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Having surveyed normal business practices in other markets, namely within other
medical professions, Maria proposed a revenue sharing between her and the Centro
Mdico das Amoreiras. Instead of a fixed rent for the office lease, she proposed a
revenue sharing agreement, where she retains 70% of each consultation appointment
and the Centro Mdico das Amoreiras with the minor part (assume that Maria has
enough customers to fulfil her entire agenda)
e) What is the new BEP? What course of action would you recommend Maria to
follow: stick with the old agreement of a fixed rent or with the new revenue
sharing proposal with Centro Mdico das Amoreiras?
As her notoriety and word of mouth grow, Maria is seriously considering expanding its
business. A new site, oriented towards the selling of healthy recipes and web seminars,
is a possible path of development. Or a new consultation practice, in the city of Setubal.
But she feels she can not have time and stamina for both.
For a better understanding of the choices facing Maria, she collected the data and
presented it to you:
Setbal consultation practice, with Centro Mdico e Clnico de Setbal: 50 for each
consultation appointment and a revenue sharing where Maria could retain 80% of the
income. She would practice four afternoons per month, five hours each afternoon, one
hour consultations appointments and 100% occupancy rate (she will have 5 customers
each afternoon). No parking tickets or costs. Stationary of about 1 each per
consultation. Consultations are due to begin in 01/June, till 31 December, every week.
New site development: includes concept development, design and programming and
payment systems partners agreements (Pay Pal, Amazon, Itunes, Debit and Credit
Cards,...). A one shoot lump sum investment of 2.700 is required and a transaction
costs of 3% of every product sold is due to the payment systems partners. The site is
bound to be operational by 01/June and every year a new investment of the same
magnitude is expected. On average the site will provide sales revenues with an average
ticket of 10.
f) Which course of action would you recommend to Maria for the remaining
months of the year? New site development or Setubal Consultation Practice?
Sensing that her reputation is growing everyday, Maria decided to increase the
consultation fee she charges in Centro Mdico das Amoreiras from 70 to 80. By
the same token, a decline of 10% in demand is expected.
g) Do you think this increase in fees charged is a wise movement by Maria?
Explain.
Name:____________________________ Number:_________
Group II (6 values)
(5 lines for each answer)
1. What strategies are Knorr and Starbucks using to prevent brand value from
erosion and keep competitors at bay?
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2. What is the relevance of the packaging decisions on the profitability prospects
of a consumer oriented company and what similarities are found between of
Knorr and Prophenyl in this respect?
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3. What kind of strategy and precautions are due in a Classic Car Club to prevent
it from being associated with the Rolex crowd (see Poor Litte Rich Brands)?
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Name:____________________________ Number:_________
Group III (4 values)
(pick the answer that you think is most appropriate)
1. Which of the following is not one of the five characteristics of services?
a. Separability.
b. Lack of ownership.
c. Intangibility.
d. Heterogeneity.
Consumer promotion.
b.
Retailer promotion.
c.
Trade promotion.
d.
One-off promotion.
b.
c.
d.
4. Starbucks will establish a coffee shop wherever they can justify a need for it.
What channel strategy are they using?
a.
Intensive distribution.
b.
Selective distribution.
c.
Exclusive distribution.
Name:____________________________ Number:_________
5. Each cell of the BCG Matrix has a name attached to it. Which of the following
holds a weak market share in a low growth market?
a.
Star
b.
Question mark
c.
Dog
d.
Cash cow
6. Which of the following is not particularly useful as a criterion for assessing the
viability of targeting a new market segment?
a.
b.
c.
d. The extent to which the needs of a segment are significantly different from
other segments.
e. The extent to which the proposed basis for segmentation is of relevance to
potential customers.
7. Setting a high price which gradually reduces as competitors enter the market is
called
a.
Penetration pricing.
b.
Competitive pricing.
c.
Skimming.
d.
Price discount.
A tangible product.
b.
A durable product.
c.
d.
A service.
Name:____________________________ Number:_________
Group IV (5 values)
(5 lines for each answer)
1. A common myth among marketers is that market share is the key to profitability.
Do comment.
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2. According to recent studies, Apple tops the list of the worlds strongest brands,
followed by Google, IBM, and McDonalds. Why do these brands command so much
respect? What makes a strong brand? How would you measure brand equity?
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