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business
global marketing

Questions and Answers of Global Marketing

3. What sorts of sales promotion techniques are used in the motorcycle industry?
2. What is Harley's visual equity?
1. Describe Harley's marketing public relations.
3. Why is The Body Shop's promotional strategy effective?
2. Describe the sales promotion tactics used by The Body Shop.
1. How does The Body Shop use packaging as a communication tool?
9. Analyze a product category in an aisle of a su- permarket, drugstore, or discount store:a. Pick one brand and explain how the pack- age functions as both medium and message.b. Within that product
8. Develop a coupon offer for a local store. Inter- view the manager to determine what the prob- able response would be. Estimate the cost of the coupon offer and the return it would be likely to
7. You have just been hired by a sales-promotion agency as its new director of local business promotions. Identify a local business you feel is not using sales promotion adequately or ef- fectively.
6. Find four ads with sales-promotion offers and describe the sales promotion objective behind each ad (besides buying the product).
5. Interview the manager of a local car dealership to find out what methods the dealership uses to get people to come into the showroom to see and test-drive new cars.
4. If you were a marketing manager and under a lot of pressure to show good "numbers" in each quarterly sales report, would you use all the sales promotion tools available to you to increase those
3. Interview the public relations director for a local company and try to determine if that firm operates with a marketing PR or a corpo- rate PR philosophy.
2. What should have been Jack-in-the-Box's first crisis management step in the food-poisoning tragedy? What should have been the first pub- lic statement the company issued? What should
1. You are planning to open a new restaurant in your city. What public relations tools would you use and how would you use them?
3. If product-specific, should the ads focus on features and benefits or be com- parative?
2. Should the advertising focus on corporate positioning or be product-specific?
1. How will differences in the target audience affect promotional efforts in Han- nover and in North America?
1. Do you agree with Melvin that the magazines selected for consumer advertising are not ap- propriate? Why or why not?
2. How did Harley's and Honda's advertising ob- jectives differ in the 1960s?
1. What is/are the primary purpose(s) of Harley advertising?
1. Anita claims that The Body Shop does not ad- vertise. Do you think that's true? Support your answer.
12. You have been asked to do the media buying for ads for a new cellular phone store in your town. List the five key questions you would ask in developing a media plan for this store and speculate
11. Build an argument supporting or opposing the inclusion of sales response in a set of advertis- ing objectives for (a) a soft drink and (b) a local copy center.
10. Explain how advertising objectives can be de- rived from hierarchy-of-effects models. Find four ads that clearly are trying to do different things each one representing one of the four levels
9. Analyze the issue of cultural imperialism. Is it possible for some products to trade on their Western "cachet" without offending local cul- tures? Should cultural imperialism be of con- cern to
8. In your library find an international men or women's magazine that competes with a mag- azine you read and find a brand that is adver- tised in both (or product category, if you can't find a
7. Analyze Benetton's advertising strategy as de- scribed in this chapter. Is it appropriate for a fashion retailer to take controversial stances? Are Benetton's ads thought provoking and ide-
5. How does advertising add value to a product? What products do you own that you value be- cause of their image or what they contribute to your own self-image? 6. Find a print ad that you like and:
4. What are some ways that advertising affects demand for products? Can you think of a product that you have bought as a result of ad- vertising?
3. Interview a local marketer and determine the degree (if any) to which the firm has inte- grated its marketing communications. What factors do you think have helped/hurt integra- tion efforts at
2. Identify your favorite cosmetic product and explain how elements of the marketing mix besides the traditional marketing communica- tion areas send messages and contribute mean- ing to the product.
1. Explain the basic marketing communication model and identify the points at which com- munication breakdowns can occur. Give spe- cific marketing communication examples.
6. What do you think will happen in the long run in the cigarette price wars?
5. Should Brown & Williamson, American Brands, and Liggett have refused to raise their prices?
4. Should RJ Reynolds have followed Philip Morris's lead?
3. If wholesalers buy Basic cigarettes for 82 cents per pack and take a 15 percent markup, how much will those cigarettes sell for to retailers? If the retailers take a 30 percent markup, how much
2. If Philip Morris does not want to cut price directly, what tactics could it use to obtain a lower retail price?
1. Philip Morris's temporary price reduction constitutes what kind of pricing strategy? Why would this strategy work for the company?
3. Why would Millennium offer advertising al- lowances only at certain times of the year
2. Does Millennium use price bundling?
1. What type of pricing strategy does Panasonic employ? What type does Millennium use?
3. Which firms in the motorcycle industry use experience curve pricing?
2. Does Harley make most of its earnings and profits from motorcycles? parts? accessories?
1. What would happen if Harley used penetra- tion pricing; that is, if the company dropped the price of its cycles?
2. Is price a primary concern to Body Shop cus- tomers? Why or why not? Is this good or bad from the firm's point of view?
1. What kind of pricing strategy does The Body Shop use?
8. Interview the manager of a store in your com- munity about how and why the store's EDLP strategy was implemented. What data does the store have comparing profitablity before and after EDLP?
7. What other mature brands besides Marlboro might be categorized as "price bandits"? Pick one and analyze its pricing strategy. Is it a mar- ket leader and will its strong brand equity con- tinue to
6. Interview the marketing manager for a local company and determine the pricing strategies the company uses for its primary product line and how it fine-tunes those prices.
5. You are the marketing manager for a product that is not doing well and you cannot perma- nently lower your price because your profit margins are already very thin. How might you stimulate a
4. Your company has just invented a new patentable technique for making tires that will provide 35 percent more miles than current tires in the same category. What pricing strat- egy would you, as
3. Why do firms sometimes introduce products using skim pricing and then shift to penetra- tion pricing later in the product life cycle?
2. You are the marketing manager of a newly in- vented product. Describe the product briefly and identify the pricing objectives you would pursue for it. Explain your rationale.
1. Which of the pricing objectives described in this chapter would you expect to yield the best long-term results for a firm? Why?
5. If Bud normally sells 650 cars a year and reduces car prices by 12%, how much will sales have to increase if demand is elastic?
4. If Bud's fixed costs are $700,000 and he institutes a one-price policy with a $1,200 contribution margin, how many cars will he have to sell to break even? What is the breakeven point if he
3. What kind of pricing objectives do Bud and Junior each want?
2. If you were Bud, would you adopt a no-haggle pricing policy as Junior wants you to?
1. As a consumer, what is your view of no-haggle pricing?
2. If the industry were monopolistically competi- tive, how would that affect Millennium Sys- tems pricing?
1. If the rechargeable battery industry were oli- gopolistic, how would that affect pricing of Millennium Systems?
3. What sort of competitive pricing strategy does Harley use?
2. Is demand for Harley products price elastic or price inelastic? Explain your answer.
1. What constitutes value for a loyal Harley owner?
2. Anita never wants to discuss profits, and she wouldn't understand a breakeven analysis. What factors do you think determine prices at The Body Shop?
1. If price equals perceived value, what factors constitute perceived value for Body Shop prod- ucts?
8. Develop a cost analysis for used textbooks for your bookstore. How much profit does the dis- tributor make? How much does the bookstore make? What are their costs? Working with your student
7. Select a high-quality sweatshirt in your college bookstore and describe how competitive forces, consumer demand, the distribution chain, and the product costs have probably in- fluenced its price.
6. A beauty shop has a $100,000 annual over- head (fixed cost). The average variable cost per customer visit is $3. If the average price charged is $6, how many customers must the beauty shop attract
5. Explain under what circumstances a firm might price its products below cost.
4. At which stage of the product life cycle would you expect to find the highest prices? The low- est prices? Why?
3. Define price-fixing, price discrimination. predatory pricing, and deceptive price advertis- ing, and explain the rationale for outlawing these practices in the United States.
2. Describe how the monopolistic, oligopolistic, purely competitive, and monopolistically com- petitive nature of an industry can influence pricing.
1. Find a product, service, or store that has changed its value equation (value = benefits/ price) recently. Explain how it manipulated the price, quality, and benefits to shift the per- ception of
5. If you were Mike Ullman, what arguments would you present to the Macy's board?
4. How would you defend Macy's home shopping channel if you were in Ull- man's shoes?
3. Do you agree with Ullman that moderate is a price point? Support your an- swer.
2. Evaluate Harry Bernard's argument that loss of Macy's high fashion image will make it difficult for the company to attract customers. Do you think it will do this, or do you think it will bring
1. Contrast Edward Finkelstein and Mike Ullman as retail managers. What are each man's strengths? How did each help Macy's?
2. Do you agree that Millennium should increase its sales in hardware and home centers?
1. Describe the ways in which Millennium makes the retailer's job easier. Do you think this en- courages retailers to carry the Millennium line?
2. How do Harley dealers add value to Harley's products?
1. What type of retailer is a Harley dealer?
2. Contrast The Body Shop's approach to retail- ing cosmetics with that of Este Lauder or Revlon. How does each of these approaches add value to its product lines?
1. What type of retailer is The Body Shop?
11. Interview the owner or manager of a local re- tail store and determine how that firm inter- acts with wholesalers, how it adds value for its customers, and how it combines elements in the
10. Choose two local retailers-one that you think is well positioned and well targeted and one that you think is not. Explain why you feel one is strategically more sound than the other.
9. Visit a local shopping center and describe it in terms of ambiance, features, and price of the goods found there. Also describe the target market you think its designers had in mind.
8. If you were marketing manager for HDTV (high-definition television) sets, what would your distribution opportunities be? What dis- tribution and retailing strategies would make sense for launching
7. What do you think is the most important change in retailing today? Why?
6. Find a local store that stresses price advertising and one that mainly uses image advertising. Compare them on image and atmosphere.
5. Select a retail store you use frequently and de- scribe it in terms of its product lines, price, lo- cation, and ownership.
4. How does retailing add value? Why do you pay more to shop in a supermarket rather than buying foodstuffs from roadside stands? When does it make sense to buy from a roadside stand? From a store?
3. Why would a manufacturer want to handle its own distribution and wholesaling? What are the trade-offs in doing so?
2. Distinguish between merchant wholesalers and brokers, and between manufacturers who handle their own wholesaling and agents.
1. How does wholesaling add value? How can the added costs of wholesaling be justified?
4. Which alternative do you think she should choose?
3. List Sandy Smith's distribution alternatives and the pros and cons of each.
2. Some critics believe that slotting fees constitute a form of monopoly power and should be eliminated. Do you agree or disagree? Support your answer.

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