Exam 4: Targeting

Which of the following is true about our company based on this perceptual map?

Company ABC makes kitchen appliances that have many features in great demand by professional chefs whose only interest is in the foods they can produce.Based on its customers, ABC should try to dominate the market in

If a market segment looks attractive, and serving that segment fits our corporate abilities, then we should

Most attributes and benefits in many product categories can be whittled down to

Potential profitability is a function of

Most markets are comprised of customers whose tastes are very similar.

In SWOT analysis, our opinions matter a lot more than the customer base.

A form of comparative analysis where customers show their opinions of a firm's strengths vis-à-vis their competitors is a

The market for video games looks great, but your company only knows how to make thumb drives.This scenario is associated with which quadrant in a SWOT analysis?

Potential strategic fit is a function of

Good demographic data help when sizing a market.

It's always a little risky to extrapolate and predict growth, but a smart technique would be to obtain sales data in the industry and extrapolate through a(n)

Targeting should not use a top-down vision of corporate strategy, but rather, only a bottom-up data-informed approach on segment size and profitability.

Potential profitability is a function of the current market size, its anticipated growth, current and anticipated levels of competition, and customer behavior and expectations.

Describe a SWOT analysis and explain why it is a useful tool.

Strengths are

Company XYZ is interested in determining how much revenue and profit potential exist for a new product it is considering manufacturing.The company will need to use several estimates to size the market.

Companies typically assess their corporate strengths relative to their competitors.

Company XYZ has examined several customer segments in order to determine which segments best align with the firm's strengths and the attractiveness of the market opportunity.This analysis enables the firm to select which customer segment to target.

A lot of estimates go into the final calculation to determine market size, and each component needs to be as precise as possible.Otherwise, the errors in the estimation get compounded.