LP3.2 Assignment: Simulation This assignment will assess the following competency: 3. Evaluate effective product positioning techniques, and 4.

LP3.2 Assignment: Simulation This assignment will assess the following competency: 3. Evaluate effective product positioning techniques, and 4. Demonstrate the ability to exhibit sound marketing decision-making.

1. Your success in the PC industry depends first and foremost on which of the following?

   1. The price

   2. Brand design

   3. The economic environment

   4. Both a and c

1. Brand design is difficult for which of the following reasons?

   1. There are a wide variety of customers

   2. There are many components from which to choose

   3. It is difficult to decide which components provide which benefits for the end user

   4. None of the above

1. Before you select the design components for your target market, it is wise to review your customers’ needs.

   1. True

   2. False

1. As you make your selection of components, it is wise to keep in mind all but one of the following things:

   1. The benefits desired by the segment

   2. How the computer will be used

   3. The price the segment is willing to pay

   4. The expertise of your sales force

1. In designing your brand, what is the one thing that does not need to be done?

   1. Match up benefits and features that are attractive to your target market

   2. Consider the price your market will bear

   3. Discover the market performance response curve

   4. Position your brand

   5. All of these are important

1. In the Marketplace, it is generally recommended that you design a complete product assortment before you go past Quarter 3.

   1. True

   2. False

1. Sometimes a feature will fall short of the requirements of one segment, while in another segment, it may provide more capability than is needed.

   1. True

   2. False

1. What is the price/performance tradeoff?

   1. Higher performance features cost more, but will the target market pay more for these better features?

   2. Higher price means you have to have better features

   3. Lower price means you have to have lower performance features

   4. Both b and c

Quarter 3 decisions

1. The issue of pricing does not need to be addressed during your brand design efforts.

   1. True

   2. False

1. When deciding on price you should consider

   1. What the market will bear

   2. Your production costs

   3. The price your competition will charge

   4. All of the above

1. As a general guideline, your selling price should be approximately what percent more than your cost of goods?

   1. At least 50% more

   2. At least twice the cost

   3. Two to three times the production cost

1. Why would you want to use a rebate?

   1. Create excitement

   2. Stimulate interest

   3. To give money back to your customer

   4. Both a and b

1. The more sensitive a segment is to price, the more likely it will switch to a brand with a lower price.

   1. True

   2. False

1. Price rebates are a short-term stimulant to market demand.

   1. True

   2. False

1. The sales priority is a clear indicator to the sales staff regarding which of the following?

   1. Management’s interest in selling one brand over the other brands when making sales calls.

   2. How to price the brands

   3. Where to locate the brands in the office

   4. All of the above

1. You can favorably influence the sales of a brand by doing which of the following?

   1. Having the sales staff receive special training in the target segment

   2. Giving the sales force free rein to do what they want

   3. Decreasing sales force pay

   4. a and b

1. If you offer a rebate on a brand, you can expect that 50 percent of all sales will result in a rebate request.

   1. True

   2. False

1. The down side of a rebate program is:

   1. You may be borrowing sales from the future

   2. Lost sales

   3. Low incentive to purchase products

   4. All of the above

1. It is very important to test and know the price elasticity (sensitivity) of your target segments. This knowledge will help you to decide whether to use penetration pricing (deep price cuts), price rebates, or skim-the-cream pricing (premium prices).

   1. True

   2. False

1. You can influence demand in a given market by your management of the sales people?

   1. True

   2. False

1. Most of your sales force decisions are made on what basis?

   1. Regional

   2. Local

   3. State

   4. None of the above

1. How would you indicate to your sales force which brand should be given the greatest emphasis when trying to sell to potential customers?

   1. Assign it a priority of 1

   2. Assign it a priority of 10

1. Which of the following has the least effect on the number of units each sales person can sell?

   1. How much you pay them

   2. The price of your brand relative to the price your customers are willing to pay

   3. Whether your customers like your brand better than your competitors’ brands

   4. Where your sales office is located

1. Advertising is an important part of the marketing mix. It can be used to do which of the following?

   1. Inform

   2. Persuade

   3. Reinforce the market relative to the qualities of your firm, your brands, and your distribution system

   4. All of the above

1. An effective ad campaign can help you to outsell your competition, even if some of your brands are not perfectly positioned relative to the needs of your customers.

   1. True

   2. False