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mktg principles of marketing

Questions and Answers of MKTG Principles Of Marketing

6. Thinking about the major changes that are occurring in the communications environment (e.g. advances in computer/information technology, growth in direct marketing), how might the retailer exploit
5. What should BHS do to ensure that all aspects of its communication programme are well co-ordinated?
4. How effective do you think is BHS's communications mix?
3. Why does BHS use a combination of approaches to communicate with its target customers?
2. What are the key objectives of these communications tools?
1. Identify the different forms of communication that BHS uses to reach its target customers.
6. Can Stena Sealink get away with charging more than P & O at any time, any place, any way? What strategy should Stena Sealink follow? Should it follow all P & O's moves, follow some, do something
5. What prevents Le Shuttle driving the ferries out by cutting prices? Does Le Shuttle's speed advantage make its victory over the ferries inevitable?
4. Is P & O's discounting consistent with its luxury 'cruise' positioning?
3. Should Stena Sealink follow P & O's price cutting? What else could it do?
2. Is Brittany Ferries right in saying the fares make profits impossible?
1. Explain P & O's heavy discounting and Eurostar's pricing strategy.
6. How docs the optimum advertising level influenced by the price?
5. Assuming a price of £3,500 per tonne, what would he the best advertising strategy, given the following advertising response?Advertising (£000) 25 50 100 200 400 Sales (tonnes) 180 210 280 360
4. Based on the EVA results, what price would you choose and why?What do you notice about the room to manoeuvre around the optimum prices?
3. What prices give the highest gross margins, return on investment, capital cost covered (C3), economic value added (EVA), net contribution, sales value and sales volume (Marketing Highlight 16.3
2. What criteria should be used to select the best price?
1. Evaluate the pricing suggestions of the sales, finance and market research officers.
4. The formula for household chlorine bleaching agents is virtually identical for all brands. One brand, Clorox, charges a premium price for this same product, yet remains an unchallenged market
3, A leading brand of room spray is priced at S2.50 for a 150 ml bottle. A elose competitor launched ;i similar product prieed at £1.99 for 300 ml and quickly became the no. 1 brand. Discuss the
6. Is the 'churning' of customers a sign of poor marketing, overmarketing or just healthy competition?
5. How would you expect the marketing and pricing of mobile phones to change as the product life eyele evolves?
4. What other mobile phone segments could emerge and how should products be priced for them?
3. How is the emergence of the mobile phone as a gift or a security device likely to change its pricing?
2. Why don't the mobile phone companies used cost-based pricing, where customers just pay for their phone, die connection cost and the direct cost of them using the phone?
1. Explain the different pricing of the mobile phone competitors.
Differentiate between geographical pricing strategics and know their implications.
Appreciate price adjustment strategies and how to make price changes.
Explain how pricing decisions are influenced by the product mix.
Understand new-product pricing strategies and know when to use them.
6. Clearly there is currently no pan-European price, but should that ever exist across the EU? Should the car companies continue with what are essentially national policies?
5. What is likely to happen if Proton cuts its prices to gain market share?
4. Why might giving discounts be better than lowering the list price?
3. How should Proton price its cars? Should it keep its list prices high, reduce them or give big discounts to buyers?
2. What explains the big difference between EU and US car prices? Does the price demand function vary from country to country in Europe and is that in the United States completely different?
1. Is Shcm justified in his concern about being charged too much for new cars in the United Kingdom?
5. In the early years of global market expansion, Japanese car and camera makers took advantage of the experience or learning curve when pricing their products to penetrate overseas markets. What
4. Gcncntech, a high-technology pharmaceutical company, developed a clot-dissolving drug called TPA that would halt a heart attack in progress. TPA saves lives, minimizes hospital stays and reduces
3. Sales of a brand of malt whisky increased when prices were raised by 20 per cent over a two-year period.What does this tell you about the demand curve and the elasticity of demand for this whisky?
6. Should governments intervene to prevent aggressive priee competition?
5. What industries do you think are prone to price competition?
4. When does it pay for a company start charging prices below industry rates?
3. Why did the other competitors follow the price lead of The Times'?
2. What did The Times hope to gain from starting such a costly price war?
1. What was the impact of the priee war on the sales volume (number of newspapers sold) and sales value (monetary value of the newspapers sold) of the competing newspapers?
6. Would the new-product development approach used be different for a new brand development as opposed to a line extension? Explain.
5. Suggest a marketing strategy for Top Speed.
4. If you were a toy retailer, how would you decide what toys to sell in your stores?
3. How should Mattel and other toy manufacturers go about developing new toys? How would they decide which new toys to produce?
2. Should Mattel leverage as much as it can off existing brands like Barbie and Hot Wheels, or should it try to create new brands to grow sales?Why? Why not?
1. What are the key product decisions that Mattel managers have to make to maintain the competitiveness of their product lines?
6, Ts the European theme park market already oversubscribed? Will Tibigarden succeed despite the failure of EuroDisney and the other theme parks in France?
5. Contrast the Tibigarden proposal with EuroDisney. What are the differences and do any give Tibigarden an advantage over EuroDiwney?
4. Are these problems solvable now? Will changing the name to Disneyland, Paris help?
3. Were EuroDisney's problems foreseeable? If so, why were they not seen?
2. Would EuroDisney have worked if located elsewhere in Europe?
1. What accounts for EuroDisney's failure to date?
6. How would the marketing of a service offering differ from that of physical products? Identify the main ways in which the service provider would adapt its marketing strategies to create a
5. For physical products, the buyer can touch, see or feel and compare alternative offers before deciding which brand to purchase. Taking into account the relative intangibility of airline services,
4. What criteria might customers consider when selecting an airline for business travel?
3. What are the main aspects of the service that distinguish it from physical products?
2. Identify the tangible and intangible aspects of the service.
1. For a traveller flying with Lufthansa, what exactly constitutes the'service offering'?
6. Should Mercedes rethink its ambitions in the small-car segment? What are the chances that the Smart car will be successfully commercialized now?
5. What research would you conduct to test the market for the Smart car and when would you do it?
4. Is the Smart car a market-driven idea? Is there now any justification for not basing new products on marketing research?
3. What is Hayek's role in the new-product development process? Why does he need the help of a partner? Assess the effectiveness of the Hayek-Mercedes venture.
2. How transferable are those ideas to other products in other markets?
1. Hayek was able to make such a great success of Swatch. How was Swatch able to beat the huge and established Japanese competitors?
6. Recent evidence suggests that consuming a high-fiber diet may be helpful in reducing cholesterol levels.What impact might this health benefit have on the life cycle of high-fiber (e.g. oatmeal and
5. Do you think that the product life-cycle concept is a useful marketing-planning tool? Why or why not?
4. What factors must he considered when deciding whether to test-market a new product or not? Give examples of types of new product or service that should be test-marketed prior to commercialization.
3. Many businesses have formal new-product development systems. Yet recent studies suggest that most successful new products were those that had kept away from the formal system. Why might this be
2. Less than a third of new-product ideas come from the customer. Does this low percentage conflict with the marketing concept's philosophy of 'find a need and fill it'? Why or whv not?
1. Ericsson, the Swedish telecommunications group, increased its spending on new product development in the early 1990s. Its chief executive, Lars Ramqvist, extols the power of innovation: invest to
6. What would be a reasonable price to charge for the electric car?
5. For what uses would you prefer an electric car to a conventional ear?
4. What improvements in the car's features would you suggest?
3. What are the main benefits of the electric car compared with a conventional car?
2. Do you believe the claims about the electric ear's performance?
1. Do you understand the concept of an electric car?
6. As the new product ages, how should the firm adapt its marketing strategies in the face of changing tastes, technologies and competition?
5. Why should the firm invest continually in new-product development?
4. What role does marketing play in new-product development?
3. Is new-product development a risky business, and how might firms such as Ac restructures Hamble minimize these risks?
2. What are the steps involved in developing and commercializing new products?
1. How do firms identify and develop new-product opportunities?
Explain how marketing strategy changes during a product's life cycle?
Describe the stages of the product lite cycle.
List and define the steps in the new-product development process.
Explain how companies find and develop new-product ideas.
6. What risks do you see in these packaging decisions?
5. If you were the marketing manager for the extended Colgate line, how would you package the new products?
4. What brand decisions has Colgate made? What kinds of product line decision? Are these decisions consistent?
3. What implications does this classification have for marketing the new line?
2. How would you classify these new products?
1. What core product is Colgate selling when it sells toothpaste or the other products in its new line?
6. Compare brand extension by the brand owner with licensing a brand name for use by another company.What arc the opportunities and risks of each approach?
5. Coca-Cola started with one type of cola drink. Now we find Coke in nearly a dozen varieties. Why do consumer-goods manufacturers extend their brands?What issues do these brand extensions raise for
4. Why are many people willing to pay more for branded products than for unbranded products? What does this say about the value of branding?

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