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Taking the product/market matrix rst, the main hazard you face is being overoptimistic about the prospects for sales growth and pro t margins when adopting a market development strategy The main dif culty is that new markets are de ned as those where you have no prior experience of customer behaviour So how can you understand them Apart from gut feel , the only ways are through customer feedback (not particularly useful in this instance), market research (which can establish basic facts, but not covert factors) and piloting or test marketing in a controlled way, before taking the plunge and committing large-scale resources to prize open the market.

Operators can be grouped into the following types:

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A more cautious approach should prevail over excessive optimism, for a number of reasons: Customer loyalty to existing suppliers what will the marketing costs be of gaining their loyalty Consider their motivation: what convincing reasons can you give them to break from existing suppliers If none, downgrade your forecasts Lack of customer education or knowledge customers might not understand product bene ts, particularly if you are launching a new generation of products, eg an invention or innovation New markets might require new products or services, not necessarily the ones that have served you well in the past The product preferences and buying behaviour of prospective customers in new markets can be uncovered to a certain extent, but you will always be left with some uncertainties The dif culty is budgeting for additional unexpected product development costs and making a decision about their likely effect on prices and margins.

away from familiar classful problems. Vendors that continue to insist on introducing beginners to IP addressing using the obsolete classful model aggravate this situation. Another reason for using point-to-multipoint is a workaround to implementation restriction in major router implementations such as Cisco and Nortel. These operating systems have a finite and fairly small maximum number of software-defined and real interfaces. When a hub router has many point-to-point connections, it easily can run out of software-defined subchannel/virtual circuit interfaces. There are perfectly reasonable applications for point-to-multipoint. It is a natural topology for multicast applications, where the hub originates most traffic. Multiple point-to-multipoint links also are a means of implementing interactive and conferencing application, in which each participant has a point-to-multipoint connection to other members of its group.

Summary

By venturing into new markets with new products simultaneously, you are in effect pursuing a diversi cation strategy (Figure 22) This is many times more risky than either product development or market development on its own New markets always require a different approach to marketing Unless marketing is already professionally organized and is a core competence of your business, it is very risky venturing into new markets expecting substantial growth A different approach is called for, one that emphasizes caution and recognizes that marketing is effectively weak when it comes to understanding customer behaviour in new marketplaces.

However, as can be easily seen, in order to do so, we will need to change the capital structure (ie, VA,T /F and hence D/E) as A (the riskiness of the transaction) changes However, as we change the capital structure (D/E as plotted on the xaxis in Figure 61), we also change the return on equity (here denoted as R_E) Note that D/E = 115 represents an equity percentage of 8%, 1567 represents 6%, and 240 represents 4% So, in the typical areas of bank and transaction leverage ratios, we experience significant variations in the expected equity return for relatively small changes in the capital structure This may seem to be at odds with the intuition of the M&M propositions at first sight.

Although a splash screen (also called a start-up form) might not sound like a bulletproofing technique, one aspect of professional application development is providing high-quality information to the user in a timely fashion. An appropriately designed splash screen gives the user such valuable information as the version number of the database application, the user name (or login ID), the date the database was most recently replicated, and so on. A simple splash screen is shown in Figure 26.10.

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