market-based management

Using the data provided, evaluate the four offensive strategies for growing sales in existing markets.

12.1-A Grow Market Share

• Increase market share from 10% to 12%.

12.1-B Grow Revenue per Customer

• Increase from $5000 to $5500 holding marketing administration constant (3%) and increase marketing communications to 8%.

12.1-C Enter New Market Segment

• Use Add Segment and input 50,000 for market demand, market share of 5%, revenue per customer of $4000, lower margin to 35%, and increase marketing communication to 10%.

12.1-D Expand Market Demand

• Increase rate for growth from 0% to 25%.

Note: The analysis below is set up for customers as the unit of analysis. You can change to a product by changing Unit of Analysis and the two gray cells from revenue per customer to Average Selling Price per Unit and Net Selling Price per Unit.