Marketing Final Exam

That strategy ans market penetrationincrease market

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Unformatted text preview: se market share among existing customers. Kraft Foods using heavy promotional expenditures in the form of aggressive advertising and cents-off coupons for Maxwell House coffee. MARKET DEVELOPMENT––attracting new customers to existing products. McDonald’s opening restaurants in Russia, China, and Italy; colleges and universities expanding to executive development and continuing education. PRODUCT DEVELOPMENT––creating new products for present markets. Brooks Brothers has introduced a line of poplin suits with polyester fibers that move moisture away from the body. DIVERSIFICATION––introducing new products into new markets. LTV entering the monorail business; Sony’s acquisition of Columbia Pictures; Coca-Cola manufacturing water treatment equipment. PTS: 1 REF: 22-23 Communication KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB MSC: BLOOMS Synthesis 10. List the four basic strategies used once an organization has identified its strategic business units in terms of the portfolio matrix. Describe when each is used. ANS: Four basic strategies are used to allocate future resources for a company’s strategic business units (SBUs). (1) Build is used when an organization has identified an SBU it believes has the potential to be a star. Most likely, the SBU has been identified as a problem child. (2) Hold is used when the SBU has been identified as a very successful cash cow. (3) Harvest is used with all SBU classifications except stars. The basic goal with this strategy is to increase short-term cash return. (4) Divest means to get rid of SBUs with low market share. Divestment strategy may be used with either dogs or problem children (also called question marks). PTS: 1 REF: 24 Communication KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB MSC: BLOOMS Synthesis 11. An essential part of marketing strategy is target market strategy. Selection of target market(s) drives marketing objectives and selection of the marketing mix (the four Ps). What are the three general strategies for selecting target markets? ANS: The strategies are to: appeal to the entire market with a single marketing mix concentrate on only one segment of the market appeal to multiple market segments using multiple marketing mixes PTS: 1 Communication REF: 24 OBJ: 02-7 TOP: AACSB KEY: CB&E Model Strategy MSC: BLOOMS Synthesis 12. The marketing mix refers to a unique blend of marketing variables known as the four Ps. Name and briefly describe each of the 4 Ps. ANS: PRODUCT. The firm’s product offerings are the heart of the marketing mix. The Product P includes packaging, warranties, after-sale servicing, branding, company image, and other components in addition to the physical unit. PLACE (or DISTRIBUTION). Distribution strategies make products available when and where customers want them. Physical distribution (storing and transportation logistics) is also part of the Place P.PROMOTION. Promotion includes advertising, public relations, sales promotion, and personal selli...
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This document was uploaded on 09/29/2013.

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