Chapter 2

Question 1

Market Penetration

Answer 1

Marketing Strategy that tries to increase market share among existing customers

i.e. offering 5% cash back

Question 2

Market Development

Answer 2

Attracting new customers to existing products.

New uses for old products stimulate additional sales among existing customers while also bringing in new buyers.

Question 3

Product Development

Answer 3

Strategy entails the creation of new products for present markets. Like when Nintendo introduced WII U

Question 4

Diversification

Answer 4

Strategy of increasing sales by introducing new products in new markets. Like UGG introducing guy boots..

Question 5

Portfolio Matrix/ Cash Cow/Star/Dog/ Problem Child

Answer 5

Page 19

Question 6

SWOT Analysis

Answer 6

The firm should identify its internal

Strengths & Weaknesses
(production costs, marketing skills, financial resources, company or brand image)

Also identify external

Opportunities & Threats (analyze aspects of the marketing environment) through environmental scanning

Question 7

Environmental Scanning

Answer 7

Collection and interpretation of information about forces, events, relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.

Question 8

Marketing Mix (4 Ps)

Answer 8

Unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market