Final_Prep - Marketing BUAD 307 Final Preparation 1....

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Marketing BUAD 307 Final Preparation 1. Differentiate between the three dimensions of a product (core, branded, and augmented). A. Core – The product in its most basic from. The category or function in which they belong.(Category :Automobile) B. Branded – special characteristics that differentiate a product from its competitors. (Not just any car but a Ferrari has certain appeal such as unique styling and engine sound.) C. Augmented – Elements that are separate from the product but help contribute to a product use. These include any warranties, terms and condition of the sale. (Ferrari’s 5,000-mile bumper-to-bumper full coverage. In addition, free of charge maintenance on certain products.) 2. Explain the Boston Consulting Group Matrix, and explain how the matrix can help a manager’s decision making A. Business Portfolio Analysis – uses quantifiable performance measures and growth target to analyze a firm’s strategic business unit, as they were a collection of separate investment. It is calculated using an industries growth rate and products market share. High Market growth Stars – These have both high growth rate and a high market share. Since they are rapidly growing they need large amounts of cash to finance their growth. As their market growth slows, they will likely become cash cows. ? – These are considered questionable since they have a low share of a high growth market. They not only need Large amounts of money to sustain present market share but even more to increase it. The company must decide whether to continue to invest or phase out unit. Low Market growth Cash cows – These Subs generate large amounts of money since they have a high market share. But since there is low market growth have more money then is needed to invest in their business. This money can be invested in other SBUs such as stars. Dogs – These SBUs have a low share of a low growth market. They may generate enough cash to sustain themselves; they will never become real successes. High market share Low market share
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3. Identify characteristics that distinguish services from tangible goods. A. Intangible – A service can not be readily detected by the senses. It is immaterial. (Service focuses on the experience and is not easily quantifiable. Such as a good football game or great musical performance, the service is the experience, which cannot be felt.) B. Inseparability – There exists a continuous linkage between the service provided, the customer and the environment which includes other customers. (Example: When waiting in line at the bank, the experience may be ruined not because the bank attendant did a faulty job, but because the line was, long and the person in front of you smelled funny. That is a linkage that cannot be separated.) C. Heterogeneity – Services suffer from inconsistencies or variation between transactions. (Since, a product can easily be checked for consistency, service on the other hand may vary. Such as one restaurant place may have great or poor service in
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This test prep was uploaded on 04/06/2008 for the course BUAD 307 taught by Professor Morristowns during the Spring '07 term at USC.

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Final_Prep - Marketing BUAD 307 Final Preparation 1....

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