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marketing

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

Find news articles about two recent data security breaches. How did the breaches occur? Who was potentially affected by them?
What key benefits do these forms of direct marketing offer for consumers and for marketers? Use of IT; Reflective Thinking) The Internet opened the door for explosive growth in direct marketing, and much of that growth is through applications for mobile devices. For example, for $12.99 per month,
Find or conceive of other applications in which the Internet and mobile devices create direct marketing opportunities. The Internet opened the door for explosive growth in direct marketing, and much of that growth is through applications for mobile devices. For example, for $12.99 per month,
Refer to Appendix 2 to determine the marketing return on sales (marketing ROS) and marketing ROI for each company in the chart below. Which company is performing better? Explain. Many companies are realizing the efficiency of telemarketing in the face of soaring sales force costs. Whereas the
Should all companies consider reducing their sales forces in favor of telemarketing? Discuss the pros and cons of this action. Many companies are realizing the efficiency of telemarketing in the face of soaring sales force costs. Whereas the average cost of a B-to-B sales call by an outside
Analyze the marketing environment and the forces shaping eBay’s business over the years. Pop quiz: Name the high-tech company that got its start in someone’s living room, grew from zero revenue to a multibillion dollar corporation in less than a decade, and pioneered the model for an entire
How has the change in the nature of eBay sellers affected the creation of value for buyers? Pop quiz: Name the high-tech company that got its start in someone’s living room, grew from zero revenue to a multibillion dollar corporation in less than a decade, and pioneered the model for an entire
Do you agree or disagree with Donahoe that eBay’s current strategy doesn’t mean that certain sellers will lose? Pop quiz: Name the high-tech company that got its start in someone’s living room, grew from zero revenue to a multibillion dollar corporation in less than a decade, and pioneered
Is eBay doing the right thing by sticking to its current strategy? What changes, if any, would you recommend to Donahoe? Pop quiz: Name the high-tech company that got its start in someone’s living room, grew from zero revenue to a multibillion dollar corporation in less than a decade, and
Explain how both positive and negative attitudes toward a brand like Porsche develop. How might Porsche change consumer attitudes toward the brand?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
What role does the Porsche brand play in the self-concept of its buyers?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
Explain how the business market differs from the consumer market for a product such as automobiles.
Name and describe the three types of business buying situations.
In a buying center purchasing process, which buying center participant is most likely to make each of the following statements?“This bonding agent better be good, because I have to put this product together.”“I specified this bonding agent on another job, and it worked for them.”“Without
List the major influences on business buyer behavior. Why is it important for the B-to-B marketer to understand these major influences?
Name and briefly describe the stages of the business buying process.
Describe how electronic purchasing has changed the B-to-B marketing process and discuss the advantages and disadvantages of electronic purchasing.
Interview a businessperson to learn how purchases are made in his or her organization. Ask this person to describe a recent straight rebuy, a modified rebuy, and a new task buying situation of which he or she is aware. (If necessary, define these terms for the businessperson.) Did the buying
The North American Industry Classification System (NAICS) codes classify businesses by production processes, providing a common classification system for North America and better compatibility with the International Standard Industrial Classification system. This six-digit number (in some cases,
Visit the Web sites of other government buying resources listed in the chapter to learn more about them. Write a brief report explaining how small businesses can use these resources.How would you like to sell to a customer that spends billions of dollars per year on contractors? If so, you need to
What type of demand exists for pharmaceutical and medical device products? Discuss the roles doctors play in the business buying process for medical equipment used in a hospital and why companies market so heavily to them.Pharmaceutical companies give physicians money and other promotional benefits
Should the promotional relationships between doctors and drug and medical device companies be allowed? Discuss the pros and cons of this practice. Will a disclosure of this relationship influence your decision regarding which doctor to visit?Pharmaceutical companies give physicians money and other
Refer to appendix 2 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 approximately 2.5 hours, and each sales rep has approximately 1,250 hours per year to devote to customers per year.B-to-B marketing
If each sales rep earns a salary of $60,000 per year, what sales are necessary to break even on the sales force costs if the company has a contribution margin of 40 percent? What effect will adding each additional sales representative have on the break-even sales? B-to-B marketing relies heavily on
Given the industries in which Cisco competes, what are the implications for the major types of buying situations?Perhaps you’ve heard of Cisco Systems. It’s the company that runs those catchy “Human Network” ads. It also produces those familiar Linksys wireless Internet routers and owns
What specific customer benefits will likely result from the Cisco products mentioned in the case?Perhaps you’ve heard of Cisco Systems. It’s the company that runs those catchy “Human Network” ads. It also produces those familiar Linksys wireless Internet routers and owns Pure Digital
Discuss the customer buying process for one of Cisco’s products. Discuss the selling process. In what ways do these processes differ from those found in buying and selling a broadband router for home use? Perhaps you’ve heard of Cisco Systems. It’s the company that runs those catchy “Human
Is the relationship between Cisco’s own collaborative culture and the products and services it sells something that could work for all companies? Consider this issue for a consumer products company like P&G.Perhaps you’ve heard of Cisco Systems. It’s the company that runs those catchy
Discuss the environmental forces acting on medical device and pharmaceutical companies that are preventing them from meeting the needs of the infant and child market segment. Is it wrong for these companies to not address the needs of this segment? You’ve probably heard of some specific heart
Suggest some solutions to this problem.You’ve probably heard of some specific heart procedures, such as angioplasty and stents, that are routinely performed on adults. But such heart procedures, devices, and related medications are not available for infants and children, despite the fact that
Compare and contrast the geographic pricing strategies that companies use for customers located in different parts of the country or the world. Which strategy is best?
What factors influence the prices a company charges in different countries?
Why would a company consider increasing its price? What precautions must be taken to avoid being perceived as a price gouger?
Identify three price-comparison shopping Web sites and shop for a specific model of a digital camera on all three sites. Compare the price ranges given at each site. Based on your search, determine a fair price for the camera.
Convert U.S.$1.00 to the currencies of five other countries. What implications do currency exchange rates hold for setting prices in other countries?
One psychological pricing tactic is just-below pricing. It is also called “9-ending” pricing because prices usually end in the number 9 (or 99). In a small group, have each member select five different products and visit a store to find the price of those items. Is there a variation among the
Find two other examples of online pricing mistakes. How did the companies handle the problems resulting from the pricing errors? The Internet is great for selling products and services. But don’t make a pricing mistake online! Intercontinental Hotels mistakenly priced rooms at one of its
Research ways in which marketers protect against the consequences of online pricing errors and write a brief report summarizing what you learn. The Internet is great for selling products and services. But don’t make a pricing mistake online! Intercontinental Hotels mistakenly priced rooms at one
Should airlines be required to charge standard prices based on distance and equal airfares for passengers seated in the same class (such as coach or business class) on the same flight? What will likely happen to prices if the government requires airlines to base fares only on distance and passenger
What factors account for the variation in airfares? Should airlines be permitted to get as much as they can for a seat?You’d think that the farther you fly, the more expensive your airfare would be. According to U.S. Department of Transportation data, however, that’s not the case. For example,
P&G’s average contribution margin before the price cuts was 20 percent. Refer to Appendix 2 and calculate the new contribution margin if prices are reduced 10 percent. The recently weak economy caused many consumers to switch to lower-priced products. Although P&G had sales of $77 billion in
What level of total sales must P&G capture at the new price levels to maintain the same level of total contribution before the price reduction (that is, total contribution = $15.4 billion, which is 20 percent of $77 billion in sales)?The recently weak economy caused many consumers to switch to
Describe the key functions performed by marketing channel members.
Compare and contrast direct and indirect marketing channels and discuss the types of flows in a distribution channel.
What is a franchise organization? Discuss the types of franchise organizations and give an example of each.
Describe the three strategies available regarding the number of intermediaries and discuss the types of products for which each is appropriate.
Discuss the complexities international marketers face when designing channels in other countries.
List and briefly describe the major logistics functions. Give an example of a decision a logistics manager would make for each major function.
In a small group, debate whether or not the Internet will result in disintermediation of the following retail stores: (1) Video rental stores, (2) Music stores, and (3) Clothing stores.
Consumer packaged goods manufacturers typically distribute products to retailers through wholesalers. However, Walmart deals directly with manufacturers, many having offices in Bentonville, Arkansas, and catering just to Walmart. Discuss the consequences of manufacturers, such as Kraft and P&G,
Visit www.youtube.com/watch?v_eob532iEpqk and watch the “The Future Market” video. What impact will RFID tags have on each major logistical function? What are the biggest current obstacles in adopting this technology?
Describe the channel of distribution for a craft beer from Belgium to your city or town. How many channel levels will be involved?Brewing craft beer is both an art and a science, and Sonia Collin, a Belgian researcher, is trying to devise a way for this highly perishable beer to have a longer shelf
Discuss the options facing Belgian craft brewers desiring to sell their products in the United States if researchers cannot discover a way to sufficiently extend the shelf life of craft beers.Brewing craft beer is both an art and a science, and Sonia Collin, a Belgian researcher, is trying to
Discuss the concerns of suppliers (i.e., garment makers) and retailers in the apparel channel of distribution. Is it fair that retailers should expect suppliers to respond so quickly? Is it fair that suppliers should demand long lead times? Tension is escalating between apparel retailers and
What type of channel conflict does this represent? Are there any benefits from this conflict? Tension is escalating between apparel retailers and suppliers during the economic recovery. Retailers previously placed orders almost a year in advance, and suppliers produced high volumes cheaply. Now
If a manufacturer sells its laundry detergent to a wholesaler for $2.50, at what price will the wholesaler sell it to a retailer if the wholesaler wants a 15 percent margin based on the selling price? Consumers typically buy products such as toiletries, food, and clothing from retailers rather than
If a retailer wants a 20 percent margin based on the selling price, at what price will the retailer sell the product to consumers?Consumers typically buy products such as toiletries, food, and clothing from retailers rather than directly from the manufacturer. Likewise, retailers buy from
As completely as possible, sketch the value chain for Netflix from the production of content to viewer.Baseball great Yogi Berra, known more for his mangled phrasing than for his baseball prowess, once said, “The future ain’t what it used to be.” For Netflix, the world’s largest online
How do horizontal and vertical conflict impact Netflix?Baseball great Yogi Berra, known more for his mangled phrasing than for his baseball prowess, once said, “The future ain’t what it used to be.” For Netflix, the world’s largest online movie-rental service, no matter how you say it,
How does Netflix add value for customers through distribution functions?Baseball great Yogi Berra, known more for his mangled phrasing than for his baseball prowess, once said, “The future ain’t what it used to be.” For Netflix, the world’s largest online movie-rental service, no matter how
What threats does Netflix face in the future?Baseball great Yogi Berra, known more for his mangled phrasing than for his baseball prowess, once said, “The future ain’t what it used to be.” For Netflix, the world’s largest online movie-rental service, no matter how you say it, figuring out
Will Netflix be successful in the long term? Why or why not?Baseball great Yogi Berra, known more for his mangled phrasing than for his baseball prowess, once said, “The future ain’t what it used to be.” For Netflix, the world’s largest online movie-rental service, no matter how you say it,
Discuss how retailers and wholesalers add value to the marketing system. Explain why marketers are embracing the concept of shopper marketing.
Discuss the factors used to classify retail establishments and list the types within each classification.
List and briefly discuss the trends impacting the future of retailing.
Suppose you are a manufacturer’s agent for three lines of complementary women’s apparel. Discuss the types of marketing mix decisions you will make.
Discuss the different organizational approaches for retailers and provide an example of each.
The atmosphere in a retail store is carefully crafted to influence shoppers. Select a retailer with both a physical store and an online store. Describe the elements of the physical store’s atmosphere, such as coloring, lighting, music, scents, and décor. What image is the store’s atmosphere
Shop for a product of your choice on Amazon.com. Do consumer reviews influence your perception of a product or brand offered? Consumers participating in the Amazon Vine Program submit many of the product reviews found on Amazon.com. Learn about this program and discuss whether or not a review from
Determining the target market and the positioning for a retail store are very important marketing decisions. In a small group, develop the concept for a new retail store. Who is the target market for your store? How is your store positioned? What retail atmospherics will enhance this positioning
Visit www.ezface.com or www.ray-ban.com/usa/science/ virtual-mirror and use the virtual mirror to try on makeup or sunglasses. Does this technology help you select an appropriate product for your face?Mirror, mirror on the wall, who’s the fairest of them all?” This is no fairy tale feature
Find other examples of how retailers are using digital technologies, such as digital signage and mobile technologies, to better serve customers.Mirror, mirror on the wall, who’s the fairest of them all?” This is no fairy tale feature anymore and can be found online or at a retailer near you.
What are the ethical implications of encouraging electronic payment methods compared to cash payments in Asian countries? In the United States, paying for purchases with a credit card is old news. That’s not so in much of Asia. The United States leads the world in credit cards per capita—2.01,
Most stores have eliminated layaway options for customers and encourage credit purchases. Should retailers encourage customers to rely heavily on credit? In the United States, paying for purchases with a credit card is old news. That’s not so in much of Asia. The United States leads the world in
Calculate the gross margin percentage of a retailer with annual sales of $5,000,000 and cost of goods sold of $2,000,000.Retailers need merchandise to make sales. In fact, a retailer’s inventory is its biggest asset. The cost of goods sold greatly impacts a retailer’s gross profit margin.
Determine the stockturn rate if this retailer carries an average inventory at a cost of $750,000, with a cost of goods sold of $2,000,000. If this company’s stockturn rate was 3.5 last year, is the stockturn rate you just calculated better or worse? Explain. Retailers need merchandise to make
Describe Fresh & Easy according to the different types of retailers discussed in the chapter.One beautiful autumn morning in Ontario, California, a long line of people waited anxiously with shopping carts. The occasion? The grand opening of a Fresh & Easy Neighborhood Market. This was big news for
As a retail brand, assess the Fresh & Easy retail strategy with respect to segmentation, targeting, differentiation, and positioning.One beautiful autumn morning in Ontario, California, a long line of people waited anxiously with shopping carts. The occasion? The grand opening of a Fresh & Easy
Evaluate Tesco’s research efforts for the U.S. market. Did this research help or hurt?One beautiful autumn morning in Ontario, California, a long line of people waited anxiously with shopping carts. The occasion? The grand opening of a Fresh & Easy Neighborhood Market. This was big news for a
List and briefly describe the five major promotion mix tools.
Define IMC and discuss how marketers implement it.
Name and briefly describe the nine elements of the communications process. Why do marketers need to understand these elements?
Name and describe the six buyer-readiness stages. Discuss why it is important for a marketing communicator to know where the target audience stands and to what stage it needs to be moved.
Discuss the factors to consider with regard to message structure when designing a message.
Compare and contrast personal and nonpersonal communication channels.
Describe the three types of appeals used in marketing communications messages and develop three different ads for the same brand of a product of your choice, each using a different appeal.
Discuss the two basic promotion mix strategies. Form a small group and recommend a promotion mix for a brand of peanut butter implementing primarily a push promotion strategy. Then recommend a promotion mix for the same brand implementing primarily a pull promotion strategy. Explain how your two
Visit www.MerchantCircle.com/corporate and search for a jeweler in your city or some other city. What information is provided? Are any jewelers in your city members of MerchantCircle? Search for other products and services and describe the benefits this network provides to the consumer. Small
Should these types of ads have the same protection that individual citizens have under the First Amendment? Imagine a young family driving to Disney World. Along the route, the children see billboards with Mickey, Donald, Kermit the Frog, and other Disney characters. Cinderella, Ariel, and the
Sex sells, and a lot of advertising uses it, even for products or services that are not sexually oriented. Why are lawmakers more concerned with sexually explicit ads on billboards than such ads in other media? Imagine a young family driving to Disney World. Along the route, the children see
Using information regarding industry advertising-to-sales ratios (see company.news-record.com/advertising/advertising/ratio.html), recommend percentages of sales that advertisers in the following industries should use to set next year’s advertising budget: a grocery store, a physician, a cosmetic
Explain why there is variation in the percentage of sales spent on advertising among the four industries in the previous question. Using the percent of sales method, an advertiser sets its budget at a certain percentage of current or forecasted sales. However, determining what percentage to use is
Consider PepsiCo’s advertising throughout its history. Identify as many commonalities as possible across its various ad campaigns. How is this campaign consistent with PepsiCo’s brand image?This year, PepsiCo did something that shocked the advertising world. After 23 straight years of running
List all the promotional mix elements used in the Pepsi Refresh campaign. What grade would you give PepsiCo on integrating these elements into an integration marketing communications campaign?This year, PepsiCo did something that shocked the advertising world. After 23 straight years of running ads
Describe PepsiCo’s target audience. Is the Pepsi Refresh campaign consistent with that audience?This year, PepsiCo did something that shocked the advertising world. After 23 straight years of running ads for its flagship brand on the Super Bowl, it announced that the number-two soft drink maker
As completely as possible, analyze the campaign according to the steps listed in the chapter for developing effective marketing communication.This year, PepsiCo did something that shocked the advertising world. After 23 straight years of running ads for its flagship brand on the Super Bowl, it
Will the Pepsi Refresh campaign be successful? Why or why not?This year, PepsiCo did something that shocked the advertising world. After 23 straight years of running ads for its flagship brand on the Super Bowl, it announced that the number-two soft drink maker would be absent from the Big Game.
Which point of view is best for identifying competitors— industry or market?
Explain how having strong competitors can benefit a company.
Name and describe the three basic winning competitive strategies espoused by Michael Porter.

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