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As the Marketing Manager for Acme Products Inc

Question 127

Multiple Choice

As the marketing manager for Acme Products Inc., you just became the new program leader for Baubles, a product Acme introduced last year. Initial sales far exceeded expectations. In response, the previous program leader decided to reduce the profit margins for channel members to more quickly recover the high costs incurred in the development of the Baubles product and its marketing program. Unfortunately, sales
Of Acme Baubles declined by 2 percent while its market share declined by 7 percent as new competitors entered the market. After conducting a customer survey, you
Conclude customers were generally satisfied with Acme's Baubles. However, Baubles were not as readily accessible as they were the previous year. Furthermore, after
Conducting a survey among the leading wholesalers and retailers of Acme Baubles, you discover they were not pleased with the reduced margins. Moreover, because
Acme's principal competitors offered them greater margins, they gave the competitors' products competing with Baubles better service and shelf space than Acme's. This is an example of:


A) an appropriate marketing strategy but ineffective implementation.
B) an inappropriate marketing strategy and ineffective implementation.
C) an appropriate marketing strategy and effective implementation.
D) an inappropriate marketing strategy but effective implementation.

Correct Answer:

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