MarkStrat Quiz Flashcards
describe some general characteristics of the markstrat world
- fictitious industrialized country of 80 million inhabitants whose monetary unit is the Markstrat dollar ($).
- roughly behaves like most markets
- inflation (2%) and GNP growth (4%) are fairly stable
- no major political, social, or economic event is anticipated in near future
What are the five primary characteristics of clinite products? (since they can be evaluated along more than 50 attributes)
- efficacy
- safety
- packaging
- pleasure
- usability
def. this refers to the ability of the product to deliver the benefit intended. For instance, the rating is a measure of the product’s sun protection, anti-wrinkle effect, color coverage, micro-emulsion, etc.;
efficacy
def. This attribute measures the degree to which the product produces few or many side effects. A high rating is an indicator of harmlessness, absence of allergic reactions, purity, medical approval, etc
safety
def. Characteristics of the product packaging. Several benefits are included here, such as attractiveness, convenience to carry, appropriate size, etc.;
packaging
def. This is a somewhat subjective attribute, but it is a measure of how pleasing a product is to use, over and above its efficacy or convenience. Here it refers to texture, scent, etc
pleasing
def. A measure which indicates ease of use, time to dry, required number of applications per day, compatibility with other skin care products, resistance to water, etc.;
usability
how are characteristic dimensions rated?
on a scale of 10 (poor) to 100 (excellent)
t or F: offering more of a given characteristic is always better
False, it is not necessarily better
e.g. . For instance, sun-protection products with very high protection indices will prevent you skin to tan; if your objective is to tan, you may want to use a lower index product.
describe clinite market
- Clinites are skin-care cosmetic products such as beauty or anti-aging creams, sun-care or skin care lotions.
- Clinite products have existed for several years and the market has grown quite consistently since the introduction of the first Clinite brand.
- It is now a well-established market, with several strong brands at different price points covering a wide range of needs.
- Analysts believe that the Clinite market will continue to grow over the next five years.
def. the cost at which each unit will be produced, based on an initial production batch of 2.5 million units
base cost (min is 1.2$)
The base cost is decided jointly by the Marketing department – which is mainly concerned with ____________ – and by the R&D department –which is mainly concerned with ___________
margin and profitability (marketing)
product feasibility (R&D)
describe the nutrite market
Nutrite products will satisfy entirely different needs from that of Clinite products so that demand for the two products will be completely independent. They will not be complementary in any way and there will not be any substitution from one to the other. It is anticipated that the Nutrite market will be quite attractive if high quality and great tasting products with clinically proven benefits is made available at the right price.
- Recent calculations suggest that an investment of about 10 million dollars may be required for the first Nutrite.
what are the 5 most important characteristics of the nutrite market
- clinical benefit
- nutrition facts
- packaging
- flavour
- variety
def, This refers to the ability of the product to deliver the benefit intended. For instance, the rating is a measure of the increase in skin elasticity, reduction of aging spots, reduction of hair loss, etc.;
clinical benefit
def. This attribute measures the degree to which the product is “good for you” or has high quality ingredients. A high rating is an indicator of no preservatives, little artificial color, no added sugar, reduced salt, low saturated fat, etc.;
nutrition facts
def. Characteristics of the product packaging. Several benefits are included here, such as attractiveness, convenience to carry, appropriate size, etc.;
packagaging
def. Quality of the product taste, in terms of uniqueness and pleasure of the taste experience with the product, and of ability to support the performance claim. For instance, high quality flavors can express concepts such as smooth, natural, fresh, etc..
flavour
def. A measure which indicates the number of product variations, in term of serving sizes, flavors or presentations.
variety
how are nutrite characteristics rated?
on a scale of 0 (poor) to 100 (excellent)
what is the min base cost for a nutrite
$2.30
describe naming conventions
Brand names are made up of up to six characters. The first letter identifies the firm marketing the brand (M, R, S, T, L or N). The second letter must be an ‘I’ for a Clinite or an ‘U’ for a Nutrite. The other characters can be letters or numbers and can be freely chosen by each firm to generate different brand names.
what are 5 consumer segments for clinite market
- high earners (Hi)
- Affluent Families (Af)
- Medium Income Families (Me)
- Low Income Families (Lo)
- Singles (Si)
def. The members of this group are characterized by their high incomes.
- They are women over 25 years of age, either single or married without kids, and studies show that they usually buy expensive products, which they can afford, and that their purchases are partially motivated by social status.
- They are heavy users, with an average loyalty to their favorite brands, and they are price insensitive to the point of disregarding cheap brands, and they demand high levels of performance attributes from their products.
high earners (hi)