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MBA 706 - Darrat - Chapters 6, 10, & 17 questions and answers verified answers||Latest 2024/2025
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MBA 706 - Darrat - Chapters 6, 10, & 17 questions and answers verified answers||Latest 2024/2025
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MBA 706 - Darrat - Chapters 6, 10, & 17Assessing Growth Opportunities - ANSplanning new businesses, downsizing, and terminating
older businesses (consider types of products and markets a company should focus on)
Product-Market Growth Framework - ANSevaluates the strategic growth opportunities for a firm
in terms of current and new products and markets (broken down into 4 key strategies)
Market Penetration Strategy - ANSGain more market share with current product in their current
market (same market, same product)
Current offerings to existing customers by demonstrating the benefits of its products
Market Devlopment Strategy - ANSFind or develop new markets for its current products (new
market, same product)
Identify user groups, go after office and factory markets, seek additional distribution channels,
and sell in new locations
Product Development Strategy - ANSDevelop new products for its current markets (same
market, new product)
New product features offer different sets of benefits at different prices, or new technology
Diversification Strategy - ANSOpportunity to develop new products for new markets (new
market, new product)
Good opportunities existing outside of present businesses
Growth through Mergers and Acquisitions - ANSA company can grow by organic growth or by
relying on mergers and acquisitions
Organic Growth - ANSincreasing output and enhancing revenues and profits internally
Horizontal Mergers - ANSAcquire one or more competitors
Backward Mergers - ANSAcquire one or more suppliers (gain control)
Forward Mergers - ANSAcquire some wholesalers or retailers (especially if highly profitable)
Company Portfolios - ANSThe more diversified a business portfolio, the great likelihood that at
some point it will need to downsize its business operations and/or divest itself of business units
,Growth through Innovation and Imitation - ANSLevitt argues that imitation might be as profitable
as innovation
Innovative Imitation (Levitt) - ANSInnovator bears the expense of developing the new product,
getting it into distribution, and informing and educating the market (usually leads to market
leadership). Another firm can come along and copy or improve on the new product.
Follower Strategies - ANSCloner, Imitator, Adapter
Cloner - ANSEmulates the leader's product, name, and packaging with slight variations
Imitator - ANSCopies some things from the leader but differentiates on packaging, advertising,
pricing, or location
Adapter - ANSTake the leader's products and adapts or improves them
Market Position - ANSDefined on 3 dimensions: share of market, share of mind, share of heart
Share of Market - ANSMeasured by sales revenue, the number of units sold relative to the total
revenue, or total units sold in a specific market
Share of Mind - ANSThe percentage of customers who regard the company as the first
company that comes to mind in a specific industry
Share of Heart - ANSPercentage of customers who name the company as the company from
which they would prefer to buy a specific product
Market share reflects - ANSthe share of mind and heart
Companies that make steady gains in mind share and heart share will inevitably make gains in
market share and profitability
Market Leader - ANShas the largest market share and usually leads in price changes,
new-product introductions, distribution coverage, and promotional intensity
Growing Sales to Current customers - ANSIncrease the amount, level, or frequency of
consumption
Approaches to identifying new occasions for usage - ANSprovide consumers with better info
about when they first used the product or need to replace it
Incorporate a gauge of the current level of product performance
,Identify new uses - ANSIdentify new and different applications of a product
Creating New Markets - ANSDeciding when to introduce a new product
Pioneering advantage - ANSUsers will recall the brand name if the product satisfies them,
pioneer establishes attributes the product should have, aims at the middle of the market to
capture more users
Identifying Niche Markets - ANSBe a leader in a small market. Avoid competing with larger firms
by targeting small markets
Niche Marketer - ANSachieves high margin, whereas the mass marketer achieves high volume
Customer Specialist - ANSThe firm specializes in one type of end-use customer or only sells to
customers in a certain locality, region, or area of the world (type of niche marketer)
Product or Service Specialist - ANSThe firm carries or produces only one product line or product
or offers one or more services not available from other firms (type of niche marketer)
Task of a Nicher - ANScreat new markets, expand current markets, and protect market position
('stick to niching', not necessarily one niche)
Expanding Existing Markets - ANSWhen the total market expands, the dominant firm usually
gains the most. Market leaders should look for new customers or more usage from existing
customers
New-Market Segment Strategy - ANSThose who have never used a product or service
Geographical-Expansion Strategy - ANSThose who live elsewhere
Defending Market Position - ANSwhen trying to expand total market size, the dominant firm
must actively defend its current business
Continuous Innovation - ANSlead the industry in developing new products and customer serves,
distribution effectiveness, and cost cutting
Responsive Marketer - ANSFinds a stated need and fills it
Anticipative Marketer - ANSlooks ahead to needs customers may have in the near future
Creative Marketer - ANSdiscovers solutions that customers did not ask for but to which they
enthusiastically respond (proactive market-driving firms)
Proactive companies - ANScreate new offers to serve unmet needs
, Defensive Marketing - ANSreduce the probability of attack
Position Defense - ANSoccupying the most desirable position in consumers' minds, making the
brand almost impregnable
Flank Defense - ANSerect outposts to protect a weak front or support a possible counterattack
Preemptive Defense - ANSa more aggressive maneuverer is to attack before enemy starts its
offense
Counteroffensive Defense - ANSmeet the attacker frontally and hit its flank so the attacker will
have to pull back to defend itself. Another form is the exercise of economic or political clout
Repositioning Defense - ANSstretches its domain over new territories through market
broadening and market diversification
Contraction Defense - ANSgive up weaker markets and reassign resources to stronger ones
Product Life Cycle - ANSproducts go through different stages over time, and each stage brings
different challenges and opportunities, requiring different marketing strategies and tactics
4 Stages of Product Life Cycle - ANSintroduction, growth, maturity, decline
Assumptions of Product Life Cycle - ANSProducts have limited life, pass through stages, rise
and fall at different stages, require different marketing, financial, manufacturing, purchasing, and
human resource strategies in each life cycle stage
Introduction - ANSa period of slow sales growth as the product is introduced in the market.
Profits are nonexistent in this stage because of the heavy expenses of product introduction
Growth - ANSperiod of rapid market acceptance and increasing profits
Maturity - ANSA slowdown in sales growth because the product has achieved acceptance by
most potential buyers. Profits stabilize or decline because of increased competition
Decline - ANSSales show a downward drift and profits erode
Alternative Product Life Cycle Patterns - ANSCritics claim the product life cycle is too variable to
be generalized
Fad - ANSa temporary period of unusually high sales driven by consumer enthusiasm and
immediate product or brand popularity (unpredictable)
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