Homework: Answer question # 7 at the end of chapter three and question # 3 at the end of chapter four, and the internet exercises on page 76 and page 112. All assignments are due by Sunday, midnight, MST.

CH3, Q7 – The owner of a small hardware store—the only one in a medium-sized town in the mountains—has just learned that a large home improvement chain plans to open a new store nearby. How difficult will it be for the owner to plan for this competitive threat? Explain your answer.

At first it would be very difficult. The small hardware store owner should choose strategies that avoid head-on competition. The owner needs to find new or better ways to satisfy customers needs and provide value. The small owner should actively seek information about the large home improvement chain and what all they entail? A lot of the information can come from customers and from the internet, remember word of mouth is huge. It is just like having McDonalds next to Burger King, each will have their own regular customers coming in, but each will have to keep bringing something new to the table, to try and get more customers in.

CH4, Q3 – List the types of potential segmenting dimensions, and explain which you try to apply first, second, and third in a particular situation. If the nature of the situation would affect your answer, explain how.

1) Behavioral needs, attitudes, and how present and potential goods and services fit into customers consumption patterns.

2) Urgency to get the need satisfied, with the desire and willingness to seek information, compare, and shop.

3) Geographic location and other demographic characteristics of potential customers.

I never thought of which product-market dimension to use for planning marketing strategies. I would apply products first, place & price second, and target markets (place & promotion) last. I believe the