Chapter 2

Question 1

Marketing Myopia

Answer 1

A condition that affects companies that define their strategic markets NARROWLY.

Question 2

What are the consequences of Marketing Myopia

Answer 2

Prevents firms from spotting threats or opportunities coming from substitutes, new tech, new materials etc.

Question 3

3 Bases for Defining Markets

Answer 3

1. Customer Groups
2. Functions or applications offered
3. Technology and core competencies

Question 4

Determinants of Market Attractiveness

Answer 4

• Market factors

- Industry factors (Porter’s Five Forces)

Question 5

Market Factors

Answer 5

• Market size
• Market growth
• Profit margin
• Price elasticity
• Seasonality
• Cyclicality

Question 6

Porter’s 5 Competitive Forces

Answer 6

1. Supplier power
2. Buyer power
3. Threat of substitutes
4. Potential entrants/competitors
5. Rivalry among firms

Question 7

Addition factors in determining market attractiveness

Answer 7

1. Availability of complements
2. Government policies
3. Market structure

Question 8

Ways to estimate market potential

Answer 8

1. Total market potential method

2. Chain ratio method