Markstrat Handbook

The second letter of the name of your BRAND identifies:

"O" for Sonite or "E" for Vodite

2 cost levels that R&D can develop a product at

1. Minimum base cost 2. Specified base cost

What is the current economy inflation rate in markstrat?

2%

The rate at which Markstrat's GNP has been growing

4%

Sonite Customers

Explorers, Shoppers, Professionals, Savers, High Earners

True or False: Your firm will benefit by having several well-performing brands before introducing Vodites.

FALSE. Markstrat is focused on Marketing practices, therefore the name of your company will not help you in your new endeavors.

When would you "shelve" a project?

If the allotted budget is much lower than the cost of completion...you would shelve it until you had the funds to complete it.

Who are the Vodite customers?

Innovators, Early Adopters, Followers

Industry Dashboard

One page summary of key performance indicators at firm and brand levels. Includes: stock market data, retails sales and market shares in value and volume, revenues and contribution.

What are your distribution channels?

Online Stores - Amazon Mass Merchandisers - Walmart, Target Specialty Stores - Radioshack, Bestbuy, HH Gregg

Characteristics of Sonite Products

Processing power, Display size, Design index, Battery life, Features

Characteristics of Vodite Products

Resolution, Energy, Carbon Footprint, Connectivity, Apps

How is the desired based cost derived?

The base cost of a project is equal to the transfer cost that will be charged by Production to Marketing for each unit of the future product, assuming an initial production batch of 100,000 units.

Market Report

This report provides you with the market shares (in units and in dollar value), the volume sold and the retail sales of all marketed brands (Sonites or Vodites).

Attributes of Followers

bulk of potential consumers, they see more risk in in buying a new product.

Attributes of Innovators

demonstrate a high desire for the Vodite; will be the first users of the product

Attributes of Explorers

high level of interest in Sonites, demand high performance products, do not neccescesarily have high incomes

What is a feasibility study?

it includes the minimum base cost at which the product can realistically be manufactured, and the budget required to guarantee its completion at the currently requested base cost. The main advantages of feasibility studies are their low cost and the accuracy of the information provided.

Attributes of Shoppers

look for high quality with price ratio

Attributes of Savers

looking for cheap, low-performance products, with average convenience.

Attributes of High Earners

motivated to spend by social status, tend to use their Sonites less than the average consumer.

What is the function of the Commercial Team?

our commercial team is responsible for obtaining and entering orders and for supporting distributors. the main tasks conducted by the commercial team are to visit stores, distributors and wholesalers; to enroll them in trade programs; to take orders; to handle out of stock situations; to participate in trade shows; and to help stores organize and conduct promotions.

How is "Share of Voice" calculated?

personal advertising budget/industry total advertising budget

How is the production level adjusted for each period?

the actual production level for each product is automatically adjusted in response to actual demand for that product in the period, within 20% of your initial production plan. Hence, if you did not order enough units to cover the demand, the production will be automatically increased by up to 20%. On the contrary, if you ordered too many units and cannot sell them in the period, the production will be automatically reduced by up to 20%.

The first letter of the NAME of your brand identifies:

the firm marketing the brand.

Attributes of Professionals

use Sonites for personal and professional. They can afford expensive products and view price as a measure of quality

Attributes of Early Adopters

will not adopt Vodite products as quickly as innovators but will certainly do so before a majority of people have accepted the new technology. As this group is usually much larger than the previous one, its influence on other consumers is fairly high.

Market Research Studies

•Consumer survey •Competitive Commercial team estimates •Consumer panel •Industry benchmarking •Distribution panel •Advertising experiment •Semantic scales •Commercial team experiment •Multidimensional scaling •Market forecast •Competitive advertising estimates •Conjoint analysis