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Saint MBA565 final exam




Question;A company?s marketing strategy can be customer-oriented (i.e., strategy;designed by examining primarily customer needs) or competitor-oriented (i.e.;strategy based on competitors? actions). In reality, companies do both. For the;following scenarios, identify which strategies to emphasize and why.;A market leader in pharmaceuticalsA market follower in a mature marketA market nicher (i.e., company focused on;a small segment) in interior decoration of luxury homesA a market challenger in a mature market;with low margins and significant economies of scale effect(Points: 100);Question 2. 2.The Tropical Paradise Resort is located on the coast of an;exotic Pacific island. Room rates are $300 per night, which includes;free access to the pool, gym, and tennis courts. The resort also offers the;following services;Aerobics classes ($5 per)Therapeutic massages ($40 per)Scuba-diving trip to a nearby coral reef;($60 per)Day trips to an island volcano ($100 per;trip)The average stay is five days. The hotel is;considering two pricing options;Charge the regular room rate and charge;separately for the four services aboveCharge a higher room rate, which;includes the servicesThe resort?s objective is to maximize long-term;profits by attracting repeat and new customers. Should they price their;services separately or bundle them? Why? Besides prices, what other factors;are important in your decision? (Points: 100);Question 3. 3.Gobi Inc. has sales of $40,000,000. The contribution margin;is 40% and the fixed costs are $3,000,000. The variable cost per unit is $12.;The company is considering two different strategies for increasing their;profits;Spend $2,000,000 in advertising, the;results is expected to increase the company?s sales by 25% Reduce the price by 20%, the;price-demand elasticity is -3.0Which of the two strategies will generate the;highest overall profits? Show;all calculations! (Points: 100)


Paper#47024 | Written in 18-Jul-2015

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