MANAGEMENT 321

What is the riskiest growth strategy?

Diversification, new market and new product cost LOTS of money.

What are the 4 growth strategies?

-Market Penetration -Market extension/development -Product development -Diversification

What are the major stages in the customer-purchase decision process? Are all these stages used in all customer purchase decisions? Why or why not?

-Recognition -Information Search -Alternative Evaluation -Purchase -Post Purchase. no, there are things like impulse buys.

Why does a product often start as a question mark and then move counter clockwise around BCG's growth share matrix shown in chapter 2?

A new product starts off as a question mark because introducing a new product has low market share, usually negative profit, and this is the time you need to inform the customers. Next, the product moves to be a star. This is when profits increase, market share increases, and this is when you want to invest and persuade your market to buy your product. Next, when your product becomes a cash cow, you are stable. Market share is still increasing and you slow down on promotion but you are still there reminding the market on your product. Next, your product becomes a dog. This is when you are no longer gaining profit, and you move to liquidation. Once you get to the dog stage, you need to launch a new product.

What are advantages and disadvantages of Ansoff Matrix?

Adv: simple and easy to understand DisAdv: too simple.

Describe marketer's attempts to influence political forces.

Industry donations in the hope that you can influence them to listen to you

What type of growth strategy is growing the business from existing customers?

Penetration and development

What actions involving the four marketing mix variables might be used to reach the target market in question 2? (The one about college classes)

Price - Set price to be reasonable Product - night education classes that the students want to take Promotion - Billboard, tv, radio Place - Offer classes in multiple locations EX. Big Rapids and Grand Rapids

What are the four variables of the marketing mix? Why are these elements known as variables?

Product, Price, Place, and Promotion. These are known as variables because you can pick and choose on what ones you want to use and to what degree.

In what way can each of the business cycle stages affect customer's reactions to marketing strategies?

Prosperity - customers are buying because they have jobs. (launch new product) Recession - unemployment rises. (Offer discounts) Depression - People blame people. (Nothing to do, Sustain) Recovery - Customers start buying again

How important is SWOT to the marketing planning process?

STRENGTH (internal), WEAKNESS (internal) OPPURINITY (external), THREAT (External)

What is Culture?

The shared meanings, beliefs, morals, values, and customs of a group of people

A college in a metropolitan area wishes to increase its evening school offerings of business related cases such as marketing, accounting, finance, and management. Who are the target market customers (Students) for these courses?

The target market could be those who work full time during the day, small business owners, or people looking to continue their education and not looking into pursuing a full degree.

Mercedes-Benz manufactures the smart car which sells for around $16,000, and the SL 65 AMG 2-door for over $100,000. Is Mercedes providing the target market for these cars with a good value?

Yes, this allows a larger target market that has two types of customers.

Why are environmental scanning and analysis important to marketers?

You can get the big view of your market, see the latest trends, and get to know your customer's habits.