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The marketing manager for Product Y would like to maintain Product Y’s current market positioning and customers - HSC - SSCE Business Studies - Question 11 - 2008 - Paper 1

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The marketing manager for Product Y would like to maintain Product Y’s current market positioning and customers. Which strategy would best achieve this? (A) Reduci... show full transcript

Worked Solution & Example Answer:The marketing manager for Product Y would like to maintain Product Y’s current market positioning and customers - HSC - SSCE Business Studies - Question 11 - 2008 - Paper 1

Step 1

Developing a loyalty scheme

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Answer

To maintain Product Y's current market positioning and customer base, the strategy of developing a loyalty scheme (C) is the most effective. This approach not only encourages repeat purchases but also strengthens customer relationships. By rewarding customers for their loyalty, the marketing manager can foster a sense of value and connection to the brand, which can be crucial for maintaining market positioning.

In contrast, reducing the price (A) may undermine the perceived value of the product. Using intensive distribution (B) could lead to increased market presence but may not necessarily enhance customer loyalty. Advertising in local newspapers (D) might increase visibility but does not directly contribute to customer retention.

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