Answers to questions
Question 1
In order to evaluate any investment opportunity investors need to conduct a detailed analysis concerning a variety of different issues. The first question to address is a size of potential market i.e. evaluation of demand for a new product and estimation of company’s potential market share. The second crucial issue to address is the analysis of all elements of product’s marketing mix i.e. product, price, promotion and place (Kotler et al. 1999). In order to develop effective marketing strategy investors should analyse forces that shape industry competition according to M. Porter’s model (Porter, 2008) i.e. direct competitors, customers, suppliers, potential entrants and especially substitute products, their characteristics and prices. To sum up, investors of Trap-Ease America should have had analyzed the market for mouse traps, its trends and perspectives; direct competitors, their products and prices; whether there are any other innovative products or more efficient technologies in fighting against mouse etc. I also think that it would be helpful to launch a market testing campaign in order to find out consumers’ preferences, perceptions and attitudes towards Trap-Ease.
The company could have defined its mission statement like “our mission is to help you to get rid of mice”. I would prefer to formulate company’s mission as follows “our mission is to make your life more convenient”.
Question 2
Martha has identified women as a target group based on her suggestions that women don’t like traditional mouse traps and thus they would be more willing to buy Trap-Ease. This decision was further backed up by the fact that men were more likely to use traditional spring-loaded traps. I think that the main problem underlying this approach to selection of target group was to assume that women are the end users of mouse traps. There is no denial that women often stay at home and take care of their children but that doesn’t mean that they necessarily take care of other home responsibilities in particular fighting against mouse. In my opinion this home duty is carrying out primarily by men. That’s why they represent the target group for mouse traps. Martha should have tried to launch an advertising campaign focused at men and to stress on advantages of Trap-Ease against disadvantages of traditional mouse traps in order to persuade them to buy it. She also could analyze and target other market segments e.g. students, pensioners etc.
On the other hand, “the most fundamental segmentation decision is really whether to segment at all” (Ferrel & Hartline, 2011). In this case we deal with a specific universal need i.e. to get rid of mouse that all customers possess therefore it would be advantageous to launch a universal ad campaign. Anyway it’s up to managers to analyze pros & cons of such decision and make a strategic choice.
Question 3
The company has positioned Trap-Ease as an innovative mousetrap that is safe for children, user friendly and can be reused i.e. is environment friendly. Moreover, these advertising claims are backed up by numerous articles and an award …