The Nature of Marketing 2

What is the advantage of having a high market share?

• More influence and power over retailers and suppliers

• Increased competition from rivals

• Limited control over the market

• Lower production costs

Why is it important for a marketing manager to know the market size and growth?

• To assess the need for new office space

• To make informed marketing decisions

• To calculate the company's tax liabilities

• To determine the number of employees needed

What is a potential disadvantage of niche marketing?

• No economies of scale in terms of production and marketing

• High sales likely

• Potential for economic of scales

• Focused marketing

What is a benefit of market segmentation based on demographic differences?

• Production and inventory costs may rise

• Additional market research/R and D and promotional costs

• Price discrimination

• Focused marketing

What is an example of psychographic factors for market segmentation?

• Lifestyles, values, personalities

• Age and social class

• Different countries/regions

• High quality packaging

What is an example of adding value through marketing?

• Use of low quality packaging

• Create an exclusive image or unique selling point

• Advertise and promote the product in a generic way

• Lower prices to attract more consumers

What is a potential risk of niche marketing?

• Quite a risky strategy if the tastes of niche market consumers change

• Focused marketing

• Potential for economic of scales

• High sales likely

What is a limitation of market segmentation based on geographic differences?

• Focused marketing

• Price discrimination

• Production and inventory costs may rise

• Additional market research/R and D and promotional costs

What is a potential disadvantage of mass marketing?

• Profit margin could be lower than niche marketing

• Potential for economic of scales

• High sales likely

• Focused marketing

What is a benefit of market segmentation based on psychographic factors?

• Small firms may compete effectively

• Additional market research/R and D and promotional costs

• Price discrimination

• Focused marketing