market-based management

Using the data provided, evaluate the four offensive strategies for improving margins for sales in existing markets.

12.2-A Improve Customer Loyalty and Retention

• Increase retention from 50% to 75% with increase in retention cost per customer form $150 to $200.

12.2-B Improve Differentiation Advantage

• Increase revenue per customer by $500 for retained & new customers and increase acquisition and retention cost per customer by $50.

12.2-C Lower Cost/Improve Marketing Productivity

• Lower customer retention cost from $150 to $100 and lower marketing administration to 2.5%.

12.2-D Build Marketing Advantage

• Increase share from 10% to 12% (due to channel advantage) while increasing acquisition cost per customer from $800 to $850.