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business
contemporary marketing case

Questions and Answers of Contemporary Marketing Case

=+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
=+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,
=+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
=+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
=+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
=+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
=+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
=+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
=+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
=+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
=+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
=+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
=+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
=+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
=+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
=+ 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
=+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
=+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,
=+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
=+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
=+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
=+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
=+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
=+What is the job outlook for public-relations specialists?
=+b. Read the summary in the Occupational Outlook Handbook (http://www.bls.gov/oco/ocos086.htm) for publicrelations specialists. What is the nature of the work?Who employs public-relations
=+a. Visit http://aboutpublicrelations.net/toolkit.htm. Prepare a brief report on how to use photos and graphics for public relations.
=+1. Public relations. Complete the following exercises to learn more about public relations and apply what you learned in the chapter.
=+2. Some fans and sportswriters were outraged at the proposal to market a movie by using the bases, even though the plan was quickly canceled. Do you think advertisers should “test the waters”
=+ If the alternative is to charge higher ticket prices, which is preferable in the short term? In the long term? Why?
=+1. Do you think marketing at sporting events and stadiums will become more aggressive if salaries for top players continue to climb?
=+Find out about advertiser participation in the schools in your area. Do you agree that it has a benefit? Why or why not? Interview a few high school students you know and find out what they
=+4. Some marketers believe that marketing in schools—through advertisements on book covers, product placement in lesson plans, and ads in educational videos and other programs—is acceptable only
=+What do you think advertisers’ criteria for fairness should be?Locate two or three comparative ads and compare the advertisers’ criteria to your own. Which set of guidelines is stricter, yours
=+3. Comparative advertising, in which marketers directly compare the advertised product with a competitor’s, is controversial. The advertising industry is self-regulating on this issue, and
=+2. One writer says that children exposed to puffery in ads grow into teens who are healthily skeptical of advertising claims.Find several print ads aimed at children, and identify what you think
=+1. Design a print ad, with rough-draft copy and an image (or a description of an image), for an electronics store you visit frequently. Be sure to include the elements of a typical ad and identify
=+ If it was bad publicity, where did you find out about it and how did the firm try to control or eliminate the situation?
=+10. Think back to any good or bad publicity you have heard about a company or its products recently. If it was good publicity, how was it generated and what media were used?
=+9. List as many advertisements as you can that you remember seeing, reading, or hearing in the last week. Narrow your list down to five or six ads you can recall with some detail and accuracy. What
=+8. Research suggests that advertising appeals based on sex are successful only when they are appropriate to the type of product being advertised. With a classmate, discuss whether each of you
=+6. Which kind of appeal do you think would be most effective in advertising each of the following? Why?a. whitening toothpasteb. wireless Internet accessc. diamond jewelryd. antilitter campaigne.
=+ Do you like to view these ads, or do you find them intrusive? Which are most appealing? Which are least?
=+4. Access the Internet and surf around to some sites that interest you. How many banner ads or pop-ups do you see?
=+3. With a classmate, find an example of cross-promotion. If possible, bring it to class to discuss its effectiveness. Then create your own plan for cross-promoting two products that you think
=+2. Choose a magazine that interests you and analyze the advertisements in one issue. Describe who you think the magazine’s readers are by reviewing the ads.
=+Describe why you think each is effective or ineffective. Bring at least two of the ads to class to discuss with classmates.
=+1. With a classmate, review a number of advertising messages across several media and identify two effective messages and two you think are ineffective.
=+10. Identify the major ethical issues affecting advertising, sales promotion, and public relations.
=+Describe how you think a chain of golf resorts could use interactive advertising effectively.
=+6. How is advertising through interactive media different from advertising in traditional media?

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