MARKETING SIMULATION EXAM 2023/2024 STUDY GUIDE WITH
COMPLETE SOLUTION
- -chapters
/ - -Unformatted text preview: Principles of Marketing Simulations: Chapters 1, 2, 3, 5, 6, 8, 9,
10, 11, 12, 13, 14,17, 18, 19 PLEASE NOTE : EACH SIMULATION IS NOT PERFECT AND
WILL HAVE THE SCORE I ACHIEVED ON IT ABOVE THE SIMULATION. YOU CAN
USE THIS INFORMATION AND DEDUCTIVE REASONING TO TRY TO IMPROVE YOUR
SCORE. ALL MY GRADES ARE PASSING SO IF YOU DON'T CARE ABOUT A PERFECT
SCORE JUST FOLLOW ALONG. IF YOU DO CHANGE YOUR ANSWERS FROM MINE
YOU MIGHT GET A DIFFERENT SCENARIO TO FOLLOW THAT MAY NOT BE LISTED
IN MY SIMULATIONS. Hope this helps you get an A though
/ - -Chapter 1 Simulation: What is Marketing?
/ - -- You earned 75 percent
/ - -SIMULATION DESCRIPTION: Holden Evan, Inc., has long been the premium dog food
market leader with its flagship Grand Champion brand. The brand targets breeders, trainers, and
owners of purebred dogs willing to pay higher prices for superior nutritional and health benefits.
During an economic downturn, the Grand Champion brand suffered a sharp and prolonged
decline in sales. The Marketing Manager must re-evaluate the brands marketing strategy and
marketing management orientation to determine if they need revision. Background Holden Evan,
Inc., has long been the premium dog food market leader with its flagship Grand Champion
brand. The brand targets breeders, trainers, and owners of purebred dogs willing to pay higher
prices for superior nutritional and health benefits. During an economic downturn, the Grand
Champion brand has suffered a sharp and prolonged decline in sales. The brand has become
unprofitable. The marketing team is concerned that customer needs and wants may have shifted.
/ - -YOU CHOSE OPTION 2Your objective as Marketing Manager is to re-evaluate the brands
marketing strategy and marketing management orientation to determine if they need revision.
Background Your supervisor, the Vice President of Marketing, describes your assignment. "We
have traditionally been the market leader in the premium dog food market with our Grand
Champion brand. However, during the recent economic downtown, the brand suffered a sharp
drop in sales. We conducted consumer research about this; here are three representative customer
reports for you to review." Customer Report: One Jaime, a breeder of champion German
Shepherds, has used Grand Champion for 15 years. He told researchers he loves the quality of
Grand Champion. However, in the last few years, demand for his expensive dogs has gone down.
He has reduced his breeding from twelve litters a year t
/ - -The customers want to feed their dogs a superior food conflicts with a need to save money.
You indicated that the customers want to feed their dogs a superior food conflicts with a need to
,save money. This was the best choice. Brand Experience the Vice President of Marketing
continues: "Weve become concerned that our brand is suffering from marketing myopia. Weve
focused in the past on making Grand Champion more and more elaborate. But in response to
current trends, we’ve now eliminated some organic grade A beef and some antioxidants from the
food to make it less expensive. It’s still excellent nutrition for dogs. We need to decide what
brand experience we should promote for our customers now." You return to your office to
consider. Choose the best brand experience.
/ - -YOU CHOSE OPTION 3
/ - -The sense of feeding ones dog an affordable quality food. You chose the sense of feeding
one’s dogs an affordable quality food. This was the best choice, and was consistent with the
product design. Targeting Customers Your next task is to decide on the appropriate target market
for Grand Champion.
/ - -YOU CHOSE OPTION 1
/ - -Retain the original target market: breeders, trainers, and owners of purebred dogs. You chose
to retain the current market of trainers, breeders, and owners of purebreds. This was a poor
choice, because the product had been reformulated in a way that would appeal to a larger market.
Choosing a Value Proposition Now that the target market has been chosen, it is time to choose
the value proposition to suit those target customers. Choose the best value proposition for your
target market.
/ - -YOU CHOSE OPTION 2
/ - -"Grand Championgood food for the right price." You selected Grand Championthe good food
for the right price. This was the best value proposition given your target market. Marketing
Management Orientation The Vice President of Marketing says: So far we have chosen a target
market and an appropriate value proposition. Now you must decide which marketing
management orientation is best for our situation. Check with our three marketing analysts for
advice before you choose. Marketing Management Orientation Marketing Analyst One says: "We
need to continue making improvements to Grand Champion in order to recruit more customers.
If we offer the best dog food for the money, customers will buy. All other aspects of marketing
will follow from our focus on product quality and innovation." Marketing Management
Orientation Marketing Analyst Two says: "We need to really get to know our targeted customers
and adapt Grand Champion to suit their needs. This is the starting point for all other marketing
efforts." Marketing Management Orientation Marketing Analyst Three says: "Our customers may
want cheap dog food now, but whats best for society as a whole and our customers in the future?
We have to think bigger than our customers do. We need to keep in mind the long-term welfare
of our customers and their dogs." Choosing a Marketing Management Orientation Now that you
have heard the advice of your marketing analysts, you must choose a marketing management
,orientation for Grand Champion brand. Review the information youve received and choose from
the options at right.
/ - -YOU CHOSE OPTION 3
/ - -Make marketing decisions that maximize the welfare of customers and of society as a whole.
You selected the societal marketing concept. This was a good choice because it considers our
customers needs and wants, as well as what is best for society. Customer Relationship
Management In order to increase Grand Champion sales, Holden Evan must create strong
customer relationships. Your team has come up with three ideas, and you must choose the best
one for your target market.
/ - -YOU CHOSE OPTION 1
/ - -Create a frequent-buyer program that gives greater discounts the more the customer buys.
You decided to create a frequent-buyer program. This was a good choice, but may not have been
the best to reach your target market. Partner Relationship Management You decide to work with
your partners to improve Grand Champion sales. Based on your marketing management
orientation and your target market, what actions would you ask your partners to perform?
/ - -YOU CHOSE OPTION 3
/ - -You ask the production department at Holden Evan to package Grand Champion in jars that
can be returned for a refund and reused. You decided to ask the production department at Holden
Evan to package Grand Champion in jars that could be returned for a rebate. This was a good
choice for the marketing management orientation you chose, since it would benefit society as a
whole, not just Grand Champion customers. Capturing Value from Customers Your final task for
Grand Champion is to recommend a strategy for capturing value from customers.
/ - -YOU CHOSE OPTION 1
/ - -Encourage random noncustomers, who dont fit the target market for Grand Champion, to try
it through free samples at grocery stores across the country. You recommended that Holden Evan
encourage random noncustomers to try Grand Champion. This was a poor choice. These
noncustomers may have needs that have little correlation to your product.
/ - -Chapter 2 (11) Simulation: New Product Development
/ - -SIMULATION TITLE: New Product Development
/ - -SIMULATION DESCRIPTION: Swazzi, Inc. is a large national specialty retailer of high-end
clothing, with a target market of sophisticated, high-income consumers. Your objective, as Vice
President for Marketing, is to narrow, through screening, the ideas that have been generated to
, one. You must then supervise development of the concept image, concept testing and market
strategy for this line of the Swazzi Spring clothing.
/ - -________________________________________
/ - -You earned 88 percent.
/ - -Background
/ - -Swazzi, Inc is a national chain of clothing stores, focusing on high end merchandise for an
affluent clientele. All products are designed, produced and marketed by the company under the
exclusive Swazzi™ brand. Swazzi is preparing to make decisions concerning a Spring line of
premium-priced women's clothing. The line will be designed to have a marketing tie-in with the
entertainment media.
/ - -Background
/ - -You will be guiding a proposed spring clothing line through the new product development
process. This will involve a progression of steps: developing and testing a concept or image for
your product, developing a market strategy for your product, and performing a business analysis
on the product. By the time you have finished, your Spring clothing line will be ready to enter
the product development phase.
/ - -First, however, you must narrow a small group of ideas down to a single, proposed product
line. This will occur through "idea screening."
/ - -New Product Development Process
/ - -A New Product Development Committee ("the NPD committee") chooses the new products
at Swazzi that will be developed and put into the marketplace. To narrow your group of ideas to
one, you must first organize a presentation of the potential clothing lines for the committee
members.
/ - -Your Head Designer says: "From all of the ideas that were generated, I have selected three
potential clothing lines. I think you are really going to like them: First, a line of gowns inspired
by the glamorous clothing worn by actresses on the televised awards shows; second, a "Back to
Carnaby Street" retro line inspired by the mod clothing of 1960s London; and, third, a line based
on the fashion worn by rock stars currently popular with the 17-25 year-old demographic."
/ - -New Product Development Process
/ - -The screening process begins with standard write-up on each proposed product line for the
NPD committee members. The write-up describes the line, and contains this key information:
