Capstone
In only one product segment, diminishing returns for distributors is reached at
15
The accounts payable lag has implications for production. At ________ days, suppliers withhold all material.
150
If your company offers 90 days Account Payable policy, suppliers will start to withhold material for production at
26%
larger outer rough cut circle has a radius of
4.0 units
In the Traditional Segment, age as a buying criteria accounts for:
47% of decisions
how many market segments are there?
5 What is a market segment? - Group of customers with similar purchasing concerns
At the start of the simulation, your production plant has ___lines with room for ____more
5 , 3
What is the size of the plant at the start of the simulation?
5 assembly lines with space to add 3 more.
You are charged a ____ brokerage fee to issue stock and ____ brokerage fee to retire stock.
5% / 1.5% You pay no brokerage fee if you allow bonds to mature to their due date
Products that are halfway between the fine and rough cut circle will experience a drop in customer survey score by:
50%
A 6 month project in R&D costs____________; while a 12 month project in R&D costs ________.
500,000;1,000,000
Price accounts for _________customers' decision-making in the low end sector.
53%
The A/R lag is
A). marketing spreadsheet definition. B). the accounts receivable lag (in days). C). the time between customers receiving products and when they are expected to pay for them.
Each year the company receives bond ratings. The range of these bond ratings from best to worse is:
AAA to D
How is the strength of the sales channel measured?
Accessibility on a scale of 0 to 100%
Products that are modified through R&D:
Are perceived to be half the age as before entering R&D.
Which of the following questions is answered by the demand analysis?
Are the market segments growing at the same rate?
Once you upload your official decisions during a round, how many times can you change them before the end of the round?
As many times as you want
Investing in CPI can
reduce material costs and labor costs to a lesser degree
Within the process management initiatives, concurrent engineering
reduced R&D cycle time
What product attributes do Performance customers value the most?
reliability
The performance segment places more importance on
reliability and positioning.
New products are created on which spreadsheet?
research and development
which statement is true
Increases in capacity and changes in automation take a full year to implement. Sales of capacity are immediately effective.
The interest rate on a bond ______ by________ for each______ in the bond rating category.
Increases; 0.5%; Decrease
What is the right formula for capacity investment?
Investment = Capacity x [$6 + ($4 x Automation)
Inside each fine cut circle,
segments have an ideal spot where demand is at its highest. The traditional ideal spot is near the center of the circle
The growth rate for industry demand in the _____ segment is 18.3%.
size
The potential reach for E-mail is rated as good for the
size / performance
The order of the 4 buying criteria is the same for the following two segments:
size and high end
The potential reach for web media is rated as good for the
size and performance
Which customer group or market segment seeks advanced technology products that focus on small size?
size customers
size buying criteria
size customers seek cutting edge size technology ideal position (at the end of round 0 / beginning of round 1) - performance = 4 / size = 10.6 = 43% of decisions age = 1.5 years = 29% of decisions MTBF = 16,000 - 21,000 = 19% of decisions Price (for round 0) $25-$35 = 9% of decisions
Customers that want small products and are willing to sacrifice performance are in the
size segment
If a product's Automation rating is substantially increased, it will:
take longer to move the product across the Perceptual Map.
Cash position is
the cash position at the beginning of the round and a projection of the cash position at the end of the round.
Looking at the production, if the potential bar is lower than the actual,
the company picked up sales because other companies under produced.
Looking at the production, if the potential bar is higher than the actual one
the company under produced and missed sales opportunities.
When plotting the segment locations for each round
the goal is to determine the ideal spot location for each segment during the 8 years.
A bond with the number 12.6S2005, indicates that:
the interest rate is 12.6%; due on December 31, 2005.
According to Capstone, Complement is best defined as:
the number of workers in your workforce this year.
In forecasting, it is not likely that you will take half of the sales unless
the price is at the low end of the range and the positioning, age and MTBF are superior.
If there are two identical products, one that has 100% accessibility and one that has 0% accessibility,
the product with 100% accessibility will outsell the other 2 to 1 providing all other attributes are identical.
Maximum issue is
the upper limit in thousands of dollars that teams can issue in stock this year.
When going to a new automation level
there is a 1 year lag
If you see a red flag on one of your spreadsheets, what does it mean?
there is more information
the traditional market segment is expected to
to make up 27.5% of the electronic sensor market in five years from now.
When tracking market segments on the performance and size perceptual map, which segment moves or "drifts" the slowest?
traditional
drift rates
traditional = + 0.7 P / - 0.7 S Low end = + 0.5 P / - 0.5 S high end = + 0.9 P / - 0.9 S Performance = + 1.0 P / - 0.7 S Size = + 0.7 P / - 1.0 S
beginning segment growth rates
traditional = 9.5% low end = 12% high end = 16.1% perfromance = 20% size = 18.1%
The sales channel effectiveness for the distributors is highest for
traditional and low
The potential reach for print media is rated as good for the
traditional and low end
traditional buying criteria
traditional customers seek proven products using current technology age 2 years - 47% of decisions price (for round 0) = $20-$30 - 23% of decisions ideal position (at the end of round 0 / beginning of round 1) - performance = 5 / size = 15 = 21% of decisions MTBF = 14,000-19,000 = 9% of decisions
Customers that want proven products and current technology of moderate size and performance are in the
traditional segment
The percentage of workers that left the company last year is the:
turnover rate
What happens to a product priced at $1 above or below the segment guideline when a segment's product supply outstrips demand?
It loses 20% of its appeal.
MTBF in the segments should be
MTBF (Performance) > MTBF (High End)., and MTBF (Low End) < MTBF (Size).
The relative cost of a product's material cost increases as:
MTBF is raised
our inventory for a product will be automatically liquidated at half average cost of production if you
Sell all the capacity on the corresponding production line
Which is false about production in Capsim?
Teams cannot produce beyond 100% capacity.
Your company was formed ______________
When a former monopoly was broken up into identical competitor
What happens if you increase the A/R lag days in the marketing function?
a. Sales forecast increases b. Collection time increases
Which three factors drive labor cost?
b. Wage and benefit rates c. Automation levels d. Second shift/Overtime costs
The automation level
b. causes you to require more manpower with lower ratings. c. causes you to require less manpower with higher ratings.
The Ideal Spot
drifts at same pace as the segment
The prices in each segment
drop by $0.50 each year
Increasing a product's reliability will result in which of the following changes to production costs?
higher material costs
Investments in training leads to a __________ and _________.
higher productivity, lower turnover
MTBF is measured in
hour increments and measures reliability
The December Customer Survey indicates
how customers perceived the products in the segment.
When an R&D effort started in 2001 completes on September 15, 2002, the product revision kicks in
immediately upon completion
Process Management Initiatives
improve business procedures, resulting in improved efficiencies and cost structures.
TQM initiatives
improve product quality while reducing the time and resources required to design, manufacture, warehouse and ship products.
When purchasing increased Capacity and Automation, the new capacity becomes available
in 1 year
Pricing plays a role
in the rough cut stage of the purchase decision and in the fine cut stage of the purchase decision.
Within the Process Management Initiatives, channel support systems
increase demand
Investing in Channel Support Systems can
increase demand.
Which financial obligation is best satisfied with Bond Issues?
increased production capacity
Increasing performance and shrinking size does what to the material cost?
increases
If you reduce automation in the production component of Marketing, you will:
incur a retooling cost
the perpetual map
is a marketing tool used to track the position of the company's products against those of the competitors.
The company's negotiation starting position for wages
is never more than 150% of the current contract
In the December customer survey, a product would not receive a perfect score of 100 if
it had an MTBF at the middle of the expected range.
If you purchase production capacity and automation:
it is available in the next year.
Two points that should be considered in your strategy are
it is easy to confuse unit market size with dollar market size.
What happens to a product's Perceived Age when it is repositioned in R&D?
it is reduced by 50%
Investing more than $5,000,000 in the same TQM initiative over a two or three year period creates
little or no additional improvement
How much does it cost for MTBF per 1,000 hours of reliability?
$0.30
What is the total cost in dollars for adding 1.0 million units of capacity to a production line with an automation level of 1.0 and floor space costs per unit of $6? Assume automation costs per unit of $4.
$10 million 1 000 000 (6 +4*1) = 10 000 000
When working with Distributors, each distributor costs
$100,000
If you increase automation from 2.0 to 5.0, the cost is:
$12 per unit of capacity
When working with Outside Sales, each salesperson costs
$125,000
If you are currently producing 100,000 units at an automation level of 5, how much would it cost to maximize automation?
$2,000,000 100,000 x 4 x (10 -5) = 2,000,000 First shift capacity x (4 x 10 - automation level)
Diminishing returns for a single year and a single initiative on TQM budgets become noticeable at
$2M
When investing in trade shows, diminishing returns apply after
$300,000 per product
For non-advanced marketing module, promotion expenditures reach diminishing returns at
$3M
At what dollar amount above the segment guidelines is all consumer appeal lost?
$5
If a product's Price was $20, its Material $8, and its Labor $7, the Margin Per Unit would be:
$5 20 - (8 + 7) = 5
Companies can enter a Recruiting Spend budget up to an additional ____.
$5,000
the reliability component cost of a product with a 17,000 hour MTBF rating is:
$5.10. 17 000 * 0.3 /1 000 = 5.1
When working with inside sales, each inside salesperson costs
$50,000
When investing in web media, diminishing returns apply after
$500,000 per product
Adding one additional unit of capacity costs
$6 + ($4 x Automation Level).
If your current capacity is 10,000 units and your automation level is 5.0, what is the difference of the investment between doubling your capacity and doubling your automation level?
$60,000 Doubling capacity 10,000 x (6+4x5) = 260 000, Doubling automation 10,000x4x(10-5)=200 000, 260 000 - 200 000 = 60 000
When investing in E-mail, diminishing returns apply after
$600,000 per product
When investing in print media, diminishing returns apply after
$700,000
If current wages are set at $10/hour, what would be the minimum starting pay that your company would offer?
$8 an hour
When investing in direct mail, diminishing returns apply after
$800,000 a product
The center spot of traditional products drifts _______ each year.
+0.7 performance, -0.7 size
Rapid movement of an existing product on the Perceptual Map requires
low automation levels
what are the five segments?
low end high end traditional performance size
perceptual map locations
low end = upper left performance = upper right traditional = center size = lower left high end = lower right
Which customer group or market segment seeks proven products using current technology? Which customer group or market segment seeks proven products, are indifferent to technological sophistication, and are price motivated?
low end customers
On perceptual map, the percentage of customers interested in a product positioned outside of the rough cuts of that product is
0%
Workers will not strike approximately 7 days for
1 hour difference in training.
What is the minimum amount of time that it takes to create a new product?
1 year
There is ______ lag in buying new Capacity and ______ lag in changing Automation
1 year ; 1 year
Which Automation rating requires the longest time to reposition a product?
10
Negotiation Ceilings which represent the maximum management is willing to pay are always
10% above the starting positions.
In only one product segment, diminishing returns for outside sales is reached at
12
At what rate is inventory carrying cost charged?
12%
A new unit of capacity costs $6 for the floor space plus $4 times
automation rating
promotion budget affects
awareness
High end customers prefer a product age of 0, at what age exceeds the fine cut for the product
2 years
The inner fine cut circles on the perceptual map have a radius of ________ units.
2.5
A production line with 1000 units of capacity has a max production capability of:
2000
What is the starting awareness percentage of a new product?
25%
If you drop your sales budget to zero, accessibility drops to 0% in how many years?
3
R&D project length can be as long as ___________.
3 years
At the start of the simulation, all assembly lines have an automation level between:
3.0 - 5.0
. In only one product segment, diminishing returns for inside sales is reached at
30
Ideal Spot is particularly important for
high technology segments
With each year (round) customer awareness for each product decreases by:
33%
Account Receivables lag impacts sales. At no credit terms, the customer survey score falls to about ______ % of maximum, at 30 days, the score is _____ %, at 60 days, the score is ______%.
60,93,99.3
If you sell off a production line (capacity and automation), the amount of cash that the company will receive from the sales of capacity will be
65% of the original value
Assuming no additional product promotion, what percent of customers, reached through last year's marketing campaign will carry over into the current year?
67%
Emergency loans are made at what rate over the normal Current Debt interest rate?
7.5%
teams can produce up to ______ products.
8
For Wages, the negotiation Starting Position cannot be less than ____% or more than ____% of the current contract.
80 / 150
labor will strike for a maximum of
84 days
In the High End Segment, price as a buying criteria accounts for:
9% of decisions
Stock price is a function of:
Book value, Earnings per Share, and Dividend.
What are the Process Management Initiatives?
CPI, UNEP Green, JIT, QIT, Channel Support Systems, Concurrent Engineering
This process management initiative increases the effectiveness of the Sales Budget and therefore demand.
Channel Support systems
This process management initiative reduces R&D cycle time,
Concurrent Engineering (CCE)
The TQM initiative reduces material costs and labor costs.
Concurrent Engineering (CCE)/Six Sigma
This process management initiative reduces material cost and, to a lesser degree, labor costs.
Continuous Process Improvement systems (CPI)
The Finance Department can use which of the following methods to acquire capital for company activities?
Current Debt, Stock Issues, Bond Issues, and Profits
What effect do increases in the Promotion Budget have on a product's Awareness?
Diminishing returns
The cost to increase automation to 8.0 is equal to
First Shift Capacity X [$4 X (8 - Automation Level).
As a general rule, stock issues are used to:
Fund long term investments in capacity and automation.
Different customer demands impact the drifting speed of the segments such that:
High End, Performance and Size drift at a faster rate than the other segments
What are the drivers of Material Costs?
Higher performance Smaller size Higher Mean Time Between Failure (MTBF)
If the previous year you reached 100% customer awareness in your company, this year what will you need to do to maintain this level?
I would only need to create 33% new awareness to maintain 100% this year.
Which of the following is true about the Accounts Receivable Lag and its implications on customer survey score?
If you offer no credit, customer survey score falls to about 60% of maximum.
One way to enter sales forecasts and production schedules is to develop a worst case/best case scenario. Where would you enter your best case scenario and where would you enter your worst case scenario?
On the Marketing spreadsheet enter your worst case forecast in Your Sales Forecast cell, and on the Production spreadsheet enter your best case forecast in the Production Schedule cell.
If your team decides to introduce a new product, when should capacity and automation be purchased?
One round prior to product release
The resources used in the Sales Budget are
Outside Sales, Distributors, and Inside Sales.
Which three customer groups "ride the wave of technology" and are considered to be in the high technology segments?
Performance, High End, and Size
If you are marketing to High End customers, which criteria are most important to them in order of importance?
Positioning, Age, MTBF, Price
How is Contribution Margin calculated?
Price - (Material cost + Labor cost)
What is the correct answer concerning the top buying criteria for the following segment:
Price for low end and Positioning for high end.
Marketing is concerned with 4 things. What are they?
Price, Place, Promotion, and Product
The marketing budget detail sales screen allows companies to allocate their promotion budget to different media channels. These media channels are:
Print Media, Direct Mail, Trade Shows, E-Mail, Web Media.
What trend can be explicitly observed in the industry in which your company is operating?
Products become smaller and smaller.
The primary difference between the Proformas and annual reports is:
Proformas are projections of results for the upcoming year; annual reports are results from the previous year.
These TQM initiatives reduce administrative overhead; reduces the R&D cycle time and enhances the effectiveness of the promotion and sales budget.
Quality Function Deployment and Benchmarking
This process management initiative reduces labor costs.
Quality Initiative Training (QIT)
Your ___________ department controls the performance and size, therefore position of your sensor products within the market.
R/D
In the Capstone® simulation, what are the components of a product's minimum material cost?
Reliability component cost and positioning component cost
How are the Starting Position and the Negotiation Ceiling related?
The Negotiation Ceiling is always 10% above the Starting Position. in terms of a. Wage and benefit rates b. Automation levels c. Second shift d. TQM investment
Repositioning moves a product on the Perceptual Map from its old location to a new one. When does the new location become active?
The day the R&D project completes
What is the difference between the market segments at the beginning of the round to the final round?
The fine cuts overlap in the beginning and in year 8 only the rough cuts overlap.
In the Perceptual Map each segment has a set of circles where:
The inner fine cut circles represent the heart of the segment where demand is strong.
What is one drawback of increasing automation?
The product requires increased time/expense for subsequent short-move repositioning.
Cost Leader with Product Life Cycle Focus
This strategy attempts to gain a competitive advantage by keeping R&D costs, production costs and raw material costs to a minimum in order to compete on the basis of price. The product life cycle focus will enable sales for many years on each new product introduced into the High End segment. Products will begin their lives in the High End, mature into Traditional and finish as Low End products before they are retired and their assets harvested.
broad differentiation
This strategy will allow us to maintain a presence in every market segment. Competitive advantage will be gained by distinguishing our product with an excellent design, high awareness, and easy accessibility. We will develop an R&D competency that keeps our designs fresh and exciting. Our products will keep pace with the market, offering improved size and performance. The price of the products will be above average and capacity will expand as we generate higher demand.
Broad Cost Leader
This strategy will allow us to maintain a presence in every market segment. Competitive advantage will be gained by keeping R&D costs, Production costs and raw material costs to a minimum, enabling us to compete on the basis of price. We will price below average. We will increase automation levels to improve our margins and to make it acceptable to run second shift/overtime
niche cost leader
This strategy will concentrate on the Traditional and Low End segment. Competitive advantage will be gained by keeping R&D costs, Production costs, and raw materials costs to a minimum, enabling us to compete on the basis of price (low prices). The product will be priced below average and automation levels will be increased to improve contribution margins and make it acceptable to run second shift/overtime.
niche differentiation
This strategy will focus on the high technology segments (High End, Performance and Size). Competitive advantage will be gained by distinguishing our products with excellent design, high awareness, easy accessibility, and product extenders. Our R&D competency will keep our designs fresh and exciting. Our products will keep pace with the market, offering improved size and performance. The prices of our products will be above average and we will expand capacity as we generate higher demand.
Differentiation Strategy with a Product Life Cycle Focus
This strategy will gain competitive advantage by distinguishing our products with an excellent design, high awareness, easy accessibility, and product extenders. We will develop R&D competency that keeps our designs fresh and exciting. Our products will keep pace with the market, offering improved size and performance. We will price above average. We will expand capacity as we generate higher demand in our markets: High, Traditional and Low End.
The Consumer Report rates product attributes of price, reliability, age, positioning, awareness and accessibility using:
Three levels (such as Good, Fair, or Poor)
ideal spot offsets
Traditional = 0.0 P / 0.0 S low end = - 0.8 P / + 0.8 S high end = + 1.4 P / - 1.4 S performance = + 1.4 P / - 1.0 S Size = + 1.0 P / - 1.4 S
The potential reach for direct mail is rated as good for the
Traditional and Low End.
This process management initiative reduces material costs and administrative overhead.
Vendor/Just-in-Time Inventory (JIT)
In what circumstance would a company have a high market share relative to that of its competitors, though it is not making best use of resources available to it?
Where competitors underperform, a company may have a higher market share than that of its competitors though it is not making best use of its resources.
What is most likely to happen on introduction of a new product, if you do not buy the production line, in the year prior to the product's introduction?
You cannot manufacture your new product.
Lowering the automation level will result in
a charge
If you sell all the capacity on a production line, Capstone interprets this as
a liquidation instruction and will sell your remaining inventory for half the average cost of production.
Each round is
a year
What effects do Process Management Initiatives have?
a. Administrative savings b. Higher production efficiency c. Increase in demand d. Reduction of R&D times
Capital used for financing activities can be acquired through_______________.
a. Current debt b. Stock issues c. Bond issues d. Profits
The Credit Policy Lag has implications for:
a. Customer survey score. c. Production
Which of the following is an important about working capital in Capsim?
a. Emergency loans are closely linked to your working capital policy b. Shows the liquidity situation of your firm c. Can be calculated using numbers from the balance sheet under the headings current assets and current liabilities d. Shows how much equity is in use
Which of the following statements is true about promo and sales budget?
a. From one year to the next, a third of those who knew about a product forgot about it. b. If a product ended last year with an awareness of 50%, this year it will start with an awareness of approximately 33%. c. If you have two or more products that meet a segment's fine cut criteria, the sales budget for each product contributes to that segment's accessibility percentage. d. Companies must have at least two products in the segment's fine cut to achieve 100% accessibility.
What happens to a company when it increases the A/P lag?
a. It improves its cash position d. Its suppliers withhold material for production.
Customers evaluate the sensor industry based on:
a. Positioning. b. Reliability. c. Age. d. Price.
period costs include
a. R&D. b. promotion. c. sales and administration expenses.
Using the R&D Spreadsheet to design your products, you have which of the following projects to choose from?
a. Repositioning b. Invention c. Reliability adjustment
The situation analysis is
a. a team exercise. b. designed to help your group understand the current market conditions. c. designed to help your group understand how the industry will evolve over the next 8 years. d. a five part analysis. five parts of the situation analysis: Perceptual Map• Industry Demand Analysis • Capacity Analysis• Margin Analysis• Consumer Report
Your finance department is primarily concerned with
a. acquiring the capital needed for company activities. b. establishing a dividend policy that maximizes the return to shareholders. c. setting credit policies for customers and suppliers. d. profits.
If all of the capacity on a production line is sold
a. all remaining inventory is sold for half the average cost of production. b. a loss is written off on the income statement. c. Capstone interprets the action as a liquidation instruction. d. the company will receive a cash payment of 65% the original investment on capacity.
In the Human Resources section, workers will strike one week for:
a. every 1% your Annual Raise Negotiation Ceiling is beneath Labor's demand. b. every $300 your Benefits Negotiation Ceiling is beneath Labor's demand. c. every 1% your Profit Sharing Negotiation Ceiling is beneath Labor's demand. d. every $1 your Wage Negotiation Ceiling is beneath Labor's demand.
Labor Negotiation includes:
a. hourly wage. b. benefits. c. profit sharing. d. annual raise.
The marketing spreadsheet is used to set which of the following:
a. prices. b. promotion budgets. c. sales budgets.
Investing in Concurrent Engineering can
a. reduce R&D cycle time and lower R&D costs
R&D projects can change a product's:
a. size. b. age. c. reliability. d. performance.
If your company has a sales budget of $3 million and drops it to zero
accessibility drops to 0% in three years.
How can assembly lines double their capacity?
add a second shift
Benchmarking reduces
administrative costs
Finance Decisions should be made
after the other departments have entered their decisions.
A product's __________ does not play a role in the rough cut
age
Traditional customers consider this buying criteria to be the most important
age
Which of the following buying criteria does not have a rough cut?
age
To run perfectly, all HR department managers should know that
all strike settlements should be halfway between the demand and the negotiation ceiling. strikes last 2 weeks in the simulation
Capital needed for company activities cannot be acquired through:
arbitrarily firing employees.
It takes ______ years to invent a product.
at least one year
As a manager you need to change the automation level of your segment from 2 to 5. The line has a capacity of 2 million. How much would it cost?
b. $24 million 2 000 000 (5-2) 4 = 24 000 000
Companies with this strategy state their vision as follows: Low priced products for the whole industry, our brands offer solid value. Our primary stakeholders and bondholders, customers, stockholders and management.
broad cost leader
How can the R&D cycle time be reduced?
budgeting money to quality initiatives
What happens to a company when its debt-to-assets ratio increases?
c. Its short term interest rates increase. d. Its bond rating is reduced.
What is working capital?
current assets - current liabilities
Which tool can you use as a quick comparison tool when conducting a competitive analysis concerning production?
customer survey
A product's demand is driven by
customer survey customer survey score is driven by four p's
In CapSim, a product's demand is driven by its _________________.
customer survey score
In Capstone©, pricing standards are set by:
customers (market segments)
The segments all drift to the lower-right section of the perceptual map. Why does this drift take place?
customers want smaller and faster products
Investing in CCE/Six Sigma can
reduce labor and material costs.
Which of the following is not one of the primary concerns in the Finance Department?
deciding promo and sales budget
`An increase in promotional budgets have:
diminishing returns
When a product is moved to a new location on the Perceptual Map, the Perceived Age (or Age) is:
divided in half
EPS (Earning Per Share) is calculated by
dividing net profit by the number of shares outstanding.
The Promotion part of advanced marketing allows teams to allocate their time based on
each product
Which of the following will result in the highest interest rate:
emergency loan
What's the measure for product reliability?
expected time a product lasts
Customers go through ________________stage(s) as they make their purchase decisions
fine cut and rough cut
How many products does every team start with?
five products
Which of the following will give your company an AAA bond rating:
have absolutely no debt
In order to achieve 100% accessibility, a team must:
have at least two products in the same segment's fine cut.
Changing MTBF will
have no impact on Perceived Age.
The potential reach for Trade Shows is rated as good for the
high end
The sales channel effectiveness for the outside sales people is highest for
high end and size
Which customer group or market segment seeks cutting edge technology in both size and performance?
high end customers
high end buying criteria
high end customers seek cutting edge technology in both size and performance ideal position (at the end of round 0 / beginning of round 1) - performance = 8.9 / size = 11.1 = 43% of decisions age = 0 years - 29% of decisions MTBF = 20,000-25,000 = 19% of decisions price (for round 0) $30-$40 = 9% of decisions
Customers that are willing to pay for products with cutting edge technology that are fast performing and small in size are in the
high end segment
low end buying criteria
low end customers seek proven products, are indifferent to technological sophistication and are price motivated price (for round 0) = $15 - $25 - 53% of decisions age = 7 years = 24% of decisions ideal position (at the end of round 0 / beginning of round 1) - performance = 1.7 / size = 18.3 = 16% of decisions MTBF = 12,000-17,000 = 7% of decisions
Customers that want low prices and are willing to sacrifice miniaturization and performance are in the
low end segment
The time allocation on the advanced marketing module can be used to
make a greater effort by the sales staff which translates into increased demand for that product.
The ______________ details sales volume in all segments, reporting each product's actual and potential sales.
market share report
What is the most important element that ensures the accuracy of the Proformas reports?
marketing sales forecasts
Where are the credit policies for customer and supplier set in Capstone.xls?
marketing spreadsheet
Depreciation is calculated:
over a straight line 15-year period.
Sales channel effectiveness for inside salespeople is highest for
performance
Which market segment places the most importance on reliability?
performance
Which segment has the highest growth rate?
performance
The two characteristics that the perceptual map evaluates are
performance and size
Which customer group or market segment seeks high reliability, advanced technology products that emphasize high performance?
performance customers
performance buying criteria
performance customers seek high reliability and cutting edge performance technology MTBF = 22,000-27,000 = 43% of decisions ideal position (at the end of round 0 / beginning of round 1) - performance = 9.4 / size = 16 = 29% of decisions price (for round 0) = $25 - $35 = 19% of decisions age = 1 year = 9% of decisions
Size Segment customer consider this buying criteria to be the most important
positioning
What is the most important criteria to a "High End Segment" customer?
positioning
Combining size and performance creates a product attribute known as
positioning.
What are the top buying criteria that low end customers most value?
price in this order: Price, Age, Positioning, Reliability
What two factors are considered in both the rough cut and fine cut of the customer buying process
price and reliability
Which screens are necessary to make a complete human resource decision when the advance module has been activated?
production and HR
Which one of these criteria is not a top product characteristic of at least one segment?
promotion
What section of the perceptual map is considered ideal for the low end segment?
upper left
A segment manager's task is to
verify the products entering and leaving a segment, the margin potential for those products, capacity level and the distribution system as compared to competitors.
R&D completion time can be shortened
when a company takes advantage of existing technology. and depends on: a. number of projects in R&D. b. automation rating. c. the age of the product.
Do decisions on a product's prices and MTBFs in its segment's rough cut affect the product's demand?
yes
The preferred product perceived age for each sector peaks at:
zero years for high end and seven years for low end.
