MINI-CASE Clarion Inc.is a Firm That Produces Components for the Manufacturing

question 6

Multiple Choice

MINI-CASE
Clarion Inc.is a firm that produces components for the manufacturing equipment market and currently enjoys a 42% market share.Through an analysis of the share development path,the marketing department of the firm estimates that the firm should perform at a 95% level in product awareness,85% in product preference,80% in intentions to purchase,90% in product availability,and 75% in rate of purchase.
-Mini-Case Question.Clarion Inc.has focused its product-market strategies on large manufacturers,that have sales exceeding $100 million per year and that purchase large-scale,multi-million dollar equipment.However,research conducted by the marketing department identifies a fairly attractive market potential for Clarion manufacturing equipment among smaller manufacturers.Clarion Inc.produces a line of lower capacity manufacturing equipments,with a pricing strategy aimed at catering to the needs of the small manufacturers.In this example,Clarion Inc.uses a ________ strategy.

• A)improve customer loyalty and retention
• B)develop a new market
• C)enter new-market segments
• D)harvest for cash flow
• E)divest for cash flow

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Definitions:

Cost Minimization

A strategy employed by businesses to reduce production or operational costs to the lowest possible level without sacrificing quality or output.

Marginal Cost

The cost implicated in generating an added unit of a product or service.

Efficient Allocation

The distribution of resources in a way that maximizes the net benefit received by an economy.

Allocative Efficiency

A state of the economy where resources are apportioned in a way that maximizes the overall benefit to society.