For your answers, write 8 - 12 sentences for each question. 1. Define strategic planning. Discuss the steps involved in the strategic planning process. 2. What are the problems that can invalidate test marketing study results 3. Many students in a junior high school wear the same style of shoes to school each day. From the marketing perspective, why are these students conforming to a similar style? 4. Read case 13: RED BULL Describe how Red Bull segmented the U.S. population. What type of segmentation approach is this? How did red bull 'position" their product/brand? 5. Using a well known brand explain the concept of "Product mix". Cite examples of product lines, width and depth. For your answers, write 8 - 12 sentences for each question. 1. Define strategic planning. Discuss the steps involved in the strategic planning process. Answer: Strategic planning is a process which helps the organization to reach to the specific mission and vision of the organization. Strategic planning is a process that brings to life the mission and vision of the enterprise. A strategic plan, well crafted and of value, is driven from the top down; considers the internal and external environment around the business; is the work of the managers of the business; and is communicated to all the business stakeholders, both inside and outside of the company. The steps involved in strategic planning process are: Mission and vision: The company first analyzes its mission, vision and objectives which helps in defining the path of the company These are the forward looking visionary goals which helps in analyzing the future opportunities of the company. Environmental scan: The second step in to analyze the internal as well as external environment in which the company operates. Different tools are used to analyze the internal and external environment which includes PESTLE Analysis, SWOT analysis, five force model etc. Strategy formulation: After analyzing the environment, the company formulates the strategy which align to its goals and objectives. The company follows different strategies like competitive strategy, differentiation strategy or cost strategy. Strategy implementation: Strategy implementation emphasize on designing different programs which helps in implementing the strategy. Evaluation and control: the implemented strategy needs to be monitored and adjusted which is done in this process. 2. What are the problems that can invalidate test marketing study results Answer: The number of problems that could invalidate test marketing study results are: 1. Test market areas is not considered to be the representatives of the market in general in terms of population, characteristics, competition, and distribution outlets. 2. Because of the budget constraint, the Sample size and designs are incorrectly formulated. 3. Pretest measurements on competitive brand sales are not made or are inaccurate, limiting the meaningfulness of market share estimates. 4. The test scores are not compatible with the study. 5. Test market products are advertised or promoted beyond a profitable level for the market in general. 6. The effects of factors influence sales, such as the sales force, season, weather conditions, competitive retaliation, shelf space, and so forth, are ignored in the research. 7. The test-market period is too short to determine whether the product will be repurchased by customers. 3. Many students in a junior high school wear the same style of shoes to school each day. From the marketing perspective, why are these students conforming to a similar style? Answer: Consumers usually change their behavior which helps in gaining the acceptance into the particular reference group. Reference group plays a crucial role specially at the small age where the children refer some group and try to follow them. Students in the junior class usually feel that they are same as their fellow mates which lead to comparing themselves with them and following their style. 4. Read case 13: RED BULL Describe how Red Bull segmented the U.S. population. What type of segmentation approach is this? How did red bull 'position" their product/brand? Answer: Red Bull has successfully established itself as an energy drink with an idea that is communicated through 'Red Bull gives you wings'. The brand has been able to attract young consumers as the brand has positioned itself as extremism, energy and mystique. Because of the failure in UK, red bull emphasized on geographic segmentation and launched itself first at Santa Cruz as test market and then went to San Francisco. The main segment which the company targeted was youngsters. Word of mouth played a crucial role in attracting the consumers. The company emphasized in geographic as well as demographic segmentation. The company's target group was expanded to ordinary students along with the young generation, the company also targeted ageing consumers. 5. Using a well known brand explain the concept of "Product mix". Cite examples of product lines, width and depth. Answer: Product mix can be considered as the mix of products which are sold by the company. Example Samsung sells wide range of products and it includes mobile, netbooks, tables, laptop, computers, television, refrigerators, microwaves, printers, air conditioner, printers and memory cards. Thus there is a wide mix of products that are sold by Samsung. The product line is the different kinds of products that can be categorized under same category like the category of mobile phone, then the category of televisions etc. The product line length includes different products that are available in that category like in televisions, the televisions can be categorized in LED, LCD and Plasma TVs, the product depth which will include the models under these categories like LED - DSC series 4, - 42\For your answers, write 8 - 12 sentences for each question. 1. Define strategic planning. Discuss the steps involved in the strategic planning process. Answer: Strategic planning is a process which helps the organization to reach to the specific mission and vision of the organization. Strategic planning is a process that brings to life the mission and vision of the enterprise. A strategic plan, well crafted and of value, is driven from the top down; considers the internal and external environment around the business; is the work of the managers of the business; and is communicated to all the business stakeholders, both inside and outside of the company. The steps involved in strategic planning process are: Mission and vision: The company first analyzes its mission, vision and objectives which helps in defining the path of the company These are the forward looking visionary goals which helps in analyzing the future opportunities of the company. Environmental scan: The second step in to analyze the internal as well as external environment in which the company operates. Different tools are used to analyze the internal and external environment which includes PESTLE Analysis, SWOT analysis, five force model etc. Strategy formulation: After analyzing the environment, the company formulates the strategy which align to its goals and objectives. The company follows different strategies like competitive strategy, differentiation strategy or cost strategy. Strategy implementation: Strategy implementation emphasize on designing different programs which helps in implementing the strategy. Evaluation and control: the implemented strategy needs to be monitored and adjusted which is done in this process. 2. What are the problems that can invalidate test marketing study results Answer: The number of problems that could invalidate test marketing study results are: 1. Test market areas is not considered to be the representatives of the market in general in terms of population, characteristics, competition, and distribution outlets. 2. Because of the budget constraint, the Sample size and designs are incorrectly formulated. 3. Pretest measurements on competitive brand sales are not made or are inaccurate, limiting the meaningfulness of market share estimates. 4. The test scores are not compatible with the study. 5. Test market products are advertised or promoted beyond a profitable level for the market in general. 6. The effects of factors influence sales, such as the sales force, season, weather conditions, competitive retaliation, shelf space, and so forth, are ignored in the research. 7. The test-market period is too short to determine whether the product will be repurchased by customers. 3. Many students in a junior high school wear the same style of shoes to school each day. From the marketing perspective, why are these students conforming to a similar style? Answer: Consumers usually change their behavior which helps in gaining the acceptance into the particular reference group. Reference group plays a crucial role specially at the small age where the children refer some group and try to follow them. Students in the junior class usually feel that they are same as their fellow mates which lead to comparing themselves with them and following their style. 4. Read case 13: RED BULL Describe how Red Bull segmented the U.S. population. What type of segmentation approach is this? How did red bull 'position" their product/brand? Answer: Red Bull has successfully established itself as an energy drink with an idea that is communicated through 'Red Bull gives you wings'. The brand has been able to attract young consumers as the brand has positioned itself as extremism, energy and mystique. Because of the failure in UK, red bull emphasized on geographic segmentation and launched itself first at Santa Cruz as test market and then went to San Francisco. The main segment which the company targeted was youngsters. Word of mouth played a crucial role in attracting the consumers. The company emphasized in geographic as well as demographic segmentation. The company's target group was expanded to ordinary students along with the young generation, the company also targeted ageing consumers. 5. Using a well known brand explain the concept of "Product mix". Cite examples of product lines, width and depth. Answer: Product mix can be considered as the mix of products which are sold by the company. Example Samsung sells wide range of products and it includes mobile, netbooks, tables, laptop, computers, television, refrigerators, microwaves, printers, air conditioner, printers and memory cards. Thus there is a wide mix of products that are sold by Samsung. The product line is the different kinds of products that can be categorized under same category like the category of mobile phone, then the category of televisions etc. The product line length includes different products that are available in that category like in televisions, the televisions can be categorized in LED, LCD and Plasma TVs, the product depth which will include the models under these categories like LED - DSC series 4, - 42\