Enterprise and the Digital Economy (Essay Sample)

At the introduction stage, the expenses involved are high as they involve the launching of the product. Among the factors that are looked into at this stage may be inclusive of the market size which is initially expected to be low, the cost needs inclusive of the funding of the research and its development and a closer look into the competitive sectors that are present.
At the growth stage, here the sales and profits have been realized based on the economies of scale. Here the product is able to note an increment in terms of its profit margins and the general profits, thus the product involved is likely to make more investments as it optimizes the growth stage.
Thirdly, is the maturity stage. This is where the establishment of the product has already been necessitated and competition from other firms is noted. The market competitive advantage is noted on the product. Better decision-making has to be enhanced to cope up with other competitive products at the market.for these to be enhanced effectively, the product has to be differentiated or modified so as to meet the needs of the consumers.
Lastly, is the decline stage, here their is a shrink, this shrink may be involved due to saturation in the market. That is, all the consumers have made purchase of the product thus they may want to change their tastes and preferences. For the company involved to cope up with this, it may be required to lower the price.
Based on the anomalies that are usually noted in most businesses, it is crucial for them to put into consideration the fact that for most businesses, they are encouraged to cope up effectively with the growth and decline stage. At the growth stage, they should be able to come up with innovative techniques on the product so as to optimize for the profits and on the decline stage they should vary their price to cope up with competition from other firms in the market (Savić, Milojević, & Petrović, 2019).
3 An analytical tool to help manage the digital marketplace is the RACE model (Smart Insights, 2015). It helps to manage and improve the commercial value that organisations gain from digital marketing. Explain briefly the 4 stages of the RACE model. Use examples to demonstrate the theoretical points you make (25 marks).
The RACE model encompasses four key stages inclusive of the, planning stage, action stage, the covert stage and lastly the engagement stage. At the planning stage, this is where on is needed to develop all effective goals of the organization and make strategies that are to enhance for the attainment of these goals. When planning one has to have all the key information of the organization lay-out and develop the best means possible through which the organization can maximize its potential towards achievement of the set goals. What follows is the reach stage, here the organization is to be expected to have a better communication channel through which it can reach all the relevant participants. The organization can build awareness of its brand in the market and the services it does offer. This is to be made public by mostly the use of websites as the main sites. The reach stage is purposed to optimize for the public participation (Ganev, 2018).
The other stage is on the action stage, here an interaction is to be made. It key role is for the persuasion of the site visitors into the benefits of the brand that they are advertising for. They can generate leads through which they can enhance for various businesses such as the business to business on better means of reach for the product based on an analysis. This stage is essentially all about an encouragement that can be made to all participants so as they can be more involved. Lastly is the engagement stage, this is a stage from which a long term relationship is to be enhanced. Through this stage they are able to maintain the consumer loyalty thus a long-term and continued purchase (Ganev, 2018).
Section B: Of the below questions 4 -14, clearly highlight the correct answer from a, b, c, or d. Only one answer is correct. Each correct answer is worth 1 mark.
4 The notion of a competitive advantage in a product market centres on a firm providing:
a. A unique product or service
b. A unique consumer benefit
c. The lowest price among competitors
d. Market share leadership
5. Which one of the following is NOT a fundamental feature of the marketing concept?
a. Efficiency of production
b. Profits through customer satisfaction
c. Defining needs in front of production
d. Customer focus
6. According to Chaffey (2016) how do digital technologies support marketing?
a. They anticipate, expect and satisfy customer needs.
b. They identify, acknowledge and satisfy customer needs.
c. They identify, anticipate and satisfy customer needs.
d. They acknowledge, satisfy and project customer needs.
7. People with similar demographic and / or psychographic profiles may interact differently with the same product. The way marketers use this information to segment a market is known as:
a. Relationship Segmentation
b. Geodemographic Segmentation
c. Bohemian Segmentation
d. Behavioural Segmentation
8. Add on extras that increase the product’s attractiveness is called the ________.
a. Potential product
b. Core product
c. Total product
d. Augmented product
9. When digital consumers are in the first ‘unaware’ stage of the buying process which of the following internet marketing techniques is suitable?
a. Automated email reminder
b. Aggregators
c. Affiliate marketing
d. Display and PPC ads
10. Which two pricing strategies are usually used for new products?
1. cost based pricing a. 1 & 2
2. economy pricing b. 3 & 5
3. penetration pricing c. 3 & 4
4. dynamic pricing d. 1 & 5
5. price skimming
11. A marketing channel (place/distribution) does not constitute the final ______.
a. consumer
b. retailer
c. wholesaler
d. agent
12. Which of the following are fundamental customer experience rational values of a webpage?
a. design, ease of use, relevance
b. reassurance, ease of use, performance
c. ease of use, relevance, performance
d. product, performance, reassurance
13. Which theory states that people are motivated to take action to resolve inconsistencies between attitudes and behaviours?
a. The theory of cognitive dissonance
b. The theory of affective disjunction
c. The social judgment
d. Self-perception theory
14. Which market segment immediately follows after innovators have tested the new product and absorbed risk?
a. Laggards
b. Early majority
c. Early adopters
d. Late majority
Section C: Write short answers (1 mark per question)
14. In which stage of the decision making process does the evoked set come in to play? _The alternative evaluation stage_ ____________.
15. In the complete segmentation process, ____selecting target markets __________ follows segmentation and targeting.
16. The final step of the New Product Development (NPD) process is ____Commercialization______.
17. Which market research approach enables marketers to evaluate large data sets and generalize results? ____surveys _______.
1 Within the product mix, a group of closely related products considered a unit due to marketing, technical or end-use considerations is known as __product line ____.

19. The use of a portfolio of segmentation bases is known as __SME Portfolio Segmentation___________.
20. For each social media stakeholder (user, advertiser and social platform) there is a significant tradeoff for a specific benefit. ___social media marketing_______ describe the benefit/tradeoff for the USERS.
21. A key measure when evaluating customer‘s opinion (Channel satisfaction) of the service quality on an e-commerce site is ____follow up surveys______.
22. Name one of the characteristics of service markets ____Intangibility ________.
Section D: Case study
QUESTIONS FOR DISCUSSION – Answer all questions. Marks and word limits for each answer are given for each question below.
1 Based on Ansoff’s Matrix, what kind of new product was Dasani? Justify your answer. Identify one advantage and one disadvantage of this kind of new product (250 words, 25 marks).
When we look into the Ansoff Matrix we enhance for an opportunity through which a an organization may be able to optimize its sales based on the various aspects inclusive of the development of the product to be sold, the development of the market for the product , its penetration into the market and the diversification of the product. Based on Ansoff’s Matrix, Dasani was a brand name that was intended to cope up with the market strategies. Based on product development, it was a developed product related to the cocacola. Options were analyzed effectively thus the term Dasani was enhanced. Dasani diversified the sales in that in the United Kingdom, in the United States, it had an approximate of £30m in the the United Kingdom and later a similar amount in the Continenta...