The “product space” graph (perceptual map) resulting from a

Question

positioning study for shampoo shows a substantial target market
that is currently served by only one product—“Exotic Balsam.”
What is a reasonable course of action for a competing
manufacturer?
A. Develop a new product to compete with Exotic Balsam.
B. Look for an area on the map where there is a smaller target market
that is not served by any current products.
C. Attempt to reposition a current product as an alternative to Exotic
Balsam.
D. Do a broader analysis that includes an examination of customer
needs and attitudes.
E. Any of the above might be reasonable, depending on the
circumstances.

Answer 1

E. Any of the above might be reasonable, depending on the circumstances.

Each of the options presented has its own merits and can be reasonable depending on the specific context of the market and the competitive landscape:

• A: Developing a new product to compete with Exotic Balsam could be effective, especially if the new product can bring unique features or benefits that appeal to the target market.

• B: Looking for areas on the map with smaller target markets allows the manufacturer to identify niche opportunities that may be underserved and potentially less competitive.

• C: Attempting to reposition a current product as an alternative could be a cost-effective strategy if the manufacturer has existing resources that can be leveraged.

• D: Conducting a broader analysis that includes customer needs and attitudes is always beneficial as it provides insights into what consumers are seeking and can inform all future strategies.

In summary, the best approach may vary based on a deeper understanding of market dynamics, competitive strategy, and consumer behavior, making all options potentially reasonable.