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Marketing: Real People, Real Decisions 2nd Edition Michael R. Solomon, Greg Marshall, Elnora Stuart, Bradley Barnes, Vincent-Wayne Mitchell - Solutions
4. Present your ads to your class. Discuss the advertising appeal you selected and explain your ad executions.
3. Create a series of at least three different magazine ads for your product, using the appeal you selected. Your ads should have a headline, a visual, and copy to explain your product and to persuade customers to purchase your brand.
2. Decide on an advertising appeal for your new product.
1. With one or more classmates, create (imagine) a new brand of an existing product (such as toothpaste, perfume, soft drink or the like).
3. Assume that you are the head of PR for a regional fast-food chain that specialises in fried chicken and fish. A customer has claimed that he became sick when he ate a fried cockroach that was in his meal along with the chicken. As the director of PR, what recommendations do you have for how the
2. Spend some time looking through magazines. Find an ad that fits each of the following categories:a. USP strategyb. Testimonialc. Lifestyle formatd. Humour appeal Assess each ad. Explain who the target market appears to be. Describe how the appeal is executed. Discuss what is good and bad about
1. As an account executive for an advertising agency, you have been assigned to a new client, a new line of high quality, high price makeup. As you begin development of the creative strategy, you are considering different types of appeals:a. USPb. Comparative advertisingc. A fear appeald. A
3. Some people criticise PR specialists, calling them ‘spin doctors’ whose job is to hide the truth about a company’s problems. What is the proper role of PR within an organisation? Should PR specialists try to put a good face on bad news?
2. Technology through television remotes, VCRs, computers and cable television is giving today’s consumers more and more control over the advertising images they see. How has this affected the advertising industry so far, and do you think this will affect it in the future? What are some ways that
1. Some people are turned off by advertising because they say it is obnoxious, that it insults their intelligence, and that advertising claims are untrue. Others argue that advertising is beneficial and actually provides value for consumers. What are some arguments on each side? How do you feel?
8. What are the steps in planning a PR campaign? 9. Describe some of the activities that are a part of PR.
7. What is the purpose of public relations? What is proactive PR? What is a crisis management plan?
6. Describe the media planning process. How do marketers pre-test their ads? How do they post-test ads?
5. What are the strengths and weaknesses of television, radio, newspapers, magazines, directories, out-of-home media, place-based media and the internet for advertising? What are the ways marketers advertise on the web?
4. Describe some of the different advertising appeals used in campaigns.
3. How do advertising agencies create campaigns for their clients? Describe the steps in developing an advertising campaign.
2. What are the types of advertising that are most often used?
1. What is advertising, and what is its role in marketing?
2 How do you feel about the teddy bear company’s PR response to the complaints? 3 What do you think the long-term consequences of the company’s actions could be?
1 Do you agree the company acted in a socially irresponsible way?
1. What are the pros and cons of every country having an agency that can force companies to do corrective advertising?
2. Don’t consumers expect and adjust for it? 3 What are the dangers to the marketing discipline of puffery in advertising?
1. How harmful is a little exaggeration?
3. How is Groupon effectively integrating its marketing communications activities?
2. In what ways is Groupon engaging in positive word-of-mouth strategies?
1. How is Groupon effectively combining personal and mass appeals as it grows?
4. What recommendations do you have for each company to improve the interactive opportunities on its website?
3. How do you think the firm might use the information it gathers through the internet in database marketing activities? How can the information be used to build relationships with customers and prospective customers?
2. How does each firm use the internet to gather information on customers? What information is gathered? Which site does a superior job of gathering information, and why?
1. In what ways does each website facilitate interactive communications between the firm and customers?
3. Make a presentation of your findings and recommendations to your class.
2. Based on what you learn, consider other ways the school might use database marketing for enhancing its alumni programmes and its fundraising.
1. Visit your university alumni office and ask to discuss how it uses database marketing to enhance participation of alumni in the programmes of the university and in fundraising. Some of the questions you might ask include the following:a. How the office obtains names for an initial or expanded
6. As a member of the marketing department for a manufacturer of handheld power tools for home improvement, you have been directed to select a new agency to do the promotion for your firm. Of two agencies solicited, one recommends an IMC plan and the other has developed recommendations for a
5. As the marketing manager for a chain of bookshops, you are interested in developing a database marketing plan. Give your recommendations for the following:a. How to generate a customer database;b. How to use the database to better understand your customers;c. How to increase sales from your
4. Assume that you are the word-of-mouth marketing manager for a sports shoe company such as Footlocker. Develop ideas on how to create buzz for your company’s products.
3. As the director of marketing for a small firm that markets environmentally friendly household cleaning supplies, you are developing a marketing communication plan. With one or more of your classmates, provide suggestions for each of the following items. Then, in a role-playing situation, present
2. Again, assume that you are a marketing consultant for one of the clients in question 1. You believe that the client would benefit from guerrilla marketing. Develop several ideas for guerrilla marketing tactics that you feel would be successful for the client.
1. As a marketing consultant, you are frequently asked by clients to develop recommendations for marketing communication strategies. The traditional elements used include advertising, sales promotion, public relations and personal selling. Which of these do you feel would be most effective for each
4. Consumers are becoming concerned that the proliferation of databases is an invasion of an individual’s privacy. Do you feel this is a valid concern? How can marketers use databases effectively and, at the same time, protect the rights of individuals?
3. With an IMC programme, firms need to coordinate all of the marketing communications activities. What do you see as the problems inherent in implementing this?
2. More and more companies are developing word-ofmouth or buzz marketing campaigns. Is buzz marketing just a craze that will fade in a year or two or is it here to stay? Do you think buzz is effective? Why do you feel that way?
1. Some people would argue that there is really nothing new about IMC. What do you think?
13. How do marketers evaluate the effectiveness of their communications programmes?
12. What are some different types of appeals marketers may use in their communications strategies?
11. How does the promotion mix vary with push versus pull strategies?
10. Describe the major ways in which firms develop marketing communications budgets.
9. Explain the hierarchy of effects and how it is used in communication objectives.
8. List the stages in developing an IMC strategy.
7. What is database marketing? How do marketers use databases to meet the needs of their customers?
6. What is IMC? Explain the characteristics of IMC.
5. Explain what guerrilla marketing means.
4. What are word-of-mouth marketing, buzz marketing and viral marketing? Why are such activities gaining in popularity?
3. List the elements of the promotion mix and describe how they are used to deliver personal and mass appeals.
2. Describe the traditional communications model.
1. How is IMC different from traditional promotion strategies?
1 Is the practice of flogging corporate deception or a legitimate form of advertising?
5. How can the lessons learnt from LCCs be applied to other sectors, if at all?
4. How else could LCCs look to compete in the marketplace?
3. Do such airlines really compete on price?
2. In this case, is there a relationship between price, cost and profit?
1. What are the factors influencing pricing decisions among low-cost carriers (LLCs)?
2. What recommendations for pricing tactics or for how to implement the strategy do you have?
1. What pricing strategy do you recommend for the resort complex that would maximise their occupancy?
5. As the director of marketing for a firm that markets computer software, you must regularly develop pricing strategies for new software products. Your latest product is a software package that automatically translates any foreign language email messages to the user’s preferred language. You are
4. Assume that you have been hired as the assistant manager of a local greengrocer. As you look over the shop, you notice that there are two different displays of tomatoes. In one display the tomatoes are priced at €1.39 per kilo, and in the other the tomatoes are priced at €0.89 per kilo. The
3. You are a marketing consultant, and your new client is the owner of a small chain of ice cream shops. The client has sold his ice cream at the same price since opening the shops seven years ago. Over time the costs of operating the shops has increased, cutting profits. The client feels he needs
2. Assume that you and your friend have decided to go into business together manufacturing your personally designed women’s handbags. You know that your fixed costs (rent on a building, equipment and so on) will be €120,000 a year. You expect your variable costs to be €28 per handbag.a. If
1. Assume that you are the director of marketing for a firm that manufactures confectionary goods. You feel the time is right for your company to increase the price of its products, but you are concerned that increasing the price may not be profitable. You feel you should examine the elasticity of
2. In pricing new products, marketers may choose a skimming or a penetration pricing strategy. While it’s easy to see the benefits of these practices for the firm, what are the advantages or disadvantages of the practice for consumers and for industry as a whole?
1. Consumers often make price–quality inferences about products. What does this mean? What are some products for which you are likely to make price–quality inferences? Do such inferences make sense?
12. Explain how unethical marketers might use bait-andswitch tactics, price fixing and predatory pricing.
11. Explain these psychological aspects of pricing: price– quality inferences, odd–even pricing, internal reference price and price lining
10. Why do marketers use trade or functional discounts, quantity discounts cash discounts and seasonal discounts in pricing to members of the channel? What is dynamic pricing? Why does the internet encourage the use of dynamic pricing?
9. Explain two-part payment pricing, price bundling, captive pricing and distribution-based pricing tactics. Give an example of when each would be a good pricing tactic for marketers to use.
8. For new products, when is skimming more appropriate, and when is penetration pricing the best strategy? When would trial pricing be an effective pricing strategy?
7. Explain cost-plus pricing, target costing and yield management pricing. Explain how a price leadership strategy works.
6. How does recession affect consumers’ perceptions of prices? How does inflation influence perceptions of prices?
5. What is break-even analysis? What is marginal analysis? What are the comparative advantages of break-even analysis and marginal analysis for marketers?
4. Explain variable costs, fixed costs, average variable costs, average fixed costs and average total costs.
3. Explain how the demand curves for normal products and for prestige products differ. What are demand shifts and why are they important to marketers? How do firms go about estimating demand? How can marketers estimate the elasticity of demand?
2. Describe and give examples of some of the following types of pricing objectives: market share, competitive effect, customer satisfaction and image enhancement.
1. What is price, and why is it important to a firm? What are some examples of monetary and non-monetary prices?
1 This seems to be a great deal for consumers, so why shouldn’t British Gas be allowed to offer great deals to consumers in order to keep them?
#!# 4. The company: Blundells Estate Agents is a family-owned business which has the potential to minimise its internal operation costs faster than its competitors when necessary, e.g. Mr Blundells’ daughter is a qualified valuer who can give credible valuation to properties and oversee the
3. Consumer perception: both Option 1 and Option 2 would risk a negative consumer perception towards Blundells Estate Agents which should be avoided at all costs for the obvious reason: it only takes one unhappy/unsatisfied customer to damage the reputation of a business, especially a well-known
2. The competition: the case study mentioned that this is a ‘sexy’ market with many competitors, some of whom are national players that can easily match Mr Blundell’s pricing strategies, especially where Option 1 and Option 2 are concerned. If that happened, Mr Blundell would find himself in
1. The industry: we need to acknowledge the fact that Blundells Estate Agents is a service provider, and by definition the best way for Mr Blundell to compete is to provide high quality services to his customers.
1. Is price the main factor that affects easyJet’s sales revenue? 2. What other strategies could easyJet adopt to increase sales?
2 Is it a ‘sustainable’ strategy for Walker’s to not pass on their costs to customers?
1 How does cost of production have an influence on pricing for Walker’s crisps?
4. What are some of the implications of free online streaming services (i.e. Spotify) for the music industry?
3. Who are the key players involved in the creation, recording and selling of music as a service?
2. Describe how music as a product has evolved on the service continuum?
1. What key trends and driving forces have re-shaped the music industry?
3. What changes or improvements would you recommend for each website?
2. How does each park position its product? How is this positioning communicated through the website?
1. How is each website designed to appeal to each theme park organisation’s target market?
3. Many not-for-profit and religious organisations have found that they can be more successful by marketing their ideas. What are some ways that these organisations market themselves that are similar to and different from the marketing of for-profit businesses?
2. Sometimes service quality may not meet customers’ expectations. What problems have you experienced with quality in the delivery of the following services?a. A restaurant mealb. An airline flightc. Motor vehicle repairsd. Your university education.What do you think is the reason for the poor
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