Chapter 5 discussion questions 1)Given that absolute market potential almost always exceeds actual industry sales, why do marketers bother to make potential estimates? Discuss four decisions that a marketer of industrial grinding machinery might make based on such potential estimates

Chapter 5 discussion questions

1)Given that absolute market potential almost always exceeds actual industry sales, why do marketers bother to make potential estimates? Discuss four decisions that a marketer of industrial grinding machinery might make based on such potential estimates.

2. To more effectively allocate promotion expenditures and sales efforts, the marketing manager for a company marketing frozen food entrees would like to know the relative market potential for their products in every country in the United States. What variables would you include in a multi factor index for measuring relative potential? Explain your rationale for including each variable. Where might you find up-to-date information about each of the variables in your index?
3. Suppose you are the product manager responsible for General Electric’s line of trash compactors. After many years, the product has yet to gain acceptance by many consumers. Use the diffusion of innovation theory discussed in the text to explain why trash compactors have achieved such poor market penetration. What does this imply concerning the shape of the rest of the trash compactor’s life-cycle curve? What actions might you consider taking to increase the market penetration for this product?