Questions and Answers
A primary marketing objective of all competitors in mature markets is simply to:
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 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.
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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:
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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.
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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?
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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?
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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?
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_____ 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.
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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?
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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?
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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?
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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.
