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Questions and Answers of
Business Essentials
3. Suppose that you are buying advertising space on TV. Would you be more likely to accept Nielsen data for, say, sports programs than you would for dramas?Explain. What klnd of biases might you have
4. What are the strong and weak points of measuring viewership for internet advertisements? Businesses spend a lot of money each year on advertising, so it is not surprising that they want to know
Discuss pricing strategies and tactics for existing and new products.
Explain the distribution mix, the different channels of distribution, and the different distribution strategies that businesses use.
Explain the differences among wholesalers, agents/brokers, and retailers.
Identify the different types of retail stores and the activities of a-intermediaries.
Define physical distribution and describe the major activities in warehousing operations.
Compare the five basic forms of transportation and explain how distribution can be used as a marketing strategy.
1. Describe the various pricing strategies and distribution options that are available to companies.Which pricing and distribution strategies were adopted by Auto Vault? Men have always had a bit of
2. Do you think Shapiro's pricing reflects the market he is targeting? Why or why not? Men have always had a bit of a love affair with their cars, but the customers of Auto Vault are downright
1. All things considered, which shopping bag do you think is best: plastic, paper, or reusable cloth bags? Defend your answer. Canadians use 55 million plastic bags each week.Concerns about plastic
1. What are the strengths and weaknesses of a-distribution? When retailers initially got into online selling, they often kept their sites separate from traditional outlets. But this led to confusion
2. Have you ever purchased items from any of these sites? Were your experiences positive or negative? Explain. When retailers initially got into online selling, they often kept their sites separate
3. From the manufacturer's point of visw, what are the advantages and disadvantages of using intermediaries to distribute products? What are the advantages and disadvantages from the end-user's point
4. Identify several products in each of the three distribution strategy categories Qntensive, selective, and exclusive). What are the characteristics of the products in each category? Is there a
5. How do the activities of a-agents Qntemet shopping agents) or brokers differ from those of traditional agents/brokers?
7. Consider the various kinds of non-store retailing.Give examples of two products that typify the kinds of products sold to consumers through each form of non-store retailing. Are different products
8. Novelties Ltd. produces miniature Canadian flag decals. The fixed costs for their latest project are$5000. The variable costs are $0. 70/flag, and the company should be able to sell them for $2
9. Sel ect a product with which you are familiar and analyze various possible pricing objectives for it. What information would you want to have if you were to adopt a profit- maximizing objective? A
10. Interview the manager of a local manufacturing firm.Identify the firm's distribution strategy and the channels of distribution that it uses. Where applicable.describe the types of wholesalers or
1. What place does online distribution have in the distribution network of this company? To encourage students to consider the value of online retailing as an element in a company's distribution
2. In your view, is online distribution the wave of the future? Is it likely to increase in importance as a distribution system for apparel companies? Why or why not? To encourage students to
1 . Before hearing any of your group's comments, and from the perspective of your assigned role, decide whether there are any ethical issues in this situation.If so, write them down.Because several
2. Before hearing any of your group's comments, and from the perspective of your assigned role, decide how this dispute should be resolved.Because several stages are involved when distribution chains
3. Together with your group, share the ethical issues that were identified. What responsibilities does each party-the customer, the store, and the delivery company-have In this situation?Because
4. What does your group recommend be done to resolve this dispute? What are the advantages and disadvantages of your recommendations?Because several stages are involved when distribution chains move
1. Consider the traditional channels of distribution for music albums. Which channel elements are most affected by the presence of services like KaZaA and Morpheus? Explain how those elements are
2. Why is the music industry so concerned about internet distribution? Are there any opportunities for the recording industry In Internet distribution? Physical distribution of music in the form of
3. Develop arguments opposing the legality of services offered by Morpheus. Then take the reverse position and develop arguments in favour of these se!Vices. Physical distribution of music in the
4. What types of ethical or social-responsibility issues does file sharing raise? Physical distribution of music in the form of COs is rapidly declining, and d igital distribution of music is rapidly
5. What other products, besides music albums, are the most likely candidates for distribution on the internet, now and in the future? Physical distribution of music in the form of COs is rapidly
1. Describe your target market in terms of age, education level, income, and other demographic variables.Hint: Refer to Chapter 12 for more information on the aspects of target marketing and market
2 . Describe the features and benefits of your product or service.Hint: As you learned in Chapter 13, a product is a bundle of attributes-features and benefits. What features does yorr product
3. How will you make your product s tand out In the crowd?Hint: There are many ways to stand out In the crowd, such as having a unique product, outstanding service, or e great location. What makes
4. What pricing strategy will you choose for your product, and what are the reasons tor this strategy?Hint: Refer to Chapter 14 for more information on pricing strategies and tactics. Since your
5. Where will customers find your product or service?(That is , what issues of the distribution mix should you consider?)Hint: If your business does not sell its product directly to consumers, what
6. How will you advertise to your target market? Why have you chosen these forms of advertisement?Hint: Marl
7. What other methods of promotion will you use, and why?Hint: There 's more to promotion than simple advertising. Other methods include personal selling, sales promotions, and publicity and public
1. Is the 0 - Ray bracelet a convenience, shopping, or specialty good? Explain your reasoning. Also analyze the "value package" provided by the 0 - Ray bracelet. Q-Ray advertisements say that its
2. Briefly describe the variables that are typically used to segment markets and what each involves. VVhich variable is 0-Ray using? Q-Ray advertisements say that its "Serious Performance Bracelet"
3. Consider the following statement: "People suffering from chronic pain need hope, and a product like 0-Ray provides hope. Even though it might be difficult to prove that the bracelet relieves pain,
4. Which of the 4 Psis most Important in the marketing of the 0-Ray bracelet? Explain your reasoning. Q-Ray advertisements say that its "Serious Performance Bracelet" is designed to help people play,
1. What is the difference between goods, services, and ideas? Are the Tangs marketing a good, a service, or an idea? Explain your reasoning. Baby boomers (people born between 1947 and 1966)now make
2. Which of the 4 Ps of marketing do you think is most important in the case of dancing lessons? Explain your reasoning. Baby boomers (people born between 1947 and 1966)now make up one-third of
3. Which variables do marketers generally use to identify market segments? Which variables are being used by the Tangs? Be specifiC. Baby boomers (people born between 1947 and 1966)now make up
Define money and Identify the different forms It takes in Canada's money supply.
Understand the different kinds of financial institutions that make up the Canadian financial system and explain the services they offer.
Explain the functions of the Bank of Canada and describe the tools it uses to control the money supply.
Discuss the value of common stock and preferred stock to stockholders and describe the secondary market for each type of security.
Describe the investment opportunities offered by bonds, mutual funds, and commodities.
Explain the process by which securities are bought and sold.
1. Have you used a banking smart phone application or visited a bank-sponsored social media group?How effective do you think these tools are for the consumer? For the banks?In the past decade, the
1. Is there a trade-off between bank responsiveness to customers and customer satisfaction with banks? As the worldwide recession deepened in 2009, increasing concern was expressed that many U.S.
2. Consider the following statement: "Governments around the world should continuously apply very strict standards for banks, even in good economic times, so that the kinds of financial problems that
1. What are the advantages of emissions trading?What are the disadvantages? Traders are accustomed to using financial markets for investing in just about everything-ranging from pork bellies to movie
2. What has been the experience of the European Union to date with emissions trading? Traders are accustomed to using financial markets for investing in just about everything-ranging from pork
3. What is the Canadian government doing about introducing emissions trading? Traders are accustomed to using financial markets for investing in just about everything-ranging from pork bellies to
1. What specific changes in banking are shifting banks away from their historical role?
3. Should credit cards be counted in the money supply?Why ex why not? Support your answer by using the definition of money.
4. Should banks be regulated, or should mar1
5. Suppose you decided to invest in common stocks as a personal Investment. Which kind of broker-full service or online discount-would you use for buying and selling stock? Why?
6. Choose a stock from the TSX and find a newspaper listing of a recent day's transactions for the stock.Explain what each element In the listing means.
10. Contact a broker for Information about setting up a personal account for trading securities. Prepare a report on the broker's requirements for placing buy/sell orders, credit terms, cash account
1. Do you see any similarities in the movement of the various stocks during the same period? For example, did the stocks move up or down at about the same time? If so, do you think the stocks were
2. Based on your analysis, did internal or external factors have the greater impact on stock price? Which factors had the longer-lasting effect? Which factors had the shorter effect? To encourage
3. Why do you think it is so hard to predict changes in stock price on a day-to-day basis? To encourage students to understand the forces that affect fluctuations in stock prices.Situation Investing
1. Before discussing the situation with your group, and from the perspective of your assigned role, consider whether there are any ethical issues in this situation.If yes, write them down. Employees
2. Return to your group and reveal ethical issues that were Identified by each member. Be especially aware of how different roles resulted in different kinds of ethical issues. Why might role
3. For the various ethical issues that were identified, decide as a group which one is the most important for Premier Power Investments to resolve. Which issue is second in inportance? Employees in
4. From an ethical standpoint, what does your group finally recommend be done to resolve the most important ethical issue? To resolve the second most important ethical issue? Employees in financial
1. What factors determine the market price of a share of stock? Which of those factors were at work in the cases described above that dealt with the issue of stock prices? The stock market is
2 . What is the difference between debt and equity financing? Are the situations described above examples of debt or equity Issues? Explain. The stock market is supposed to be a place where you can
3. Consider the following statement: "Insider trading should not be illegal. In a fre&-market economy, individuals who have the motivation and intelligence to gather information that allows them to
4. Debate: Divide into two groups and defend one of the following statements. (1) Dell should go back to its roots and focus primarily on sales of its computers, laptops, and notebooks. (2) In order
3. Identity the main factors favouring success for Dell's bold move Into the North American smart phone market.What prominent factors suggest major problems or even failure In this attempt? For over
2. Over the years, Dell's success was based on a combination of strategic elements. Which of the four Ps was the key element In the success of the company?Explain how the company delivers value to
1 . In this chapter we have discussed the important concepts of targeting, segmenting, and positioning. In groups of three or four, identify where Dell's brand is positioned In the minds of your
4. When equipment manufacturers advertise residential HIAC products, they often show them in different climate situations (in winter, summer, or high-humidity conditions). Which market segments are
3. Which factors were least important in your decision?Why?Dealing in Segments and Variables Goal To encourage students to analyze the ways in which various market segmentation variables affect
2. Identify the two variables you believe will have the greatest impact on the dealership's success. Why are these factors so important?Dealing in Segments and Variables Goal To encourage students to
1. Which location did you choose? Describe the market segmentation factors that influenced your decision.Dealing in Segments and Variables Goal To encourage students to analyze the ways in which
3. Research the waste management industry. What can you learn from the companies' websites about the benefits of new biodegradable plastics? The majority of plastics that have been manufactured in
2. What are some of the concerns that businesses would have when undertaking new initiatives like those at GWS? What concerns might consumers have? The majority of plastics that have been
1. What are the 4 Ps of marketing? Which one do you think was most important in this case? The majority of plastics that have been manufactured in the last hundred years are still in existence. (As
Describe the international and small-business marketing mixes.
Explain the purpose and value of marlceting research.
Explain market segmentation and show how it is used in target marketing.
Explain the concept of marketing.
Define the nature of U.S. business, describe the external environments of business, and discuss how these environments affect the success or failure of organizations.
What is one required to do in order to spot promising opportunities and be considered enterprising as a result?
Labor is usually referred to as human resources. Aside from physical work, what else does this include?
What are the laws of demand and supply and what do these two laws affect?
When output grows more quickly than population, what are the things that usually occur?QUeStIoNS foR ANALySIS
Identify and describe the features of a domestic environment and why it is so important to a business organization.
Give an example of a monopoly and suggest business circumstances in which they are present (in a natural monopoly and how it would otherwise be wasteful if there was competition).
Visit a local shopping mall or shopping area. List each store that you see and determine what degree of competition it faces in its immediate environment. For example, if only one store in the mall
Have each team member work individually to identify at least three trends in the external environment that will create business opportunities. Come together as a group and create a master list of
Which trend do you think creates the greatest opportunity for success? Why?
Identify a product, either a good or a service, that will take advantage of this opportunity. Although you will refine this throughout the semester, write a four- to sixsentence description of your
Who is your competition for this product, either direct competition or substitute products?
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