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Strategic Marketing 10th edition Nigel Piercy and David Cravens - Solutions
A. Review Microsoft and Nokia alliance described in a STRATEGY APPLICATION in this chapter. Identify the strategy underpinning this alliance. Is this an effective counter to the strength of competitors like Google and Apple? What conclusions can be drawn about the strategic vulnerabilities of
Examine the material presented in the GLOBAL APPLICATION concerning BP’s Russian alliances. Use an Internet search to update on the status of BP’s Russian ventures. What does this case illustrate about the challenges in operating joint ventures and alliances in emerging markets overseas? Are
Visit the website www.alliancestrategy.com and review the presentations and material available at the site. Summarize what factors should be considered in making alliances between organizations effective.
Go to the investor information and company history on www.amazon.com. Identify the evolving network of strategic relationships with customers, suppliers, and collaborators both on the Web and with conventional organizations. Which of these relationships are the most important to Amazon?
Discuss the major factors that encourage the formation of strategic partnerships among companies.
Discuss how alliances may enable foreign companies to reduce the negative reaction that is anticipated if they tried to purchase companies in other countries.
Discuss how government may participate in helping domestic companies develop their competitive advantages in an industry such as aerospace products.
Identify and discuss important issues in deciding whether to create internal cross–functional relationships.
Compare and contrast vertical and horizontal strategic relationships between independent companies.
Discuss the similarities and differences between strategic alliances and joint ventures.
A German electronics company and a Japanese electronics company are discussing the formation of a strategic alliance to market the other firm’s products in their respective countries. What are the important issues in making this relationship successful for both partners?
What are the attractions and possible problems in developing a strategic relationship with a major customer in the form of strategic account management?
To what extent is it reasonable for a partner organization to attempt to exert control over your strategic choices in areas not part of the alliance or joint venture?
Establishing successful interorganizational relationships is difficult, according to authorities. Will the success record improve in the future as more companies pursue this strategy?
Are vertical relationships more likely to be successful than horizontal relationships? Discuss.
Suppose you are seeking a Japanese strategic alliance partner to market your French pharmaceutical products in Asia. What characteristics are important in selecting a good partner?
The Google INNOVATION APPLICATION describes how the company manages its idea factory. Are there risks of expanding too far beyond the core search business? How should new-product planners avoid this problem without disregarding all potential opportunities beyond the core business?
The RELATIONSHIP APPLICATION describes how the design consultant IDEO assists companies in new-product design. Discuss the advantages and limitations of having this activity performed by a consultant rather than internally.
Visit the website of the Gap (www.gap.com). Discuss how the web can be used in new-product planning for a bricks-and-mortar retailer such as the Gap.
Virgin Group Ltd. is an interesting corporate conglomerate headed by British tycoon, Richard C.N. Branson. Visit Virgin.com and develop a critical analysis of Virgin’s new-product strategy of launching a portfolio of online businesses.
Dell Inc. is expanding its product portfolio. Go to www.dell.com and describe the product categories in which Dell competes.
Visit the Hennes & Mauritz website and compare H&M’s product offerings with those offered by Gap (www.gap.com).
Explain the relationship between customer satisfaction and customer value.
Discuss the potential role of the Internet in the new-product-planning process. Which stages of the process may benefit most from Internet initiatives?
In many consumer products companies, marketing executives seem to play the lead role in new-product planning, whereas research and development executives occupy this position in firms with very complex products such as electronics. Why do these differences exist? Do you agree that such differences
Discuss the features and limitations of focus group interviews for use in new-product planning.
Identify and discuss the important issues in deciding how to organize for new-product planning.
Discuss the issues and trade-offs of using tight evaluation versus loose evaluation procedures as a product concept moves through the planning process to the commercialization stage.
What factors may affect the length of the new-product planning process?
Compare and contrast the use of scanner tests and conventional market tests.
Is the use of a single city test market appropriate? Discuss.
Examine the new-product-planning process assuming a platform strategy is being used by the organization (see Exhibit 8.10). How does the use of a platform strategy alter the planning process?
Review the IBM Centenary APPLICATION. What are the important issues confronting IBM’s management in managing the company’s brand portfolio? How can a brand portfolio perspective assist in meeting these challenges?
The RELATIONSHIP APPLICATION describing the brand extension initiatives of Virgin Group indicates entry into many new markets, several of which are unrelated. Have the different markets created any problems for the extension initiatives?
Examine the Fortune Brands website (www.fortunebrands.com). Analyze and evaluate the strategic initiatives used by Fortune Brands in their strategic brand management.
Visit the website of lastminute.com (www.LastMinute.com). Map the business model used by this Web brand. Review the strengths and weaknesses of the model, and consider how the brand has been established and how it may be extended.
Go to www.e4m.biz, operated by the U.K.’s Marketing Council. Register at the site and choose the Business-to-Consumer area, and the Brand Consistency option under Strategy Area. Review several of the short cases describing how major companies are striving for consistency in their brand
Visit the Yahoo Inc. website. Describe Yahoo’s brand portfolio.
Eli Lilly & Company manufactures a broad line of pharmaceuticals with strong brand positions in the marketplace. Lilly is also a manufacturer of generic drug products. Is this combination branding strategy a logical one? If so, why?
Discuss the underlying logic of managing brand portfolio.
What are the strengths and limitations in moving the Marriott brand vertically upward and downward in terms of price and quality?
Discuss the advantages and limitations of following a branding strategy of using brand names for specific products.
What is the role of strategic brand analysis in building strong brands?
To what extent are the SBU strategy and product strategy interrelated?
Suppose that a top administrator of a university wants to establish a product-management function covering both new and existing services. Develop a plan for establishing a product-planning program.
Many products like Jell-O reach maturity. Discuss several ways to give mature products new vigor. How can management determine whether it is worthwhile to attempt to salvage products that are performing poorly?
How does improving product quality lower the cost of producing a product?
Why do some products experience long successful lives while others have very short life cycles?
How can a company combine the strengths of global brands with the need to adapt to local market requirements in a multinational operation?
Review the STRATEGY APPLICATION describing retail ventures being started by manufacturers. Consider what motivates such ventures. Are there other examples that you can identify? Develop a list of the market and customer factors that may cause manufacturers to add direct channels.
One of the GLOBAL APPLICATIONS describes certain local market conditions in India, particularly rural India. What adaptations should international marketers review when planning channel strategy in emerging markets and how can they find out what is required?
A. Examine the websites of Aveda (www.aveda.com) and The Body Shop (www.bodyshop.com). Compare and contrast the distribution networks of these two retailers.
Go to the site of the Agentrix (www.agentrix.com) and review the public pages describing the history, membership and operation of this international online exchange for retailers (combining the earlier online exchanges the Global Exchange Network and the Worldwide Retail Exchange). Identify and
In the late 1990s several airlines started selling tickets using the Internet. Discuss the implications of this method of distribution for travel agencies.
Suppose management of a raw material supplier is interested in performing a financial analysis of a distribution channel comprised of manufacturers, distributors, and retailers. Outline an approach for doing the analysis.
Discuss some of the important strategic issues facing a drug manufacturer in deciding whether to distribute veterinary prescriptions and over-the-counter products through veterinarians or distributors.
Consider the differences in retail concentration between the United States and Europe. How do those differences impact on manufacturers’ channel strategies?
Distribution analysts indicate that costs for supermarkets equal about 98 percent of sales. What influence does this high break-even level have on supermarkets’ diversification into delis, cheese shops, seafood shops, and flowers?
Why do some large, financially strong manufacturers choose not to own their dealers but instead establish contractual relationships with them?
What are the advantages and limitations of the use of multiple channels of distribution by a manufacturer?
Discuss some likely trends in the distribution of automobiles in the 21st century, including the shift away from exclusive distribution arrangements.
In the late 1990s, Radio Shack initiated co-branding strategies with Compaq computer and SPRINT. Discuss the logic of this strategy, pointing out its strengths and shortcomings.
Identify and discuss some of the factors that should increase the trend toward collaborative relationships in vertical marketing systems.
Why might a manufacturer choose to enter a conventional channel of distribution?
Discuss what is meant by channel migration and the issues that a manufacturer faces in dealing with migration issues.
From the RELATIONSHIP APPLICATION— develop a list of the pricing issues faced by the executives at Novet. What are the arguments that can be made for avoiding the price cutting option?
Consider the INNOVATION APPLICATION describing new approaches to the way in which price is presented to customers as part of the value proposition. What other ways can you identify for reinventing the price component of a company’s value offering? Are there ways of extending the approaches
Explore the web site of British Airways (www.ba.com). Consider how the website can facilitate price discrimination.
Visit the website of Amazon.com. Evaluate Amazon’s pricing strategy. How do its prices compare to those of “brick and mortar” retailers? Critically evaluate the company’s product offering and identify potential market segments.
Visit the Oracle.com website. Discuss how Oracle considers price in the information provided for its business process software suite.
Study the information available from Starbucks’ website (www.Starbucks.com). Discuss how the website enhances the firm’s ability to obtain premium prices.
Discuss the role of price in the marketing strategy for Rolex watches. Contrast Timex’s price strategy with Rolex’s strategy.
Suppose a firm is considering changing from a low-active price strategy to a high-active strategy. Discuss the implications of this proposed change.
Describe and evaluate the price strategy used for the Lexus 430 European-style luxury sedan.
The Toyota Camry and the Lexus ES 330 are very similar but the ES 330 is priced substantially higher than the Camry. Discuss the features and limitations of this pricing strategy.
Indicate how a fast-food chain can estimate the price elasticity of a proposed new product such as a new chicken sandwich.
Real estate brokers typically charge a fixed percentage of a home’s sales price. Advertising agencies follow a similar price strategy. Discuss why this may be sound price strategy. What are the arguments against it from the buyer’s point of view?
Cite examples of businesses to which the experience-curve effect may not be applicable. What influence may this have on price determination?
In some industries prices are set low, subsidies are provided, and other price-reducing mechanisms are used to establish a long-term relationship with the buyer. Utilities, for example, sometimes use incentives to encourage contractors to install electric- or gas-powered appliances. Manufacturers
Discuss why it is important to consider pricing from a strategic rather than a tactical perspective.
Discuss some of the ways that estimates of the costs of competitors’ products can be determined.
Discuss how a pricing strategy should be developed by a software firm to price its business-analysis software line.
Consider the online promotion activities described in the INTERNET APPLICATION. Discuss how these initiatives offer compelling advantages over traditional promotional strategies.
Review the RELATIONSHIP APPLICATION concerning Procter & Gamble’s advertising efforts designed to avoid its core brands such as Tide detergent becoming commodity products. Consider whether it is possible for consumers to genuinely engage with products of this kind.
Discuss how Godiva Chocolatier’s website (www.godiva.com) corresponds to the brand image portrayed by its retail stores. What are the promotion objectives that Godiva’s management seems to be pursuing on the website?
Go to the websites of NBC and the BBC (www.nbc.com and www.bbc.co.uk). Contrast the ways NBC and the BBC promote their daily TV programs online. Which similarities and differences do you detect? Suggest ways of improvement considering the respective cultural frame of reference and target market for
Discuss how Apple’s (www.apple.com) marketing strategy for iPod Mini is enhanced by a Web-based approach.
Compare and contrast the role of promotion in an international public accounting firm with promotion by American Airlines.
Identify and discuss the factors that are important in determining the promotion program for the following products: a. Video tape recorder/player. b. Personal computer. c. Boeing 7E7 Dreamliner commercial aircraft. d. Residential homes.
What are the important considerations in determining a promotion budget?
Under what conditions is a firm’s promotion strategy more likely to be advertising/sales promotion-driven rather than personal selling-driven?
Discuss the advantages and limitations of using awareness as an advertising objective. When may this objective be appropriate?
Identify and discuss the important differences between advertising and sales promotion strategies in promotion strategy.
Coordination of advertising and personal selling strategies is a major challenge in large companies. Outline a plan for integrating these strategies.
Discuss the role of sales promotion methods in the promotion strategy of a major airline.
How and to what extent is the Internet likely to be useful in companies’ promotion strategies?
Review the STRATEGY APPLICATION concerning Wyeth’s sales force initiatives. Discuss how these changes should be integrated with the drug company’s promotion and marketing strategies.
The ETHICS APPLICATION highlights several aspects of ethics that are relevant to salespeople. Discuss why salespeople are more likely to be confronted with ethical situations than manufacturing employees.
Examine the website of Salesforce.com. Discuss how the Internet service provider can assist sales managers in their sales force management activities.
Visit Nokia’s U.S. website (www.nokiausa.com). Evaluate Nokia’s sales approach online. How does Nokia enhance its direct marketing strategy through Web-based offerings? How could the company increase traffic to its online sales platform without creating channel conflict?
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