COMM 103 Study Guide - Final Guide: Rough Cut, Real Prices And Ideal Prices, Diminishing Returns
10 Dec 2016
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Performance + 1. 4, size 1. 4 each year (1. 4/12 each month) Ideal spot drifts each month, so product can only be in ideal spot for max one month. High tech ideal spot is 1. 4 units away from segment center. Every 1000 mtbf outside range, lose 20% of score. Fine cut is 2. 5 units radius away from segment center (any units outside fine cut will lose customer score) Rough cut circle is 4. 0 units radius away from segment center (outside rough cut, product will not sell) Positioning costs: trailing low tech (. 5, middle (. 75, leading high tech () Age is halved after r&d (unless only mtbf was changed) Every priced above/below ideal price range, loses 10% customer score. Awareness: lose 33%/year: 25% awareness for free for new products, diminishing returns after /product, to retain 100% awareness. Sales budget: diminishing returns after /one product, total for two or more products, to retain 100% budget (usually requires 2+ products)
