Capsim study guide to exam
What are the 5 market segments?
and what is a market segment? - -1. Traditional
2. Low End
3. High End
4. Performance
5. Size
- Group of customers with similar purchasing concerns
-What does the perceptual map show? - -the positioning of a product in the
different segments.
-Where do all 5 segments fall in the map? - -- Upper left = low segment
- Next to low segment on the upper right side = Performance
- middle = traditional
- bottom left = size
- Bottom right = High end
-What does a segment manager do? - -verify the products entering and
leaving a segment, the margin potential for those products, capacity level
and the distribution system as compared to competitors.
-What is the difference between the market segments at the beginning of
the round vs. the market segments in the final round? - -The fine cuts
overlap in the beginning and in year 8;
- only the rough cuts overlap.
-what is the distance between low and high preferred prices? - -10 bucks
-Customers go through a two-stage buying process: The Rough Cut and the
Fine Cut....
What two factors are considered in both the rough cut and fine cut of the
customer buying process? - -mainly Price and Reliability
- Age is not considered in the rough cut at all.
, -What trend can be explicitly observed in the industry in which your
company is operating? - -Products become smaller and smaller.
- Example - Apple iphones get thinner and thinner.
-What's the measure for product reliability? - -Expected time a product lasts
-MTBF (reliability) is - -- Mean Time Between Failure.
- This measures reliability, size and market segment.
- measured in hour increments.
- MTBF per 1,000 hours = 0.30 cents.
- How much of a range does each segment have for MTBF? - 5,000 hour
range.
Products with an MTBF 1,000 hours below the segment's guideline lose about
___20__% of their customer survey score.
-changing MTBF does not affect - -on percieved age
-Increasing a product's reliability will result in which of the following changes
to production costs? - -higher material cost
-What are the 4 buying criteria? - -Price
Age
MTBF
Positioning (pfmn, size)
- Each segment values these buying criterias in different order.
-Which two buying criterias remain the same over time? - -Age
Reliability
-Low Tech customers emphasize buying criteria in which order? - -1. Price
2. Age
3.Postioning (pfm and size)
4. Reliability
-44. If you are marketing to HIGH END customers, which criteria are most
important to them in order of importance? - -1. Positioning (pfm and size)
2. Age
3. MTBF (reliability)
4. Price (matters about 9%)
, -what is the most important for high end customers? - -positioning.
aka, (pfmn, size) = positioning.
- High end customers seek the cutting edge technology in both size and
performance.
- buying criteria is the same for size and high end because they're both next
to each other on the map.
-what is the most important for low end customers?
(Upper left area) - -low price... low price matters 53% to them which is high.
-Customers that want low prices and are willing to sacrifice size and
performance are in the _____ segment - -low end segment.
- low end customers want the lowest price so they don't care that much
about size or performance.
- AKA boba's cheap ass lmfaoo
-Customers who care about size are part of which segment? - -Size segment
- Size's growth rate for their segment is 18.2%.
-Which customer group or market segment seeks high reliability, advanced
technology products that emphasize high performance? - -Performance
customers
- Performance has the highest growth rate in the market.
-Of the groups of the marketing segments (performance, size, traditional,
high end, and low end)
which 3 are considered to be in high tech segments and usually "ride the
wave" of technology? - -1. Performance
2. High end
3. Size
-the performance segment places importance on - -reliability (cause in
order to perform well, it needs good reliability).
and positioning - which is performance and size.
What are the 5 market segments?
and what is a market segment? - -1. Traditional
2. Low End
3. High End
4. Performance
5. Size
- Group of customers with similar purchasing concerns
-What does the perceptual map show? - -the positioning of a product in the
different segments.
-Where do all 5 segments fall in the map? - -- Upper left = low segment
- Next to low segment on the upper right side = Performance
- middle = traditional
- bottom left = size
- Bottom right = High end
-What does a segment manager do? - -verify the products entering and
leaving a segment, the margin potential for those products, capacity level
and the distribution system as compared to competitors.
-What is the difference between the market segments at the beginning of
the round vs. the market segments in the final round? - -The fine cuts
overlap in the beginning and in year 8;
- only the rough cuts overlap.
-what is the distance between low and high preferred prices? - -10 bucks
-Customers go through a two-stage buying process: The Rough Cut and the
Fine Cut....
What two factors are considered in both the rough cut and fine cut of the
customer buying process? - -mainly Price and Reliability
- Age is not considered in the rough cut at all.
, -What trend can be explicitly observed in the industry in which your
company is operating? - -Products become smaller and smaller.
- Example - Apple iphones get thinner and thinner.
-What's the measure for product reliability? - -Expected time a product lasts
-MTBF (reliability) is - -- Mean Time Between Failure.
- This measures reliability, size and market segment.
- measured in hour increments.
- MTBF per 1,000 hours = 0.30 cents.
- How much of a range does each segment have for MTBF? - 5,000 hour
range.
Products with an MTBF 1,000 hours below the segment's guideline lose about
___20__% of their customer survey score.
-changing MTBF does not affect - -on percieved age
-Increasing a product's reliability will result in which of the following changes
to production costs? - -higher material cost
-What are the 4 buying criteria? - -Price
Age
MTBF
Positioning (pfmn, size)
- Each segment values these buying criterias in different order.
-Which two buying criterias remain the same over time? - -Age
Reliability
-Low Tech customers emphasize buying criteria in which order? - -1. Price
2. Age
3.Postioning (pfm and size)
4. Reliability
-44. If you are marketing to HIGH END customers, which criteria are most
important to them in order of importance? - -1. Positioning (pfm and size)
2. Age
3. MTBF (reliability)
4. Price (matters about 9%)
, -what is the most important for high end customers? - -positioning.
aka, (pfmn, size) = positioning.
- High end customers seek the cutting edge technology in both size and
performance.
- buying criteria is the same for size and high end because they're both next
to each other on the map.
-what is the most important for low end customers?
(Upper left area) - -low price... low price matters 53% to them which is high.
-Customers that want low prices and are willing to sacrifice size and
performance are in the _____ segment - -low end segment.
- low end customers want the lowest price so they don't care that much
about size or performance.
- AKA boba's cheap ass lmfaoo
-Customers who care about size are part of which segment? - -Size segment
- Size's growth rate for their segment is 18.2%.
-Which customer group or market segment seeks high reliability, advanced
technology products that emphasize high performance? - -Performance
customers
- Performance has the highest growth rate in the market.
-Of the groups of the marketing segments (performance, size, traditional,
high end, and low end)
which 3 are considered to be in high tech segments and usually "ride the
wave" of technology? - -1. Performance
2. High end
3. Size
-the performance segment places importance on - -reliability (cause in
order to perform well, it needs good reliability).
and positioning - which is performance and size.
