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contemporary marketing case
Contemporary Marketing 13th Edition Louis E. Boone, David L. Kurtz - Solutions
=+4. What are some advantages and disadvantages of the newer methods of automated data collection that both Nielsen and Google are exploring?
=+3. Much of Nielsen’s research is still reported manually by the subjects of its surveys. Do you think this method provides reliable and unbiased results? Why or why not? Why do you think Nielsen has a policy of prohibiting volunteer participants in its television surveys?
=+2. Could Nielsen’s random sampling return unbiased results? Why or why not? Why do you think the company is dedicating two of its many television indexes to the national and local Hispanic audience?
=+1. Nielsen has sister companies that track Internet activity around the world, box office receipts, and the retail sales of audio and video entertainment products and books. Who are the likely clients of these companies, and how would they use its research?
=+4. What kind of international product and promotional strategies does Lonely Planet appear to use?
=+3. How could the movement toward economic integration affect Lonely Planet?
=+2. How well do you think Lonely Planet is meeting the technological challenges of the international environment? What do you think it could do that it isn’t yet?
=+1. What elements of the international economic and social-cultural environment can affect Lonely Planet’s business, and how?
=+4. Assume you are a buyer for a company looking for a promotional item to use in rewarding your top salespeople. In which stage(s) of the organizational buying process will High Sierra’s wide variety of products be most important to you? Why?
=+3. What advantages and disadvantages would High Sierra have to consider if it wanted to start selling directly to consumers? Why do you think it doesn’t do so?
=+2. What kind of market demand does High Sierra face(derived, volatile, joint, inelastic, inventory)? Give examples to support your answer.
=+ What is it, and what advantage would it offer the company?
=+1. How does High Sierra segment its B2B market? Can you think of any other useful segmentation strategy it could use?
=+4. Which behavioral influences on viewer behavior—cultural, social, personal—are most relevant to Nielsen Media Research and its advertising industry clients?Are any influences irrelevant?
=+3. What aspects of consumer behavior can Nielsen Media Research effectively measure? For instance, can the company currently measure attitudes and perceptions? If you answered no, how could the company achieve this goal?
=+2. Do you think TV viewers go through a formal decision process in selecting programming? Why or why not?Which steps in the process do you think are the most important for marketers to know about? Why?
=+1. What cultural and social influences do you think are helping change consumer behavior among TV viewers today? Which ones have changed your behavior, and how?
=+4. How well do you think Peapod rates on the B2C benefit of personalization? How does its ability to personalize customer orders compare with that of other online retailers you’re familiar with?
=+3. Why do you think Peapod has been able to minimize channel conflicts as it expands its operations? Do you think its solution to this problem is a good model for other e-businesses? Why or why not?
=+ How difficult would it be for competitors to copy these benefits?
=+2. Parkinson says Peapod is “a lifestyle solution for [customers’] busy lives.” What solutions or benefits do you think Peapod offers? Could it offer any that it doesn’t currently?
=+What others might exist for online grocers? What factors might delay the growth and maturing of the online grocery business?
=+1. Peapod’s founder and president, Andrew Parkinson, says of online grocery delivery that “the increasing use of high-speed broadband, advances in portable technologies, and the growing numbers of women in the online shopping ranks are mounting forces that will spur the industry to
=+4. How do the ethical standards at Organic Valley translate into acts of social responsibility?
=+3. How does Organic Valley puts its ethical standards into action in its product and pricing strategies? Do you think it is doing a good job of this? Why or why not?
=+2. How does Organic Valley define its members’ rights?What consumer rights does it support? Are these two sets of rights compatible? Why or why not?
=+1. What types of competition does Organic Valley face?Give an example of each type.
=+ What suggestions would you make to increase its effectiveness?
=+4. What do you think is Timbuk2’s product strategy?How effective is it?
=+3. What are the opportunities and threats facing Timbuk2? How well do you think the company is planning to meet these challenges?
=+2. Describe how Porter’s Five Forces model might apply to the situation facing Timbuk2 today. Be as specific as possible.
=+1. What were some of the organizational strengths and weaknesses Mark Dwight inherited with the original Timbuk2, and how did they shape his strategic plans for the firm?
=+4. Would you say that Harley-Davidson adopts a consumer orientation in its marketing efforts? Explain your answer.
=+3. How does Harley-Davidson use the Internet in its marketing?
=+2. In what ways does Harley-Davidson practice relationship marketing? Explain.
=+1. How does Harley-Davidson provide customers with form, time, place, and ownership utility for its motorcycles?
=+A-6 APPENDIX Financial Analysis in Marketing FINANCIAL RATIO FIRM A FIRM B FIRM C FIRM D Net profit margin 28.4% 3.5% 13.9% 6.5%Return on assets 20.6% 8.6% 14.6% 10.0%Inventory turnover 2.1 7.6 3.4 4.9
=+5. Match the following set of financial ratios to each of the following firms: 3M, Gap, Pfizer, and Wal-Mart.
=+4. Obtain a recent income statement and balance sheet for a business of your choosing whose stock is publicly traded. (A good source of recent financial statements is the MSN Investor Web site, http://moneycentral.msn.com/investor.) Use the relevant data included on the income statement to
=+3. Assume a retailer decides to reduce the price of an item by $5, from $15 to $10, and sells 5,000 units.Calculate the markdown percentage.
=+2. A product has an invoice price of $92.50. The seller wants a markup on the selling price of 25%. Calculate the selling price.
=+1. Assume a product has an invoice price of $45 and a selling price of $60. Calculate the markup both as a percentage on the selling price and the cost.
=+4. Which division of The Second City’s product mix does the company consider its “financial base”? Why? How has its pricing strategy benefited the whole company?
=+How do you think these function in SC’s long-term relationship with its students?
=+3. What incentives exist for consumers of SC’s Training Center?
=+2. Why does Second City Communications use the most negotiating in its pricing?
=+1. Explain The Second City’s use of flexible pricing for its resident stages. What are a couple of major factors in determining show ticket prices?
=+Q: Because you help marketers generate creative ideas, you must have some unique insight to pass along. What can students do to gain skills and make themselves stand out from the crowd?
=+Q: Today’s marketers are using some innovative methods to reach their customers— enlisting consumers in buzz marketing campaigns to serve as brand champions, sending text messages to cell phones—and get the word out cost-effectively. What is the most creative idea you’ve seen companies
=+Q: In this text students have seen examples of companies that are shifting their strategies to better serve customers and remain competitive. How common is it for companies to switch marketing strategies?
=+Q: Who are Idea Sandbox clients? What range of services do they obtain? How are your fees set?
=+v3. Because both networks are well-known for low prices, v1===+how might this affect consumer perceptions of quality? What can the two firms do to combat any misperceptions?
=+2. Both networks use promotional pricing. What are the benefits and potential drawbacks of this approach?
=+1. Describe the pricing strategy or strategies used by HSN and QVC.
=+ Does the relationship between the TVM price, invoice, price, and retail price vary from vehicle to vehicle?
=+c. Edmunds.com also reports something it calls the TVM®price—the price the consumer should expect to pay for the vehicle. For each vehicle is the TVM price closer to the invoice price of the retail price?
=+b. Does some optional equipment have higher markups than other equipment? Does the markup on optional equipment vary from manufacturer to manufacturer?
=+a. What is the difference between the invoice price and suggested retail price for each vehicle? Does each vehicle have the same markup?
=+2. Price markups. Pick three makes and models of new vehicles.Choose different manufacturers and different body styles. Visit Edmunds.com (http://www.edmunds.com). Enter each vehicle you selected and answer the following questions:
=+Do some products cost the same regardless of where they are purchased? Prepare a brief report on your findings and what they tell you about the pricing strategies used by various companies.a. A Nikon digital camera.b. A Bose home theater system.c. An HP notebook computer.
=+1. Pricing strategies. Shopzilla.com (http://www.shopzilla.com) is a so-called shopping bot. Enter a product and Shopzilla.com searches through online retailers and identifies those that sell that particular product along with the price. Visit Shopzilla.com and go shopping for the following
=+2. Do you think that other firms will follow Verizon Wireless’s lead?
=+1. The high termination fee effectively keeps wireless consumers tied to their plans and unable to respond to offers by other firms. Do you think Verizon Wireless is making a good move from a pricing standpoint? From an ethical standpoint? Why or why not?
=+5. Frequent-purchase programs are discount offers designed by retailers and service providers to build loyalty among customers. Do these programs always work? What potential drawbacks might they contain?
=+4. Are you a bargain hunter, or do you routinely pay full price when you shop? Make a list of the items for which price is a major consideration in your purchase decision. Then make a second list of the products for which price is either secondary or hardly a consideration at all. As a class,
=+3. Visit your supermarket or flip through your local newspaper and note the prices for different types of products. Which firms seem to use psychological pricing? Do competing firms seem to use the same pricing policies?
=+2. Go online and search for some items that offer rebates.What types of products did you find? Do you think rebates are an effective enticement to purchase? Why or why not?
=+5. Target is a retailer that goes to great lengths to offer consumers the highest-quality goods at the lowest possible prices. To do this, Target makes alliances with popular top designers who agree to create special product lines for the store. One such talent is Luella Bartley, a British
=+4. On your own or with a classmate, browse through a local newspaper to find examples of promotional pricing. Tear out a few ads and evaluate them for their effectiveness. Does the promotional pricing make you want to purchase the products being advertised? Why or why not? Present your opinions
=+d. How much would each supplier net (after subtracting actual shipping costs) per ton on the sale?
=+c. What delivered price would a salesperson for Supplier C quote to the Cincinnati customer?
=+b. What delivered price would a salesperson for Supplier B quote to the Cincinnati customer?
=+a. What delivered price would a salesperson for Supplier A quote to the Cincinnati customer?
=+3. Assume that a product sells for $100 per ton and that Pittsburgh is the basing-point city for calculating transportation charges. Shipping from Pittsburgh to a potential customer in Cincinnati costs $10 per ton. The actual shipping costs of suppliers in three other cities are $8 per ton for
=+ What price do you plan to negotiate?a. Toyota Priusb. Saturn Vuec. Ford Mustangd. Volkswagen Beetle
=+2. On your own or with a classmate, figure out how much it will cost to buy and own one of the following cars (or select another model), new, from a dealership. What is the list price?
=+1. Skimming pricing, penetration pricing, and competitive pricing are three alternative pricing strategies. Divide your class into three teams. Then assign each team one of the three strategies and ask them to prepare a brief argument discussing the merits of their assigned pricing strategy for
=+8. In what ways is transfer pricing somewhat complicated?
=+6. What is leader pricing? Why do retailers use it?
=+4. What are the benefits and drawbacks to rebates—for both buyers and sellers?
=+1. Under what circumstances is a skimming pricing strategy most likely to be used? What are its benefits? Drawbacks?
=+2. Describe the benefits of an auction—to the buyer and to the seller.
=+vv2. What are price limits?
=+v1. Describe the price–quality connection.
=+v3. What is promotional pricing?
=+v1. Define pricing policy.
=+2. Netflix’s user agreement explicitly states that heavy renters will be more likely to experience shipping delays and less likely to receive their top choices on the first try. So consumers are informed about the firm’s practices when they subscribe.
=+1. Netflix cannot afford to send out more than a certain number of movies to each customer per month. The firm’s most loyal customers have been renting as many as two dozen DVDs every month, causing a drain on Netflix’s profits.
=+2. A firm that makes this kind of differentiation most likely will suffer from bad publicity and lose customers over the long run. It is much better to treat consumers fairly and develop positive relationships.
=+1. All customers should be treated fairly. Firms should not differentiate among customers who are paying the same fee for a service. Some customers are more profitable than others, but firms should set prices that accommodate those fluctuations.
=+Should customers who pay a firm the same rate for a service receive the same service?
=+3 Identify the various pricing policy decisions that marketers must make.
=+2. What else can marketers do to break through advertising clutter? Are they merely creating even more clutter by advertising on everything including police cars, sports team uniforms, and park benches?
=+1. Advertising messages follow consumers as they work, shop, commute, vacation, recuperate, and even visit public restrooms. Marketers are enthusiastic about innovative advertising, but does it work? Do you think wildly unusual advertising is effective? Why or why not?
=+c. Are any of the top campaigns, slogans, jingles, or icons still in use today? What significant changes have occurred since the beginning of the 21st century?
=+b. What were the top five advertising campaigns? What were the top three advertising jingles? What were the top two advertising slogans? Who were the top ten ad icons?
=+a. Who were the top ten advertisers?
=+2. Advertising. Visit the Advertising Age Web site to access information on advertising during the 20th century (http://www.adage.com/century). Answer the following questions:
=+c. A couple of years ago, many retailers came under criticism for selling clothing produced in factories where workers were poorly paid, often abused, and subjected to hazardous working conditions. In response, retailers instituted new standards for vendors. Some retailers went even further.
=+What is the job outlook for public-relations specialists?
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