Reference no: EM132147600
This activity is important because changes in the market frequently make it necessary for a business to alter its marketing mix. A marketing mix represents the four marketing activities – product, price, promotion, and distribution – that the firm can control to achieve specific goals within a dynamic marketing environment. To be successful, both small and large businesses need at least one component of their marketing mix to have a strategic advantage in comparison to competitors.
The goal of this exercise is to demonstrate your understanding of the Marketing Mix by applying marketing components to a small business dilemma.
Read the case of the small town sporting goods store example, and then consider what marketing strategies the business could take to remain competitive in the future.
The Blair Family Sporting Goods business had been a small town mainstay for over three decades. The Blair Family had provided equipment to the town’s athletes, especially focusing on equipment for the anchor sports for the town’s schools, including football, basketball, baseball, and cheerleading.
What once was a booming business had experienced graduate decline in profits over the past decade. Several factors had likely led to the decline. Major retailers had moved to the nearby city (about an hour away), and were able to offer products at a lower price. Second, the business had continued to carry equipment for only the anchor sports (football, basketball, baseball and cheerleading), even though the local schools had diversified to include rugby, swimming, soccer, volleyball, and other sports. Third, when time allowed customers opted for the convenience of ordering sporting good equipment online.
Over the past year, the family business had not only seen a decline in profits, but also at times experienced a loss, not making enough sales to cover the cost of operating the business. The Blair family children, now grown, considered what to do as they stepped into ownership of the business. On one hand, they could decide to close the business. On the other hand, keeping the business open felt important to the town. There were frequently “emergency” needs that the business was able to fulfill, like replacing broken or lost equipment for student athletes. In addition, the business was able to provide equipment with the logos of local high school and elementary schools. It was not simple to get the customized logos and equipment from national chains.
The Blair children recognize the business had been a point of pride throughout their own childhoods, and wanted to provide the same point of pride for their children. They are considering what could make the business successful again.
1. The Blair children should accept that by focusing on the anchor sports for the local schools, they are focusing on products in which phase of the product life cycle?
Introduction
Decline
Growth
Maturity
Ideation
2. The Blair children are consider expanding their product mix. This should include all of the following except which of the following options?
Carrying more equipment for basketball, baseball, football and cheerleading.
Carrying products for other sports, like rugby, swimming and volleyball.
Carrying specialty t-shirts with logos for local teams.
Carrying inventory for school jackets, equipment bags, and towels.
Investing in a monogramming machine to customize purchased inventory.
3. Before investing in expensive equipment to start a monogramming service, the Blair children should consider outsourcing the monogramming at first to see if there is demand, thus engaging in which of the following components of new product development?
idea development
commercialization
product development
test marketing
business analysis
4. As the Blair children consider how to price products, they should plan to charge less money in comparison to peers for which of the following type products?
Products that have local attributes, like the high school logo.
Products that are frequently lost by students and need replaced, like batting gloves.
Products that are typically planned purchases, like team uniforms.
Products that break and need to be replaced quickly, like hockey sticks.
5. During the months before school starts, when parents are buying sporting good products for the fall season, the Blair family should utilize which of the following pricing strategies?
price referencing
price discounting
penetration pricing
price skimming
psychological pricing