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Saint MBA565 final exam

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Question;1.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#47029 | Written in 18-Jul-2015

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