Strategic Marketing: New Market Entry Strategies

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What is the primary objective of marketing in the introduction stage of the PLC?

To reduce costs
To develop a narrow product line
To create product awareness (correct)
To maximize profits

What percentage of new products are new-to-the-world products?

7%
26%
20% (correct)
10%

What is the primary goal of advertising in the introduction stage of the PLC?

To maximize profits
To build awareness among the general public
To reduce costs
To build awareness among early adopters/dealers (correct)

What percentage of new products are revisions/improvements to existing products?

26% (D) Signup and view all the answers

What is the typical pricing strategy in the introduction stage of the PLC?

Often introductory, i.e. cost-plus (C) Signup and view all the answers

What is the primary reason for a new market entry?

To create a new market opportunity (C) Signup and view all the answers

What is the primary objective of maintaining a position as a product innovator?

To defend a current market-share position (B) Signup and view all the answers

What is the primary goal of exploiting technology in a new way?

To create new-to-the-world products and a new product line (B) Signup and view all the answers

What is the primary objective of using excess or off-season capacity?

To create new-to-the-world products and a new product line (C) Signup and view all the answers

What is the primary goal of new entry strategy?

To create new-to-the-world products (B) Signup and view all the answers

Which of the following strategies is driven by innovation?

Wealth creation strategies (A) Signup and view all the answers

What drives the business according to Intel VP?

Technology and paranoia (C) Signup and view all the answers

What is the main challenge in today's business world according to Gary Hamel?

To innovate and reinvent the core of the company (B) Signup and view all the answers

What percentage of product sales come from new products launched in the past 5 years?

33% (A) Signup and view all the answers

What percentage of new products are unsuccessful?

68% (C) Signup and view all the answers

How many new product ideas are needed to generate one successful new product?

7 (B) Signup and view all the answers

What percentage of product development and commercialization resources are spent on unsuccessful products?

46% (B) Signup and view all the answers

What type of market position is characterized by being the first to enter a new market?

Pioneer (B) Signup and view all the answers

What is a key advantage of firms that take an initial competitive action?

They can earn above average profits until competitors respond (B) Signup and view all the answers

What is a potential source of pioneering advantage?

Defining the rules of the game (B) Signup and view all the answers

What is a condition for a pioneering firm to achieve long-term success?

The new product-market is insulated from the entry of competitors (D) Signup and view all the answers

What is a characteristic of a 'Fast' Follower?

They evaluate customers' response before moving (C) Signup and view all the answers

What is a benefit of being a Follower?

They can avoid some of the risks associated with First Move (B) Signup and view all the answers

What is a requirement for a Follower to be successful?

They must possess necessary capabilities to imitate (B) Signup and view all the answers

What is a key advantage of a follower strategy?

Taking advantage of the pioneer's positioning mistakes (C) Signup and view all the answers

Which of the following is an example of a cloner follower strategy?

The IBM PC clones (D) Signup and view all the answers

When is a follower most likely to succeed?

When there are few legal, technological, or financial barriers to entry (D) Signup and view all the answers

What is the goal of a mass-market penetration strategy for pioneers?

To gain a large share of the total market (D) Signup and view all the answers

What is a key factor in determining the success of a pioneer's marketing strategy?

The customer, market, and company factors (B) Signup and view all the answers

Which of the following is an illegal follower strategy?

Counterfeiting (B) Signup and view all the answers