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Questions and Answers of Marketing

1. Which of the different product mix pricing strategies discussed in the text applies best to Payless’s new strategy? Discuss this in detail.2. How do concepts such as psychological pricing and
Explain how channel members add value for manufacturers and consumers.
Discuss the various types of conflict that may arise in the channel of distribution. Is all channel conflict bad?
What factors does a cosmetics company need to consider when designing its marketing channel for a new low-priced line of cosmetics?
Describe the major types of vertical marketing systems and provide an example of each.
ExerWise, a new company marketing a high-end ab toner exercise machine, is considering direct marketing versus selling through Strongs, a national sporting goods retailer. As the buyer for Strongs,
Ward’s Berry Farm specializes in fresh strawberries, which it sells to a variety of retailers through a produce wholesale distributor. Form a small group and have each member assume one of the
Visit electronics.howstuffworks.com/rfid.htm# and watch the video “How UPS Smart Labels Work.” You can also learn more about RFID technology from this site. What impact will RFID tags have on
1. What costs are movie studios reducing by using this alternative channel of distribution? 2. Is this an example of disintermediation? Will electronic distribution displace traditional distribution
1. Learn more about this phenomenon. Who receives value in such transactions? Who loses value?2. How are manufacturers dealing with this problem?Parallel imports, gray products, and price diversion
1. If Lightco’s contribution margin is 40 percent, what increase in sales will it need to break even on the increase in fixed costs to hire the new sales reps?2. How many new retail accounts must
1. As completely as possible, sketch the supply chain for Zara from raw materials to consumer purchase.2. Discuss the concepts of horizontal and vertical conflict as they relate to Zara.3. Which type
Different types of customers and products require different amounts of service. Discuss the different levels of retailer service and give one example of each.
What is the wheel-of-retailing concept? Does it apply to online retailing?
What is retail convergence? Has it helped or harmed small retailers?
Explain how wholesalers add value in the channel of distribution.
Suppose that you are a manufacturer’s agent for three lines of complementary women’s apparel. Discuss what types of marketing mix decisions you will be making.
1. Visit www.hautelook.com to learn more about this online retailer. In what ways does it provide value for manufacturers and consumers? 2. Do sites like these create conflicts between manufacturers
1. Is it fair for retailers to charge manufacturers to get onto store shelves? Discuss both points of view on this issue. 2. Go to www.ftc.gov/opa/2003/11/slottingallowance.shtm to read the FTC’s
1. Refer to Appendix 2, Marketing by the Numbers, and determine the stockturn rate of a retailer carrying an average inventory at cost of $350,000, with a cost of goods sold of $800,000. 2. If this
1. Define Whole Foods’ “product.” How does it deliver value to customers?2. Organic food are becoming very popular. Many chains, including Wal-Mart, have begun offering and expanding their
Discuss the three major factors changing the face of today’s marketing communications.
List the steps in developing effective marketing communications.
Name and describe the common methods for setting promotion budgets.
Compare and contrast push and pull promotion strategies. Which promotion tools are most effective in each?
Energizer is introducing a new line of batteries that provide a longer life than its existing models. The brand manager for the new line believes most of the promotion budget should be spent on
Visit www.ftc.gov/bcp/edu/pubs/consumer/products/pro03.pdf to learn more about the FTC’s three-day cooling-off rule. Name at least five types of sales that are exempt from this rule.
1. Research media audience measurement methods for electronic and print media and discuss how technology is changing the way media audiences are measured. 2. Are these audience measurement techniques
1. Was Mercury guilty of deceptive advertising with its Mariner commercial? 2. Check the “truth in advertising” guidelines at the FTC Web site (www.ftc.gov/bcp/edu/pubs/business/adv/bus35.shtm).
If a women’s clothing store forecasted $100 million in sales next year, what amount would you recommend it spend on advertising? How useful are the percentages found above for this business? How
1. What are Burger King’s communication objectives for its target audience?2. With its focus on the “super fan,” does BK risk alienating other customers? What are the implications of this?3.
List and briefly describe the four important decisions marketing managers must make when developing an advertising program.
How do an advertisement’s appeals differ from its execution style?
Define the terms reach, frequency, and impact.
Any message can be presented using different execution styles. Select a brand and target audience and design two advertisements, each using a different execution style to deliver the same message to
Recommend three advertising media for a campaign to introduce a new line of men’s personal care products under a LeBron James label.
1. Will interactive television catch on with consumers? What might be slowing the adoption of this innovative advertising technique?2. Discuss the types of products or services that would benefit
1. These types of activities are often called “stealth marketing” because they are not openly presented as promotional tactics. Learn more about this practice and decide if it is ethical. 2. Can
1. Using advertising rate information for these magazines www.rdglobaladvertising.com/rates/rates.shtml?united_states_english), determine the cost per thousand of a full page, 4-color advertisement.
1. Consider Coca-Cola’s advertising throughout its history. Identify as many commonalities as possible for its various ads and campaigns. (For a list of Coca-Cola slogans over the years, check out
Briefly describe the activities involved in sales force management.
List and briefly describe the three sales force structures outlined in the chapter. What sales force structure does CDW employ?
Work in pairs to describe the stages in the selling process for a small company in your community that sells cleaning services to owners of small businesses, such as hair salons, dentists’ offices,
Suppose you are the marketing coordinator responsible for recommending the sales promotion plan for the market launch of a new brand of energy drink sold in supermarkets. What promotional tools would
Find examples of five different types of consumer promotions and present them to your class.
How can consumers be certain that a coupon obtained from the Internet is legitimate? How can manufacturers and retailers ensure the coupons are not counterfeited? Go to the Coupon Information
1. Is it ethical for pharmaceutical sales representatives to influence physicians’ prescribing behavior using free samples and promotional gifts?2. National and international trade associations in
1. Refer to Appendix 2, Marketing by the Numbers, to determine the number of salespeople a company needs if it has 3,000 customers who need to be called on 10 times per year. Each sales call lasts
1. Which of the sales force structures discussed in the text best describes P&G’s CBD structure?2. From the perspective of team selling, discuss the positive as well as some possible negative
Discuss the benefits of direct marketing to both buyers and sellers.
A local oriental rug cleaning company has contacted you for advice on setting up its customer database. It needs this database for customer-relationship management and for direct marketing of new
Why is privacy a tough public policy issue confronting the direct marketing industry and what is being done to address this issue?
Visit your favorite retail Web site and evaluate the site according to the seven Cs of effective Web site design.
Consumers can register with the Do Not Call Registry to avoid unwanted phone solicitations from marketers. But what can consumers do to reduce unsolicited mail and e-mail? Find out how consumers can
What can organizations and businesses do to ensure adequate data security for their members and customers? What can consumers do to protect themselves if their personal information has been
1. Search the Internet for a book club, a music club, and a movie club that offer negative option plans. Describe the incentives offered to get consumers to join, the obligations of membership, and
Many companies are realizing the efficiency of telemarketing in the face of soaring sales force costs. Whereas an average cost of a business-to-business sales call by an outside salesperson costs
1. Conduct a brief analysis of the marketing environment and the forces shaping the development of StubHub2. Discuss StubHub’s business model. What general benefits does it afford to buyers and
What is the difference between entrepreneurial, intrepreneurial, and formulated marketing? What are the advantages and disadvantages of each?
Discuss the strategies available to market leaders.
What are the advantages and disadvantages of a marketnicher competitive strategy?
Identify a company following a market niche strategy in each of the following industries:automobiles, restaurants, airlines, and golf equipment.
1. What position does Apple hold in the smart phone industry? What competitive strategy is Apple using? 2. Why is Apple virtually giving away this platform to third-party applications developers?
1. The U.S. Justice Department determined that the merger was not anticompetitive because forms of competition exist in the audio entertainment market. Discuss the competitors in this market. 2. Will
1. Refer to Appendix 2, Marketing by the Numbers, and calculate 2006 market shares by volume for Nestlé, PepsiCo, and Coca-Cola in the bottled water market.2. How much revenue did one market share
1. Based on the business philosophies of Amar Bose, how do you think the Bose Corporation goes about analyzing its competition?2. Which of the text’s three approaches to marketing strategy best
Identify examples of economic communities and discuss their roles in international trade.
Discuss different forms of countertrade and explain why it is a growing practice.
Discuss the three ways to enter foreign markets. Which is the best?
Visit the Web site of the Brazilian Embassy in Washington, D.C., at www.brasilemb.org. What do you learn about doing business in Brazil?
1. Read more about this initiative at www-03.ibm.com/press/us/en/pressrelease/24111. wss. Explain how IBM is delivering value for small to midsize businesses. How is it delivering value to
1. Determine the total revenue generated by a customer over the life of each 24-month contract option. Which one generates more revenue for Hong Kong 3?2. Using a currency conversion Web site such as
1. Does Nokia have a truly global strategy, rather than just a series of regional strategies? Explain.2. Consider the different global marketing environments discussed in the text. How do these
What is sustainable marketing? Explain how the sustainable marketing concept differs from the marketing concept and the societal marketing concept.
Marketing’s impact on individual consumers has been criticized. Discuss the issues relevant to this impact.
Discuss the types of harmful impact that marketing practices can have on competition and the associated problems.
Can an organization focus on both consumerism and environmentalism at the same time? Explain.
Describe the five sustainable marketing principles and explain how companies benefit from adhering to them.
Good ethics is the cornerstone of sustainable marketing. Explain what this means and discuss how companies practice good ethics.
Recent public concerns over children and the Internet resulted in the Children’s Online Privacy Protection Act (COPPA). Among other things, this act requires Web sites that are visited by children
1. Learn more about the Federal Communications Commission’s Net neutrality principle, passed in 2005, and write a brief report explaining it. (AACSB: Communication)2. Discuss this issue from the
1. Was Wrigley’s sponsorship of the song and later release of the jingle deceptive? 2. Discuss other examples of product placement—that is, brands appearing in songs, movies, television programs,
1. Refer to Appendix 2, Marketing by the Numbers, to answer the following questions. If JCPenney’s cost for a piece of jewelry is $50 and it was marked up five times the cost, what is the
Is advertising a simple or a complex endeavor? Why?
Do you believe that advertising is ancient or a modern practice? How so?
Define modern advertising according to your textbook authors.
Define and discuss one major role of advertising.
What is public service advertising? Who produces it? Provide at least one example of this type of advertising.
Describe the different types of agencies that exist within the advertising industry.
Discuss the emergence of consumer society in the late 19th century, and how it influenced the rise of the modern advertising era.
Many industry experts feel that Apple€™s €œ1984€ commercial is the best television commercial ever made. Watch it online at www.youtube.com/watch?v=OYecfV3ubP8 and
You belong to an organization that wants to advertise a special event it is sponsoring. You are really concerned that the group not wastes its limited budget on advertising that doesn’t work.
In class, Mark tells the instructor that all this “history of advertising” stuff is irrelevant. The instructor asks the class to consider why it is important to understand the historical review
Analyze the Burger King campaign discussed in this chapter and compare it to key aspects of the modern definition of advertising.
Advertising plays four general roles in society. Define and explain each one in the context of the “1984” commercial featured in this chapter.
What are the four components of advertising and what key concepts and practices do they represent?
Trace the evolution of advertising and the current developments that shape the practice of advertising. What are the most important periods in the development of advertising and what changes did they
Who are the four key players in the world of advertising, and what are the responsibilities of each?
We discussed five categories of agency jobs. Explain each one and identify where your own personal skills might fit.
What challenges are affecting the current practice of advertising? In particular, why is effectiveness important to advertisers?

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