Managerial Marketing

If you knew the unit market share and the total market unit sales for a product, and also knew that the average sales revenue per unit sold was $50.00, would you be able to calculate the Revenue Market Share?
a. Yes
b. No
a. Yes
Market Share is a calculation of the number of units or dollar sales for
a. A particular product from a company divided by the total units or dollar sales for that product and its direct competition.
b.A particular product from a company divided by the total units or dollar sales for all the products sold by the company.
c. A ranking of the brands whose sales make up 80% of the total market for that product.
d. A ratio of the number of products a company sells divided by the number of products the competitor sells.
e. The total dollars or units combined for the top three or four companies in the market.
a. A particular product from a company divided by the total units or dollar sales for that product and its direct competition.
When a customer prefers to buy a particular brand but will buy the competitors product if that brand is not in stock, it is an example of:
a. The strength of brand associations
b. The strength of brand image
c. The strength of brand loyalty
d. The strength of market share
e. Brand equity
c. The strength of brand loyalty
The purpose of an environmental analysis is

a. To identify how the community, economy and natural environment interact in
order to create a sustainable business plan.
b. To fully understand the consumer decision making process and how they are
influenced by various inputs across the time period they are making the
decision to buy.
c. To identify primary and secondary trends in the external environment that a company needs to take into consideration when creating their marketing strategy.
d. To provide a strong relative market share increasing the ROI for the stakeholders of the firm.
e. To provide the customer with an full understanding of the impact of the company’s product on the environment.

c. To identify primary and secondary trends in the external environment that a company needs to take into consideration when creating their marketing strategy.
Which of the following is not part of an internal analysis
a. Profitabilty
b. Shareholdervalue
c. Political regulation
d. Patents
e. Customer satisfaction
c. Political regulation
The purpose of a competitor analysis:
a. Is to find out the weakness of the competition.
b. Is too list all the competitors in your market
c. Is to chart relative market share rank against the concentration ratio for
competitors in the product category.
d. Is to identify strategic competitive advantages
d. Is to identify strategic competitive advantages
A positioning statement is
a. Is the choice of which retail channel will be primary in the companies strategy for growth.
b. Used by the firm in writing its annual report to explain the position of the firm in the market and its current stock price.
c. A results of a scenario analysis
d. A statement of how to compare the product attributes of the brand against those of the competition in the mind of the consumer
e. Instructions to the retail channel member regarding the shelf position and categorization the product requires for maximum exposure to the consumer and high stock turnover.
d. A statement of how to compare the product attributes of the brand against those of the competition in the mind of the consumer
ROMI share is an indicator of how well a firm is doing against its competitors.
a. True
b. False
b. False
Besides Units versus dollars, what are the most important factors to define when calculating market share:
a. Currency, inflation rate, and time
b. Retail,wholesale,andinternet
c. Level in the channel, market definition or scope, and time
d. Product,place,promotion
e. Coupon rates
c. Level in the channel, market definition or scope, and time
Customer Analysis includes segments, motivations and ______________.
a. Strategic groups
b. Unmet needs
c. Profitability
d. Scenarios
b. Unmet needs
The stock in private firms is traded on the NYSE.
a. True
b. False
b. False
Customer satisfaction results from
a. Availability of substitute products
b. Priceoftheproduct
c. Shareholder value
d. Cost/benefit analysis and customer service for the product.
d. Cost/benefit analysis and customer service for the product.
Understanding how quickly an uncertainty may affect a company is one axis of the impact analysis.
a. True
b. False
a. True
Generally, sales growth resulting from stealing market share from the competition is less costly, and more profitable than increasing primary demand (total market growth).
a. True
b. False
b. False
Segmentation is an important strategic process to defining a target segment for a product. Why is the choice of a target market important?
a. Target markets are important so you know who will be allowed to buy the product.
b. The target market is the segment around which tactics are focused.
c. The target market has the highest income and is therefore the most profitable
d. The segment with the largest population.
e. The target market is defined by demographic variables
b. The target market is the segment around which tactics are focused.
“four door sedans” is a
a. Target segment
b. Marketdescription
c. Product Category
d. Strategic uncertainty
e. Scenario
c. Product Category
The competitive strength grid uses market share and relative market share to chart the competition in a product market.
a. True
b. False
b. False
A competitor map shows the distance between competitor retail locations and the market share for each
a. True
b. False
b. False
A substitution product for the Chevy Camero could be a Schwinn bike or the local bus if viewed as direct competition.
a. True
b. False
a. True
Market potential is the sales in dollars a company believes they will make against the competition.
a. True
b. False
b. False
Define a product category. List at least three external trends that impact the products in that category. (4 Pts).
Need to list a product category (crosses all companies in that category) and not a specific product ( smartphone -Yes; Iphone- No). 1 pt.

External trends are external to the company and impact whole industries or even broader. E.g. global warming – Yes; increasing sales in recycled Patagonia polarfleece – No / Increasing trend toward concern about product impact on health – Yes; starbucks new low-fat latte – No). 1 pt each.

INCREASING/DECREASING/VOLITILITY

From the trends listed in Q21, generate 6 strategic uncertainties for a particular company that competes in that product category.(6 pts)
Strategic uncertainty – a possible impact of the trend on your company or category. 1 pt. each

e.g. Category – Beverages; Trend – Health impact concerns; — Uncertainty – Total calories per serving is largely a function of sugar content, but many consumers are wary of sugar substitutes, should the product be ‘all natural’ or ‘low calorie”?

Using the uncertainties listed in Q22 conduct an impact analysis.(6 pts)
An impact analysis includes rating of uncertainties using the impact analysis 2 by 2 grid plotting immediacy against impact. And includes a brief explanation of why the uncertainties are located in the quadrant selected for each.

Top Left- High impact; Low immediacy
Top Right- High immediacy
Bottom Left- Low impact; Low immediacy
Bottom Right- Low impact; High immediacy

Choose one of the strategic uncertainties listed in Q22 and conduct a scenario analysis that includes identification of at least four scenarios. (4 Pts)
Scenarios are specific to the company that states a scenario of what could happen if the uncertainty occurred and the potential positive/negative impact. A set of scenarios would include likelihood statements as to how likely it would be for the scenario to occur.

IF

If the following laptop sales are reported for January-March of 2013
Lenovo $400,000
HP $2,500,000
Dell $ 800,000
Mac $1,200,000
Toshiba $100,000
Samsung $1,000,000

What is the market share for each company (you must show the formula)? (6 pts)

Formula for Market Share Company Sales / total category sales
Lenovo $400,000 / $6,000,000 = .06666 or 6.67%
HP $2,500,000/ $6,000,000 = .41666 or 41.67%
Dell $800,000/$6,000,000 = .13333 or 13.33%
Mac $1,200,000/$6,000,000 = .2 or 20%
Toshiba $100,000/$6,000,000 = .01666 or 1.67%
Samsung $1,000,000/$6,000,000 = .16666 or 16.6%
What is the relative market share of Lenovo against HP? Samsung against HP? ( show the formula) (2 pts)
Relative Market Share = 1st Company Sales / 2nd Company Sales Or Lenovo Sales/ HP Sales

Lenovo / HP = $400,000 / $2,500,000 = .16 or 16%

Samsung/ HP = $1,000,000/ $2,500,000 = .4 or 40%

Below is a chart listing the average cost per unit sold for each company. Using the information from the charts in Q25 and Q27 calculate the UNIT Market share for each company. (show the formula) (6 its)
Lenovo $400
HP $3,500
Dell $750
Mac $5,000
Toshiba $350
Samsung $1,200
This is a two step Question
First: Calculate units sold by dividing company sales (from Q 25) by average cost per unit (Q 27).

Units sold = Company Revenue/Average Unit cost

Lenovo $400,000/$400 = 1000 units sold
HP $2,500,000/$3,500 = 714 units sold
Dell $800,000/$750 = 1066 units sold
Mac $1,200,000/$5,000 = 240 units sold
Toshiba $100,000/$350 = 285 units sold
Samsung $ 1,000,000/$1,200 = 833 units sold
4138 total units

Second: Calculate Unit Market Share by dividing the total units sold per company by total category units sold. Unit market share = company units sold/total units sold

Lenovo 1000 units sold/4138 units = .24166 or 24.17%
HP 714 units sold/4138 units = .17255 or 17.26%
Dell 1066 units sold/4138 units = .25761 or 25.76%
Mac 240 units sold/4138 units = .05799 or 5.8%
Toshiba 285 units sold/4138 units = .06887 or 6.89%
Samsung 833 units sold/4138 units = .20130 or 20.13%

What is the relative UNIT market share of Lenovo against HP? Samsung against HP? (show the formula) (2pts).
1st company unit sales/ 2nd company unit sales = relative market share

Lenovo/HP = 1000 units/714 units = 1.4005 or 140.5% Samsung/HP= 833 units/714 units = 1.1666 or 116.7%

Rank the companies by market share in dollars, and then by market share in units. Why would it be useful to compare the two rankings? (4 its)
Revenue Market Share
1. HP 41.67%
2. Mac 20%
3. Samsung 16.67%
4. Dell 13.33%
5. Lenovo 6.67%
6. Toshiba 1.67%

Unit Market Share
1. Dell 25.76%
2. Lenovo 24.17%
3. Samsung 20.13%
4. HP 17.26%
5. Toshiba 6.89%
6. Mac 5.8%