marketing puja

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You should be as thorough as you can answering the questions, making sure that you apply the concepts you have learned so far. You should go beyond our textbook and use other sources to justify your choices. Just like for our discussion board, these sources should be reliable, professional quality sources (use APA style to list them at the end of each answer).  The detailed answers provided by the original course designer will be the basis for grading the content of your answers. There are no specific length requirements and you should not feel limited by a maximum allowance. This exam counts for 14% of your final grade and, as such, should take several hours and a significant amount of work from your part, which should be reflected in the quality of your answers.

Kotler, P., & Keller, K. L. (2012). Marketing management (14th ed.). Upper Saddle River, NJ: Pearson      Prentice Hall. ISBN-10: 0132102927; ISBN-13: 9780132102926   Simulation: PharmaS imMarketing Simulation (2009). Interpretive Simulations



1.  The Tropical Paradise Resort is located on the coast of an exotic Pacific island. Room rates are $300 per night, which includes free access to the pool, gym, and tennis courts. The resort also offers the following services:


•Aerobics classes ($5 per)

•Therapeutic massages ($40 per)

•Scuba-diving trip to a nearby coral reef ($60 per)

•Day trips to an island volcano ($100 per trip)

 The average stay is five days. The hotel is considering two pricing options:

$300 *5 =$1500


1.Charge the regular room rate and charge separately for the four services above

2.Charge a higher room rate, which includes the services

 The resort’s objective is to maximize long-term profits by attracting repeat and new customers. Should they price their services separately or bundle them? Why? Besides prices, what other factors are important in your decision?    





Question 2. 2.  A company’s marketing strategy can be customer-oriented (i.e., strategy designed by examining primarily customer needs) or competitor-oriented (i.e., strategy based on competitors’ actions). In reality, companies do both. For the following scenarios, identify which strategies to emphasize and why.


1.A market leader in pharmaceuticals

2.A market follower in a mature market

3.A market nicher (i.e., company focused on a small segment) in interior decoration of luxury homes

4.A a market challenger in a mature market with low margins and significant economies of scale effect

 (Points : 100)       





Question 3. 3.  Gobi Inc. has sales of $40,000,000. The contribution margin is 40% and the fixed costs are $3,000,000. The variable cost per unit is $12. The company is considering two different strategies for increasing their profits:


1.Spend $2,000,000 in advertising; the results is expected to increase the company’s sales by 25% 

2.Reduce the price by 20%; the price-demand elasticity is -3.0

 Which of the two strategies will generate the highest overall profits? Show all calculations! (Points

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