EBK MARKETING
10th Edition
ISBN: 9780135209783
Author: Stuart
Publisher: YUZU
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Chapter 9, Problem 3QA
Summary Introduction
To ascertain: The concept of Product Life cycle and the stages of it.
Introduction: Product Life Cycle: It describes how a product travel with the time which starts from its launch and ends when is removed from the product line. The life of the product when it reaches to market and when it is removed from the market helps a company to take measures according to each and every step.
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Question 7
Your firm is considering the acquisition of a brand, and they have identified two prospects, Brand A' and 'Brand
B'. Research has determined that the brands will yield future cash flows as stated in Table 2:
laure: Future Cash Flow Projections
Brand A
-$170,000.00
Brand B
-$125,000.00
$ 79,000.00
Year
0
1
$ 26,000.00
2
$ 45,000.00
$ 62,000.00
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$ 79,000.00
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Figure 4: Net Present Value Formula
Ct
N
NPV = (1+r)
Where
t=0
N- Total time over which the earnings is projected
t-Time of the cash flow
r-Discount rate
Ct-Net cash flow at time t
Further, whichever brand is selected for acquisition, your firm wants a 15% return. The management of
the firm seems inclined to acquire Brand A because its revenue is steadily increasing while the opposite
is true for Brand B. You are the Brand Manager for your firm and they have asked for your assessment.
i.
Do you agree or disagree with your management's inclination towards acquiring brand A?
Support your…
Kingdom)
Question 5
Figure 2 below gives the four (4) types of buying behaviours a customer could exhibit.
Figure 2 Consumer Buying Behaviour
Habitual
Dissonance
Reducing
Variety Complex
Seeking
2 of 4
a) Explain under what circumstances each behaviour will be exhibited. Support your answer with
examples.
b) What will be a suitable marketing goal and two marketing strategies for a product, where the
expected consumer buying behaviour towards it is deemed 'Habitual'?
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Question 9
According to author Ken Blanchard, there are three (3) elements necessary to elicit customer-centric behaviour from employees. With the aid of a diagram, identify and explain these three elements.
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