30 Questions
What is the primary objective of marketing in the introduction stage of the PLC?
To create product awareness
What percentage of new products are new-to-the-world products?
20%
What is the primary goal of advertising in the introduction stage of the PLC?
To build awareness among early adopters/dealers
What percentage of new products are revisions/improvements to existing products?
26%
What is the typical pricing strategy in the introduction stage of the PLC?
Often introductory, i.e. cost-plus
What is the primary reason for a new market entry?
To create a new market opportunity
What is the primary objective of maintaining a position as a product innovator?
To defend a current market-share position
What is the primary goal of exploiting technology in a new way?
To create new-to-the-world products and a new product line
What is the primary objective of using excess or off-season capacity?
To create new-to-the-world products and a new product line
What is the primary goal of new entry strategy?
To create new-to-the-world products
Which of the following strategies is driven by innovation?
Wealth creation strategies
What drives the business according to Intel VP?
Technology and paranoia
What is the main challenge in today's business world according to Gary Hamel?
To innovate and reinvent the core of the company
What percentage of product sales come from new products launched in the past 5 years?
33%
What percentage of new products are unsuccessful?
68%
How many new product ideas are needed to generate one successful new product?
7
What percentage of product development and commercialization resources are spent on unsuccessful products?
46%
What type of market position is characterized by being the first to enter a new market?
Pioneer
What is a key advantage of firms that take an initial competitive action?
They can earn above average profits until competitors respond
What is a potential source of pioneering advantage?
Defining the rules of the game
What is a condition for a pioneering firm to achieve long-term success?
The new product-market is insulated from the entry of competitors
What is a characteristic of a 'Fast' Follower?
They evaluate customers' response before moving
What is a benefit of being a Follower?
They can avoid some of the risks associated with First Move
What is a requirement for a Follower to be successful?
They must possess necessary capabilities to imitate
What is a key advantage of a follower strategy?
Taking advantage of the pioneer's positioning mistakes
Which of the following is an example of a cloner follower strategy?
The IBM PC clones
When is a follower most likely to succeed?
When there are few legal, technological, or financial barriers to entry
What is the goal of a mass-market penetration strategy for pioneers?
To gain a large share of the total market
What is a key factor in determining the success of a pioneer's marketing strategy?
The customer, market, and company factors
Which of the following is an illegal follower strategy?
Counterfeiting
Test your understanding of strategies for new market entry, including the generalized product life cycle, shakeout phase, and introduction stage of the PLC. Learn about the characteristics, objectives, and strategies for each phase.
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