Problem 1: Why is it important to establish the maximum potential for market demand? Now let's move on to babies and diapers! What would be the maximum market potential for disposable diapers? What forces would restrict today's market demand for disposable diapers from reaching the maximum market potential? What factors would help accelerate market growth? Can a business affect any of these factors to accelerate market growth? How?
Problem 2: How does a product-focused market definition differ from a broad, strategic market definition? If you owned a small business would you adopt a product-focused market orientation or a broad, strategic market orientation? Why?
Problem 3: Why do volumes, prices, and margins vary over the product life cycle? Can you provide an example? How does the rate of product adoption affect the product life cycle? Thinking back to an undergraduate marketing class, what happens when a new product meets with rapid consumer acceptance?