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Marketing The Core 5th edition Roger A. Kerin, Steven W. Hartley, William Rudelius - Solutions

1. How does Toyota’s approach to social responsibility relate to the three concepts of social responsibility described in the text (profit responsibility, stakeholder responsibility, and societal responsibility)?2. How does Toyota’s view of sustainable mobility contribute to the company’s
Review Figure 4–2, which shows the smart phone attributes identified by Consumer Reports. Which attributes are important to you? What other attributes might you consider? Which brand would you prefer?
Suppose research at Panasonic reveals that prospective buyers are anxious about buying high-definition television sets. What strategies might you recommend to the company to reduce consumer anxiety?
Assign one or more levels of the hierarchy of needs and the motives described in Figure 4–5 to the following products:(a) Life insurance,(b) Cosmetics,(c) The Wall Street Journal, and(d) Hamburgers.
In which stage in the family life cycle would the purchase of the following products and services be most closely identified?(a) Bedroom furniture,(b) Life insurance,(c) A Caribbean cruise,(d) A house mortgage, and(e) Children’s toys
1. How has an understanding of consumer behavior helped Groupon grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries today?2. What is the Groupon Promise? How does the Groupon Promise affect a consumer’s perceived risk and cognitive dissonance?3. Describe the
Describe the major differences among industrial firms, resellers, and government units in the United States.
List and discuss the key characteristics of organizational buying that make it different from consumer buying.
What is a buying center? Describe the roles assumed by people in a buying center and what useful questions should be raised to guide any analysis of the structure and behavior of a buying center.
A firm that is marketing multimillion-dollar wastewater treatment systems to cities has been unable to sell a new type of system. This setback has occurred even though the firm’s systems are cheaper than competitive systems and meet U.S. Environmental Protection Agency (EPA) specifications. To
1. What is the role of the buying center at Trek? Who is likely to comprise the buying center in the decision to select a new supplier at Trek?2. What selection criteria does Trek utilize when it selects a new supplier or evaluates an existing supplier?3. How has Trek’s interest in the
Explain what is meant by this statement: “Quotas are a hidden tax on consumers, whereas tariffs are a more obvious one.”
How successful would a television commercial in Japan be if it featured a husband surprising his wife in her dressing area on Valentine’s Day with a small box of chocolates containing four candies? Explain.
As a novice in global marketing, which global market entry strategy, would you be likely to start with? Why? What other alternatives are available for a global market entry?
Coca-Cola is sold worldwide. In some countries, Coca-Cola owns the bottling facilities; in others, it has signed contracts with licensees or it relies on joint ventures. When selecting a licensee in each country, what factors should Coca-Cola consider?
“It’s naive to treat ‘international’ as one big market—particularly within OTC,” explains Marti Morfitt, president and CEO of CNS, the company that manufactures Breathe Right® nasal strips. “There are many discrete, unique markets, and local expertise is needed to understand the
Suppose your dean of admissions is considering surveying high school seniors about their perceptions your school to design better informational brochures for them. What are the advantages and disadvantages of doing?(a) Telephone interviews and(b) An Internet survey of seniors requesting information
Wisk detergent decides to run a test market to see the effect of coupons and in-store advertising on sales. The index of sales is as follows:What are your conclusions and recommendations?
Suppose Fisher-Price wants to run a simple experiment to evaluate a proposed Chatter Telephone design. It has two different groups of children on which to run its experiment for one week each. The first group has the old toy telephone, whereas the second group is exposed to the newly designed pull
Nielsen Media Research obtains ratings of local TV stations in small markets by having households fill out diary questionnaires. These give information on (a) who is watching TV and (b) the program being watched. What are the limitations of this questionnaire method?
The format in which information is presented is often vital. (a) If you were a harried marketing manager and queried your information system, would you rather see the results in tables or charts and graphs?(b) What are one or two strengths and weaknesses of each format?
(a) Why might a marketing researcher prefer to use secondary data rather than primary data in a study? (b) Why might the reverse be true?
Which of the following variables would linear trend extrapolation be more accurate for?(a) Annual population of the United States or (b) Annual sales of cars produced in the United States by Ford. Why?
“What makes social media ‘social’ isits give and take,” says Jeff Gerst ofBolin Marketing, who manages theCarmex® social media properties. By“give” Gerst is referring to the feedbackconsumers send on social media;“take” is what they receive—such asnews and coupons. “For
What variables might be used to segment these consumer markets?(a) Lawn mowers,(b) Frozen dinners,(c) Dry breakfast cereals,(d) Soft drinks.
What variables might be used to segment these industrial markets? (a) Industrial sweepers, (b) Photocopiers, (c) Computerized production control systems, (d) Car rental agencies.
In Figure, the dormitory market segment includes students living in college-owned residence halls, sororities, and fraternities. What market needs are common to these students that justify combining them into a single segment in studying the market for your Wendy’s restaurant?
You may disagree with the estimates of market size given for the rows in the market-product grid in Figure. Estimate the market size, and give a brief justification for these market segments: (a) Dormitory students, (b) Day commuters, (c) People who work in the area.
Suppose you want to increase revenues for your fast food restaurant even further. Referring to Figure, what advertising actions might you take to increase revenues from?(a) Dormitory students, (b) Dinners, (c) After-dinner snacks consumed by nightcommuters?
Locate these drinks on the perceptual map in Figure 8–8:(a) Cappuccino,(b) Beer,(c) Soymilk.
Over the last decade we’ve seen a dramatic change in the media to reach consumers, says Linda Glassel, vice president of sports marketing and brand image of Prince Sports, Inc. PRINCE SPORTS IN TODAY’S CHANGING WORLD“Today—particularly in reaching younger consumers—we’re now focusing so
Products can be classified as either consumer or business products. How would you classify the following products? (a) Johnson’s baby shampoo, (b) A Black & Decker two-speed drill, (c) An arc welder.
Are Nature Valley Granola bars and Eddie Bauer hiking boots convenience, shopping, specialty, or unsought products?
Based on your answer to question 2, how would the marketing actions differ for each product and the classification to which you assigned it?Question 2, Are Nature Valley Granola bars and Eddie Bauer hiking boots convenience, shopping, specialty, or unsought products?
Explain how the four I’s of services apply to a Marriott Hotel.
Idle production capacity may be related to inventory or capacity management. How would the pricing component of the marketing mix reduce idle production capacity for (a) A car wash, (b) A stage theater group, (c) A university?
In terms of the behavioral effect on consumers, how would a PC, such as an Apple iMac, be classified? In light of this classification, what actions would you suggest to PC manufacturers to increase their sales in the market?
What methods would you suggest to assess the potential commercial success for the following new products? (a) A new, improved ketchup; (b) A three-dimensional television system that took the company 10 years to develop; (c) A new children’s toy on which the company holds a patent.
Concept testing is an important step in the new-product process. Outline the concept tests for (a) An electrically powered car (b) A new loan payment system for automobiles that is based on a variable interest rate. What are the differences in developing concept tests for products as opposed to
Vivian Milroy Callaway (photo on page 216), vice president for the Center for Learning and Experimentation at General Mills, retells the story for the “indulgent, delicious, and gooey” Warm Delights™. She summarizes, “When you want something that is truly innovative, you have to look at the
Listed below are three different products in various stages of the product life cycle. What marketing strategies would you suggest to these companies? (a) Canon digital cameras—growth stage, (b) Hewlett Packard tablet computers—introductory stage, (c) Handheld manual can openers—decline stage.
It has often been suggested that products are intentionally made to break down or wear out. Is this strategy a planned product modification approach?
The product manager of GE is reviewing the penetration of trash compactors in American homes. After more than two decades in existence, this product is in relatively few homes. What problems can account for this poor acceptance? What is the shape of the trash compactor life cycle?
For years, Ferrari has been known as the manufacturer of expensive luxury automobiles. The company plans to attract the major segment of the car-buying market that purchases medium-priced automobiles. As Ferrari considers this trading-down strategy, what branding strategy would you recommend? What
Sheryl Adkins-Green couldn’t ask for a better assignment. As the newly appointed vice president of brand development at Mary Kay, Inc., she is responsible for development of the product portfolio around the world, including global initiatives and products specifically formulated for global
Under what conditions would a camera manufacturer adopt a skimming price approach for a new product? A penetration approach?
What are some similarities and differences between skimming pricing, prestige pricing, and above-market pricing?
Touché Toiletries Inc. has developed an addition to its Lizard man Cologne line tentatively branded Ode d’Toade Cologne. Unit variable costs are 45 cents for a 3-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. Ode d’Toade
What would be your response to the statement, “Profit maximization is the only legitimate pricing objective for the firm”?
“We offer a guitar at every price point for every skill level,” explains Kevin Lello, vice president of marketing at Washburn Guitars. Washburn is one of the most prestigious guitar manufacturers in the world, offering instruments that range from one-of-a-kind, custom-made acoustic and electric
A distributor for Celanese Chemical Company stores large quantities of chemicals, blends these chemicals to satisfy the requests of customers, and delivers the blends to a customer’s warehouse within 24 hours of receiving an order. What utilities does this distributor provide?
Suppose the president of a carpet manufacturing firm has asked you to look into the possibility of bypassing the firm’s wholesalers (who sell to carpet, department, and furniture stores) and selling direct to these stores. What caution would you voice on this matter, and what type of information
What type of channel conflict is likely to be caused by dual distribution, and what type of conflict can be reduced by direct distribution? Why?
How does the channel captain idea differ among corporate administered and contractual vertical marketing systems with particular reference to the use of the different forms of influence available to firms?
List the customer service factors that would be vital to buyers in the following types of companies: (a) Manufacturing, (b) Retailing, (c) Hospitals, (d) Construction.
“The new economy means that the balance of power has shifted toward the consumer,” explains Jeff Bezos, CEO of Amazon.com, Inc. The global online retailer is a pioneer of fast, convenient, low-cost virtual shopping that has attracted millions of consumers. Of course, while Amazon has changed
Discuss the impact of changes in household income on (a) Nonstore retailing (b) The retail mix.
In retail pricing, retailers often have a maintained markup. Explain how this maintained markup differs from original markup and why it is so important.
What are the similarities and differences between the product and retail life cycles?
How would you classify Wal-Mart in terms of its position on the wheel of retailing versus that of an off-price retailer?
Develop a chart to highlight the role of each of the four main elements of the retailing mix across the four stages of the retail life cycle.
Breadth and depth are two important components in distinguishing among types of retailers. Discuss the breadth and depth implications of the following retailers discussed in this chapter: (a) Nordstrom, (b) Wal-Mart, (c) IKEA, (d) Best Buy.
According to the wheel of retailing and the retail life cycle, what will happen to factory outlet stores?
The text discusses the development of online retailing in the United States. How does the development of this retailing form agree with the implications of the retail life cycle?
Comment on this statement: The only distinction among merchant wholesalers and agents and brokers is that merchant wholesalers take title to the products they sell.
“If you build it, they will come” not only worked in the movie Field of Dreams but also applies—big time—to Mall of America®. Located in a suburb of Minneapolis, Mall of America (www.mallofamerica .com) is the largest completely enclosed retail and family-entertainment complex in the
After listening to a recent sales presentation, Mary Smith signed up for membership at the local health club. On arriving at the facility, she learned there was an additional fee for racquetball court rentals. “I don’t remember that in the sales talk; I thought they said all facilities were
Develop a matrix to compare the five elements of the promotional mix on three criteria—to whom you deliver the message, what you say, and when you say it.
Explain how the promotional tools used by an airline would differ if the target audience were (a) Consumers who travel for pleasure (b) Corporate travel departments that select the airlines to be used by company employees.
Suppose you introduced a new consumer food product and invested heavily both in national advertising (pull strategy) and in training and motivating your field sales force to sell the product to food stores (push strategy). What kinds of feedback would you receive from both the advertising and your
Fisher-Price Company, long known as a manufacturer of children’s toys, has introduced a line of clothing for children. Outline a promotional plan to get this product introduced in the marketplace.
Many insurance companies sell health insurance plans to companies. In these companies the employees pick the plan, but the set of offered plans is determined by the company. Recently Blue Cross–Blue Shield, a health insurance company, ran a television ad stating, “If your employer doesn’t
Identify the sales promotion tools that might be useful for (a) Tastee Yogurt, a new brand introduction, (b) 3M self-sticking Post-it® Notes, (c) Wrigley’s Spearmint Gum.
Design an integrated marketing communications program—using each of the five promotional elements—for Rhapsody, the online music service.
BMW introduced its first sport activity vehicle, the X6, to compete with other popular crossover vehicles such as the Acura ZDX. Design a direct marketing program to generate (a) Leads, (b) Traffic in dealerships, (c) Direct orders.
Develop a privacy policy for database managers that provide a balance of consumer and seller perspectives. How would you encourage voluntary compliance with your policy? What methods of enforcement would you recommend?
“When you look at a brand like Mountain Dew, and actually many of our brands, we absolutely used to have a focus on creating iconic TV advertising. That was how the marketing model worked. Right now when you look at what the brand needs going forward, that’s just not going to do it. That’s
How does competitive product advertising differ from competitive institutional advertising?
Suppose you are the advertising manager for a newline of children’s fragrances. Which form of media would you use for this new product?
You have recently been promoted to be director of advertising for the Timkin Tool Company. In your first meeting with Mr. Timkin, he says, “Advertising is a waste! We’ve been advertising for six months now and sales haven’t increased. Tell me why we should continue.” Give your answer to Mr.
A large life insurance company has decided to switch from using a strong fear appeal to a humorous approach. What are the strengths and weaknesses of such a change in message strategy?
Some national advertisers have found that they can have more impact with their advertising by running a large number of ads for a period and then running no ads at all for a period. Why might such a fighting schedule be more effective than a continuous schedule?
Which medium has the lowest cost perthousand?
Each year managers at Bausch and Lomb evaluate the many advertising media alternatives available to them as they develop their advertising program for contact lenses. What advantages and disadvantages of each alternative should they consider? Which media would you recommend to them?
What are two advantages and two disadvantages of the advertising posttests described in the chapter?
Federated Banks is interested in consumer-oriented sales promotions that would encourage senior citizens to direct deposit their Social Security checks with the bank. Evaluate the sales promotion options, and recommend two of them to the bank.
How can public relations be used by Firestone and Ford following investigations into complaints about tire failures?
“So what we did, in essence, is we said advertising should be useful to a consumer just as much as the organic search results, and we don’t want people just to buy advertising and be able to show an ad if it’s irrelevant to the consumer’s need,” says Richard Holden, director of product
Why was Kimmy Summers more successful using Facebook and Twitter to get volunteers and promote freshman move-in day at her university than she might have been using more conventional print media?
You and three college friends have decided to launchan online business selling clothes college students wear T-shirts, shorts, sweats, and so on. You plan to use Facebookads. What “likes” or interests do (a) College menand (b) College women have that might help you in planning your Facebook
You graduated from college four years ago and now have an information technology (IT) job. Your company just announced it will move all the IT work overseas in three months. Go to the LinkedIn site and determine what information you would put on your LinkedIn site to help you find a new job.
What is the significance of “user generated content” when contrasted with social media and traditional media?
You are a brand manager for a sneaker manufacturer like Nike or Under Armour and are trying to use Facebook to reach (a) College-age women (b) Men over 55 years of age. What three or four “likes” or interests would you expect each segment to have when you try to reach it with Facebook?
In measuring the results of a social network, what are the (a) Advantages (b) Disadvantages of performance measures linked directly to revenues versus costs?
Looking back with perfect hindsight, what should the brand manager for Nestlé’s Kit Kat have done when the Greenpeace e-mails first appeared?
“Today’s successful women often march to their own unique drums, are highly motivated, and are very concerned about the greater good for society,” says Jennifer Katz, president of AOI Marketing, Inc., a new media marketing firm. A start-up team at AOI Marketing was charged with developing a
Jane Dawson is a new sales representative for the Charles Schwab brokerage firm. In searching for clients, Jane purchased a mailing list of subscribers to The WallStreet Journal and called them all regarding their interest in discount brokerage services. She asked if they have any stocks and if
Using a continuum with “Order taker” at one end and “Order getter” at the other, where would you place each of the following sales jobs? (a) Burger King counter clerk, (b) Automobile insurance salesperson, (c) IBM computer salesperson, (d) Life insurance salesperson, (e) Shoe salesperson.
Of the two firms described below, which compensation plan would you recommend for each firm and what reasons would you give for your recommendations? (a) A newly formed company that sells lawn care equipment on a door-to-door basis directly to consumers; (b) The Nabisco Company, which sells heavily
Suppose someone said to you, “The only real measure of a salesperson is the amount of sales produced.” How might you respond?

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