Marketing Simulation exam 2023 study guide with complete solution

Marketing Simulation exam 2023 study guide with complete solution @ stuvate-stuvia usa - *edit* [Ignore chapter numbers. Instead search for the simulation title.] - Unformatted text preview: Principles of Marketing Simulations: Chapters 1, 2, 3, 5, 6, 8, 9, 10, 11, 12, 13, 14,17, 18, 19 Mymarketinglab pearson PLEASE NOTE : EACH SIMULATION IS NOT PERFECT AND WILL HAVE THE SCORE I ACHIEVED ON IT ABOVE THE SIMULATION. YOU CAN USE THIS INFORMATION AND DEDUCTIVE REASONING TO TRY TO IMPROVE YOUR SCORE. ALL MY GRADES ARE PASSING SO IF YOU DON'T CARE ABOUT A PERFECT SCORE JUST FOLLOW ALONG. IF YOU DO CHANGE YOUR ANSWERS FROM MINE YOU MIGHT GET A DIFFERENT SCENARIO TO FOLLOW THAT MAY NOT BE LISTED IN MY SIMULATIONS. Hope this helps you get an A though - Chapter 1 Simulation: What is Marketing? - - You earned 75 percent - SIMULATION DESCRIPTION: Holden Evan, Inc., has long been the premium dog food market leader with its flagship Grand Champion brand. The brand targets breeders, trainers, and owners of purebred dogs willing to pay higher prices for superior nutritional and health benefits. During an economic downturn, the Grand Champion brand suffered a sharp and prolonged decline in sales. The Marketing Manager must re-evaluate the brands marketing strategy and marketing management orientation to determine if they need revision. Background Holden Evan, Inc., has long been the premium dog food market leader with its flagship Grand Champion brand. The brand targets breeders, trainers, and owners of purebred dogs willing to pay higher prices for superior nutritional and health benefits. During an economic downturn, the Grand Champion brand has suffered a sharp and prolonged decline in sales. The brand has become unprofitable. The marketing team is concerned that customer needs and wants may have shifted. Your objective as Marketing Manager is to re-evaluate the brands marketing strategy and marketing management orientation to determine if they need revision. Background Your supervisor, the Vice President of Marketing, describes your assignment. "We have traditionally been the market leader in the premium dog food market with our Grand Champion brand. However, during the recent economic downtown, the brand suffered a sharp drop in sales. We conducted consumer research about this; here are three representative customer reports for you to review." Customer Report: One Jaime, a breeder of champion German Shepherds, has used Grand Champion for 15 years. He told researchers he loves the quality of Grand Champion. However, in the last few years, demand for his expensive dogs has gone down. He has reduced his breeding from twelve litters a year to two, and purchases significantly less food for the smaller number of dogs. Customer Report: Two Jenna runs a dog-training business specializing in preparing dogs for shows. She has bought Grand Champion for ten years to sell in her business and to feed dogs she boards. However, she has recently switched to a cheaper brand. She explained, "I felt that selling Grand Champion added prestige to my business, but demand decreased. My customers needed a less expensive, although still good quality, food." Customer Report: Three Andrew and Mandy are a wealthy couple who own five purebred dachshunds, which compete in shows. They have bought Grand Champion for several years, because the dogs like the food and because Andrew and Mandy like to give their dogs "the best food, leashes, beds, even clothing." After Mandy was laid off in the economic downturn, however, the couple has switched to a cheaper dog food. Shifting Customer Needs and Wants How are the needs and wants of Grand Champion customers changing? - YOU CHOSE OPTION 2 - The customers want to feed their dogs a superior food conflicts with a need to save money. You indicated that the customers want to feed their dogs a superior food conflicts with a need to save money. This was the best choice. Brand Experience The Vice President of Marketing continues: "Weve become concerned that our brand is suffering from marketing myopia. Weve focused in the past on making Grand Champion more and more elaborate. But in response to current trends, weve now eliminated some organic grade A beef and some antioxidants from the food to make it less expensive. Its still excellent nutrition for dogs. We need to decide what brand experience we should promote for our customers now." You return to your office to consider. Choose the best brand experience. - YOU CHOSE OPTION 3 - The sense of feeding ones dog an affordable quality food. You chose the sense of feeding ones dogs an affordable quality food. This was the best choice, and was consistent with the product design. Targeting Customers Your next task is to decide on the appropriate target market for Grand Champion. - YOU CHOSE OPTION 1 - Retain the original target market: breeders, trainers, and owners of purebred dogs. You chose to retain the current market of trainers, breeders, and owners of purebreds. This was a poor choice, because the product had been reformulated in a way that would appeal to a larger market. Choosing a Value Proposition Now that the target market has been chosen, it is time to choose the value proposition to suit those target customers. Choose the best value proposition for your target market. - YOU CHOSE OPTION 2 - "Grand Championgood food for the right price." You selected Grand Championthe good food for the right price. This was the best value proposition given your target market. Marketing Management Orientation The Vice President of Marketing says: So far we have chosen a target market and an appropriate value proposition. Now you must decide which marketing management orientation is best for our situation. Check with our three marketing analysts for advice before you choose. Marketing Management Orientation Marketing Analyst One says: "We need to continue making improvements to Grand Champion in order to recruit more customers. If we offer the best dog food for the money, customers will buy. All other aspects of marketing will follow from our focus on product quality and innovation." Marketing Management Orientation Marketing Analyst Two says: "We need to really get to know our targeted customers and adapt Grand Champion to suit their needs. This is the starting point for all other marketing efforts." Marketing Management Orientation Marketing Analyst Three says: "Our customers may want cheap dog food now, but whats best for society as a whole and our customers in the future? We have to think bigger than our customers do. We need to keep in mind the long-term welfare of our customers and their dogs." Choosing a Marketing Management Orientation Now that you have heard the advice of your marketing analysts, you must choose a marketing management orientation for Grand Champion brand. Review the information youve received and choose from the options at right. - YOU CHOSE OPTION 3 - Make marketing decisions that maximize the welfare of customers and of society as a whole. You selected the societal marketing concept. This was a good choice because it considers our customers needs and wants, as well as what is best for society. Customer Relationship Management In order to increase Grand Champion sales, Holden Evan must create strong customer relationships. Your team has come up with three ideas, and you must choose the best one for your target market. - YOU CHOSE OPTION 1 - Create a frequent-buyer program that gives greater discounts the more the customer buys. You decided to create a frequent-buyer program. This was a good choice, but may not have been the best to reach your target market. Partner Relationship Management You decide to work with your partners to improve Grand Champion sales. Based on your marketing management orientation and your target market, what actions would you ask your partners to perform? - YOU CHOSE OPTION 3 - You ask the production department at Holden Evan to package Grand Champion in jars that can be returned for a refund and reused. You decided to ask the production department at Holden Evan to package Grand Champion in jars that could be returned for a rebate. This was a good choice for the marketing management orientation you chose, since it would benefit society as a whole, not just Grand Champion customers. Capturing Value from Customers Your final task for Grand Champion is to recommend a strategy for capturing value from customers. - YOU CHOSE OPTION 1 - Encourage random noncustomers, who dont fit the target market for Grand Champion, to try it through free samples at grocery stores across the country. You recommended that Holden Evan encourage random noncustomers to try Grand Champion. This was a poor choice. These noncustomers may have needs that have little correlation to your product. - Chapter 2 (11) Simulation: New Product Development - SIMULATION TITLE: New Product Development - SIMULATION DESCRIPTION: Swazzi, Inc. is a large national specialty retailer of high-end clothing, with a target market of sophisticated, high-income consumers. Your objective, as Vice President for Marketing, is to narrow, through screening, the ideas that have been generated to one. You must then supervise development of the concept image, concept testing and market strategy for this line of the Swazzi Spring clothing. - ________________________________________ - You earned 88 percent. - Background - Swazzi, Inc is a national chain of clothing stores, focusing on high end merchandise for an affluent clientele. All products are designed, produced and marketed by the company under the exclusive Swazzi™ brand. Swazzi is preparing to make decisions concerning a Spring line of premium-priced women's clothing. The line will be designed to have a marketing tie-in with the entertainment media. - Background - You will be guiding a proposed spring clothing line through the new product development process. This will involve a progression of steps: developing and testing a concept or image for your product, developing a market strategy for your product, and performing a business analysis on the product. By the time you have finished, your Spring clothing line will be ready to enter the product development phase. - First, however, you must narrow a small group of ideas down to a single, proposed product line. This will occur through "idea screening." - New Product Development Process - A New Product Development Committee ("the NPD committee") chooses the new products at Swazzi that will be developed and put into the marketplace. To narrow your group of ideas to one, you must first organize a presentation of the potential clothing lines for the committee members. - Your Head Designer says: "From all of the ideas that were generated, I have selected three potential clothing lines. I think you are really going to like them: First, a line of gowns inspired by the glamorous clothing worn by actresses on the televised awards shows; second, a "Back to Carnaby Street" retro line inspired by the mod clothing of 1960s London; and, third, a line based on the fashion worn by rock stars currently popular with the 17-25 year-old demographic." - New Product Development Process - The screening process begins with standard write-up on each proposed product line for the NPD committee members. The write-up describes the line, and contains this key information: - • The customer value proposition - • Description of target market - • Description of competing products - • Estimate of market size - • Estimate of retail price to be assigned to product - • Development calendar and budget - • Estimated manufacturing costs, and - • Projected rate of return - The information is provided for all three proposed lines in order for the NPD committee to make comparisons. Generally speaking, Swazzi expects a rate of return (e.g. profit margin) between 35% and 45% on its clothing lines. This is inclusive of all advertising and promotion costs. - New Product Screening - There is a disagreement this year, however. The Head Designer does not want product pricing to be considered at this stage. She notes that in the past, committee members have given undue weighting to the proposed product's estimated retail price. In her opinion this has resulted in some "less than optimal" new product choices. She argues that the screening decision should be made purely on the aesthetics of the designs, with price to become a factor only towards the end of the process. You need to make the decision. - Screening factors: Price - Should the retail price of a proposed garment be one of the factors considered by the NPD committee at the screening stage? - YOU CHOSE OPTION 3 - Price is a factor that should be considered at this time. It's a part of the product design, especially in fashion. - You correctly determined that price is a factor that should be considered by the NPD committee. - R-W-W Framework - In the impending screening process, the NPD committee will use a "real, win, worth it" (R-W-W) framework that applies three basic questions to each proposed new product. - Marketing Manager explains what the three questions are: "Is there a real desire by customers for the product? Does the product provide a genuine competitive advantage that will enable Swazzi to win against any competition? Does the product have worth by contributing to Swazzi's overall growth strategy?" - R-W-W Framework - Select data - You must first obtain data to satisfy the committee of the "R" criterion—that is, to support the proposition that each clothing line would satisfy a genuine need. Which of these factors would you gauge as most important to this point? - YOU CHOSE OPTION 3 - Reliable industry data showing current customer clothing preferences. - You chose to utilize industry data showing customer clothing preferences. While this was the only data set of the three to come from outside of Swazzi, this was the most on point for the information you were looking for. - YOU CHOSE OPTION 3 - Reliable industry data showing current customer clothing preferences. - You chose to utilize industry data showing customer clothing preferences. While this was the only data set of the three to come from outside of Swazzi, this was the most on point for the information you were looking for. - Preliminary data - Your assistant has obtained data from the National Specialty Clothing Retailer Association. It shows significant nationwide interest trending towards classic styles, from the post-WWII period onward, particularly in the 27-42 demographic, and especially in the upper incomes. The data does raise some concern at the highest end, especially among formal wear. The trend away from black-tie functions apparently is impacting formal women's wear. The 19-26 demographic is extremely soft right now, with no significant purchasing in any of the categories. There appears to be a slight improvement in jeans, but it is too soon to tell. - R-W-W Framework - Which of the three proposals would be strongest in filling a real market need? - YOU CHOSE OPTION 1 - Carnaby Street. Your own research demonstrates an ongoing high level of interest in British fashions from the 1960s. - You chose the Carnaby Street line of clothing, which was the best choice given the information available to you. Swazzi research showed this line was most likely to appeal to a broad demographic of customers. - Competitive advantage - You are working on the second component of R-W-W (does the product offer a sustainable competitive advantage?) when you learn that a feature film will be coming out before the spring season focusing on the life of a London fashion model during the "Swinging Sixties." The film is to feature a variety of clothes from that era. In connection with the film a national US department store chain is planning a spring line of casual cotton prints that will update "the colorful patterns from 1960s London." A soft drink maker is planning a major campaign, too. - Competition - Even though your research shows a continuing high interest in British fashion across a wide demographic, you have a nagging concern as to whether Swazzi could win against the competition that has arisen. - Should you withdraw the "Back to Carnaby Street" idea from consideration by the NPD committee because of the anticipated release by one of the other chains? - YOU CHOSE OPTION 2 - No. Swazzi's high end clothing line of silks and suede is sufficiently differentiated such that any impact by a competitor would be negligible. - You correctly noted that Swazzi's planned Carnaby Street line was substantially different than the printed cottons planned by the department store chain. - Profit margin - It is time to pull together material for the final "W" ("Worth it"—does the product have profit potential?) when one of the NPD committee members texts you. He is leaning towards Carnaby Street, but he wants to see estimates on the profit margins. - You text him back. "Overall apparel sales will be driven by the customer's desire to own and wear a particular garment, not whether the company is making X dollars in profit on each sale." The committee member responds, "We could have spectacular sales of 100,000 units. But if each one is sold at a loss, it's no good to us in the end. Get me those figures." - Profit margin and price - You go back to thinking about retail price during the screening discussion. You aren't really able to talk about profit without also discussing price, costs, and break even unit demand. - You are going to have to tell the Head Designer that price must be brought back into the discussion. What is the best reason you can provide for considering price at the screening stage? - YOU CHOSE OPTION 2 - You want to select the line with the highest potential profit margin in order to maximize revenues. - You decided that a high profit margin would lead to maximum revenues. That was not the best choice because it would only be the case if the clothing sells. - Profit margin figures - You put together the pricing and cost information in time for the presentation. It quickly becomes apparent that the Carnaby Street line has the best potential to make a significant profit for Swazzi. The clean lines and simple patterns of the outfits make them easier to produce, cutting production costs significantly. - Sustainable advantage - The committee is leaning toward Carnaby Street, but they are concerned whether the line truly has a significant competitive advantage. - Sustainable advantage - Critical thinking - What is your best argument that Carnaby Street offers the most significant competitive advantage? - YOU CHOSE OPTION 2 - The last 50 years have shown that periodic interest by the general public in fashions of the 1960s can be substantial, and financially lucrative. - You found a sustainable advantage in the Carnaby Street line due to public interest in sixties London over many decades. This was the best answer. - Committee decides - The committee goes with Carnaby Street. They want to hear your ideas for a possible product image, and how that image might be tested. - Potential product images - In your experience the clientele of the Western Division stores seem to be the most finely attuned to upcoming trends. You ask the Flagship Store Manager to suggest a product image for the Carnaby Street line, focusing on the mini-dress, which is an all-weather light wool blend with a taffeta lining and hand-edged piping. - The Manager comes up with these three product images: - Manager speaks: - 1. "Classic elegance from a simpler time." - 2. "From your best boutique." - 3. "Stylish practicality." - How do you determine the effectiveness of the potential product images? - YOU CHOSE OPTION 2 - Test the product image. - You chose to test the product image. This was the correct choice. - Testing the product image - Once the concept and image are developed, they should be tested to make sure that the marketing approach will resonate with consumers. - Testing - Which approach would be most useful in testing a product image for Carnaby Street? - YOU CHOSE OPTION 3 - Having models walk through selected stores, and then employees ask customers about their reactions. - For the testing procedure you chose to have models walk through selected stores, and then have employees ask customers about their reactions. This was the best option for testing from among the three choices. - Congratulations - Congratulations. You have completed the new product development process! - Chapter 3 Simulation : The Marketing Environment - - You earned 85 percent. Date: 27 August 2016 SIMULATION TITLE: The Marketing Environment SIMULATION DESCRIPTION: Gerlach Publishing is a small publisher that exclusively publishes textbooks used in Colorado public schools. The Marketing Director at Gerlach is responsible for researching and monitoring the companys macroenvironment and proposing necessary changes in marketing strategy in light of long-term changes. Changes in the demographic, political, economic, natural, cultural, and technological environments must be evaluated and the correct response to these changes chosen. Background As Marketing Manager at Gerlach Publishing, which exclusively publishes textbooks for Colorado public schools, you are responsible for researching and monitoring the companys macroenvironment and proposing necessary changes in marketing strategy. Key decisions you must make include: which changes in the macroenvironment are important to Gerlachs marketing efforts, what are the likely effects of those changes, and how Gerlach should respond to these changes. Background Gerlach produces science, social studies, math, and language arts textbooks for first through twelfth grade. In the past, the macroenvironment for your company has been fairly stable. However, information youve received from your research team shows that this is starting to change. The first three reports deal with long-term changes in the macroenvironment. Review the reports before you decide which next steps to recommend to your supervisor, the Vice President of Marketing. Background Historically, the number of school-age children in Colorado has increased at a gradual rate each year. However, recent trends indicate that the population as a whole is aging, and the number of school-aged children has begun to decline. Trends suggest that it will continue to decline over the next decade. Additionally, the number of non-English-speaking students is expected to triple in the same time period, to around 13% of the total student population. Demographic Report Gerlach currently buys paper from a local supplier to print its textbooks. Deforestation has now resulted in a shortage of trees available for logging. Also, the remaining forests are coming under increasing protective legislation, which means even fewer trees can be logged. Additional legislation has recently been passed requiring that paper companies produce more recycled paper, which costs more to produce than traditional paper. Cultural Report In Gerlachs market area, the public school system is increasingly being seen as an outdated institution focused on standardized tests and behavior rather than true learning. As a result, parents are choosing other options. Homeschooling in particular is on the rise; a market that does not currently buy from Gerlach. Evaluating the Macroenvironment Long Term Changes After reviewing the reports of long-term changes in the macroenvironment, you must pick one element that you think Gerlach should respond to first. - YOU CHOSE OPTION 1 - Demographic Environment You selected the demographic environment. Demographic Changes Now that you have selected the demographic environment, you must predict what might be the effects of these changes on Gerlachs microenvironment. Choose the possibility you see as most likely. - YOU CHOSE OPTION 2 - These changes might reduce sales of current products, but could create new markets in products for English language learners. You predicted that the demographic changes would result in fewer sales of traditional products, but would open opportunities for new markets. This was a good choice. Responding to Demographic Changes You call a meeting with your marketing analysts to discuss the situation. You give them your prediction that there will be a reduced student population in the future, but new marketing opportunities, and ask for their recommendations as to how Gerlach should respond. Which recommendation will you follow? - YOU CHOSE OPTION 1 - Marketing Analyst One: We should make and aggressively market products for the English language learner market. You chose to market towards the English language learner market. This was a good choice. Demographic Changes: Results You take your proposal to your supervisor. She is pleased. VP of Marketing: "I think that if we followed your plan, in the year 2020 Gerlach would be doing well. We would have successfully created products for the English language learner market and so would have made a profit despite the reduced number of students overall. Keep this experience in mind as you look at the short-term changes to Gerlachs macroenvironment." Additional Long-Term Changes You chose to explore the demographic changes on Gerlachs business. But the natural and cultural environments will have effects as well. From the choices above, choose the best responses to these changes. You chose to use less paper by positioning Gerlach as the environmentally-friendly choice and emphasizing its electronic products. This was a good choice. You chose to create and market homeschooling programs. This was a good choice. Short-Term Changes: Introduction VP of Marketing: "Now that youve tried analyzing the long-term marketing environment, lets take a look at the short-term changes that will affect Gerlach. Next month, the state of Colorado will be choosing science textbooks for grades 3 through 12. Weve already printed these books, and need to make a return on our investment. Ive sent three reports to you concerning changes in the macroenvironment for our science books. Look them over, and decide which will affect us the most." Economic Report A wealthy scientist has left a large grant to the Colorado public schools to be used only for science education. This grant will double the money available for the state to purchase science textbooks and materials. Technology Report A technology company has just come out with a laptop computer especially designed for students use in a classroom. Sturdy and cheap, it allows students to access online editions of their textbooks, use tutorials and connect to their classrooms smart boards, as well as other functionalities. It is being advertised as the "future of learning." Political Report A new but strongly influential member of the school board (which chooses Colorados textbooks) is proposing a radical overhaul of the way science is taught in the state. She proposes science be taught not through books but only through a new, experimental "hands-on" style: experiments, field trips, etc. Her popularity and influence make it likely that this measure will pass next week, even though most science teachers oppose the plan. Evaluating the MacroenvironmentShort Term Changes After reviewing the reports of short-term changes in the macroenvironment, you must pick one element that will have the most profound effects on your company. - YOU CHOSE OPTION 3 - Political Environment You selected the political environment. This was a good choice. Poltical Changes Now that you have selected the political environment as the one most likely to affect your business in the short term, you must determine what might be the effects of these changes on Gerlachs microenvironment. Choose the possibility you see as most likely. - YOU CHOSE OPTION 1 - Gerlachs business will be hurt by the proposed measure, as the school board will not buy textbooks. You predicted that Gerlachs business would be hurt by the proposed measure. This was a good choice. Responding to Political Changes You call a meeting with your marketing analysts to discuss the situation. You give them your prediction that the school board will not buy Gerlachs textbooks, and ask for their recommendations as to how Gerlach should respond. - YOU CHOSE OPTION 2 - Marketing Analyst Two: Lets modify our science program to fit the "hands-on" plan and market Gerlach as the company of the future. You chose modify your science program to fit the "hands-on" proposal. This was a reasonable choice, but overly optimistic given the time you had. Political Changes: Results You take your proposal to the VP of Marketing. She agrees with your recommendation. Gerlach markets itself as ready to teach the "hands-on" style, although actually it is not. The editorial team must create new products in a hurry, and half quit. Between the money already spent on the textbooks and the additional money spent creating technology products, Gerlach is way over budget. It is on the edge of bankruptcy, and you are fired. Responding to Political Changes In your exit interview, your supervisor asks what you would have done differently. Choose your response from the options at right. - YOU CHOSE OPTION 3 - You would have suggested a response more in line with Gerlachs business goals. In your exit interview, you stated that you would have suggested a response more in line with Gerlachs business goals. This would have been a good strategy - Chapter 5 Simulation: Consumer Behavior - - Date: 31 August 2016 SIMULATION TITLE: Consumer Behavior- You earned 100 percent. SIMULATION DESCRIPTION: As the manager of TriState Dairies market research department, you need to determine what to do with the Dairies surplus milk. Background You are the marketing manager at TriState Dairies, a regional dairy firm. Sales have been flat in recent years, so management has been looking for new, creative, innovative products to spur the growth. Managements plan is to develop a new brand of milk products called Cow Power, to be marketed to kids 12 and under. They have developed a range of colors yellow, green, pink, red and a range of flavors banana, green apple, plum, butterscotch for the Cow Power brand. Background As marketing manager, your task is to successfully introduce Cow Power into the marketplace. Once you have determined a target demographic and a product design, you will give the product a test release in Paterson , New Jersey before distributing it more widely. Milk products of this type will need to appeal to children as well as the parents that usually make purchases on their behalf. A competitor is planning a similar line of flavored milk, so you will want to choose product attributes that encourage early adoption. Choose a Demographic Your first step is to select a target demographic for Cow Power. Any choice here can b