1. Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars typically results in a 26% increase in awareness, while the second million results in adding another 18% and the third million in a 5% increase. Andrewss product Axe currently has an awareness level of 77% . While an important product for Andrews, Axes promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Axe loses one-third of its awareness each year, what will Axes awareness level be next year?

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• 78%

• 52%

• 73%

• 57%

  2. Creak's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Creak product manager do in order to improve upon the buying criteria, and thus potentially increase demand?

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• Lower the selling price since it is the second most important buying criteria

• Increase MTBF by 2000

• Reposition Creak to make it even smaller and higher performing

• Increase the promotion budget to gain greater awareness

  3. Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales budget, the Cat product manager wishes to achieve a product contribution margin of 35%. Given their product currently is priced at $35.00, what would they need to limit the material and labor costs to?

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• $22.75

• $24.50

• $21.00

• 4. $23.00Which description best fits Andrews? For clarity: - A differentiator competes through good designs, high awareness, and easy accessibility. - A cost leader competes on price by reducing costs and passing the savings to customers. - A broad player competes in all parts of the market. - A niche player competes in selected parts of the market. Which of these four statements best describes your company's current strategy?

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• Andrews is a broad differentiator

• Andrews is a broad cost leader

• Andrews is a niche differentiator

• Andrews is a niche cost leader