Markstrat

The cage model identifies which type of distance?

Cultural, administrative, geographic, economic

there is only one way to re-position a brand: through advertising. True or false?

False

Characteristics of sonite products

- Processing Power - Display - Features - Battery - Design

economy growth

4%

A firm brand equity often represents

A substantial portion of its overall value

What do all firms need to engage to develop the first sonite product

R&D project

Although we speak of global markets, research by ghemawat and others best describe the world's competitive structure as

Regional or semi-global

Selling price must be higher than transfer cost: true or false?

True

The bcg matrix can only be used to analyze a company's existing brand portfolio: ture or false?

True

the similarity of r&d projects will have an impact on costs: true or false?

True

Share of voice

Your budget / budget of others

the economy of a brand is based on

price

customers make purchase decisions based on:

their perception

Production planning must take into account

• The potential sales for the brand • The existing inventory at the beginning of the period • The flexibility of the Production department

Company results

- Company dashboard - Financial report - Production report - R&D report - Decision review

Characteristics of vodite products

- Energy - Connectivity - processing power - Apps - Resolution

Digital initiatives in powerhouse

- Influencer and content marketing - Paid advertising - Organic channels - Retargeting - Email Marketing - Performance marketing - Cross selling

Marketing initiatives in powerhouse

- Trade in offers and bundles - Partnerships - Product Placement - Additional services

The company PRIZY sells 100k units of baby toys at a price of 10$ and makes a profit margin of 3% of sales. Assuming a 1% price increase does not affect sales volume and costs remain constant, what will be the impact of a 1% price increase on PRIZY's profits?

0.33

CC: Assuming market shares by segment remain the same for brand ____, how many units of ____ should the team X produce in Px?

1) Market share da consumer survey and panel 2) Number of people in the segment next period da forecast 3)

STEPS IN MARKETING PLANNING

1. perform a situation analysis 2. set marketing objectives 3. develop marketing strategies 4. implement and control the marketing plan

Minimum base cost

10$

Research budget level

10-15% to resposition a brand

The battery life characteristic for the sonite brands is between

24-96 hour

The mds study measures brand perception along how many dimensions:

3

How many customer segments are in the sonite market

5

A sonite is made up of how many main attributes?

6 (5 physical + base cost)

Unit Margin

= retail price - distribution margin - base cost

CC: How many (uno dei channels) carry brand _____ in period X?

Competitive intelligence

CC: What company is having the highest advertising budget target fotìr ________ segment?

Competitive intelligence

Where can you find market share info?

Consumer panel

An online query will be more accurate than a feasibility study for an r&d project: ture or false?

False

What does distribution coverage refer to?

The number of stores carrying a given brand

Which of the following descriptions provides the best definition of the marketing mix?

The way a business combines the main marketing elements to selle products that meet the needs and wants of customers

What 4 categories do we spend budget on

adv, commercial team, R&D and market reports

estimating lost sales

purchase intention - market share

Initiatives to increase action

Additional services Cross selling (+/-)

CC: What is the main target segment for brand ____ ?

Consumer survey and panel

What is the 4C's marketin model, extension of the 4Ps?

Cost Consumer value Communication Convenience

Media Categories

Digital owned, digital paid, digital earned, traditional, outdoor

Baby Boomers

Highly interested in Sonite product Demand high performance products Quite price sensitive

Do vodites take over the demand from sonite products?

No, they are independent

CC: Which are the 2 most impotant characteristics excluding price for the ____ segment?

Semantic scale

A sonite r&d project requires more time than a vodite r&d project: true or false?

Unknown

Gen Z

Value performance and convenience But very price sensitive

The two industries in markstrat include sonites and

Vodite

Flobalization risks include

a, b & c are all globalization risks ???

Early adopters

adopt carefully most influential opinion leaders

Maming R&D projects

always 5 letters -start with P -second letter s for sonite or v for voldite

what are the different stages typically observed among adopters of new products?

awareness => interest => evaluation => trial => adoption

The two markets in markstrat are

independent

what is the ideal life-cycle of a sbu (strategic business unit) based on the bcg model?

question mark => star => cash cow => dog

A segmentation strategy is effective provided

segments are substantial, i.e. large and profitable enough to serve

smart objectives are

simple, measurable, actionable, realistic, time-bound

which of those positioning strategies do you believe is the most effective?

the combination of both positioning methods

what should be the end result of a successful positioning strategy?

the creation of a customer-focused value proposition, a cogent reason why the target market should buy the product

Which of those variables is not a psychographic segmentation variable?

Attitude toward product

Physical characteristics and base unit production cost are defined by a project's

Base R&D project

Advantage of HORIZONTAL INTEGRATION

Economy of scale • Expand share • Less competition

Advantage of VERTICAL INTEGRATION

Efficiency • Control • Eliminate profit centers

The first letter of the name of your brand identifies

Firm

Gen X

Like premium quality products, and price can be seen as an indication of quality

What is the reccommended retail price?

List price for customers

Professionals

Look for high quality, high-performance and easy-to-use products Can afford expensive products

The product most is manufactured by firm

M

What is selling price?

Price at which you sell to distirbutors

Initiatives to increase awareness

Product Placement Organic Channels Performance Marketing (FIFA) Performance Marketing (LoL) Retargeting Email Marketin (+/-)

Number of consumers who own the product/total potential population

Product's penetration rate

Marketing Mix decisions

Production planning, price, advertising and segmentation strategy

Sonite Customers

Professionals, Baby Boomers, Gen X, Millenials, Gen Z

Price increases or decreases should

Stay inder 30%

MARKET POTENTIAL

The maximum (ideal) level that the market demand can reach in a given period of time and in a given spatial context, under the hypothesis that all cumulated marketing investments (i.e., those of all companies operating in that industry) are at their highest possible level.

What is brand awareness?

The percentage of potential consumers who can recall a given brand name

Unit cost will increase if you try to reduce carbon footprint of your products: true or false?

True

Your marketing budget is used each period to invest in

all of the above

The phases of the product lifecycle are

introduction, growth, maturity, decline

Followers

most consumers wait until hearing from others

The performance of a brand is based mostly on

processing power and display size

base cost

the transfer cost corresponding to the avg unit of production cost for the first 100k units produced

what is the key objective of a harvest strategy?

to increase short-term cash flow regardless of long-term effect

The perceptual map study is based on the mds study: true or false?

true

according to you, and based on the bcg matrix principles, which of those strategies makes more sense?

use the cash generated by cash-cows to turn question marks into stars

How can you assess the relationship between a tangible product charatcteristic and its perception by potential customers?

using multidimensional scaling studies

Please choose the correct statement in the options below. in a conjoint analysis:

utilities of various levels are provided for each of the five physical characteristics of a product and for each segment

What is a salesforce experiment?

A study that evaluates expected brand results with an increased salesforce, all other variables remaining constant

Market research reports are free: true or false?

False

CC: Which of those segments is likely to become the largest segments on the sonite market over the next 5 periods?

Market forecast

Millennials

Tech dependent, have good product knowledge through extensive product comparison. Demand high quality- price ratio.

feasibility studies

get estimates for base cost and R&D budget -cost $100k -info is very accurate and not overestimated -takes time to complete

Innovators

least growing adventurous, cosmo, wealthier willing to try/risk

The convenience of a brand is based mostly on:

none of the above (design, feature and battery life)

Marketing

set of processesaimed at generating exchanges and relationshipsamong individuals and organizationsin order to create economic and social value as well as to offer customersfunctional and emotional benefits

The maximum number of sonite brands a firm can market at any given time is

5

Initiatives to increase interest

Additional services (+/-) Performance Marketing Tennis (+/-)

What does the 4P's achieve when they work together?

All the above (atrget customers, profit margins, create marketing plan)

How do you calculate the averge distribution margin of a brand?

Average of the distribution margins in each channel where the brand is distributed

Which of the followint marketing communication tools is typically used to build up a long term image for the brand?

Direct marketing, advertising, sales promotion, after-sales services

What does a perceptual map reveal on marketed brands?

How consumers perceive marketed brands

Vodite customers

Innovators, Early adopters, Followers

How to match consumers needs into physical characteristics?

Interpolate

A completed R&D project can be used to modify existing brands and:

Introduce a new brand

A completed r&d project can be used to modify existing brands and

Introduce a new brand

Does a company's market rank affect its marketing communication mix?

No

Where is markstrat world?

None of the above, it is a simulated territory for the purposes of the simulation

Return on marketing investment (ROMI):

Revenue generated by investment in a given marketing program divided by the cost of the program at a given level of risk

Which 3 studies give info on how to reposition a brand to provide more values to customers?

Semantic scale, multidimensional, conjoint analysis

The second letter of the name of your brand identifies

Sonite or vodite

Your overall objective in markstrat is to maximize:

Stock price index

What is a high share of voice required for?

Successful new brand launch or repositioning

Brand purchase intentions provide information on

The percentage of potential consumers in each segment who intend to buy a given brand

A niche strategy is a concentration strategy: true or false?

True

Base cost is a characteristic for a vodite brand: true or false?

True

Budget depends on how successful you were last period. True or false?

True

The higher the price elasticity, the grater the sale volume growth with 1% price reduction: true or false?

True

what are the key advantages of being the first company to enter a new market (also called pioneer advantage)?

all of the above (monopolistic profits, distribution support, production experience)

Primary data are

data freshly gathered for a specific purpose or for a specific research project

2 types of attributes

ideal point: vary by segment - importance attributes: everyone can agree

Where can you find purchase intention?

Consumer survey

Your firm will benefit by having several well-performing brand before introducing Vodites

False

Distribution channels

Mass Merch, specialty store, ecommerce, estore

Which of the following piece of research is a qualitative one?

focus group

CC: Which of these brands is best positioned to the _____ segment?

market share, consumer survey and panel

Which of the following makes up the marketing mix?

product, price, promotion, place

Decision stages

Awareness, Consideration, Preference, Purhcase intention, Market share, Loaylty, Advocacy

Production cannot be considered as an external supplier: true or false?

False

4 overall performance metrix

market share, sales, firm contribution, stock price index

To be useful, market segments should be

measurable, substantial, accessible, differentiable and actionable

Ideal attribute

minimum level + (max level - min level) x [(ideal on semantic scale - 1)/(7-ideal)]

Average inflation rate

2%

Which of the following choices is not one of the market segments for sonites?

Builders

How can you have a global overview of the competitive performance of your firm vs. its key competitors?

By purchasing an industry benchmarking study

Commercial team is responsible for _________ & _________ orders

Obtaining and entering

CC: How many units of brand _________ have been sold in (one of the channels) in Px?

Financial report

Markstrat currency

Markstrat dollar

The obsolete inventory is sold to a

Trading company

R&D online query

can check with R&D dept how feasible a project is at any time and they'll respond immediately w/ estimated base cost and budget -best estimates and no cost and without investigation -include an over-estimation factor

what are the two key pillars of competitive advantage?

cost leadership and product differentiation

Which of the following is not one of the "imperatives" that drive companies to become more global?

currency exchange

how to request a project from R&D

specify: -project name -budget -phtiscal characteristics -base cost

swot analysis is a diagnostic tool often used by marketing teams, which has proven very useful for making strategic decisions. what elements is this tool based on?

strengths, weaknesses, opportunities, threat

SBU (Strategic Business Unit) is characterised by:

1. One single stream of activity or different streams that are connected 2. Internally build competitive system and practices 3. Managed by responsible and experienced leaders

ANSOFF MATRIX

A Matrix looking at growth potential of a firms products. It classifies strategies into market penetration, new product development, market development and diversification and measures the degree of risk associated with each strategy.

in which case should a company consider repositioning its offering?

All of the above (changing segment needs, price pressure, new target segment, competitor entry)

Why is strong brand equity an asset?

All of the above (price premium, drives customer preferences, increase customer loyalty)

Which of the follwing factos should be considered when setting a brand's marketing communication mix?

All of the above (type of product market, buyer-readiness stage, rpdict life-cycle stage)

What type of study do you need to purchase to have an estimate of the market share of a given brand in a specific distribution channel?

Distribution panel

the higher the resolution the lower the base cost: true or false?

False

What are semantic scales?

Market research studies used during the advertising concept testing phase to assess how consumers rate different sets of advertising messages on a scale from 1 to 7

Share price index takes into account

Market share Sales growth Net contribution each period R&D investments

What are sematic scales?

Market research studies aimed at assessing consumer's needs and estimating how brands are perceived

The MDS study measures brand perception along how many dimensions?

3 (economy, performance and convenience)

Which of the following kpis will you learn about by conducting an advertising experiment?

Awareness, market share and contribution after marketing

brand modification/withdraw

Excess inventory of old brands will be sold to a trading company for a % of the transfer cost >> leads to a loss of (1-%) of transfer cost is taken on this inventory

Due to the _______, manufacturing costs tend to decrease over time

Experience effect (and economies of scale)

CC: Which brand will benefit the most if company X decides to hire 10 new salesppl in each channel (assuming that competitive actions remain unchanged)?

Experiment

What does the term "brand extension" refer to

Extending an existing brand name to a new product category

The higher the resolution, the lower the base cost: true or false?

False

There are 4 distribution channels available: specialty stores, mass merchandisers, online stores and direct sales force. True or false?

False

the dimensions used in the mds study are the same for the sonite and vodite market: true or false?

False

Transfer cost should be reduced by __% each time the cumulative production of a product is doubled

15%

Strategic Planning Steps

1. Define the Mission 2. Evaluate external and internal environment 3. Set organizational or SBU objectives 4. Design the Business Portfolio 5. Develop growth Strategy

What type of study do you need to purchase to have an estimate of the number of people who know a given brand?

Consumer survey

Initiatives to increase engagement

Trade in Offers Bundels Partnership (+/-) Influencer content marketing (+/-)

How can you assess the relationship between a tangible product characteristic and its perception by potential consumers?

By using multidimensional scaling studies

What are the two key factors affecting purchase intentions?

Brand awareness and brand positioning

All 8 different types of analysis

1. Conjoint Analysis 2. Advertising and commercial team experiment 3. Competitive advertising and commercial team 4. Market Forecast 5. Semantic scales 6. Distribution panel 7. Consumer survey and consumer panel 8. Industry benchmarking

If you have no units in inventory, you ask your production department to produce 100,000 units and the demand is 140,000 units, you will be able to sell

120,000 units

which are the three key pillars of marketing strategy?

segmentation, targeting, positioning