Chapter 4 – Market/Submarket Analysis
4.1
A user gap is caused when one segment uses more of a product than another segment.
4.2
One goal of market and submarket analysis is to understand the dynamics of the market.
4.3
Porter’s five factor model provides insight into the present and future profitability of an industry.
4.4
Key success factors are assets and/or competencies that provide the basis for any competitor to be
successful in an industry.
4.5
One of the most serious risks of high growth markets is the fact that the number of competitors attracted is
likely to be high.
4.6
Avoiding the small market can mean that a firm must later overcome the first-mover advantage of others.
4.7
Porter’s five factor model involves—the intensity of competition, competition among existing firms,
_________, _________, and __________.
4.8
Ghost potential occurs when competitors get scared from competitive intensity and abandon a market.
4.9
Which of the following is not an indicator of market maturity or decline?
a. Customer disinterest
b. Price Pressure
c. Saturation
d. Predictions for high growth
e. Buyer sophistication and knowledge
4.10
Which of the following is not a risk of a high growth market?
a. Overcrowding
b. Superior competitive entry
c. Projected high growth
d. Changing KSFs
e. Resource constraints
4.11
Niche businesses can be economically unviable when choices are too abundant making marketing costs
crippling.
4/12
The Long Tail refers to the long sales flow obtained from a loyal customer.
4.13
Wal-Mart has a high level of customer power.
4.14
In forecasting market growth, the potential of technologies tend to be undervalued.