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Principles of Marketing 14th Edition Philip Kotler, Gary Armstrong - Solutions

Go to www.delta.com and determine what it would cost to fly Delta Airlines from Atlanta to Denver for a one-week roundtrip next month. What additional fees would you have to pay to change your flight, check one bag, bring your dog with you, and eat lunch while flying?In airline pricing, $5 here and
A consumer purchases a computer for $800 from a retailer. If the retailer’s markup is 30 percent and the wholesaler’s markup is 10 percent, both based on their respective selling prices, at what price does the manufacturer sell the product to the wholesaler?One external factor that
If the unit variable cost for each computer is $350 and the manufacturer has fixed costs totaling $2 million, how many computers must this manufacturer sell to break even? How many must it sell to realize a profit of $50 million? One external factor that manufacturers must consider when setting
What benefits do airline customers seek when they buy air travel tickets? Has Southwest done a better job than competitors of meeting the needs of these air travelers? In what ways ? It’s the same plane going to the same place at exactly the same time. But these days, not all airline passengers
How has Southwest executed value-based pricing?It’s the same plane going to the same place at exactly the same time. But these days, not all airline passengers are equal. Nor do they all pay equally. In fact, a person on any given flight has likely paid a different price for his or her ticket
What are the benefits and risks to airlines of cutting costs? What impact are these factors now having on airline pricing and profitability?It’s the same plane going to the same place at exactly the same time. But these days, not all airline passengers are equal. Nor do they all pay equally. In
Does the airline’s current strategy truly differentiate it from its competitors? Is the strategy sustainable?It’s the same plane going to the same place at exactly the same time. But these days, not all airline passengers are equal. Nor do they all pay equally. In fact, a person on any given
What marketing recommendations, including pricing recommendations, would you make to Southwest as it moves into the next decade?It’s the same plane going to the same place at exactly the same time. But these days, not all airline passengers are equal. Nor do they all pay equally. In fact, a
Compare and contrast market-skimming and market penetration pricing strategies and discuss the conditions under which each is appropriate.
Name and briefly describe the five product mix pricing decisions.
Explain how discounts and allowances differ from promotional pricing.
Describe the elements of a company’s marketing environment and why marketers play a critical role in tracking environmental trends and spotting opportunities.
List the primary types of advertising objectives and discuss the kinds of advertising used to achieve each type. (AASCB: Communication)
List some of the demographic trends of interest to marketers in the United States and discuss whether these trends pose opportunities or threats for marketers.
Discuss current trends in the economic environment that marketers must be aware of and provide examples of company responses to each trend.
Discuss trends in the natural environment that marketers must be aware of and provide examples of company responses to them.
Compare and contrast core beliefs/values and secondary beliefs/values. Provide an example of each and discuss the potential impact marketers have on each.
Explain how companies can take a proactive stance toward the marketing environment.
China and India are emerging markets that will have a significant impact on the world in coming years. The term Chindia is used to describe the growing power of these two countries. In a small group, research demographic and economic trends related to Chindia’s power and its impact on marketers
In a small group, search the Internet for U.S. population distribution maps and create a PowerPoint presentation illustrating factors such as geographical population shifts, languages spoken, age distributions, and ancestry. Discuss the demographic implications for marketers.
Various federal agencies impact marketing activities. Research each agency listed below, discuss the elements of marketing that are impacted by that agency, and present a recent marketing case or issue on which each agency has focused.a. Federal Trade Commission (www.ftc.gov)b. Food and Drug
Do you think these sources accurately reflect cultural trends? Identify other Web sites that might be useful in learning about cultural trends. If you really want to identify the zeitgeist, or “spirit of the times,” look at the top Web sites visited, the top videos watched on YouTube, the top
Using the chain ratio method described in Appendix 2, estimate the market sales potential for heart catheterization products to meet the needs of the infant and child segment. Assume that of the 40,000 children with heart defects each year, 60 percent will benefit from these types of products and
Research the medical devices market and compare the market potential you estimated to the sales of various devices. Are companies justified in not pursuing the infant and child segment? Many marketing decisions boil down to numbers. An important question is this: What is the market sales potential
What microenvironmental factors have affected Target’s performance over the past few years?When you hear the term discount retail, two names that usually come to mind: Walmart and Target. The two have been compared so much that the press rarely covers one without at least mentioning the other.
What macroenvironmental factors have affected Target’s performance during that period?When you hear the term discount retail, two names that usually come to mind: Walmart and Target. The two have been compared so much that the press rarely covers one without at least mentioning the other. The
By focusing on the “Pay Less” part of its slogan, has Target pursued the best strategy? Why or why not?When you hear the term discount retail, two names that usually come to mind: Walmart and Target. The two have been compared so much that the press rarely covers one without at least mentioning
Given Target’s current situation, what recommendations would you make to Steinhafel for his company’s future?When you hear the term discount retail, two names that usually come to mind: Walmart and Target. The two have been compared so much that the press rarely covers one without at least
Discuss the real value of marketing research and marketing information and how that value is attained.
Discuss the sources of internal data and the advantages and disadvantages associated with this data.
Explain the role of secondary data in gaining customer insights. Where do marketers obtain secondary data, and what are the potential problems in using such data?
What are the advantages of Web-based survey research over traditional survey research?
Compare open-ended and closed-ended questions. When and for what is each type of question useful in marketing research?
What are the similarities and differences when conducting research in another country versus the domestic market?
Perform an Internet search on “social media monitoring” to find companies that specialize in monitoring social media. Discuss two of these companies. Then find two more sites that allow free monitoring and describe how marketers can use these to monitor their brands. Write a brief report on
Summarize an article describing a marketing research study. Describe how the data were collected. Is the research objective exploratory, descriptive, or causal? Explain your conclusions.
Critics have raised concerns over the usefulness and ethics of this type of marketing research. Discuss both sides of the debate surrounding this methodology. Picture yourself with wires hooked up to your head or entering a magnetic tube that can see inside your brain. You must be undergoing some
Go to www.surveysystem.com/sscalc.htm to determine the appropriate sample size for a population of 113 million households. Assuming a confidence interval of 5, how large should the sample of households be if desiring a 95 percent confidence level? How large for a 99 percent confidence level?
Why is it important that the advertising media and creative departments work closely together?
Name and describe five of the many execution styles advertisers use when developing ads. For each execution style, describe a television commercial using that style.
How should a company measure the effectiveness of its advertising?
What are the role and functions of public relations within an organization?
Discuss the tools used by public relations professionals.
Select two print ads (such as magazine ads). Based on the three characteristics advertising appeals should possess, evaluate the appeals used in each ad.
In a small group, discuss the major public relations tools and develop three public relations items for each of the following: a hospital, a restaurant, and any brand of your choice.
Research P&G’s problems with its Pampers Dry Max brand. How has P&G responded to this crisis? Write a report on what you learn.The Internet can pose a public relations nightmare for companies. Venerable P&G found this out firsthand after launching its revolutionary Dry Max technology
Find examples of other online rumors and discuss how companies can combat negative publicity spread on the Internet.The Internet can pose a public relations nightmare for companies. Venerable P&G found this out firsthand after launching its revolutionary Dry Max technology for its best-selling
Visit www.fda.gov and search for “Bad Ad Program” to learn more about it. What is the FDA asking medical professionals to look for in DTC ads and other promotional activities directed toward them? How might this program be abused by the pharmaceutical industry?The FDA is enlisting doctors in
If one rating point represents 1 percent of TV households, how many households were watching football that evening? How many households were tuned to The Vampire Diaries? (AACSB: Communication; Analytical Reasoning) Nielsen ratings are very important to both advertisers and television programmers
What total share of the viewing audience was captured by all five networks? Explain why share is higher than the rating for a given program. (AACSB: Communication; Analytical Reasoning; Reflective Thinking) Nielsen ratings are very important to both advertisers and television programmers because
Do you agree with David Ogilvy that the primary function of advertising is selling? How does that fit with the three advertising objectives of informing, persuading, and reminding?These days, there are some extremely creative ads fighting for our attention. Television spots are often on par with
What sample sizes are necessary at population sizes of 1 billion, 10,000, and 100 with a confidence interval of 5 and a 95 percent confidence level? Explain the effect population size has on sample size. Have you ever been disappointed because a television network cancelled one of your favorite
If the primary purpose of advertising is to sell, are there any message execution techniques that seem best predisposed to this purpose?These days, there are some extremely creative ads fighting for our attention. Television spots are often on par with feature films in terms of artistic quality.
Briefly discuss Harrah’s marketing information system, using Figure as a guide.Joseph, a 30-something New Yorker, recently went on a weekend trip to Atlantic City, New Jersey, where he hoped to stay at one of his favorite Harrah’s resorts and enjoy some gaming and entertainment. Unfortunately
As a creator of advertising, what kind of return on investment did OgilvyOne get out of this promotional contest? These days, there are some extremely creative ads fighting for our attention. Television spots are often on par with feature films in terms of artistic quality. Print ads and billboards
Describe the relationship between Harrah’s marketing information system and Harrah’s managers and employees.Joseph, a 30-something New Yorker, recently went on a weekend trip to Atlantic City, New Jersey, where he hoped to stay at one of his favorite Harrah’s resorts and enjoy some gaming and
Discuss the role of personal selling in the promotion mix. In what situations is it more effective than advertising?
Why does Harrah’s system work so well compared to MIS efforts by other companies?Joseph, a 30-something New Yorker, recently went on a weekend trip to Atlantic City, New Jersey, where he hoped to stay at one of his favorite Harrah’s resorts and enjoy some gaming and entertainment. Unfortunately
Compare and contrast the three sales force structures outlined in the chapter. Which structure is most effective?
What role does an inside sales force play in an organization?
To what extent is Harrah’s in danger of a competitor copying its system?Joseph, a 30-something New Yorker, recently went on a weekend trip to Atlantic City, New Jersey, where he hoped to stay at one of his favorite Harrah’s resorts and enjoy some gaming and entertainment. Unfortunately for
How do consumers respond to various marketing efforts the company might use? Which buyer characteristics that affect buyer behavior influence you most when making a clothing purchase decision? Are these the same characteristics that would influence you when making a computer purchase? Explain.
Define sales promotion and discuss its objectives.
What is an opinion leader? Describe how marketers attempt to use opinion leaders to help sell their products.
Name and describe the types of consumer promotions.
Name and describe the types of consumer buying behavior. Which one would most likely be involved in the purchase of a mobile phone purchase? For choosing a frozen dinner?
Name and describe the types of trade sales promotions.
Explain the stages of the consumer buyer decision process and describe how you or your family went through this process to make a recent purchase.
Name and describe the adopter categories and explain how a marketer of three-dimensional televisions can use this knowledge in its market targeting decision.
Although many manufacturers maintain their own sales forces, many use the services of sales agents in the channel of distribution. Discuss the pros and cons of using sales agents compared to a company sales force. Who will best fulfill the channel functions for the manufacturer? (AACSB:
Marketers often target consumers before, during, or after a trigger event, an event in one’s life that triggers change. For example, after having a child, new parents have an increased need for baby furniture, clothes, diapers, car seats, and lots of other baby-related goods. Consumers who never
Select a product or service and role-play a sales call—from the approach to the close—with another student. Have one member of the team act as the salesperson with the other member acting as the customer, raising at least three objections. Select another product or service and perform this
Hemopure is a human blood substitute derived from cattle blood. OPK Biotech still has this product in clinical trials, but the company has received FDA approval for a similar product, Oxyglobin, in the veterinary market. Visit opkbiotech .com/ to learn about Hemopure. Then explain how the product
Design a sales promotion campaign for your local animal shelter with the goal of increasing pet adoption. Use at least three types of consumer promotions and explain the decisions regarding this campaign. (AACSB: Communication; Reflective Thinking)
Go to the Strategic Business Insights Web site and complete the VALS survey at www.strategicbusinessinsights.com/vals/presurvey.html. What does VALS measure, and what is your VALS type? Does it adequately describe you? On what dimensions are the VALS types based? How can marketers use this tool to
Using Google, search for “Netflix Prize” to learn about this contest and the subsequent troubles Netflix experienced with Netflix Prize 2. Write a brief report on what you find and argue for or against cancellation of the second contest. (AACSB: Communication; Use of IT; Reflective Thinking)
Debate whether or not Coca-Cola is deliberately trying to deceive consumers into believing that Vitaminwater is a healthy alternative to soda. Which psychological factor is most affected by the product name and ad claims and might influence consumers to purchase this product? Vitaminwater—sounds
Is Hank being ethical? Discuss other sales tactics that might be unethical. (AACSB: Communication; Ethical Reasoning; Reflective Thinking) Hank is a sales representative for a CRM software company and makes several cold calls each day prospecting for customers. He usually starts his call to a
Find two other examples of brands that use names, words, colors, package shapes, or other elements to convey potentially deceptive meanings to consumers. Vitaminwater—sounds healthy, right? Although Vitaminwater has vitamins, it also has thirty-three grams—that’s two heaping tablespoons—of
What traits and behaviors should an ethical salesperson possess? What role does the sales manager play in ethical selling behavior? (AACSB: Communication; Ethical Reasoning; Reflective Thinking) Hank is a sales representative for a CRM software company and makes several cold calls each day
Calculate the scores for brands B and C. Which brand would this consumer likely choose?One way consumers can evaluate alternatives is to identify important attributes and assess how purchase alternatives perform on those attributes. Consider the purchase of a notebook computer. Each attribute, such
Determine the number of salespeople FireSpot needs if it has 1,000 retail customer accounts that need to be called on five times per year. Each sales call lasts approximately 2.5 hours, and each sales rep has approximately 1,250 hours per year to devote to customers. (AACSB: Communication;
Which brand is this consumer least likely to purchase? Discuss two ways the marketer of this brand can enhance consumer attitudes toward purchasing its brand.One way consumers can evaluate alternatives is to identify important attributes and assess how purchase alternatives perform on those
FireSpot wants to expand to the Midwest and western United States and intends to hire ten new sales representatives to secure distribution for its products. Each sales rep earns a salary of $50,000 plus commission. Each retailer generates an average $50,000 in revenue for FireSpot. If FireSpot’s
Analyze the buyer decision process of a traditional Porsche customer.Porsche (pronounced Porsh-uh) is a unique company. It has always been a niche brand that makes cars for a small and distinctive segment of automobile buyers. In 2009, Porsche sold only 27,717 cars in the five models it sells in
Which of the sales force structures described in the text best describes HP’s structure? Imagine this scenario: You need a new digital camera. You’re not sure which one to buy or even what features you need. So you visit your nearest electronics superstore to talk with a salesperson. You walk
Contrast the traditional Porsche customer decision process to the decision process for a Cayenne or a Panamera customer.Porsche (pronounced Porsh-uh) is a unique company. It has always been a niche brand that makes cars for a small and distinctive segment of automobile buyers. In 2009, Porsche sold
What are the positive and negative aspects of HP’s new sales force structure? Imagine this scenario: You need a new digital camera. You’re not sure which one to buy or even what features you need. So you visit your nearest electronics superstore to talk with a salesperson. You walk through the
Which concepts from the chapter explain why Porsche sold so many lower-priced models in the 1970s and 1980s?Porsche (pronounced Porsh-uh) is a unique company. It has always been a niche brand that makes cars for a small and distinctive segment of automobile buyers. In 2009, Porsche sold only 27,717
Describe some of the differences in the selling process that an HP sales rep might face in selling to a long-term established customer versus a prospective customer.Imagine this scenario: You need a new digital camera. You’re not sure which one to buy or even what features you need. So you visit
Given that Hurd has an effective sales force, does he really need to meet with HP partners as much as he does?Imagine this scenario: You need a new digital camera. You’re not sure which one to buy or even what features you need. So you visit your nearest electronics superstore to talk with a
Is it possible for HP to function like a smaller company? Why or why not? Imagine this scenario: You need a new digital camera. You’re not sure which one to buy or even what features you need. So you visit your nearest electronics superstore to talk with a salesperson. You walk through the camera
Discuss the importance of customer databases in direct marketing.
Describe the four major online marketing domains and give an example of each.
Name and describe the major forms of direct marketing.
Explain the ways in which companies can establish an online marketing presence.
Compare and contrast the different forms of online advertising. What factors should a company consider in deciding among these different forms?
What is phishing? How does it harm consumers and marketers?
In a small group, design a viral marketing campaign targeted to teens for a brand of soft drink. Discuss the challenges marketers might encounter when implementing this viral campaign.
Visit Nike’s Web site at nikeid.nike.com/nikeid/index.jsp and design your own shoe. Print out your shoe design and bring it to class. Do you think the price is appropriate for the value received from being able to customize your shoe? Identify and describe two other Web sites that allow buyers to

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