Author Question: Pine River Equipment has developed a distinctly new product that offers considerable promise. By ... (Read 116 times)

silviawilliams41 · **on:** Jun 28, 2018

Pine River Equipment has developed a distinctly new product that offers considerable promise. By exploiting the experience effect, management believes that there are opportunities for a substantial reduction in production costs as volume expands. While the market is quite large, there is a strong threat of imminent competition. The firm should likely use:
A) product differentiation.
B) a skimming approach to pricing.
C) a penetration approach to pricing.
D) a bid price policy.
E) a life cycle costing pricing policy.

Question 2

Identify and discuss the major problems associated with creating marketing plans. What are some potential ways that firms and managers can overcome these problems?

canderson530 · **Reply #1 on:** Jun 28, 2018

Answer to Question 1

C

Answer to Question 2

This question is based on Exhibit 2.4. Most students will focus on the fact that poor communication is the key obstacle in developing and implementing marketing plans. However, astute students will note that most of the factors in the exhibit are internal characteristics of an organization-most of them being based in the organization's culture or management style. Consequently, most of these obstacles can be overcome by developing a culture that fully supports strategic planning. This might involve opening channels of communication, breaking down barriers among departments, employee training, top management commitment, and dedicating adequate time to the planning process.