Marketing Case Solutions

CASE 1

1. Utility (absolute or relative)

• Rational dimensions- economic, monetary value

• Non-rational dimensions-state of mind, emotions, sentiments, social obligation

• Irrational- consumer beliefs, e.g health foods

2. Value of a product depends on the competition. If easily substitutable then value decreases. Ultimate aim is to create a monopoly.

3. Point-in-time analysis- creating a chart depicting our analysis at every time point. Used a s a forecasting tool.

4. S &T- opportunity evaluation, D & P- value management, 4Ps are tangible output of analysis

5. Designing of experiment- target (my future segment) and control (where I expect my sales to be the least i.e product to fail). We choose two markets to eliminate any noise i.e uncontrollable parameter.

(everything same except differentiating factor)

6. Luxurious service and premium product

7. Penetration curve- rate at which people have tried the product (Cumulative penetration vs time).

8. Market share is depicted by repeat purchases. Unit market share= no of families buying the product.

9. Trial repeat model says,

Long term MS= trial rate *Repeat purchase rate(repeat purchase/trial)

If trial rate is 100% then MS=repeat purchase rate

Use trial rate to jumpstart the sales of a low involvement pdt

10. Interaction effect- second order effect- if you combine 2 concepts having negative correlation, utility tends to neg infinity.

CASE 2

1. Don’t have reactionary actions or quick fixes. Proves that your current offer is not good enough.

2. Set standards in a B2B market. Really strong economic value, based on pricing (lowest bidder), rational buy.

3. Initially, when any global brand enters India, risk-less strategy- do not customize till you get volume. Forecast the growth of your current market, in which phase it is- lag, growth, maturity or decline.

4. Calculate payback period for any strategy.

CASE 3

1. Mature market- no new benefits or substitutes. Either let the product decline or keep increasing trial rate. Market equilibrium is when demand equals supply.

2. Brand is a psychological entity, product is a physical one. Product