14 Aug 1.A companys marketing strategy can be customer-oriented (i.e., strategy de

1.A companys 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 services
The
resorts 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 companys sales by 25% Reduce the price by 20%; the
price-demand elasticity is -3.0
Which
of the two strategies will generate the highest overall profits? Show all calculations! (Points
: 100)

1.A companys 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.(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:The average stay is five days.
The hotel is considering two pricing options:The
resorts 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:Which
of the two strategies will generate the highest overall profits? Show all calculations! (Points
: 100)

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