to inexpensive labor. This is an example of the _____ method used to obtain a sustainable cost advantage.
In some labor-intensive industries, a business can achieve a cost advantage by gaining access to inexpensive labor. This is an example of the _____ method used to obtain a sustainable cost advantage.
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Which method of maintaining a low-cost position has Papyrus Inc. used?
Which method of maintaining a low-cost position has Papyrus Inc. used?
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Which of the following is the critical determinant of success in mature markets?
Which of the following is the critical determinant of success in mature markets?
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Identify the market characteristic that affirms growth extension in maturing markets through application of an extended use strategy.
Identify the market characteristic that affirms growth extension in maturing markets through application of an extended use strategy.
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Which of the following is a possible marketing action that may be taken to convert current nonusers in the target segment into users?
Which of the following is a possible marketing action that may be taken to convert current nonusers in the target segment into users?
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To develop differentiated positioning focused on untapped segments using a market expansion strategy, a firm should:
To develop differentiated positioning focused on untapped segments using a market expansion strategy, a firm should:
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Which of the following is a possible marketing action that can encourage extended use of products?
Which of the following is a possible marketing action that can encourage extended use of products?
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_____ is a factor that helps to determine the strategic attractiveness of declining product-markets.
_____ is a factor that helps to determine the strategic attractiveness of declining product-markets.
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_____ refers to the ease with which weaker competitors can leave the market.
_____ refers to the ease with which weaker competitors can leave the market.
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The objective of a _____ strategy is to generate cash quickly by maximizing cash flow over a relatively short term.
The objective of a _____ strategy is to generate cash quickly by maximizing cash flow over a relatively short term.
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Which of the following is the primary objective of niche strategies in a declining market?
Which of the following is the primary objective of niche strategies in a declining market?
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Which of the following will be the primary objective of a firm, in a declining market, which has a sustainable competitive advantage in target segments but limited overall resources?
Which of the following will be the primary objective of a firm, in a declining market, which has a sustainable competitive advantage in target segments but limited overall resources?
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Which of the following is the most probable marketing action by a firm to implement a harvesting strategy in a declining market?
Which of the following is the most probable marketing action by a firm to implement a harvesting strategy in a declining market?
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Study Notes
Market-Oriented Perspectives
- Introduce new generation of products that outperform or offer more desirable customer benefits than existing brands to gain a competitive edge.
Strategies for Mature and Declining Markets
- Primary marketing objective in mature markets is to hold existing customers.
- Transition from market growth to maturity typically begins when the market is still growing but the rate of growth starts to decline.
- Excess production capacity leading to an increase in price per unit is a strategic trap that can occur during the shakeout period.
- Failure to recognize the events signaling the beginning of the shakeout period is a strategic trap that can lead to a state of not having a clear competitive advantage.
Product Quality Dimension
- National Motors emphasizes the performance quality dimension, which includes attributes such as excellent handling, acceleration, comfort, and braking.
- Reliability refers to the consistency of performance from purchase to purchase or to a product's uptime, the percentage of time that it can perform satisfactorily over its life.
Service Quality
- A gap between management perceptions and service quality specifications occurs when a firm's policies concerning customer service are unclear or haphazardly enforced.
Cost Advantage
- Producing no-frills goods can help maintain a low-cost position.
- Replacing technology with personalized services can also help achieve a cost advantage.
- Gaining access to inexpensive labor can provide a cost advantage in the short term.
- Using recycled materials can achieve a cost advantage, as seen in Papyrus Inc.'s case.
Success in Mature Markets
- Continually working to improve the value of offerings is critical to success in mature markets.
Market Characteristic
- Relatively high penetration but low frequency of use in one or more major segments affirms growth extension in maturing markets through application of an extended use strategy.
Marketing Actions
- Enhancing product value by adding features, benefits, or services can convert current nonusers in target segments into users and increase penetration.
- Developing line extensions suitable for additional uses or applications can encourage extended use of products.
- Developing a differentiated flanker brand with more appealing unique features can stimulate additional primary demand.
Declining Product-Markets
- Conditions of demand, including the rate and certainty of future declines in volume, help determine the strategic attractiveness of declining product-markets.
- Exit barriers, which refer to the ease with which weaker competitors can leave the market, also affect the strategic attractiveness of declining product-markets.
Harvesting Strategy
- The objective of a harvesting strategy is to generate cash quickly by maximizing cash flow over a relatively short term.
- Eliminating R&D expenditures and capital investments related to the business is a marketing action that can be taken to implement a harvesting strategy in a declining market.
Market-Oriented Perspectives
- Introduce new generation of products that outperform or offer more desirable customer benefits than existing brands to gain a competitive edge.
Strategies for Mature and Declining Markets
- Primary marketing objective in mature markets is to hold existing customers.
- Transition from market growth to maturity typically begins when the market is still growing but the rate of growth starts to decline.
- Excess production capacity leading to an increase in price per unit is a strategic trap that can occur during the shakeout period.
- Failure to recognize the events signaling the beginning of the shakeout period is a strategic trap that can lead to a state of not having a clear competitive advantage.
Product Quality Dimension
- National Motors emphasizes the performance quality dimension, which includes attributes such as excellent handling, acceleration, comfort, and braking.
- Reliability refers to the consistency of performance from purchase to purchase or to a product's uptime, the percentage of time that it can perform satisfactorily over its life.
Service Quality
- A gap between management perceptions and service quality specifications occurs when a firm's policies concerning customer service are unclear or haphazardly enforced.
Cost Advantage
- Producing no-frills goods can help maintain a low-cost position.
- Replacing technology with personalized services can also help achieve a cost advantage.
- Gaining access to inexpensive labor can provide a cost advantage in the short term.
- Using recycled materials can achieve a cost advantage, as seen in Papyrus Inc.'s case.
Success in Mature Markets
- Continually working to improve the value of offerings is critical to success in mature markets.
Market Characteristic
- Relatively high penetration but low frequency of use in one or more major segments affirms growth extension in maturing markets through application of an extended use strategy.
Marketing Actions
- Enhancing product value by adding features, benefits, or services can convert current nonusers in target segments into users and increase penetration.
- Developing line extensions suitable for additional uses or applications can encourage extended use of products.
- Developing a differentiated flanker brand with more appealing unique features can stimulate additional primary demand.
Declining Product-Markets
- Conditions of demand, including the rate and certainty of future declines in volume, help determine the strategic attractiveness of declining product-markets.
- Exit barriers, which refer to the ease with which weaker competitors can leave the market, also affect the strategic attractiveness of declining product-markets.
Harvesting Strategy
- The objective of a harvesting strategy is to generate cash quickly by maximizing cash flow over a relatively short term.
- Eliminating R&D expenditures and capital investments related to the business is a marketing action that can be taken to implement a harvesting strategy in a declining market.
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Description
This quiz covers market-oriented perspectives, successful corporate and business strategies, and marketing strategies for mature and declining markets.
