Quote from a senior manager of a major company: "Our firm has always had a design to cost philosophy. Our engineers have to achieve very tight cost standards when designing new products. Target costing is just the new fashionable term for something we have done all along."
Do you agree with this statement? Has the firm been practicing target costing? Explain your reasoning.© BrainMass Inc. brainmass.com October 16, 2018, 8:04 pm ad1c9bdddf
From the information given above, it does not appear that the firm has been practising target costing. This is due to the fact that One of the key points in target costing is that the target cost is the dependent variable. The market-based Price must be determined first, then the desired Profitability. Finally, the Target Cost is simply the Price minus the Profit. This may seem elementary, but many firms still fall into the trap of first determining the cost of their design, adding a profit margin and letting the sum be the price.
In this scenario, the company pursues a ...
Our firm has always had a design to cost philosophy. Our engineers have to achieve very tight cost standards when designing new products. Target costing is just the new fashionable term for something we have done all along.
4 Questions - Marketing Management
1. Throughout the decade of the 1990s, it could be effectively argued that the personal computing (PC) industry initially pursued a product philosophy, followed by a sales philosophy, followed by a marketing philosophy, followed by a relationship marketing philosophy. Please explain.
2. Do all B2C consumers proceed through the consumer decision process at the same rate? Please explain your answer.
3. Your company has proceeded through the New Product Development Process and is set to launch a new-to-the-world product into the market. 1.) How will the adoption and diffusion processes relate to the success of your new product launch? 2.) How will you know if your new product is a success?
4. What is the managerial usefulness of using quantitative and qualitative research techniques as they pertain to measuring customer satisfaction?View Full Posting Details