Question 2

Part 1

Keflavik Paper is an organization that has lately been facing serious problems with the results of its projects.Specifically, the company's project development record has been spotty: While some projects have been delivered on time, others have been late. Budgets are routinely overrun, and product performance has been inconsistent, with the results of some projects yielding good returns and others losing money.They have hired a consultant to investigate some of the principal causes that are underlying these problems, and he believes that the primary problem is not how project are run but how they are selected in the first place.Specifically, there is little attention paid to the need to consider strategic fit and portfolio management in selecting new projects.This case is intended to get students thinking of alternative screening measures that could potentially be used when deciding whether or not to invest in a new project.

Questions

Keflavik Paper presents a good example of the dangers of excessive reliance on one screening technique (in this case, discounted cash flow). How might

Assume that you are responsible for maintaining Keflavik's project portfolio. Name some key criteria that should be used in evaluating all new projects before they are added to the current portfolio.

What does this case demonstrate about the effect of poor project screening methods on a firm's ability to manage its projects effectively?

Section 2

1. Who are customers?

2. Define sales promotion.

3. Define product hierarchy.

4. In which stage of new product development process should a company test its positioning strategy, advertising, distribution, pricing, branding and packaging, and budget levels.

5. Which statistical tool is used in market research to determine how different features of a product affect the buying behavior in the consumer's mind?

6. Which analysis methodology is used to identify the macroeconomic conditions in a marketing environment?

7. A company is in the _____ stage of the new product development process when the

company develops the product concept into a physical product in order to assure that the product idea can be turned into a workable product.

8. In which type of sales force structure is a salesperson assigned to an exclusive area in which to sell the company's full line of products or services.

9. Marketers are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. ____ includes practices such as falsely advertising "factory" or "wholesale" prices or a large price reduction from a phony high retail price.

10. If your company were to make a product such as a suit of clothes and sold that product to a retailer, your company would have sold to the _______market.