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mktg principles of marketing
Questions and Answers of
MKTG Principles Of Marketing
6. Recommend a strategy for Virgin Direct, showing how it will enable the company to sustain a differential advantage in an increasingly competitive market.
5. What are the major challenges facing Virgin Direct?
4. Evaluate Virgin's ability to compete against retail banks.
3. Critically assess the role that communications play in building and sustaining the Virgin brand name in financial services.
2. Identify the factors that influence the success of its direct marketing operation.
1. What advantages does Virgin's direct marketing approach to financial services offer customers of PEPs, life insurance and pensions?
2. Make a list of products or services that you have purchased via direct marketing channels. What were the factors that influenced your decision to buy direct? If these products or services could
1. Name a record or book club that has successfully marketed its products by mail. Why do so few record labels or publishers sell their offerings by mail themselves? How might mail-order clubs
6. Suggest an integrated direct marketing strategy for Dell, showing how it will help the company to create and sustain a competitive advantage.
5. How might advances in communications technology affect the marketing methods used by firms such as Dell and other computer manufacturers towards the twenty-first century?
4. Dell is taking advantage of new technologies such as the Internet to market its products. What might be the advantages and limitations of Internet or online marketing?
3. Identity the organisational and operational factors that govern successful implementation of direct methods of selling products such as PCs.
2. Dell has pioneered mail-order selling of PCs. What other methods of direct selling might the firm use?
1. Taking the case of DeSl Computer Corporation, outline die major advantages of direct marketing for: (a) the manufacturer and (b) the customer.
Discuss the public policy and ethical issues facing direct marketers.
Identify the benefits of online marketing to consumers and marketers, and the ways in which marketers can conduct online marketing.
Compare the two types of online marketing channel and explain the effect of the Internet on electronic commerce;.
Identify the major forms of direct marketing.
Define a customer database and list the four ways in which companies use databases in direct marketing.
Discuss the benefits of direct marketing to customers and companies and the trends fuelling its rapid growth.
6. Comment on the C1 and EVA trends and compare them with the impression given by the growth in profits and sales. What strategies of Abel's explain the performance that the C1 and EVA reveal? Should
5. Track the changes in C3(capital cost covered) and EVA (economic value added) for Pieta over the last ten years. Marketing Highlight 16.3 shows how to do it.
4. How is Abel's strategy endangering Pieta's future performance and brand image? What, if anything, has Abel been neglecting?
3. What is the scope for channel innovation in the industry?
2. Argue the case for further expansion wanted by Abel.
1. Comment on Abel's expansion strategy and I'ieta's performance since he took over.
6. 'Category killers' and discounters provide tough price eompetition to other retailers. Will large retailers'growing power in channels of distribution affect manufacturers' willingness to sell to
5. When planning desired inventory levels, what eonscuuenecs of running out of stock need to be considered? How should retailers ensure no stockouts?
4. Which distribution channel strategies - intensive, selective or exclusive - are used for the following products and why? (a) Piaget watches; (b) Lexus cars;(c) Yamaha motor cycles; (d) Kit Kat
3. Why have horizontal marketing arr.'ingcments become more common in reeent years? Surest several p;iirs of companies that you think could have successful horizontal marketing programmes.
2. What are the advantages accruing to firms that have developed vertical marketing systems? Contrast the advantages and limitations of the three major types of vertical marketing system - corporate,
1. Describe the channel service needs of: (a) consumers buying a emnpuccr for home use; (b) retailers buying computers to resell to Individual eonsumers;(c) purchasing agents buying computers for
What are the changes taking place among channel institutions?
What role does physical distribution play in attracting and satisfying customers?
What problems do companies face in designing and managing their channels?
How do channel firms organize to do the work of the channel?
What is the nature of marketing channels?
6. How might these changes impact on Eeonomos' business? Suggest a channel strategy that would enable the company to sustain n competitive advantage in the global seal market.
5. What are the changes in the channel environment that companies such as Eeonomos and its distributors must be aware of?
4. Why is it important for the company to work closely with channel partners at different levels in the supply chain?
3. How would you describe the channel approach used by Eeonomos(a) up to the mid-1980s; (b) following the introducion of the series of technological innovations that streamlined its
2. What are the channel service needs of (a) Eeonomos; (b) Eeonomos'customers?
1. In the ease of Eeonomos, who are the main players in the distribution channel for seals? Identify the supply chain.
Explain bow marketing channels are changing and the implications of these trends to marketers.
Isolate the key issues that managers face when setting up marketing channel systems.
Explain how businesses select, motivate and evaluate channel members.
Identify the major channel alternatives open to a company.
Explain the role of marketing channels and the functions these channels perform.
6. What is the rationale behind Bang & Olufsen's new marketing and distribution strategy for Europe? Does it seem likely that the European market segments into ten equally sized groups that are
5. Would you 'double or quit' the German market? Why was Bang" & Olufsen more attracted to the United States and other markets than to Germany, and was it right in being so?
4. How does the target market influence Bang & Olufsen's promotional strategy? Since there are so few of the target customers in Germany, would it pay Bang & Olufsen to target other groups in that
3. What compensates the retailers for having a lower margin and investing more in Bang & Olufsen's stock and display area?
2. How is the new pull strategy being funded? In what way is the new strategy attractive or not attractive to distributors?
1. Distinguish between the old push and the new pull policies followed byBang & Olufsen. Why do you think the push strategy was not working? Is it likely that the pull strategy will increase sales
6. What were Britcraft's main failings and strengths? Do you think it will win the sale or is it too out of touch with the needs of the NAF and the Country's government? What could it do at this late
5. Did Britcraft's structure help or hinder its sales campaign? How could it be changed for the better?
4. Discriminate between the sales roles of the people in Britcraft.
3. Identify the players in the buying centre and gauge their role and influence. How well did Rriteraft manage the complexity of the buying centre and their diverse needs?
2. How well did the strengths of the Jetprop match the needs of the NAF?
1. Trace the stages in the buying process and how the Country's interests changed from one stage to the next. Why were the Country's interests changing and was Britcraft keeping pace with the changes?
4. There has been an increasing trend towards the use of computers to help sales managers analyze, plan and eo-ordinate sales force activities. Discuss the effects of computer-based and related
3. "Salespeople are horn, not made.' Do you agree with this statement? Explain why or why not. What role does training play in helping someone develop selling skills?
2. Who do so many sales force compensation plans combine salary with bonus or commission';' What are the advantages and disadvantages of using bonuses as incentives, as opposed to using com missions?
1. The job of a salesperson can he exceedingly rough - it is challenging and varied, and the sales rep is under constant pressure Lo close and maintain sales.Describe the tasks performed by
6. Given your recommendations, how would you recruit, train, supervise, motivate and evaluate IBM's sales force?
5. What strategy, structure and compensation plan would you establish to accomplish these objectives? Identify the trade-offs involved in each of tbese decisions.
4. What objectives would you set for IBM's sales forcer
3. What problems do you see in IBM's sales force objectives, strategy, structure and compensation?
2. Outline the IBM sales force's objectives, strategy, structure and compensation.
1. Why does IRM rely on a sales force to sell its products and services?
Discuss the personal yelling process.
Describe how companies compensate and supervise salespeople and how they evaluate their effectiveness.
Explain how companies recruit, select and train salespeople.
Explain how companies set sales force strategy and structure.
Identify the six main Kales force management steps.
Discuss the ro!e of a company's salespeople in creating value for customers.
5. What explains Rosso's choice of Sweden, rather than Italy, as the base tor his international marketing activity? Why choose an agency and location outside the London and New York heartlands of
4. How does the centralized nature of Diesel's advertising fit the entrepreneurial style of the company? How can the advertising be linked in with the rest of the marketing mix in the many markets
3. What is the controversial style of Diesel's advertising trying to achieve?Do you think it is effective? Ethical? Appropriate for all markets?
2. Explain Joe Bloggs' choice of Lara and the £150,000 jeans as a way of promoting the brand. Are twelve ranges a year really necessary?
1. How does the advertising for generic and designer jeans differ? Can one brand and advertising campaign straddle both markets?
4. An ad statos that Brand Y's biscuits are the 'moistcst, chewiest, most perfectly baked biscuits the world has ever tasted', aside from home-made biscuits. You happen to prefer another brand of
3. What factors call for moreyj-equeney in an advertising media schedule? What, faetors call for more reach?How can you increase one without sacrificing the other or increasing the advertising budget?
2. Surveys show that many people are sceptical of advertising claims. Do you mistrust advertising? Why or why not? What should advertisers do to increase credibility?
1. Comparison advertising is not permitted in some countries. What are sonic of the benefits and drawbacks of comparison advertising? Which has more to gain from using comparison advertising - the
6. Consider the barriers to effective implementation of Europe-wide promotions and discuss the implications for international marketing managers.
5. What are the advantages and limitations of pan-European campaigns?
4. What is an integrated communications strategy and how might firms benefit from pursuing such a strategy?
3. What are the major decisions involved in developing a mass-marketing campaign?
2. What are their specific roles?
1. Identify the range of mass-marketing techniques that marketers use to reach target customers.
Explain how companies use public relations to communicate with their publics.
Describe the main decisions involved in developing an advertising programme.
Detine the roles of advertising, sales promotion and public relations in the promotion mix.
6. Absolut's successful advertising has benefited greatly from the publicity it generated. Can advertising campaigns be designed to create such media attention or is the success of Wonderbra,
5. Since Absolut Vodka is such a lifestyle product, would you recommend that Vin & Sprit should extend the brand into other markets in the same way as Virgin has extended into video games, PCs, cola
4. Vin & Sprit's European campaign uses ads in the same style that has been so successful in the United States. Do you think the US approach will work in other regions?
3. Do you believe that Absolut Vodka 'is an idea whose time has come'and that nothing can stop its success?
2. How does Absolut's marketing build upon American trends in the late 1980s and early 1990s? Is Absolut a fashion product that will decline with the trends?
1. What is the foundation of Absolut Vodka's success? Is it the vodka, the bottle, the distribution or the promotion?
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