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business
intermediate financial management
Financial Management And Policy 12th Edition James C. Van Horne - Solutions
➤ OBJECTIVE 4 Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix.Setting the total promotion budget and mix(pp. 420–424) pg95
A view of the communication process (pp. 412–414)Steps in developing effective marketing communication pp. 414–420) pg95
➤ Objective 3 Outline the communication process and the steps in developing effective marketing communications pg95
➤ Objective 2 Discuss the changing communications landscape and the need for integrated marketing communications. pg95 Integrated marketing communications (pp. 409–412)
➤ Objective 1 Define the five promotion mix tools for communicating customer value.The promotion mix (pp. 408–409) pg95
4. What recommendations would you make to Auchan’s management for the future of their global business? pg95
3. What are Auchan’s long-term prospects and what threats does the company face in its dependence on emerging markets? pg95
2. As a retail brand, assess the Auchan retail strategy with respect to segmentation, targeting, differentiation and positioning. pg95
1. Describe Auchan according to the different types of retailers discussed in this chapter. pg95
13-13 Refer to Appendix 2: Marketing by the numbers, and determine the stockturn rate of a retailer carrying an average inventory at cost of €350,000, with a cost of goods sold of €800,000. (AACSB: Communication;Analytical reasoning) pg95
13-12 Discuss the impact the Marketplace Fairness Act will have on small retailers in the US. Is it fair that small retailers should have to collect sales taxes on online sales to customers outside of their state? (AACSB: Communication; Ethical reasoning;Reflective thinking) pg95
13-11 Why did Amazon change its position regarding online sales taxes and why does it now support the Marketplace Fairness Act? (AACSB: Communication; Reflective thinking) pg95
13-10 Create a presentation to give to local retailers in your locality explaining how they can effectively use online, mobile and social media marketing to engage customers and enhance their business. (AACSB: Communication;Reflective thinking) pg95
13-9 Find an example of a local retailer in your country or locality that uses online, mobile and social media marketing.Interview the owner of the store or restaurant and ask about the challenges and successes they’ve experienced when implementing this strategy. (AACSB:Communication; Use of IT;
13-8 The majority of shoppers agree that online reviews can be very helpful. However, some online reviews are fake.Research this issue and write a report on how to spot fake online reviews and the steps retailers take to minimise fake reviews. (AACSB: Communication; Use of IT;Reflective thinking)
13-7 Deciding on a target market and positioning for a retail store are very important marketing decisions.In a small group, develop the concept for a new retail store. What is the target market for your store? How is your store positioned? What retail atmospherics will enhance this positioning
13-6 Visit a local shopping centre where you are and evaluate five stores. What type of retailer is each of these stores? What is the target market for each? How is each store positioned? Do the retail atmospherics of each store enhance this positioning effectively to attract and satisfy the target
13-5 Compare and contrast brokers and agents with merchant wholesalers. (AACSB: Communication; Reflective thinking) pg95 Critical-thinking exercises
13-4 Explain how wholesalers add value in the channel of distribution. (AACSB: Communication) pg95
13-2 Define the concept of shopper marketing and explain why it has grown in prominence.(AACSB: Communication) pg95
13-1 Explain how retailers can be classified based on the amount of service offered and give an example of each retailer type. (AACSB: Communication; Reflective thinking) pg95
➤ O bjective 4 E xplain the major types of wholesalers and their marketing decisions.Wholesaling (pp. 393–397) pg95
➤ O bjective 3 D iscuss the major trends and developments in retailing. pg95 Retailing trends and developments (pp. 386–392)
➤ O bjective 2 D escribe the major retailer marketing decisions. pg95 Retailer marketing decisions (pp. 381–386)
➤ O bjective 1 E xplain the role of retailers in the distribution channel and describe the major types of retailers.Retailing (pp. 375–381) pg95
4. How can competitors respond effectively to the P&G/Amazon partnership with new channels of their own? pg95
3. Are there any potential risks and disadvantages to a close cooperative partnership of this kind — from the points of view of the partners and the consumer? List them and discuss how serious they are. pg95
2. What potentials are there for disagreements between the partners which could undermine the partnership system? pg95 For example, as P&G expands its own online operation, are there potential conflicts with Amazon on the way? pg95
1. What are the advantages of a channel partnership like that between P&G and Amazon from the points of view of the partners and the consumer? pg95
12-10 What other industries’ channels of distribution have been impacted dramatically by online, mobile and social media? (AACSB: Communication; Reflective thinking) pg95
12-9 Visit a self-publishing site such as Amazon’s Kindle Direct (https://kdp.amazon.com/) and create a presentation to give to aspiring authors about distributing their works this way. (AACSB: Communication; Use of IT;Reflective thinking) pg95
12-8 The term last mile is often used in the telecommunications industry. Research what is going on in this industry and how the last mile has evolved in recent years, then predict where it is heading in the future. What companies are major players in the last mile and how does the concept of net
12-7 The most common type of contractual vertical marketing system is the franchise organisation. Visit the International Franchise Association at www.franchise.org/and find a franchise that interests you. Write a report describing the franchise. Identify what type of franchise it represents and
12-6 Distribution channel concerns for pharmaceutical drugs — especially the problem of counterfeit drugs —can be a matter of life and death. There have been moves in some parts of the world to require the keeping of a record of the chain of custody (‘pedigree’)from manufacturer through
➤ Objective 5 Discuss the nature and importance of marketing logistics and integrated supply chain management. pg95 Marketing logistics and supply chain management(pp. 358–365) pg95
➤ Objective 4 Explain how companies select, motivate and evaluate channel members.Channel management decisions (pp. 356–357) pg95 Public policy and distribution decisions (pp. 357–358)
➤ Objective 3 Identify the major channel alternatives open to a company.Channel design decisions (pp. 351–356) pg95
➤ Objective 2 Discuss how channel members interact and how they organise to perform the work of the channel.Channel behaviour and organisation (pp. 345–351) pg95
➤ Objective 1 Explain why companies use marketing channels and discuss the functions these channels perform.Supply chains and the value delivery network(pp. 340–341) pg95 The nature and importance of marketing channels(pp. 341–345) pg95
4. Will the plan proposed by current Coach leadership be successful in reversing the brand’s slide in market share? Why or why not? pg95
3. How has increased competition at Coach’s price points affected the brand’s performance? pg95
1. What challenges does Coach face relative to pricing its vast product line? pg95
11-14 Determine by how much sales can drop and let the company still maintain the total contribution it had when the contribution margin was 40 per cent. (AACSB:Communication; Analytic reasoning) pg95
11-13 If the company’s original contribution margin was 40 per cent, calculate the new contribution margin if price is increased 10 per cent. Refer to Appendix 2: Marketing by the numbers, paying attention to endnote 6 on the price change explanation in which the analysis is done by setting price
11-10 Research ways in which marketers protect against the consequences of online pricing errors and write a brief report summarising what you learn. (AACSB: Communication;Reflective thinking) pg95
11-9 Find two other examples of online pricing mistakes.How did the companies handle the problems resulting from the pricing errors? (AACSB: Communication;Reflective thinking) pg95
9-ending pricing? Why do marketers use this pricing tactic? (AACSB: Communication; Reflective thinking pg95
11-7 Identify three online price-comparison shopping sites or apps and shop for a product you are interested in purchasing. Compare the price ranges given at the three sites. Based on your search, determine a ‘fair’ price for the product. (AACSB: Communication; Use of IT; Reflective thinking)
You know that you cannot absorb this increase and that you must pass it on to your customers. However, you are concerned about the consequences of an open price increase. Discuss three alternative price-increase strategies that address these concerns. (AACSB: Communication;Reflective thinking) pg95
11-6 You are an owner of a small independent chain of coffee houses competing head-to-head with Costa Coffee. The retail price your customers pay for coffee is exactly the same as at Costa Coffee. The wholesale price you pay for roasted coffee beans has increased by 25 per cent. pg95
11-5 Briefly discuss the major policy issues across levels of the channel of distribution. (AACSB: Communication)Critical-thinking exercises pg95
11-4 Should a company always respond to a competitor’s price cut, and what options are available if it does decide to respond? (AACSB: Communication) pg95
11-2 Define captive-product pricing and give examples. What must marketers be concerned about when implementing this type of pricing? (AACSB: Communication) pg95
11-1 Compare and contrast market-skimming and market penetration pricing strategies and discuss the conditions under which each is appropriate. For each strategy, give an example of a recently introduced product that used that pricing strategy. (AACSB: Communication; Reflective thinking) pg95
Objective 5 Overview the social and legal issues that affect pricing decisions. pg95 Public policy and pricing (pp. 328–330)
Objective 4 Discuss the key issues related to initiating and responding to price changes.Price changes (pp. 325–328) pg95
Objective 2 Explain how companies find a set of prices that maximises the profits from the total product mix.Product mix pricing strategies (pp. 315–317) pg95•Objective 3 Discuss how companies adjust their prices to take into account different types of customers and situations. pg95 Price
Objective 1 Describe the major strategies for pricing new products. pg95 New product pricing strategies (pp. 314–315)
3. Could Cath Kidston have been successful as a designfocused product marketer had it employed a low-price strategy? Explain. pg95
2. Has Cath Kidston executed value-based pricing, cost-based pricing or competition-based pricing? Explain. pg95
1. Does Cath Kidston’s pricing strategy truly differentiate it from the competition? pg95
10-14 If the unit variable cost for each computer is €350 and the manufacturer has fixed costs totalling €2 million, how many computers must this manufacturer sell to break even? How many must it sell to realise a profit of €50 million? (AACSB: Communication; Analytical reasoning) pg95
Reflective thinking; Ethical reasoning)10-13 A consumer purchases a computer for €800 from a retailer. If the retailer’s mark-up is 30 per cent and the wholesaler’s mark-up is 10 per cent, both based on their respective selling prices, at what price does the manufacturer sell the product to
10-12 Is this similar to the ‘freemium’ model used by many US game producers? Explain this model and discuss examples of games that use this model. (AACSB: Communication pg95;
10-11 Is it ethical for game producers to use game playing data to encourage consumers to spend more? Explain why or why not. (AACSB: Communication; Ethical reasoning) pg95
10-10 Camel is not the only Amazon tracking or online price tracking application. Find and describe an example of another online price tracking tool for consumers.(AACSB: Communication; Use of IT) pg95
10-9 Go to http://us.camelcamelcamel.com/ and set up a free account. Track ten products that interest you. Did any of the products reach your desired price? Write a report on the usefulness of this type of app for consumers.(AACSB: Communication; Use of IT) pg95
10-8 What is the Consumer Price Index (CPI)? Select one of the reports available at www.bls.gov/cpi/home.htm and create a presentation on price changes over the past two years. Discuss reasons for that change. (AACSB: Communication;Use of IT; Reflective thinking) pg95
10-5 What other issues beyond the market and the economy must marketers consider when setting prices? (AACSB:Communication) pg95
10-4 Name and describe the four types of markets recognised by economists and discuss the pricing challenges posed by each. (AACSB: Communication) pg95
10-2 Name and describe the types of costs marketers must consider when setting prices. Describe the types of costbased pricing and the methods of implementing each.(AACSB: Communication) pg95
10-1 How does value-based pricing differ from cost-based pricing? (AACSB: Communication) pg95
5. Can Reckitt extend its position in emerging markets. If so, how can this be achieved? pg95
4. Will Reckitt be able to maintain its market position in so many areas when strong competitors enter with their own niche products? Why or why not? pg95
3. Based on the product life cycle, what challenges does Reckitt face in managing its brand portfolio? Are the challenges for Mr Kapoor different to those faced earlier by Mr Brecht? In what ways? pg95
2. Is Reckitt’s product development customer-centred?pg95Justify and explain your answer.
9-13 What other factors must a dentist consider before offering this service in addition to their in-office service?(AACSB: Communication; Reflective thinking) pg95
9-12 What types of fixed costs are associated with this service?Estimate the total fixed costs for this additional service, and, assuming a contribution margin of 40 per cent, determine the amount of sales necessary to break even on this increase in fixed costs to offer this additional service.
9-10 Discuss the ethical issues surrounding orphan drugs.Should pharmaceutical companies be allowed to charge such high prices for these drugs? (AACSB: Communication;Ethical reasoning) pg95
9-9 Discuss other existing products that have created new life for the product by embracing Internet, mobile or social media platforms. Suggest an app for another tangible pg95
9-8 In what stage of the product life cycle is the Reading Rainbow television programme? Has the mobile app changed that? Explain. (AACSB: Communication; Reflective thinking) pg95
9-7 The ‘Internet of Things’ — a term that refers to everyday objects being connected to the Internet — is growing.Thermostats, ovens, cars, toothbrushes, and even baby clothes are connecting to the Internet. pg95
9-6 Find an example of a company that launched a new consumer product within the last five years. Develop a presentation showing how the company implemented the 4 Ps in launching the product and report on the product’s success since the launch. (AACSB: Communication;Reflective thinking) pg95
9-5 It appears that the sky is the limit regarding ideas for smartphone/tablet apps. In a small group, create an idea for new apps related to (1) business, (2) health, (3) education,(4) sports and (5) shopping. (AACSB: Communication;Use of IT; Reflective thinking) pg95
9-3 What are the benefits of an innovation management system and how can a company install such a system?pg95Do all products follow this pattern? Explain. (AACSB:Communication; Reflective thinking) pg95
9-2 What decisions must be made once a company decides to go ahead with commercialisation for a new product?(AACSB: Communication) pg95
1. What do you think that the John Lewis brand means to consumers?Is this brand a strength or a weakness as the company moves forward? pg95•process? What is required in a good marketing strategy statement? (AACSB: Communication; Reflective thinking) pg95
8-13 What brand development strategy is Kellogg’s undertaking?(AACSB: Communication; Reflective thinking) pg95
8-14 Assume the company expects to sell 5 million packages of Pop-Tarts Gone Nutty! in the first year after introduction globally, but expects that 80 per cent of those sales will come from buyers who would normally purchase existing Pop-Tart flavours (that is, they will be cannibalised
8-10 Discuss two examples of similar types of wearable technology for humans. (AACSB: Communication; Reflective thinking) pg95
8-9 Describe the core, actual and augmented levels of product associated with this product. What level does the monitoring service represent? Explain. (AACSB: Communication;Reflective thinking) pg95
8-8 Find five examples of service-provider attempts to reduce service intangibility. Describe them. (AACSB:Communication; Reflective thinking) pg95
8-7 A product’s package must satisfy many criteria, such as sustainability, convenience, safety, efficiency, functionality and marketing. Research ‘packaging awards’ and develop a presentation analysing an award-winning product packaging effort. Describe the organisation hosting the award
8-6 In many countries, regulators are requiring improvements to the standard nutrition labels on food items. In a small group, research the nutrition labelling requirements and likely changes in a country of your choice and create a report explaining them. Include history on nutrition labels in
8-5 Discuss how service providers differentiate their services from those of competitors and provide an example of each. (AACSB: Communication) pg95
8-4 What is a brand? Describe the brand sponsorship options available to marketers and provide an example of each. (AACSB: Communication) pg95
8-3 Explain the importance of product quality and discuss how marketers use quality to create customer value.(AACSB: Communication) pg95
8-2 Name and briefly describe the important decisions in developing and marketing individual products and services.(AACSB: Communication) pg95
8-1 What is a product? How do consumer products differ from industrial products? (AACSB: Communication;Reflective thinking) pg95
Use of IT; Analytical reasoning) pg95
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