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# The costs we have incurred to develop

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Manager
Joined: 07 Dec 2011
Posts: 62
Location: India
GMAT Date: 07-30-2012
GPA: 2.66
WE: Information Technology (Computer Software)
The costs we have incurred to develop  [#permalink]

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15 Jul 2012, 05:23
1
From CFO
The costs we have incurred to develop a smartphone application for our company's Qoop product has far exceeded the costs to develop our web platform and the mobile-friendly version of our website. The returns, thus far, do not even come close to recouping our initial investment. We should cap next year's marketing budget for Qoop at \$100K. If user adoption for Qoop does not increase to a level that would result in conversion in sales that would, in 2-3 years, result in a modest profit, we should stop the project, cut our losses, and focus on developing another product.

From CMO
Our innovative application still hasn't gained attention from media. As with all types of product launches these days, we need to get the word out fast and get this product to go viral. I recommend a marketing budget closer to \$400K. This will allow us to use some big name celebrities to help us get the word out on television, in magazines, and even through social networks like Facebook and Twitter. Once we get over the hump, further expense will be neglible as marketing will be largely free and will occur through word of mouth. Without strong celebrity promotion from the very beginning, the product launch will fizzle away and die unspectacularly - we'll never recoup our largest product development cost. For anything to go viral, it must have a cool factor, be funny, and be useful. A big name celebrity can help us get over that hump.

From CEO
Qoop helps complement our existing product offering. While Qoop expenses have been our largest product development cost, the cost should also be shared among the low costs of our other products. In addition, no product should be looked at as a standalone product. It's more important for us to grow our market share and gain competitive advantage in our industry. To do this, we have to launch more products and start generating a portfolio of products to match our big competitors. We should be marketing all of our products alongside Qoop and not just pigeonhole ourselves to promoting just one product whenever we access the TV or social media marketing channels.

Based on the statements, which one of the following can be most reasonably be inferred to be a view held by the company's Qoop developers?

(A)The company has enough funds for development on a new product.

(B)As the adoption of Qoop grows with the company's marketing efforts, more development resources are needed to position the product to scale.

(C)It has taken more financial resources, but not necessarily more developers, to create Qoop than to create the company's other products.

(D)Developers can do a better job to gain user adoption for the smartphone application than can marketers with no technical knowledge.

(E)Marketing has turned 2.0; it is technical marketers who are experienced in programming that are needed to help spread the word throughout the web, not traditional marketers.

C inferred
rest not inferred

_________________

Board of Directors
Joined: 01 Sep 2010
Posts: 3347
Re: The costs we have incurred to develop  [#permalink]

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15 Jul 2012, 09:43
maybeam wrote:
From CFO
The costs we have incurred to develop a smartphone application for our company's Qoop product has far exceeded the costs to develop our web platform and the mobile-friendly version of our website. The returns, thus far, do not even come close to recouping our initial investment. We should cap next year's marketing budget for Qoop at \$100K. If user adoption for Qoop does not increase to a level that would result in conversion in sales that would, in 2-3 years, result in a modest profit, we should stop the project, cut our losses, and focus on developing another product.

From CMO
Our innovative application still hasn't gained attention from media. As with all types of product launches these days, we need to get the word out fast and get this product to go viral. I recommend a marketing budget closer to \$400K. This will allow us to use some big name celebrities to help us get the word out on television, in magazines, and even through social networks like Facebook and Twitter. Once we get over the hump, further expense will be neglible as marketing will be largely free and will occur through word of mouth. Without strong celebrity promotion from the very beginning, the product launch will fizzle away and die unspectacularly - we'll never recoup our largest product development cost. For anything to go viral, it must have a cool factor, be funny, and be useful. A big name celebrity can help us get over that hump.

From CEO
Qoop helps complement our existing product offering. While Qoop expenses have been our largest product development cost, the cost should also be shared among the low costs of our other products. In addition, no product should be looked at as a standalone product. It's more important for us to grow our market share and gain competitive advantage in our industry. To do this, we have to launch more products and start generating a portfolio of products to match our big competitors. We should be marketing all of our products alongside Qoop and not just pigeonhole ourselves to promoting just one product whenever we access the TV or social media marketing channels.

Based on the statements, which one of the following can be most reasonably be inferred to be a view held by the company's Qoop developers?

(A)The company has enough funds for development on a new product.

(B)As the adoption of Qoop grows with the company's marketing efforts, more development resources are needed to position the product to scale.

(C)It has taken more financial resources, but not necessarily more developers, to create Qoop than to create the company's other products.

(D)Developers can do a better job to gain user adoption for the smartphone application than can marketers with no technical knowledge.

(E)Marketing has turned 2.0; it is technical marketers who are experienced in programming that are needed to help spread the word throughout the web, not traditional marketers.

C inferred
rest not inferred

C it is
_________________
Manager
Joined: 07 Dec 2011
Posts: 62
Location: India
GMAT Date: 07-30-2012
GPA: 2.66
WE: Information Technology (Computer Software)
Re: The costs we have incurred to develop  [#permalink]

### Show Tags

15 Jul 2012, 10:10
carcass wrote:
maybeam wrote:
From CFO
The costs we have incurred to develop a smartphone application for our company's Qoop product has far exceeded the costs to develop our web platform and the mobile-friendly version of our website. The returns, thus far, do not even come close to recouping our initial investment. We should cap next year's marketing budget for Qoop at \$100K. If user adoption for Qoop does not increase to a level that would result in conversion in sales that would, in 2-3 years, result in a modest profit, we should stop the project, cut our losses, and focus on developing another product.

From CMO
Our innovative application still hasn't gained attention from media. As with all types of product launches these days, we need to get the word out fast and get this product to go viral. I recommend a marketing budget closer to \$400K. This will allow us to use some big name celebrities to help us get the word out on television, in magazines, and even through social networks like Facebook and Twitter. Once we get over the hump, further expense will be neglible as marketing will be largely free and will occur through word of mouth. Without strong celebrity promotion from the very beginning, the product launch will fizzle away and die unspectacularly - we'll never recoup our largest product development cost. For anything to go viral, it must have a cool factor, be funny, and be useful. A big name celebrity can help us get over that hump.

From CEO
Qoop helps complement our existing product offering. While Qoop expenses have been our largest product development cost, the cost should also be shared among the low costs of our other products. In addition, no product should be looked at as a standalone product. It's more important for us to grow our market share and gain competitive advantage in our industry. To do this, we have to launch more products and start generating a portfolio of products to match our big competitors. We should be marketing all of our products alongside Qoop and not just pigeonhole ourselves to promoting just one product whenever we access the TV or social media marketing channels.

Based on the statements, which one of the following can be most reasonably be inferred to be a view held by the company's Qoop developers?

(A)The company has enough funds for development on a new product.

(B)As the adoption of Qoop grows with the company's marketing efforts, more development resources are needed to position the product to scale.

(C)It has taken more financial resources, but not necessarily more developers, to create Qoop than to create the company's other products.

(D)Developers can do a better job to gain user adoption for the smartphone application than can marketers with no technical knowledge.

(E)Marketing has turned 2.0; it is technical marketers who are experienced in programming that are needed to help spread the word throughout the web, not traditional marketers.

C inferred
rest not inferred

C it is

yeah i know C is the ans.
_________________

Director
Joined: 08 Jun 2010
Posts: 816
Re: The costs we have incurred to develop  [#permalink]

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22 Sep 2012, 03:37
It takes ma a lot of time to read the 2 passages. What is the solution for this problem? pls, help. Read and skim?

pls, help. Thank
Director
Joined: 08 Jun 2010
Posts: 816
Re: The costs we have incurred to develop  [#permalink]

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22 Sep 2012, 03:38
It takes me a lot of time to read 3 passages. Pls help. how to solve this problem.

Thank you.
Intern
Joined: 11 Oct 2012
Posts: 2
Re: The costs we have incurred to develop  [#permalink]

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30 Oct 2012, 17:56
As you read the conversation.. CEO says that "The costs we have incurred to develop a smartphone application for our company's Qoop product has far exceeded the costs to develop our web platform and the mobile-friendly version of our website"

And in the last tab CEO says that" we have to launch more products and start generating a portfolio of products to match our big competitors"

So we can infer that the app they made was too costly but they had necessary developers to develop other stuff too..

Hope you get the point!

Its tough to explain..
Manager
Joined: 15 Dec 2016
Posts: 104
Re: The costs we have incurred to develop  [#permalink]

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13 Nov 2017, 08:37
Why is A wrong ?

If the CEO says we need to build more products in conjunction with Qoop, its clear the company obviously has the money needed.

Why else would the CEO make the statement, if there is no additional money /funds for the new products ?
Re: The costs we have incurred to develop   [#permalink] 13 Nov 2017, 08:37
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# The costs we have incurred to develop

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