Bam's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Bam product manager do in order to improve upon the buying criteria, and thus potentially increase demand? Select: 1 Increase MTBF by 2000 Increase the promotion budget to gain greater awareness Lower the selling price since it is the second most important buying criteria Reposition Bam to make it even smaller and higher performing

Question

Emery Gillespie

Business

27 April, 06:54

Bam's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Bam product manager do in order to improve upon the buying criteria, and thus potentially increase demand? Select: 1 Increase MTBF by 2000 Increase the promotion budget to gain greater awareness Lower the selling price since it is the second most important buying criteria Reposition Bam to make it even smaller and higher performing

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Answers (1)

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Korbin Wise · Answer 1

Selling price cannot be lowered as contribution margin cannot be sacrificed.

Explanation:

Sales prices can not be reduced because there can not be lost investment margins.

Promotions may not strengthen the criteria for purchases. Criteria for the purchase are usually related to brand performance and reliability.

Re-positioning it in order to make it smaller and better. MTBF is already a reliability factor and a purchasing criterion.

Therefore 1 and 4 solutions are likely to be true.

But let us take the 4th option, which is important to increase market share. It also speaks about re-positioning.