Market Penetration: a strategy for company growth by increasing sales of current products to current market segments without changing the product.

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Lee Palmer
5 years ago
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1 Contrast the following 2 marketing management orientations: The Selling Concept and The Market Concept. Name a market or category where The Selling Concept is still the most popular marketing management orientation. The market concept is customer focused and emphasizes producing what you can sell. The selling concept is product focused and attempts to sell what the company can make. In other words, the company attempts to create demand for the product instead of making a product consumers need, want, and demand. Market Penetration: a strategy for company growth by increasing sales of current products to current market segments without changing the product. Market Development: a strategy for company growth by identifying and developing new market segments for current company products. Diversification: a strategy for a company growth through starting up or acquiring businesses outside the company s current products and markets. Product Development: a strategy for company growth by offering modified or new products to current market segments. Cash Cow: low growth, high share businesses or products. SBU s call for less investment in order to hold their market share. Produces of a lot of cash to pay company bills and support other SBU investments. Stars: high growth, high share businesses or products. The need for heavy investment is necessary to finance their rapid growth. Growth slows down and stars turn into cash cows. Question Marks: low share business units in high growth markets. Requirement of a lot of cash in order to hold share and increase. Decisions have to be made on which question marks move to be stars. Dogs: low growth, low share businesses and products. Generates enough cash to maintain themselves but do not promise to be large sources of cash. Don t need to know % or millions Generation Age Range Millennial 1-10 Generation Y Generation X Baby Boomers War Babies Depression GI 76+

2 Explain the importance of information to the company and its understanding of the marketing place. Information is important to a company because it enables the company to understand what consumers want. Being able to understand the market place allows companies to maximize customer satisfaction in addition to the effectiveness of pricing, product, distribution, and promotional activities. What is primary research? Give an example Information gathered specifically for intended research plan. Ex: a company conducting focus groups or a phone interview What is secondary research? Give an example Information which has been gathered prior to the current research plan, but can provide necessary information. Ex: scanner data from retailers List and briefly define 3 types of market research objectives 1- exploratory research: information gathered which would help define problems and suggest hypotheses. 2- descriptive research: gives a better understanding to marketing problems, situations, or markets, in accordance to demographics and attitudes. 3- casual research: cause and effect relationships tested. Different contact methods can be used to collect information. List 4 contact methods: 1- mail 2- telephone 3- personal 4- online What is a sample? A segment of the population selected for marketing research to represent the population as a whole. What is Customer Relationship Management (CRM)? The overall process of building an maintaining profitable customer relationships by delivering superior customer value and satisfaction. Define Consumer Buyer Behavior The buying behavior of final consumers, individuals and households who buy goods and services for their personal use.

3 What is a sub-culture? List 4 important sub-cultures. How did Hallmark s understanding of sub-cultures influence their product development efforts? A sub-culture is a group of people with shared value systems based on common life experiences and situations. Nationalities, religion, racial groups and geographic regions make up a sub-culture, and often have products targeted to a specific sub-culture. Four most important sub-cultures: a-hispanic b-african American c-asian d-mature consumers Hallmark s understanding of sub-cultures influenced their product development efforts by upholding a great product for over two decades with continuous sales. Hallmark designed an Afrocentric brand, known as Mahogany, targeted for the African American consumers. The products in this line delivered significant revenue and developed high levels of brand loyalty. List and briefly define the 5 stages of the Buyer Decision Process. 1-Need recognition: consumer recognizes a problem or need. 2-Information search: consumer is aroused to search for more information. 3-Evaluation of alternatives: consumer used information to evaluate alternative brands of the same product. 4-Purchase decision: consumer s choice of which brand to purchase. 5-Postpurchase behavior: based on satisfaction or dissatisfaction, customer would continue to purchase same brand of product. Briefly define the term Adoption Process Adoption process is the mental process through which an individual passes from first hearing about an innovation to final adoption. List and briefly define the 5 stages of the Adoption Process. 1-Awareness: consumer becomes aware of the new product but lacks information about it. 2-Interest: consumer seeks information about the product. 3-Evaluation: consumer decides whether or not to try out the new product. 4-Trial: consumer tries the new product. 5-Adoption: consumer decides to regularly use product

List and briefly define the 5 characteristics. 1-Relative advantage: innovation appears superior to existing products.

4 List the 5 Adopter Groups and give the % of each. Sketch the curve for the model 1-Innovators: 2.5% 2-Early adopters: 13.5% 3-Early majority: 34% 4-Late majority: 34% 5-Non Adopters (Laggards): 16% The characteristics of a new product affect the rate of adoption. List and briefly define the 5 characteristics. 1-Relative advantage: innovation appears superior to existing products. 2-Compatibility: innovation fits the values and experiences of potential consumers. 3-Complexity: innovation is difficult to understand or use. 4-Divisibility: innovation may be tried on a limited basis trial size 5-Communicability: the results of using the innovation can be observed or described to others.

5 List and briefly define the 5 participants in the business buying process. 1-Users: members of the organization who will use the product or service. 2-Influencers: defines specifications and provide information for evaluating alternatives. 3-Buyers: formal authority to select the supplier and arrange terms of purchase. 4-Deciders: formal or informal power to select or approve final suppliers. 5-Gatekeepers: control the flow of information to others.

and satisfying customer needs profitably about customers, competitors and market trends through collecting primary and secondary data

The management process that is responsible for anticipating, identifying and satisfying customer needs profitably Marketing The process of gaining information about customers, competitors and market trends