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business
principles of marketing

Questions and Answers of Principles Of Marketing

4. Define disintermediation and describe how it affects the nature and design of marketing channels. (AACSB:Written and Oral Communication; Reflective Thinking)
3. Explain the differences among a conventional distribution channel, a vertical marketing system, and a horizontal marketing system. (AACSB: Written and Oral Communication)
2. Discuss direct marketing channels and indirect marketing channels. Provide examples of each type of marketing channel. (AACSB: Written and Oral Communication)
1. Describe a value delivery network. How does it differ from a supply chain? Explain. (AACSB: Written and Oral Communication; Reflective Thinking)
OBJECTIVE 5 Discuss the nature and importance of marketing logistics and integrated supply chain management.Marketing Logistics and Supply Chain Management ( 371 – 378 )
OBJECTIVE 4 Explain how companies select, motivate, and evaluate channel members.Channel Management Decisions ( 367 – 371 )
2. Transportation, inventory, warehousing, and information management activities can interact in inverse ways. What trade-offs will Petco have to make in offering its customers same-day delivery?
1. Discuss the pros and cons of single-pilot cargo planes. Explain your answer. (AACSB: Written and Oral Communication; Reflective Thinking)
1. Define omni-channel retailing and explain its connection to shopper marketing. (AACSB: Written and Oral Communication; Reflective Thinking)
OBJECTIVE 5 Explain the major types of wholesalers and their marketing decisions.Wholesaling (409–412)
OBJECTIVE 4 Discuss the major trends and developments in retailing.Retailing Trends and Developments (403–408)
OBJECTIVE 3 Describe the major retailer marketing decisions.Retailer Marketing Decisions (398–403)
OBJECTIVE 2 Discuss how retailers are using omni-channel retailing to satisfy the cross-channel shopping behavior of today’s digitally connected consumers.Omni-channel Retailing: Blending In-Store,
OBJECTIVE 1 Explain the role of retailers in the distribution channel and describe the major types of retailers.Retailing (388–394)
3. Are there opportunities that Li & Fung can explore that would capitalize on its strengths?
2. How can Li & Fung convince potential business customers to use them instead of upstart competitors?
1. What advice would you give to a family-run Chinese business like Li & Fung? Should it collaborate with younger and more nimble players?
2. If a retailer wants a 20 percent margin based on the selling price, at what price will the retailer sell the product to consumers? (AACSB: Communication;Analytical Reasoning)
1. If a manufacturer sells its laundry detergent to a wholesaler for $2.50, at what price will the wholesaler sell it to a retailer if the wholesaler wants a 15 percent margin based on the selling
2. What ethical conflicts could airline pilots face if the industry moves to single-pilot flights? (AACSB: Written and Oral Communication; Reflective Thinking)
OBJECTIVE 3 Identify the major channel alternatives open to a company.Channel Design Decisions ( 362 – 366 )
OBJECTIVE 2 Discuss how channel members interact and how they organize to perform the work of the channel.Channel Behavior and Organization ( 353 – 361 )
5. Why would a company choose to introduce a lowprice fighter brand? Provide an example. What should the company be wary of when it launches a low-price fighter brand? (AACSB: Written and Oral
3. What is psychological pricing, and how is it used by sellers? Give an example. (AACSB: Communication)
2. Why might the strategy for setting a product’s price need to be changed when a product is part of a product mix? What are the five product mix pricing strategies? Provide an example for each.
1. Discuss the two new product pricing strategies and the conditions that must be met for companies to successfully launch new products under each of these strategies. (AACSB: Written and Oral
OBJECTIVE 5 Discuss the social and legal issues that affect pricing decisions.Public Policy and Pricing (338–339)
OBJECTIVE 4 Discuss the key issues related to initiating and responding to price changes.Price Changes (335–338)
OBJECTIVE 3 Discuss how companies adjust their prices to take into account different types of customers and situations.Price Adjustment Strategies (326–335)
OBJECTIVE 2 Explain how companies find a set of prices that maximizes the profits from the total product mix.Product Mix Pricing Strategies (322–325)
OBJECTIVE 1 Describe the major strategies for pricing new products.New Product Pricing Strategies (320–322)
3. Despite its low price, why did the Nano fare so poorly in sales?
2. Discuss the factors in the Indian environment that have affected pricing decisions among car manufacturers like Tata Motors.
6. Discuss the major public policy issues in pricing practices within a given channel level and across channel levels. (AACSB: Communication)
1. Erica sells her high-end laptop bags and coordinating wallets online through her own Web site and through high-end retailers in Shanghai. She encourages her mailing list customers to purchase
OBJECTIVE 1 Explain why companies use marketing channels and discuss the functions these channels perform.Supply Chains and the Value Delivery Network ( 349 – 353 )
3. How can Reebonz keep a tight lid on costs in order to continue making luxury affordable to all?
2. What pricing strategies are available for Reebonz to sustain its vision of making luxury products accessible to the masses?
1. How did Reebonz manage to secure lower prices for luxury products? What should luxury brands do to minimize or prevent such price differentials?
2. Determine by how much sales can drop for the company to maintain the total contribution it had when the contribution margin was 40 percent.(AACSB: Communication; Analytic Reasoning)
2, Marketing by the Numbers, paying attention to endnote 6 on the price change explanation in which the analysis is done by setting price equal to $1.00.(AACSB: Communications, Analytic Reasoning)
1. If the company’s original contribution margin was 40 percent, calculate the new contribution margin if the price were increased by 10 percent. Refer to Appendix
2. One of your coworkers makes the argument that the higher price on the pink helmet makes sense because it is an example of value-based pricing. Her argument is that a consumer who does not want to
2. Using www.krazycouponlady.com, click on Stores, Coupons, and Deals on the navigation bar and make a list of the featured products. Identify the pricing strategy used by the retailer. (AACSB:
1. Visit www.krazycouponlady.com and look for a deal you would consider purchasing. After identifying the deal, conduct an online price comparison at various retailers to determine the range of
3. Jiayu’s firm is deciding if it should sell a stripped-down version of its stylized, solar-powered battery charger to consumers at the bottom of the pyramid in India.What factors should Jiayu
2. A company that delivers subscription boxes of Chinese spices to customers all over Taiwan is considering different geographical pricing strategies.If the company wants to penetrate the market and
1. How did Tata Motors’ marketing objectives and its marketing mix strategy affect the pricing of the Nano?
1. Calculate both the overall CPM and the CPM for the 18–49 year demographic for each show. Refer to the “Selecting Specific Media Vehicles” section of“Selecting Advertising Media” in the
OBJECTIVE 2 Describe the major decisions involved in developing an advertising program.Major Advertising Decisions ( 457 – 471 )
OBJECTIVE 1 Define the role of advertising in the promotion mix.Advertising (456)
4. When setting up physical stores, what should Amazon consider?
3. Do you think setting up physical kiosks is the right move for Amazon India? Note that Amazon has closed many of its physical stores in the United States.
2. If you were living in India, what are the advantages of buying from Amazon versus Flipkart versus neighborhood stores?
1. Who are Amazon India’s competitors?
2. If PepsiCo had decided to base its 2018 advertising budget on the industry average advertising-to-sales ratio for beverages, which was 4.1 percent, how much would PepsiCo have budgeted for
1. Calculate both companies’ advertising-to-sales ratios for each year. What is the average ratio for each over the five-year period? Refer to the percentage-ofsales method in the chapter to answer
2. What legal and ethical issues should a company consider before it makes claims about its commitment to a social purpose? (AACSB: Written and Oral Communication; Reflective Thinking;Ethical
1. How can a brand like Honda communicate that it backs good causes such as HOLA (see www.honda.com/community/philanthropy-giving-back)? What communication channels should it use? What risks does it
4. Brands are featured in movies, television shows, video games, and books. Select three different television programs and identify the brands shown or mentioned in an episode of each program. What
3. Discuss the two basic promotion mix strategies. Form a small group and recommend a promotion mix for a brand of peanut butter to implement a push strategy.Then recommend a promotion mix for the
OBJECTIVE 3 Define the role of public relations in the promotion mix.Explain how companies use public relations to communicate with their publics.Public Relations ( 471–474 )
1. Explain the decisions marketing managers make when developing an advertising program. (AACSB:Written and Oral Communication)
2. Is it ethical for Burger King to use advertising that emphasizes negative emotions to sell its products?(AACSB: Written and Oral Communication; Ethical Reasoning; Reflective Thinking)
1. What challenges might Burger King face if it chooses to take this campaign global? (AACSB: Written and Oral Communication; Reflective Thinking)
2. Mobile advertising is one of the fastest-growing sectors of digital advertising, but how is the effectiveness of mobile advertising measured? Research this issue and create a report of your
1. Compare and contrast Facebook’s, Google’s, and Instagram’s ad networks. Which is most effective for advertisers? (AACSB: Written and Oral Communication; Reflective Thinking)
3. Nike once offered a Snapchat Lens that let users wear the U.S. women’s soccer kit virtually. Fans of the U.S. women’s national soccer team could try on home and away jerseys through an
2. Visit the Web site for the OBIE Awards, which celebrates creative excellence in advertising. Go to the section for current winners and select one of the winning campaigns
1. Search YouTube for three of your favorite television commercials, each using a different execution style. For each ad, identify the execution style used and the audience targeted. Is it a good ad?
6. Discuss the major tools used by the PR team to communicate relevant marketing content. (AACSB:Written and Oral Communication)Critical Thinking Exercises
5. Define public relations and explain its functions.(AACSB: Written and Oral Communication)
4. Discuss how marketers can break through the cluttered advertising environment. (AACSB: Written and Oral Communication)
3. Name and describe five of the many execution styles advertisers use when developing ads. For each execution style, describe a television commercial using that style. (AACSB: Written and Oral
2. What is native advertising and why has its usage by marketers increased? (AACSB: Written and Oral Communication)
2. A former creative director of Netflix founded a canned water startup called Liquid Death Mountain Water. The brand positions itself as a sustainable alternative to energy drinks and soda and
1. In your opinion, who would be the best and worst celebrity endorsers for each of these products/services: BMW, PepsiCo, Samsung smartphones, and the “wear a mask/practice social
1. Using the data, determine Kroger’s weekly stockturn rate for meal kits during one of the market tests. Refer to Analytic Ratios in Appendix 2: Marketing by the Numbers to learn how to calculate
3. Why do retailers continue to offer these contracts despite criticism from customer advocacy groups?
2. When should you purchase a service contract?
1. Is it ethical for retailers to offer and strongly promote service contracts?
2. If an outfit bar were available at a location near you, would you and your friends shop there? Why or why not? Based on your response, what advice would you give the management of the department
1. What benefits and challenges will the department store see in introducing its outfit bar? (AACSB: Written and Oral Communication; Information Technology;Reflective Thinking)
3. In a small group, present a plan for a new retail store. What is the store’s target market? Describe the merchandise, atmosphere, price points, services provided, location, and promotions
2. Shop for a product of your choice on Amazon. Do consumer reviews influence your perception of a product or brand? Consumers participating in the Amazon Vine Program submit many of the product
1. The atmosphere in a retail store is carefully crafted to influence shoppers. Select a retailer with both a physical and an online store. Describe the elements of the physical store atmosphere,
6. Discuss the marketing mix decisions that wholesalers face. What challenges do they encounter? (AACSB:Written and Oral Communication)
5. Across Asian countries, despite the emergence of supermarkets and major discount stores, the traditional markets—wet markets or food stalls, either on the streets or in government
4. What policy should Samsung set for selling highresolution digital televisions and digital cameras to off-price retailers? (AACSB: Written and Oral Communication; Reflective Thinking)
2. Interpret your answers from the previous question.Is Kroger’s weekly stockturn rate good or bad? What factors should be considered to determine this?(AACSB: Communication; Reflective Thinking)
1. Critique PT Modern’s decision to have 7-Eleven sell ready-to-eat hot food and PT Modern’s product portfolio mix.
5. How does a company determine its promotion budget? (AACSB: Written and Oral Communication)Critical Thinking Exercises
4. What are the steps involved in developing an effective communications and promotion program?(AACSB: Written and Oral Communication)
3. What constitutes integrated marketing communications(IMC) and how does a company go about implementing them? (AACSB: Written and Oral Communication; Reflective Thinking)
2. How has the role of marketing communicators shifted in response to the increasingly fragmented and digital communications environment? (AACSB:Written and Oral Communication)
1. Name and describe the five major promotion mix tools. (AACSB: Written and Oral Communication)
OBJECTIVE 4 Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix.Setting the Total Promotion Budget and Mix ( 440 – 445 )Socially Responsible
OBJECTIVE 3 Outline the communication process and the steps in developing effective marketing communications.Developing Effective Marketing Communications ( 431 – 432 )Steps in Developing Effective
OBJECTIVE 2 Discuss the changing communications landscape and the need for integrated marketing communications.Integrated Marketing Communications ( 424 – 425 )The Need for Integrated Marketing
OBJECTIVE 1 Define the five promotion mix tools for communicating customer value.The Promotion Mix (422–423)

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