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Market Based Management 6th edition Roger Best - Solutions
Why would a business use a penetration-pricing strategy instead of a single-segment strategy? How does the penetration-pricing strategy create customer value?
How does a low-cost-leader-pricing strategy differ from a penetration-pricing strategy?
Why would a business use multi-segment pricing early in the late-growth stage of the product life cycle?
What is plus-one pricing and why is a business more likely to use it in the mature stage of the product life cycle?
What is reduce-focus pricing? How can a business possibly be more profitable with fewer customers and lower volumes?
Why would a business use harvest pricing? Why do many businesses using harvest pricing never exit the market?
How would a business estimate the price elasticity needed for a price decrease that would maintain the current level of profits?
How could cost-based pricing lead to a price higher than target customers are willing to pay? How does this affect the profit of a business?
When price elasticity is -1.5 to -2, why would a price reduction result in larger volumes, higher market share, and greater sales but lower profits?
Why is break-even market share more useful than the break-even volume?
What happens to a substitute product when the price of another product in a business's product line is increased by 10 percent when the cross-price elasticity is 0.4? Why would a business intentionally shift sales volume from one product to another in its product line?
What happens to a complementary product when the price of the product that it complements is decreased by 10 percent and the cross-price elasticity is 0.4?
Frito-Lay introduced Stax\ to compete with Pringles in 2003. Assuming the company had excess production capacity, how would the profits of other Frito-Lay chip products be affected by the success of Stax?
Under what conditions would eliminating a brand with a negative pre-tax profit from a product line result in lower overall pre-tax profit?
How does value-based pricing differ from cost-based pricing? What should a business do if the value-based price is not high enough to deliver desired levels of profitability?
How would an earthmoving equipment manufacturer use value-in-use pricing to determine its customer value of its product?
How would the earth-moving equipment manufacturer use the net present value of a customer's total cost of ownership to set a value price?
How would Toyota use perceived-value pricing to set a price for the Prius? How would Toyota select a specific price that delivered a meaningful customer value?
At what price would the Prius not have any perceived customer value?
How could Toyota use performance-based pricing to determine a price that would create a good value for customers and a good price for Toyota?
How could Subaru use customerization pricing for the Subaru Outback and benefit from a top-down price presentation of price-performance options?
Why would HP use more than one marketing channel?
What is a mixed marketing channel? Why would Microsoft Office be marketed with a mixed channel system to large business customers?
Are there direct marketing channels in consumer markets? How do they differ from direct channels in business-to-business markets?
What role do online marketing channels play in the way individuals buy airline tickets and stocks?
How does digital marketing help businesses reach customers, lower costs, and improve customer service?
What role do VARs play in the market for computers? How do VARs enhance the customer value of solutions they sell to business customers?
How does the use of multiple channels affect the growth of a business that sells flowers?
How does the use of a channel system either enhance or detract from customer value in the sale of flowers?
What specific factors must a business that sells cheesecakes consider in order to select one channel system over another?
How could a channel system be a source of competitive advantage for Lexus?
What are some of the ways that a channel system for Kia Motors could contribute to a higher market share?
Dell relies mostly on direct marketing in the consumer market, so why would Dell use VARs in the business market?
How can improved sales force quality and sales force productivity for a pharmaceutical company like Merck or Pfizer be a source of competitive advantage?
How would you determine the profit impact of an alternative channel system for the sales of iPhones?
Why is the purchase amount for Apple computers different in different marketing channels?
Why would the pocket price for commercial printers (large printers sold to businesses) be lower in one market channel than another, even when the end-user list price is the same?
Why would Rolex pay higher channel costs and receive a lower pocket price? Wouldn't it always be better for Rolex to use a direct marketing channel?
How can a marketing channel with a lower marketing ROI be more profitable?
Why would Dell add an indirect marketing channel using Wal-Mart?
What factors could cause the rate of online retail sales to rise to 20 percent of all retail sales?
What is the difference between a direct and an indirect marketing channel for gift baskets? Why might a business use both?
What type of marketing communication is Lexus most likely to create? How could the company measure the effectiveness of its communications effort?
When a business has an excellent marketing communications program and customers indicate high intention to purchase but there is a very low customer response, what kind of a marketing problem does the business face?
When should a business use a combination of pulsing and heavy-up marketing communications?
Why is the message frequency for a marketing communication considerably lower than the number of messages sent?
Why will a business's market share be lower if it is not effective with both pull and push marketing communications?
At what stage of a product's life cycle is advertising elasticity likely to be highest?
How should the carryover sales effect of an advertising effort be used to evaluate the profit impact of the advertising effort?
What behaviors need to be tracked in order to evaluate the profit impact of a trade promotion?
How does the promotional price elasticity for a product change with advertising support? What effect does market share have on promotional price elasticity?
Why are public relations-type marketing communications important to the overall success of a marketing communications effort?
Why are marketing communications directed at a market's infrastructure important?
What type of marketing communication would be most effective in motivating individuals to donate to a social cause?
If advertising elasticity is so much smaller than promotional price elasticity, why should a business advertise?
How should a business use the advertising carryover effect to evaluate the sales response and profitability of a marketing communication?
Why are indirect sales promotions rarely profitable? Why do manufacturers continue to offer indirect sales promotions despite their unprofitability?
How does retailer forward-buying affect the profitability of a brand promotion?
How would a company such as Apple use a combination of the communication strategies shown in Figure 10-2?
Why would a brand-image communication be more effective for a brand with low awareness?
How would you evaluate the sales and profit impact of the Kyocera brand-information communication?
Why is the Feynman Group's Dell "Deal of the Month" brand-action communication likely to have a high marketing ROI?
What role does message exposure play in the success of a marketing communication for General Motors' new Volt?
Why are customer awareness and message comprehension critical to the success of a marketing strategy for industrial products?
How can interest in ad copy affect interest in a product and subsequently influence customer response?
Why would Yum Brands divest such well-known store brands like A&W and Long John Silver's?
Why would a business like Coca-Cola opt to use the GE/McKinsey portfolio model over other portfolio models?
How would you assess the attractiveness of a new consumer product-market for Procter & Gamble? List the specific factors you would include as you build an index of market attractiveness for a Procter & Gamble consumer market.
How would you assess the competitive position of Procter & Gamble in a new consumer product-market? List the specific factors you would include as you build an index of competitive position for a Procter & Gamble consumer market.
Using the following information, create a portfolio analysis and specify a strategic market plan for a business that serves the three product-markets A, B, and C.
Using the information presented in item 13 and the additional information that follows, create a 3-year performance plan with respect to market share and sales revenues for each product-market, given the strategic market plan specified. Also create a projection of overall sales for each year of the
Under what conditions would Apple use an offensive strategic market plan?
Under what conditions would Apple opt to use a defensive strategic market plan?
What role do offensive and defensive strategic market plans play in the short- and long-run performance of Apple?
How does Apple's level of product-market diversification affect sales growth and performance consistency?
Why would the overall variation in sales revenues over a 10-year period be different between General Electric and Dell?
Why did Toyota enter the U.S. car market at the low-price point of the market instead of the mid-price or high-price point?
How would the sales and profit performance over a 3-year period differ between a business with only defensive strategic market plans and a business with only offensive strategic market plans? Why is it important for Dell to have a balance of offensive and defensive plans?
How would an offensive strategic market plan and marketing budget for GE Appliances to grow market share differ from those of a strategic market plan to optimize position and reduce share?
Why did Toyota add the Lexus and Scion product lines to its product portfolio as separate umbrella brands instead of retaining an all-Toyota product line portfolio?
How would Apple use the product life cycle that was used in this chapter to evaluate the current and future sales and profits of a business's portfolio of products?
What could be done with regard to Portfolio A to make it a more balanced portfolio over the next 3 to 5 years? How would this change affect short- and long-run sales and profits?
Why is it important to use two independent dimensions of performance to build a product portfolio for Kellogg's? Why would these performance dimensions be different for Netflix?
For Yum Brands, what is meant by a "strategic market plan"?
For General Motors, what is the difference between market attractiveness and competitive position with respect to building a product portfolio?
How does a portfolio model based on product life cycle and the market share development index help a growth business like Groupon.com?
What would Apple's sales and margins have looked like in 2010 if it had the same product portfolio then as it had in 2000?
Absolutee Vodka entered two new market segments as part of an offensive strategy to grow sales. Explain the logic of this offensive strategy and why the company elected to create new brand names for each segment.
Microsoft has developed a product called Meeting Pro to help facilitate the running of small business meetings. Although this is a value-added software product, Microsoft offers it at no cost to Windows users. Explain why this is an offensive strategy to grow market share.
Why are offensive strategies for General Motors crucial for the long-run success of that company? What kind of offensive strategies could GM use to ensure future growth in sales and profits?
Microsoft has embarked on a joint venture with Sony to develop an online alternative to the telephone. What type of offensive market strategy best describes this joint venture, and what are the expected short- and long-run performance objectives?
How does a market penetration strategy to grow market share differ from a strategy to enter a new segment in the same market for Mac computers?
Why would a Starbucks market strategy to grow customer purchases (revenue per customer) be potentially more profitable than many other offensive market strategies?
Why would a business like Marriott first pursue offensive market strategies to increase market share or grow revenue per customer, rather than adopting other offensive market strategies?
What forces limit new-customer growth within the existing market for personal computers? How could a company like Intel grow market demand by addressing these forces?
What important considerations should Starbucks evaluate between a related new market entry strategy and an unrelated new market entry strategy?
When would a business like Dell pursue an unrelated new market entry strategy?
How does the Apple product life cycle portfolio add to the strategic insight into Apple's current and future sales and profit performance?
What is the advantage to Apple in growing market demand for a new emerging product-market such as the iPad?
Explain why a business like Ford might shift from an offensive strategy to a defensive strategy over the life cycle of a particular product.
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