Question 1. Because of expenses, the new product development stages for convenience goods should be reduced to idea generation, screening, and then, product development and commercialization (national roll-out). The savings (from streamlining the development process) will be used in an exorbitant, initial pull promotion campaign. After that, coupons will be offered every third week. With the pull strategy and couponing, the consumer will view the brand and product category as synonymous. Do you agree or disagree with this strategy? Why or why not?
Question 2. A company's marketing strategy can be customer-oriented (i.e., strategy designed by examining primarily customer needs) or competitor-oriented (i.e., strategy based on competitors' actions). In reality, companies do both. For the following scenarios, identify which strategies to emphasize and why.
- A market leader in pharmaceuticals
- A market follower in a mature market
- A market nicher (i.e., company focused on a small segment) in interior decoration of luxury homes
- A market challenger in a mature market with low margins and significant economies of scale effect