Problem:
This activity is important because any business that offers multiple product lines to multiple market segments is faced with the task of making the product/market decisions and prioritizing those decisions. Products and market segments that are growing quickly and are very profitable should get more attention and resources than a product and market segment that does not show as much potential. Once a marketing manager creates a market-product grid, they must select which segments to target. To do this, the marketing manager should use several criteria in assessing the different segments. Those criteria include: market size, expected growth, competitive position, cost of reaching the segment, and the compatibility with the organization's objectives and resources. The goal of this activity is to demonstrate your understanding of the market-product development process by analyzing a gift shop's markets and products. Read the case and answer the questions that follow. A small gift shop recently celebrated its 30th anniversary. Over the last 30 years, the owners have continually changed the products they carry to satisfy market demand. Early on, the store primarily sold figurines and Department 56 collectibles, but now the store carries a more diverse mix of merchandise that includes fashion items like