Name and describe the four fundamental offensive strategic market plans that can be used to increase a business's penetration of an existing market
What will be an ideal response?
(1 ) Grow Market Share: Many factors affect a business's ability to grow market share and profitability. Its share potential is one consideration and another is the degree to which share growth will actually contribute to profitability. One thing that needs to be determined is a firm's share development index (SDI), which is its current market share relative to its market share potential. The SDI will indicate whether or not there is sufficient opportunity to grow market share with a market penetration strategy. To grow share, a business has to examine each area of performance along the share-development path with respect to its expected versus actual market performance, examining key performance gaps. Even a firm that has reached its share potential may be able to expand its market share position with a new strategic market plan, such as with product improvements. The most important consideration in developing strategies to grow share is to make sure the planned share growth will be profitable.
(2 ) Grow Revenue per Customer: This strategy involves developing other product and/or service offerings that will result in incremental sales among current customers. The goal is to attain incremental sales of products that have higher margins, build customer loyalty, and enhance brand awareness and brand equity. A business's existing customer pool is a customer franchise that offers considerable opportunity for within-market sales growth. Revenue per customer can also be built with a strategy to build price premiums. Businesses that enhance their products by adding value-added services or building a superior reputation for quality can charge higher prices than competing businesses and still maintain a superior customer value.
(3 ) Enter New-Market Segments: This means entering a new customer segment within an existing market, such as what Intel did when it developed the Celeron chip for the under $1,000 segment of the personal computer market.
(4 ) Expand Market Demand: New customer growth strategies can focus on growing market demand by bringing new customers into the market. The market development index (MDI), which is the ratio of current market demand to maximum market demand, is useful for determining if it is possible to expand market demand because it indicates whether or not there are many potential customers who have not yet entered the market.
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Product adaptation involves ________
A) altering the product to meet local preferences with no change in communication strategy B) altering the product to meet minimum acceptable standards C) altering both the product and the communication strategy to meet local preferences D) altering neither the product nor the communication strategy while entering a new market E) developing a new product and adapting the communication strategy to enter a new market
Which of the following communication skills will make you more valuable to an employer because your skills in this area will help the organization save money AND make money?
A) Confidence B) Professional presence C) Cultural D) Writing E) Social
Nonpersonal communication channels include major media, ________, and events
A) sales calls B) atmospheres C) buzz marketing D) word-of-mouth influence E) phone calls
Identify two aspects of advertising that a marketer can control and two aspects of advertising that a marketer cannot control
What will be an ideal response?