MKTG 448 - Marketing Strategy
Spring 2021 - Sample Exam # 2
Time
: 48 hours
Name - Surname : ________________________
ID Number
: ________________________
Exam Coverage : All core curriculum reading materials and cases discussed after Exam # 1
Instructions
: You are allowed to use any electronic device during the exam. You can also use your reading materials, cases and lecture notes.
“On my honor, as an Aggie, I have neither given nor received unauthorized aid on this academic work.”
Signature: _________________________________________________________
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Essay Questions
(Answer all 5 questions given below - 20 points each)
Page 1 / 6
1. In a very competitive environment, explain why it is important for a marketing manager to understand the four value
dimensions (economic, functional, experiential, and social) that customers drive value from products and services. What is the
typical first reaction (two moves) of companies when the competition gets severe? Is their reaction enough? What is a better
way to compete in tough competition? Explain by using the customer value dimensions and give two companies as good
examples that are using these dimensions to compete effectively.
Page 2 / 6
2. In planning positioning strategies, marketers often prepare perceptual maps that show consumer perceptions of their brands
versus competing products along important brand dimensions. In a survey, runners were asked to rate various brands of
running shoes according to the following key attributes:
(1) more cushioned [maximum score of 5] versus more feel [minimum score of -5] and
(2) more stability [maximum score of 5] versus more mobility [minimum score of -5]. The following are the key findings:
Cushioning
vs. Feel
Stability
vs. Mobility
Nike
+ 4.0
– 3.0
Puma
+ 2.5
+ 4.0
Adidas
+ 3.0
– 3.0
Brooks
+ 2.0
– 4.0
Mizuno
– 2.5
– 3.0
Reebok
+ 2.0
+ 2.5
New Balance
– 0.5
– 0.5
Under Armor
+ 0.5
+ 0.5
Imagine that you are the marketing manager of Asics and your company is
planning to launch new running shoes to the market. Based on the data given in
the table,
- locate each brand on the perceptual map,
- by considering the competition on the map, the size, growth rate,
profitability, and evolution of each segment decide where you would
position your new product this year and in which direction you would
reposition your brand in the coming 5 years (if you need to). Justify your
answer.
Note: On the perceptual map given below, the colored and numbered round areas represent customer segments.
Size of the
population
Annual
Growth
Rate
Profitability
Evolution
Segment 1
%25
+ 1.0
Average
Direction: -0.5 cushioning / year
Segment 2
%10
– 2.0
Average
Direction: -0.5 stability / year
Segment 3
%30
+ 3.0
High
Direction: +0.5 stability / year
Segment 4
%15
+ 6.0
Low
Direction: +0.5 stability / year
Segment 5
%20
+ 2.0
Average
Direction: +0.5 stability / year
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3. Imagine that you’re the marketing manager of Dell and your new goal is to market a new laptop. Your company is targeting
a specific customer segment with three other competitors in the market; HP, Lenovo, and Sony. According to the marketing
research data you have, your target customer segment identifies four key product features and attributes as weight (light
weight), hard disk storage space (total storage capacity), RAM (memory and overall speed), and price (low price). The
average importance that this customer segment assigns to these features are: weight: 40%, hard disk: 10%, RAM: 30%, and
price: 20%. Another market research data shows your target customer segment’s perception ratings of all the brands on each
attribute in the laptop market.
a) Calculate preference rating for each brand. (4 points)
b) What could Dell do to improve its preference and likelihood of purchase in this competition? Give 3 conceivable options.
(Don’t forget the trade-off when you make changes on your product attributes. E.g. when you increase the weight/hard disk/RAM score
1 point, the price score of your product decreases 1 point. You can’t just lower your price!) (16 points)
BRAND
IMPORTANCE OF ATTRIBUTE
40%
10%
30%
20%
Weight
Hard Disk
RAM
Price
HP
4
10
8
8
Lenovo
4
10
10
6
Dell
8
4
5
5
Sony
10
3
6
4
Preference
Note: Ratings are on a scale of 1 to 10, where 1 is the lowest and 10 is the highest. The lighter weight model scores higher, the lower price scores higher.
Hint: Preference for brand 𝑗 = ∑:;<=(importance of attribute 𝑖) × (rating of brand j on attribute 𝑖)
Page 4 / 6
4. A restaurant can attract attention of multiple customer segments under the same brand with different value propositions.
Red Lobster realized that they are serving five different segments: Experientials, Indulgents, Frugals, Eclectics, and Traditionalists
in their restaurants. By using the data given below and considering that Red Lobster is offering the “freshest, affordable seafood”,
which segment/segments should Red Lobster focus? Give 3 good options, lay out the pros and cons for each. Explain which
option you would choose and why?
Experientials
Indulgents
Frugals
Eclectics
Traditionalists
Size of the segment in the market
20%
25%
15%
10%
30%
% of clientele for Red Lobster
23%
24%
28%
7%
18%
Annual Growth Rate
+1%
+4%
-1%
+3%
+2
Annual Profit (per customer)
$100
$70
$40
$80
$50
Competition around the segment
High
Average
Low
Average
Low
Page 5 / 6
5. Please answer the following questions and show each step of repositioning on the map based on the information given in
the Burberry case.
a) Where was Burberry brand positioned in the 50s and 60s?
b) Where was Burberry brand positioned when Rose Marie Bravo became the new chief executive of the company?
c) Rose Marie bravo and her new management team found a gap in the market? Please show the gap on the perceptual map.
d) Please list all the actions done by the new management to relocate the Burberry brand on the exclusivity dimension.
Show how the brand repositioned on the map after these actions.
e) Please list all the actions done by the new management to relocate the Burberry brand on the classic-fashion dimension.
Show how the brand repositioned on the map after these actions.
f) Considering that the brand has two identities: classic and fashionable, how did the new management succeed in
communicating with two different customer segments (aristocrat, classic) vs (young, fashion-oriented)?
Price/exclusivity
Cartier
Gucci
Armada
Hermes
Prada
Coach
Polo
Ralph Lauren
Classic
(Unchanging)
Max Mara
Product Orientation
Emporio
Armani
FashionForward
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