Capsim study guide to exam Questions and Answers

Capsim study guide to exam Questions and Answers 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 does the perceptual map evaluate? like what is on the x and y axis's with the circles. the perceptual map moves based on the performance (x axis horizontal) and the size (y axis up and down). always try to stay in the ideal spot for performance and size in that segment. Perceptual map a marketing tool used to compare products against customer perceptions. - measures performance and size of the product. In the perceptual map, if there is rapid movement of an existing product, it needs lower... lower automation levels. Generally, __________ will be incurred when production levels decrease and / or Automation levels increase. separation costs. - cause when automation increases, you don't need much people cause the machines take over so its a separation cost to fire ppl. The Capstone Courier (also called the industry newsletter) is... - is an extensive year-end report of the sensor industry. This report includes: - Customers Buying Patterns - Product Positioning - Public Financial Records. This is where your team will evaluate their company's performance or analyze their competitors (i.e. other companies within the sensor industry). The first page of the courier is a snapshot of last year's results. what does the financial summary page cover in the capstone courier? financial summary page = - each company's cash flow - balance sheet - income statements what does the production analysis report say in the courier? production analysis = - detailed info about each product in the market - sales - inventory - price - material cost - labor cost What does the segment analysis say in the courier? - each market segment in detail. - ideal position - price - age - reliability - customer survey is in the segment analysis What does the "market share report" say in the courier? - sales volume in all segments. - reporting potential and actual sales In Capstone©, pricing standards are set by: The Customers (or specific Market Segment). In Capstone®, the spreadsheets (as in the different sections of CAPSIM)- allow team members to - make changes to variables. - observe the results of changes made to variables. - Each of the spreadsheets work independently and depend on values entered in other spreadsheets. Which spreadsheet/department are new products created and revised on? - Research and Development - You can change repositioning, invention, and reliability adjustments on the R&D spreadsheet. what can you do in the marketing spreadsheet? - prices. - promotion budgets. - sales budgets. - REMEMBER: Enter your worst-case forecast for sales, and your best case for production so you don't stock out. - The marketing spreadsheet has the credit policies for customers and supplier sets. - THE MARKETING DEPARTMENT ESTABLISHES THE PRICES OF THE PRODUCTS. If you see a red flag on one of your spreadsheets, what does this mean? That there is more information. - Example - if there is a red flag in your relationship, there is more information you need to know about that red flag in order to continue the relationship. cash position the cash position at the beginning of the round and a projection of the cash position at the end of the round. The A/R lag is The A/R lag is - a marketing spreadsheet definition. - the accounts receivable lag (in days). - the time between customers receiving products and when they are expected to pay for them. - When A/P lag increases... it improves its cash position and its suppliers withhold material for production. They withhold it for 150 days. - If you increase A/R lag days, your sales forecasts increases and collection time increases. If the segments all drift to the LOWER RIGHT section of the map, what does that mean? That the customers (or market segment) are setting the standards that they want smaller (size) and faster (performance) products. Which market segment moves or drifts the slowest? Low end... - cause i mean all they care about is price so as long as the price is low, other stuff don't really matter. true or false? High End Performance Size drift at a faster rate than the other segments. True (Price Question) - At what dollar amount above the segment guidelines is all consumer appeal lost? $5 (Price Question) - The prices in each segment drops by.. drops by $0.50 each year. What is a fine cut circle? its the area around the idea spot. - inside each fine cut circle, segments have an ideal spot where demand is at its highest. - The inner fine cut circles represent the heart of the segment where demand is strong. - in the fine cut, a product's appeal is drive by its "customer survey score". Which customer group or market segment seeks proven products using current technology? or customers that want proven products, current technology of moderate size and performance. Traditional customers - This makes up 27.5% of the sensor market in 5 years for the simulation. - Most important criteria for traditional segment is AGE. it makes up 47%...