Quiz 1 Study

Question 1

Sales Forecasting: Bases Model part 1: trial

Answer 1

1. Households
2. Adj purchase intent
3. Awareness
4. Distribution reach
5. trial rate (234)
6. trial HHs (1*5)
7. trial units per hh
8. total trial units (6*7)

Question 2

Sales Forecasting: Bases Model part 2: repeats

Answer 2

9. number of trial hhs
10. repeat rate
11. number of repeat HHs (9*10)
12. repeat visits
13. repeat units at each visit
14. total repeat units (111213)

Question 3

Break-Even Cannibalization Rate =

Answer 3

New Product unit contribution / Old Product unit contribution

actual cannibalization rate must be lower than the BECR in order for the new product introduction to be profitable

Question 4

Chain Models of Segment Value

Answer 4

Segment value = # of customers * value per customer

where:
# of customers = population * segment size % * segment penetration

Question 5

Customer Lifetime Value

Answer 5

profit 0 * repeat rate 0 + (profit 1 * repeat rate 1) / (1 + discount rate)^1 + (profit 2 * repeat rate 2) / (1+discount rate)^2 + … + (profit T * repeat rate T) / (1+discount rate)^T - AcquisitionCost

Question 6

What are the two questions we ask to identify what a company’s strategy is/should be?

Answer 6

What is your target market?

What is your value proposition?

Question 7

What questions are asked to determine what the target market is?

Answer 7

Who benefits from your product/service?

Who can you serve profitably?

Question 8

What questions are asked to determine what the value proposition is?

Answer 8

What benefits does your product/service provide?

What differentiates you from competitors?

Question 9

What is segmentation aligned with?

Answer 9

Target market

Question 10

What is Targeting aligned with?

Answer 10

Target market

Question 11

What is positioning aligned with?

Answer 11

Value proposition

Question 12

What is segmentation?

Answer 12

dividing a market into segments of strategically similar customers

Question 13

What is targeting?

Answer 13

valuating segments and selecting one or more as your target customers

Question 14

What is positioning?

Answer 14

how your product/service fits into the market relative to your competitors. It is achieved using the 4Ps

Question 15

What are the 3 Cs? 5 Cs?

Answer 15

Customer, Company, Competition

Collaborators, Climate

Question 16

Customer (things to evaluate):

Answer 16

potential segmentation and targeting, market sizing, projected sales/profitability

Question 17

Company (things to evaluate):

Answer 17

which of the 4Ps are most important?

Competitive advantage? strengths & weaknesses?

Question 18

Competition (things to evaluate):

Answer 18

rivals? Market share of each? How are you differentiated or positioned? What are ur opportunities/threats?

Question 19

Collaborators (things to evaluate):

Answer 19

how do your suppliers/intermediaries/other partners contribute to your Strengths and Weaknesses

Question 20

Climate (things to evaluate):

Answer 20

what factors in your environment contribute to opportunities and threats

Question 21

What are the 4 Ps

Answer 21

product price place promotion

Question 22

What are the 5 steps and 3 phases of a Strategic Marketing Plan?

Answer 22

planning phase:
step 1: business mission & objectives
step 2: situation analysis + SWOT

implementation phase:
step 3: identify opportunities
step 4: implement marketing mix

control phase:
step 5: evaluate performance using marketing metrics

Question 23

What’s the difference between a marketing strategy and marketing tactics?

Answer 23

strat: means by which a marketing goal is to be achieved (target market/program)

tactics: detailed day-to-day operational decisions that contribute to marketing strategies

Question 24

Market size =

Answer 24

of buyers * # of units per buyer & avg. price

Question 25

Market share =

Answer 25

company sales / total market sales

Question 26

Break-even quantity (TBEV Total Break-Even Unit Volume)

Answer 26

Fixed Cost / Unit contribution

Question 27

Unit contribution =

Answer 27

(unit selling price - unit variable cost)

Question 28

Projections are sensitive to _____ and _____.

Answer 28

assumptions & risk

assumptions should be grounded in careful market research

risks need to be understood

Question 29

What are the 3 dimensions of customer value?

Answer 29

functional value, psychological value, monetary value