MKT 3300 hw 2-2

pdf

School

Richland Community College *

*We aren’t endorsed by this school

Course

3300

Subject

Marketing

Date

Jan 9, 2024

Type

pdf

Pages

Uploaded by CorporalRabbit341

Assignment 2 Due date: 10/24/2023 Principles of Marketing This is an individual assignment. Please highlight your answers in yellow and use the blue font color Student Name: ……Sana Sawani…………. 1- What is the main difference between product line and product mix? Give examples. A product line is one line of similar products that are sold in a company. A product mix is the combination of all products sold by a business 2- Define each of following terms in one line. Give an example. a. Brand extension: It is used when a company uses one of its established brand names on new product or new category. Colgate, a toothpaste company, released toothbrushes as a new product b. Brand Personality: It is a set of human characteristics that are attributed to a brand Up to date like tesla c. Brand Equity: It is the value added to the same product under a particular brand. It makes brands superior to that of others. Ex: When apple releases a new product 3- Each of examples below, reminds you of which pricing tactic discussed in the class? a. Price of a specific type of iPad is $399: Everyday low pricing b. McDonald sells a value meal: a combination of fries, burger and drink: Bundling

c. Target store sells a few of its frequently purchase products, such as milk and paper towel, very cheap, even below marginal cost of production: Loss leader pricing d. Rolex watches are usually way above average price of watch for other watch brands: Premium pricing e. A startup company, who is introducing a new product to the market, believes it should start with a low initial price, to encourage customer of the product trial: Penetration pricing f. In some industries, final price is derived by simply adding a fixed percentage to marginal cost of production: Cost plus pricing g. Today, I searched for a specific flight, The price was different from what I got yesterday for exactly the same flight: Dynamic Pricing 4- Suppose you are the owner of a shoe store and your current fixed costs total $30,000 (real estate taxes, interest on a bank loan, etc.). In addition, your current unit variable cost for a shoe is $40 (which includes labor, leather, etc.). Calculate the price necessary to break-even by selling a quantity of 500 shoes . $100 5- It costs MAMR, Inc. $100 to make a smartphone. Assume that it applies a 20 percent markup on the cost of its smartphone. How much will the company charge customers for each smartphone? $120 6- The owner of a small restaurant that sells burgers pays each month $1,000 in rent, $300 in utilities, $200 interest on his loan, and $500 on advertising on local buses. A burger sandwich is priced at $4.00. Unit variable costs for the burger sandwich is $2.00. a. Calculate monthly fixed cost. $2000 b. How many sandwiches does the restaurant need to sell to break-even each month? 1000 sandwhiches c. Suppose restaurant sells 1200 burgers each month. Calculate profit. $400 d. Suppose restaurant sells 1200 burgers at $4 each. Owner is thinking whether to increase the price to $4.5. But he knows that the price increase will drop the demand to 1100 burgers. Should he increase the price or not? Yes, the price would go from $400 to $450 7- Atrium, a manufacturer of upscale designer tee-shirts, is considering launching an Internet operation to sell its product direct to consumers in addition to distributing through traditional bricks-and-mortar retail stores. Management believes an Internet presence should augment its retail operation. Atrium tee-shirts, made of 100% refined woven cotton, feature batik prints. The cost of producing an Atrium designer tee-shirt is $6.50 per shirt.

Internet: In selling tee-shirts on the Web, the company must hire a Web page architect to design the page and maintain it over the course of a year. The salary for a Web page architect is $60,000, including expenses and benefits. Shipping on Internet orders, which is to be included in the retail price of the tee-shirts, is estimated to be $4.20 per shirt. Retail Store distribution: Atrium could also sell it's tee-shirts in it's own retail store. Additional in-store promotion and a local print advertising campaign for a year will cost Atrium $80,000. Based on the above information, answer the following questions. Please Show Your Calculations. a. If Atrium tee-shirts sell for $32 at the retail stores , how many tee-shirts must Atrium sell to break even? 3137 shirts b. If the retailer can sell 5,000 tee-shirts at $40 a piece, how much profit can Atrium make? $167,500 c. The retailer can sell 5,000 tee-shirts at $40 a piece. If the retailer lowers the price to $35 a piece, he can sell an additional 1,500 tee-shirts. What is the demand elasticity? -1.9565

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

Ch.11IntrotoBusiness.docx

IntroToBusiness.docx

Milestone One.pptx

Video Check-In Optimizing Brands.docx

Determining KPIs.pptx

Digital Marketing.pptx

MKT205_Project.docx

MKT 205 Marketing Plan Strategy Template.docx

Challenge # 5 - Tickets & Sponsorship.docx

MGT 164 - Individual Assignment 2 (1).pdf

U1 IP.docx

U2 IP.docx

Recommended textbooks for you

Management, Loose-Leaf Version

Management

ISBN:9781305969308

Author:Richard L. Daft

Publisher:South-Western College Pub

Practical Management Science

Operations Management

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:Cengage,

Marketing

ISBN:9780357033791

Author:Pride, William M

Publisher:South Western Educational Publishing

Principles of Management

Management

ISBN:9780998625768

Author:OpenStax

Publisher:OpenStax College

Foundations of Business (MindTap Course List)

Marketing

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

Foundations of Business - Standalone book (MindTa...

Marketing

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Management, Loose-Leaf Version
Management
ISBN:9781305969308
Author:Richard L. Daft
Publisher:South-Western College Pub
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning