Marketing Strategies for New Market Entries

Question 1

primary demand

Answer 1

build demand for the product category, not necessarily own brand

Question 2

selective demand

Answer 2

demand for the brand itself

Question 3

Pioneer Advantages: (7)

Answer 3

1. first choice of market segments and positions
   
   2. Define the rules of game
   3. Distribution advantage
   4. Economies of scale and experience
   5. High switching costs for early adopters
   6. Possibility of positive network effects
   7. Possibility of pre-empting scare resources

Question 4

Follower Advantages. Ability to take advantage of …(5)

Answer 4

1. pioneer positioning mistakes
   
   2. pioneer product mistakes
   3. pioneer marketing mistakes
   4. latest technology
   5. pioneers limited resources

Question 5

get-big-fast

Answer 5

spend VC on customer acquisition at operating loss to become dominant

Question 6

Pioneers can have long term success when …

Answer 6

1. the new-product market is insulated from entrants (patent, tech, financial, network effects)
   
   2. large enough to take advantage of pioneer position

Question 7

A follower can succeed when

Answer 7

few legal, tech, financial barriers to market entrance

Question 8

Pioneer Marketing Strategy must (2):

Answer 8

1. aggressively build product awareness and motivation to buy among target segment
2. make it easy as possible for customers to try new product - like, adopt, repeat.

Question 9

3 mechanisms for entering foreign market:

Answer 9

1. Exporting through agents (local)
2. Contractual agreements with local partners (franchising)
3. Foreign Direct Investment (FDI) (joint venture with local firm)