BUS $348$ Case # $2$

For each paragraph identify the correct statements and identify the incorrect statements with a brief

explanation$/$comment on what should the correct statement be$.$ Follow the same procedure that we

used in the first case.

Paragraph # $1$

The next step for our engineering colleagues was to consider the technology products and promotions

they would include in their marketing plan. The technology products they would produce were

somewhat compatible with their competitors so they knew that the extended product would have to be

attractive to their customers. It also became clear to Mr$.$ Smith that they should change their focus from

just a consumer company to one that markets to small business$/$industrial owners as well as consumers.

Ms$.$ Jones would be in charge of industrial buyers and Mr$.$ Brown would have consumer buyers.

Paragraph # $2$

Ms$.$ Jones looked at the industrial technology and decided it would be positioned as a convenience good

despite the fact that it was a somewhat expensive. To offset the technical competitive compatibility and

high price her extended product would concentrate heavily on customer service and support. In

addition, she hoped to increase sales by adding product line consistency including such items as travel

cases, additional insurance, charging ports, membership in a customer loyalty program and additional

cords. She would work with the R&D people to improve the technological capability of the product line

by implementing a Kaizen program that would address continuous improvement for future product

launches and upgrades. Having many items in the technology product line with these consistency items

meant she had a deep product line and a wide product mix.

Paragraph # $3$

Mr$.$ Brown, for the consumer market, would position the technology as a shopping good so he knew the

price had to be kept low. Because of the lower price points there would be no extended product. He

would offer the same items in the product line as the industrial line but with some changes to reflect the

characteristics of both the consumer and industrial markets.

Paragraph # $4$

Both Ms$.$ Jones and Mr$.$ Brown each developed their own integrated marketing communications

program for inclusion into the marketing plan.

Ms$.$ Jones and the industrial market would be using a direct distribution system so the promotion

choices are as follows:

Outside sales force

Product specific ads in small business and industry specific magazines

Product placement in TV shows

Event sponsorship of a popular music group concert

Sales promotions aimed at their own sales force and the end user customer

Paragraph # $5$

Mr$.$ Brown and the consumer market would be using indirect distribution through retail outlets so the

promotion choices are as follows:

Product placement in a popular consumer TV show

Sales promotions for end user customers

Paid for publicity in consumer magazines

An outbound telemarketing program aimed at identified households

Internet marketing concentrating on social media because they can control the content

Paragraph # $6$

The final discussion points about the plan addressed how to price the technology products. Ms$.$ Jones

positioned the products as convenience goods with a higher price point using a market penetration

strategy. She also included volume discounts to encourage customers to buy more product. Mr$.$ Brown

felt he needed to stay close to the competitors so he used a status quo pricing strategy with sales

promotions such as Christmas and New Year$$s sales.