chapter 14

Question 1

definition of go to market strategy

Answer 1

a detailed plan for reaching target customers and delivering your product effectively

Question 2

what does GTM look at?

Answer 2

1. product market fit
2. competitor analysis / customer demand
3. value prop uniqueness –> claim to superiority
4. target market and pricing
5. distribution and sales channels
6. market and promo strategies
7. customer acquisition and retention plans
8. required resources

Question 3

3 types of demand

Answer 3

1. primary demand
2. replacement demand
3. selective demand

Question 4

what is primary demand

Answer 4

new to world products

Question 5

what is replacement demand

Answer 5

product improvement and upgrade (ex: new compact car)

Question 6

what is selective demand

Answer 6

for entry into established markets

Question 7

what is butt-on product replacement

Answer 7

The existing product is simply dropped when the new one is announced.

example: James charles marketing of Painted and dropping his original palette.

Question 8

what is low season switch

Answer 8

Same as butt-on, but arranging the switch at a low point between seasons.

Example: if a store switches out their bathingsuits to winter coats in August, a low shopping season.

Question 9

high season switch

Answer 9

Arranging the new item at the top of a season

Example: Video game manufacturers put new
replacement items out during the holiday buying season

Question 10

roll in roll out

Answer 10

products introduced gradually with certain markets

Example: Fiat launched the new 500 in Italy first, then rest of Europe,
then North America.

Question 11

downgrading

Answer 11

Keeping the earlier product alongside the new, but with decreased support.

example: Older computer chips are marketed alongside newer
ones but with less channel support.

Question 12

splitting channels

Answer 12

old products sold as discount, new products sold as premium

example: A smartphone manufacturer splits its sales channels by selling high-end models exclusively through authorized retailers and company-owned stores, while offering budget models through online marketplaces and discount retailers.

Question 13

what are 4 alternate ways to segment a market?

Answer 13

1. end use
2. geographic/demographic
3. behavioral/psychographic
4. benefit segmentation

Question 14

5 factors that affect diffusion of information

Answer 14

1. relative advantage
2. compatibility
3. complexity
4. divisibility
5. communicability

Question 15

what is relative advantage

Answer 15

how much better the new product is compared to what people are currently using

Question 16

what is compatibility

Answer 16

how well the product fits into the users lifestyle and tools

Question 17

what is complexity

Answer 17

how easy or hard is the product to understand

Question 18

what is divisibility

Answer 18

whether the product can be tried in small, low cost ways before full adoption

Question 19

what is communicability

Answer 19

how easy it is to explain or see the benefits of the product

Question 20

1st step in creating a positioning statement

Answer 20

start with target segment (who/when)

Question 21

2nd step in creating a positioning statement

Answer 21

value –> what the brand offers from users view

Question 22

3rd step in creating a positioning statement

Answer 22

reason to believe –> what is the reason to claim that value?

Question 23

4th step in creating a positioning statement

Answer 23

relative to whom –> establish a reference point

Question 24

explain the positioning ladder

Answer 24

it looks at how brands position themselves in the mind of the consumer
- looks at unique selling propositions and how they differentiate