please help

1. A federal agency which aims at preventing persons or corporations from using unfair methods of competition in commerce is

A.the Federal Trade Commission (FTC)

B.the Food and Drug Administration (FDA).

C.the Consumer Product Safety Commission (CPSC).

D.the Bureau of Consumer Protection

80/20 principle holds that 20 percent of all customers generate 80 percent of the demand. Although the percentages usually are not exact, the general idea often holds true. Which consumer market segment is described here?

A.Benefit segmentation

B.Geographic segmentation

C.Market segmentation

D.Usage-rate segmentation

With regard to age segmentation, the tween and teenage cohort following the Millennials is sometimes called _____.

A.Generation X

B.the Baby Boomer generation

C.Generation Z

D.the Silent Generatio

_____ is market segmentation on the basis of personality, motives, and lifestyles.

A.Family life cycle segmentation

B.Usage-rate segmentation

C.Psychographic segmentation

D.Benefit segmentation

1.6 points

QUESTION 44

Gamers' Pageis a magazine that primarily caters to people who are enthusiastic about sports and who enjoy gaming. In this scenario, the editorial board ofGamers' Pageuses _____.

A.gender segmentation

B.geographic segmentation

C.psychographic segmentation

D.family life cycle segmentation

1.6 points

QUESTION 45

1. .The combination of demographics, lifestyles, and geographic categories leads to ______________.

A.geodemographic segmentation

B.benefit segmentation

C.usage-rate segmentation

D.psychographic segmentatio

1.6 points

QUESTION 46

A concentrated targeting strategy differs from an undifferentiated targeting strategy in that a concentrated targeting strategy:

A.results in cannibalization of products.

B.involves the selection of a market niche to target the marketing efforts of a firm.

C.views the market as one big market with no individual segments.

D.reduces the production and marketing costs of a firm.

1.6 points

QUESTION 47

Apple saw a huge drop in the sales of its iPhone 6s when they launched the iPhone 7. This situation exemplifies _________________, that is, when a new product cuts into the sales of existing products within the same company.

A.cannibalization

B.repositioning

C.competition

D.positioning

1.6 points

QUESTION 48

The first step in the marketing research process is to

A.specify the sampling procedures to be followed.

B.collect primary data from available sources.

C.provide nd present a report

D.recognize a marketing problem or opportunity.

1.6 points

QUESTION 49

Company websites, annual reports, reports to stockholders, blogs, YouTube videos, and social media posts are examples of ___________.

A.secondary data

B.primary data

C.tertiary data

D.marketing research

1.6 points

QUESTION 50

The most popular technique for gathering primary data is _____.

A.survey research

B.observation research

C.ethnographic research

D.experimental research

1.6 points

QUESTION 51

_____________ is information that is collected for the first time; used for solving the particular problem under investigation.

A.Primary data

B.Secondary data

C.Big data

D.Marketing data

1.6 points

QUESTION 52

A(n) ______________ consists of 7 to 10 people who participate in a group discussion led by a moderator

A.focus group

B.interview group

C.secondary data group

D.research group

1.6 points

QUESTION 53

When considering sampling procedures, a _____ is a sample in which every element in the population has a known statistical likelihood of being selected.

A.snowball sample

B.probability sample

C.judgment sample

D.convenience sample

1.6 points

QUESTION 54

Which of the following is a field of marketing that studies the body's responses to marketing stimuli?

A.Neuromarketing

B.InfoScan

C.Scanner-based research

D.Marketing research

1.6 points

QUESTION 55

Carrying over a well-known and respected brand name from one product category to another product category is referred to as:

A.brand stretching.

B.brand extension.

C.brand promotion.

D.brand building.

1.6 points

QUESTION 56

_____ is the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next.

A.Loyalty

B.Culture

C.Consumerism

D.Perceived value

2.

summaries the following

Key Success Factors and Current Industry Prospects: Key Success Factors

Key success factors (KSFs) are the competitive factors in the marketplace that affect an industry member's ability to survive and prosper - along with the elements, product attributes, operational approaches, and competitive capabilities that determine profit and loss (Thompson, 2012). It is important for a business to understand what these key factors are and monitor them accordingly or else they run the risk of becoming an industry laggard or even failure as these have the greatest degree of influence on the competitive success of the company.

Based on Kmart's industry, the common KSF's for them are:

Technology - Advanced technology for merchandize efficiency

Distribution - Supply Chain Management efficiency

Marketing - breadth of product line

Skills & Capabilities - effective merchandise strategies

Other - overall low cost and underpricing strategies

Industry Prospects

When evaluating an industry, it is important to identify what a company offers in regard to opportunities for growth and profitability. There are a few factors to consider when basing a conclusion. These are:

Growth potential

Are strong competitive forces forcing industry profitability to subpar levels

If the industry profitability is favorable or unfavorably affected by prevailing driving forces

If the company occupies a stronger market position than competition

How well does the company deliver on industry key success factor

(Thompson, 2012)

Knowing and understanding key industry prospects is important to Kmart because they need to gather all requirements to make an educated and sound decision for their future opportunities. Companies make decisions based off of attractiveness; if overall profit prospects are above average, then that company may see that environment as attractive. Transversely, if profits are below average, then it is viewed as unattractive.

Internal Environmental Analysis

Performance Evaluation

A performance evaluation is a method by which an employee's job performance is documented and evaluated. Performance evaluations are completed at set intervals of time, usually once or twice a year. A performance evaluation assesses the employee's job performance and productivity. It includes the employee's accomplishments, strengths, weaknesses, areas of improvement and potential for growth. It can be used to motivate employees, give praise, give raises and assist with career development.

Performance evaluations are important because they give employees feedback. The employee and employer can communicate clearly with each other and collaborate. The employee and employer can partner together to create goals to improve performance and assess areas where training is needed. Together they canprovide better employee which will be beneficial to the individual and the organization.

Kmart can use performance evaluations with their employees toprovide more positive work environment. Each supervisor can evaluate the performance of employees that directly report to them, give praise, help them create goals to improve in areas of weakness and provide training where needed. The constructive feedback will help everyone improve in their position. This will help to provide better experience for the customer. A happy customer will be loyal and continue to patronize Kmart.

Resource and Capability Analysis

A resource is an asset that is owned or controlled by a company. A capability is the capacity of a company to perform an activity competently. Resources and capabilities that are valuable and rare provide a company with a competitive advantage. Resource and capability analysis evaluates a company's resources and capabilities to determine whether companies have a competitive advantage over rivals.

A resource and capability analysis would be beneficial to Kmart to help Kmart assess its competitiveness in the market. Kmart can determine if a new strategy should be formed or if improvements need to be made to the current one. Kmart would review its resources such as physical and financial assets, technology, and reputation. Kmart would also review and assess its capabilities in different areas and form an analysis that will help present a clear picture of its competitiveness and ways to improve to overcome their main competitors such as Walmart and Target.

SWOT Analysis

A SWOT analysis is a tool that can be used to organize a list of internal strengths, internal weaknesses, external opportunities, and external threats.

A SWOT analysis can be conducted by a person or a company to identify where it can improve. SWOTs are important because they help firms identify its competitive advantage and what resources work best for it. A simple grid with these four areas enables firms to take a better look at what is working in its favor and what it should worry about.

For example, if Collat School of Business wanted to look into attracting more students it can start by conducting a SWOT analysis. First, the SoB would need to list its internal strengths. An example of a strength would be the fact the they have professors with real-world experience teaching the students. Next, SoB will need to look at its internal weaknesses. An example of an internal weakness would be the fact that there is not much available parking around that part of campus. Third, the SoB would need to evaluate external opportunities. An opportunity would be for the SoB to capitalize on is the Innovation Depot near UAB. Finally, the SoB will need to identify external threats. An example of a threat would be UA's business school.

Value Chain Analysis

A value chain is a set of primary and supporting activities that a company uses to create customer value. A value chain analysis is a review of the company's value chain currently being utilized.

Conducting a value chain analysis is important because it allows a company the chance to see if its value chains are as efficient as possible. This is also important for comparing the cost of the value chain compared to the value that it creates for customers.

For a firm to conduct a value chain analysis, it would first need to identify its primary activities and support activities. After establishing these two lists, you would look at each activity to ensure that it is adding the most value to the customer. After that, you will need to see if there are any issues or areas that need revamping per the customer's request or because of costs. Finally, you can update your value chain.

Benchmarking

Benchmarking occurs when an organization attempts to compare its operations performance, methods/process of conducting business, the organization's standing as a whole, it's market share, and more to other organizations in the industry. This process can give a good indication of how an organization stacks up, on many levels, to industry leaders, as well as bottom feeders, within the industry. Benchmarking also leads to helping organizations generate ideas to facilitate better practices in many areas of operations and management. It can also show how advancements in technology (and the use of new technology) can improve an organizations ability to generate revenue and increase customer satisfaction.

In the case of K-mart and Sears Holdings, practices that are common among the industry leaders (i.e. Walmart, Target, etc.) would be a good starting point for generating leads on what changes can be made to increase the viability of K-mart. Changes such as selling products that are not necessarily owned by K-mart (third party products stored in warehouses and distribution centers) through K-mart's site as a proxy could lead to significant increases in sales as a larger variety of products can be sold online via K-mart's website (a model that is used by Walmart when shopping on their site). Part of the problem that led to significant decreases in revenue and market share for K-mart have resulted from a lack of change and innovation in the face of rapid technological advancements for business in this industry. "Standing on the shoulders of giants" may be a clich term, but it could be the kick start that K-mart needs to generate positive momentum for the organization. While simply being a copy of the larger stores will likely not generate much change as it will not help set K-mart apart from others, or lead to a competitive advantage, but refining and striving for further innovation based on the most successful practices by industry leaders seems like exactly what K-mart could use to bolster market share, and to rebrand itself.

Competitive Strength Assessment

A competitive strength assessment is an assessment of the competition in a certain market aimed at informing business decisions. An assessment typically involves creating a list of competitors and creating a profile for each competitor that includes information such as the types of products and services they sell, their market share, marketing strategies, and notable strengths and weaknesses. The assessment may also include comparisons between a business's specific products and services and the offerings of competitors.

The Importance of a competitive assessment is to help managers account for the presence of competitors when making business decisions. Identifying the strengths and weaknesses of competitors can allow managers to exploit weaknesses, emulate strengths, or avoid competing in areas where other companies are especially strong. Failure to account for the presence of competitors can result in bad business decisions. For example, if a certain neighborhood already has a well-established auto repair shop, it might not be a wise to open a similar shop in that area. On the other hand, a new shop that specializes in different or complementary services might have a better chance of being successful.

Strategic Issue Identification

A strategic issue identification is a fundamental policy question or critical challenge affecting an organization's mandates, mission, values, stakeholders, resources, structure, processes, management, or product or service level and mix. Identifying strategic issues is one of the most important and potentially one of the most difficult steps in the planning process. President White had identified six strategic issues for the University of Illinois and indicated that the strategic issues facing UIC, UIS, and UIUC probably would not be significantly different from the six he identified, although the differences in the campuses would make them slightly different.

The importance of a strategic issue identification is that you can determine Four great areas that can evaluate your company successes and failures. First, evaluating the products performance or the service performance of the company. Determining how the company is doing financially, being able to look outside the company to the external forces.

Five Generic Competitive Strategies

Broad Differentiation Strategy

A broad differentiation strategy is one that is practiced by attempting to offer a high amount of variety in the products/services offered by a company.

A good example of this strategy was Piggly Wiggly circa 1920s. Prior to that time, most stores were either general stores or specialty stores, like bakeries, butchers, and others. But, what Piggly Wiggly helped bring to the table was a grocery store that had a large selection of items at that time compared to other business, and it began to see tremendous success. This also catalyzed new supermarkets being developed under the same model, like Kroger's and King Kullen in the 1930s.

A more modern example would be Amazon. Amazon sells a gamut of items, from books, to groceries, to sports memorabilia, to tech supplies, to automotive appliances, and so much more. While traditional brick and mortar business like Walmart and Sears have been offering a similar variety of products for decades longer, Amazon was one of the first to sell products from other organizations in specialized industries to both bolster the variety of items offered on its website, and to attract customers from the stores it sold those products for.

Offering a wide variety of products allows for organizations to increase its potential base of customers. The more variety offered, the higher the chance that a business will appeal to more customers. Also, in Amazon's case, this strategy offers a chance to form partnerships with business in different industries/sub-industries that allows for Amazon to move into different markets.

Focused Low-Cost Provider

A focused low-cost strategy aims at securing a competitive advantage by serving buyers in the target market niche at a lower cost and lower price than those of its rivals. This strategy is considered attractive when the firm can lower costs significantly by limiting its customer base to a well-defined buyer segment. The ways to achieve a cost advantage over rivals and serving the target market niche are the same for low-cost leadership: out manage rivals in keeping the costs of value chain activities contained to a bare minimum and the search for innovative ways to bypass certain value chain activities. The main difference between a focused low-cost strategy and a low-cost strategy is the size of the target market the company is trying to appeal to. A focus low-cost strategy appeals to a narrow market segment while a low-cost strategy appeals to mostly all buyer groups (Thompson, 2012).

For some firms, achieving low costs is a difficult task because they lack the resources and capital necessary to drive their prices lower than competitors and still turn a profit. When a firm can find ways to keep their costs and prices low and if a set group of customers know that, then that creates a competitive advantage. Focused low-cost strategies are very common for producers of private-label goods that make a generic version of name-brand merchandise and sell to retail chains who want a low-priced store brand. The Perrigo Company is a good example because they have become a leading manufacturer of health products producing private-label brands for companies like Walmart and CVS (Thompson, 2012).

Best Cost Provider

A best-cost provider strategy gives customers greater value by offering a low price for an elite product. The goal is to provide a price lower than the competitor for a product that is of equal or greater quality and comparable in features. This strategy works well with customers that are price sensitive but highly concerned with quality. The best-cost provider strategy is risky as it may be difficult to sustain the lowest price and still make a profit.

To implement the best-cost provider strategy the following steps should be employed:

Identify a niche product with target customers that are price sensitive.

Add features or services to the product so that the target customer is provided with value that is on par with competitive products.

Price the product so that you are the best cost provider and have the lowest pricing when compared to competitors.

Reduce overall costs by re-engineering cost activities using techniques such as outsourcing and increased automation.

Attract customers by marketing your best cost provider strategy and differentiating your product based on cost and high value.

Kmart can benefit from best-cost provider strategy because it would give the company the niche that would make them desired above all others. Consumers are searching for value at a low cost and when a retailer can provide that, they gain loyalty from the consumers. Walmart and Target already use this strategy to stay competitive in the market. Target has exclusive brands from designers that they are now offering at an affordable rate. Kmart should do the research on highly demanded and popular products, partner with a popular brand or designer, and offer the product at the lowest rate possible that will attract consumers and still gain a profit. They should make sure that they are exclusively selling the product to drive consumers back to the stores.

Focused Differentiation

Focused differentiation strategy is the approach based on uniqueness or niche market and target a narrow market between competing firms. For a focused differentiation strategy to be successful, the firm has to look for the specific buyer segment that is looking for special product attributes or seller capabilities. The firm must also stand apart from other rivals competing in the same target market niche (Thompson, 2012).

To be successful in this strategy, a firm must be able to provide a very unique product or set of products to a specific set of customers. An important factor of focused differentiation strategy is having to charge high prices for a product because the high cost to produce that product, either through customization or quality. If a firm chooses the focused differentiation approach, they must be able to bring high-quality products or highly customizable products to market and keep their customers interested.

Low-Cost Provider (Kmart's Strategy)

A low-cost provider strategy is a technique that appeals to a broad section of buyers and takes on the advantage of having lower overall cost compared to competitors. The company finding ways to reduce costs in all aspects of this business until it is the cheapest of the competition drives this strategy. The lower the prices are, the more price-sensitive buyers the company to take away from its competitors. The company can always simply match its competitors' lowest prices, causing a price war. Either way, the company practicing this strategy efficiently will see profitability increase. A few examples of cutting costs to achieve this profitability are attempting economies of scale, using lower cost inputs that do not sacrifice quality, outsourcing non-essential work to cheaper firms, and trying to operate one's facility at full capacity.

A low-cost provider strategy is important for many reasons. Out of all five of the generic competitive strategies discussed, this strategy may be the best choice for those who lack certain qualities. The best way to describe the importance of the low-cost provider strategy would be to compare it to the other four competitive strategies. First, we will look at the broad differentiation strategy and the focused differentiation strategy. These strategies are good for companies if there is something unique about their product, culture, or some other identifying characteristic. However, a company does not always have the luxury of having a product, service, or company that stands out in that way. This is when cost would be the right avenue to focus on. Next, there is thefocusedlow-cost strategy. This is similar to the low-cost provider strategy except for the fact that it focuses on a specific target group of buyers that shop for their product or service. When you are in a market that is filled by extremely different shopper attitudes, this strategy will fail you- unlike the broad low-cost provider strategy. Finally, there is the best-cost provider strategy that combines the low-cost strategies and the differentiation strategy. Unfortunately, if a company cannot afford to lower pricesanddifferentiate themselves from their competitors, this strategy will also fail.

Strategic Intent

A company's strategic intent is their relentless pursuit of an ambitious strategic objective in which the company is willing to remain fully committed to and achieve at any cost (Thompson, 2012).

Kmart utilizes a broad low-cost provider strategy as their competitive strategy. The strategic intent for Kmart is to offer overall low costs and underpricing to match or beat competitors. Similar to competitors such as Walmart and Target, Kmart offers a high variety of products at inexpensive prices that are appealing to customers. With convenient store locations and low distribution costs, Kmart is able to keep consumer prices low while offering various products to bring customers to stores.

Basis of Competitive Strategy

The basis of a firm's competitive strategy is its foundation that it builds on in order to succeed. Kmart's competitive strategy is a broad low-cost provider strategy. The basis of their current strategy is to achieve lower overall costs than competitors. Kmart constantly evaluates its competitive strategy in order to ensure that the appropriate areas are being focused on in order to continue providing low prices to customers while achieving high profits. One of the most recent efforts to cut costs was by closing underperforming locations in order to increase profitability.

Product Line

Although Kmart is a retailer that carries many different products, it does carry its own line of products. Kmart ensures that they can compete effectively with other retailers by providing a high-quality product at a fraction of the cost of other product brands that it carries. Kmart ensures that the product line is a good substitute for other items and makes sure that its items are displayed and available for purchase just as much as other brands.

Production Emphasis

Kmart uses a low-cost provider strategy. It is a strategy that is employed by some of Kmart's biggest competitors as well. Kmart emphasizes producing products that are in high demand, priced low and beneficial financially to the company. The products must also be of a quality comparable to competitors. This allows Kmart to continue to be relevant with consumers and gain customer loyalty.

Marketing Emphasis

Kmart's marketing emphasis is on marketing products that appeal to customers seeking a low-cost advantage. Kmart has many Kmart branded products that appeal to customers that are price conscious. Part of their low-cost provider strategy is to make sure that customers are aware of these products and their value. Kmart markets other brands as well, but steering customers to the Kmart brand is essential to their marketing strategy of driving customers to their stores and website to try their branded

products and loving them.

Keys to Maintaining Strategy

Some critical points that need to be emphasized by K-mart to continue utilizing the broad low-cost provider strategy include mitigating costs to acquire the products that are eventually sold to customers, mitigating costs for daily, weekly, monthly and yearly operations, striving to build beneficial relationships with distributers, and finding ways to reduce any other costs incurred by the organization, without affecting the ability to function as a viable business.

Resources and Capability Requirements

The resources required for Kmart to be able to maintain and build upon its broad low-cost strategy includes emphasizing efficiency, cost cutting (without over-stating this need which could lead to cutting corners in an unethical manner, or cutting costs that are necessary for the organization to function properly), scrutinizing the short-term, and long-term budgets to monitor progress, as well as facilitating the ability to find more ways to lower company costs.

3.

Sonic Marketing Plan

The Marketing Plan: An Introduction

As a marketer, you'll need a good marketing plan to provide direction and focus for your brand, product, or company. With a detailed plan, any business will be better prepared to launch an innovative new product or increase sales to current customers. Nonprofit organizations also use marketing plans to guide their fund-raising and outreach efforts. Even government agencies put together marketing plans for initiatives such as building public awareness of proper nutrition and stimulating area tourism.

The Purpose and Content of a Marketing Plan

A marketing plan has a more limited scope than a business plan, which offers a broad overview of the entire organization's mission, objectives, strategy, and resource allocation. The marketing plan documents how the organization's strategic objectives will be achieved through specific marketing strategies and tactics, with the customer as the starting point. It is also linked to the plans of other organizational departments. Suppose a marketing plan calls for selling 200,000 units annually. The production department must gear up to make that many units, finance must arrange funding to cover the expenses, human resources must be ready to hire and train staff, and so on. Without the appropriate level of organizational support and resources, no marketing plan can succeed.

The Role of Research

To develop innovative products, successful strategies, and action programs, marketers need up-to-date information about the environment, the competition, and the selected market segments.

The Role of Relationships

Although the marketing plan shows how the company will establish and maintain profitable customer relationships, it also affects both internal and external relationships. First, it influences how marketing personnel works with each other and with other departments to deliver value and satisfy customers. Second, it affects how the company works with suppliers, distributors, and partners to achieve the plan's objectives. Third, it influences the company's dealings with other stakeholders, including government regulators, the media, and the community at large. All these relationships are important to the organization's success and must be considered when developing a marketing plan.

From Marketing to Marketing Action

Most companies create yearly marketing plans, though some plans cover a longer period. Marketers start planning well in advance of the implementation date to allow time for marketing research, analysis, management review, and coordination between departments. Then, after each action program begins, marketers monitor ongoing results, investigate any deviation from the projected outcome, and take corrective steps as needed. Some marketers also prepare contingency plans for implementation if certain conditions emerge. Because of inevitable and sometimes unpredictable environmental changes, marketers must be ready to update and adapt marketing plans at any time.

Executive Summary

Sonic is preparing to launch a major new state-of-the-art multimedia smartphone, the Sonic

1000, in a mature market. We can effectively compete with many types of smartphones because our product offers a unique combination of advanced features and functionality at a very competitive value-added price. We are targeting specific segments in the consumer and business markets, taking advantage of the growing interest in a single powerful but affordable device with extensive communication, organization, and entertainment benefits.

Situation Analysis

Sonic, founded 18 months ago by two well-known entrepreneurs with telecommunications experience, is about to enter the highly competitive smartphone market. Multifunction cell phones are increasingly popular for both personal and professional use, with more than 968 million smartphones sold worldwide in 2013.

Market SuMMary Sonic's market consists of consumers and business users who prefer to use a powerful but affordable single device for fully functional communication, information storage and exchange, organization, and entertainment on the go. Specific segments being targeted during the first year include professionals, corporations, students, entrepreneurs, and medical users. shows how Sonic 1000 addresses some of the most basic needs of targeted consumer and business segments in a cost-effective manner. The additional communication and entertainment benefits of the product just enhance its appeal to those segments.

Needs and Corresponding Features/Benefits of Sonic Smart Phone

Targeted Segment

Professionals

Students

Corporate users

Entrepreneurs

Medical users

(SWOT) Sonic has several powerful strengths on which to build, but our major weakness is a lack of brand awareness and image. The major opportunity is a demand for multifunction communication, organization, and entertainment devices that deliver a number of valued benefits at a lower cost. We also face the threat of ever-higher competition and downward pricing pressure.

Strengths Sonic can build on three important strengths:

1.Innovative productThe Sonic 1000 offers a combination of features that are hard to find in single devices, with extensive telecommunications capabilities and highest-quality digital video/music/TV program storage/playback.

2.SecurityOur smartphone uses a Linux-based operating system that is less vulnerable to hackers and other security threats

3.PricingOur product is priced lower than competing smartphones

Weaknesses By waiting to enter the smart-phone market until considerable consolidation of competitors has occurred, Sonic has learned from the successes and mistakes of others. Nonetheless, we have two main weaknesses:

1.Lack of brand awareness

2.Heavier and thicker unitThe Sonic 1000 is slightly heavier and thicker than most competing models because it incorporates so many telecommunication and multimedia features.

Opportunities

1.Increasing demand for state-of-the-art multimedia devices with a full array of communication functionsThe market for cutting-edge multimedia, multifunction devices is growing rapidly. Smartphones are already commonplace in public, work, and educational settings; in fact, users who bought entry-level models are now trading up.

2.Lower technology costsBetter technology is now available at a lower cost than ever before.

Thus, Sonic can incorporate advanced features at a value-added price that allows for reasonable profits.

Threats We face three main threats at the introduction of the Sonic 1000:

1.Increased competitionMore companies are offering devices with some but not all of the features and benefits provided by Sonic 1000. Therefore, Sonic's marketing communications must stress our clear differentiation and value-added pricing.

2.Downward pressure on pricingIncreased competition and market share strategies are pushing smart-phone prices down. Still, our objective of breaking even with second-year sales of the original model is realistic, given the lower margins in the smart-phone market.

3.Compressed product life cycleSmartphones are reaching the maturity stage of their life cycle more quickly than earlier technology products. Because of this compressed life cycle, we plan to introduce an even greater-enhanced media-oriented second product during the year following the Sonic 1000's launch.

Competition: The emergence of well-designed multifunction smartphones, including the Apple iPhone, has increased competitive pressure. Competitors are continually adding features and sharpening price points. Key competitors:

Product offerings:Sonic 1000 offers the following standard features:

Voice recognition for hands-free operation

Full array of apps

Complete organization functions, including linked calendar, address book, synchronization

Selected Smart-Phone Products and Pricing

Digital music/video/television recording, wireless downloading, and instant playback

Wireless Web and e-mail, text messaging, instant messaging

Four-inch high-quality color touch screen

Ultra-fast 64-gigabyte drive and expansion slots

Integrated 12-megapixel camera with flash and photo editing/sharing tools

First-year sales revenues are projected to be $200 million, based on sales of 800,000 of the Sonic 1000 model at a wholesale price of $250 each. Our second-year product will be the Sonic All Media 2000, stressing enhanced multimedia communication, networking, and entertainment functions. The Sonic All Media 2000 will include Sonic 1000 features plus additional features such as:

Built-in media beaming to share music, video, and television files with other devices

Webcam for instant video capture and uploading to popular video Web sites

Voice-command access to popular social networking Web sites

Distribution:Sonic-branded products will be distributed through a network of retailers in the top 50 U.S. markets. Among the most important channel partners being contacted are:

office supply superstores.Office Depot and Staples will all carry Sonic products in stores, in catalogs, and online.

Computer stores.Independent computer retailers will carry Sonic products.

Electronics specialty stores.Best Buy will feature Sonic smartphones in its stores, online, and in its media advertising.

Online retailers.Amazon.com will carry Sonic smartphones and, for a promotional fee, will give Sonic prominent placement on its homepage during the introduction.

PositioningUsing product differentiation, we are positioning the Sonic smartphone as the most versatile, convenient, value-added model for personal and professional use. Our marketing will focus on the value-priced multiple communication, entertainment, and information capabilities differentiating the Sonic 1000.

Strategies

Product The Sonic 1000, including all the features described in the earlier Product Offerings section and more, will be sold with a one-year warranty. We will introduce the Sonic All Media 2000 during the following year after we have established our Sonic brand. The brand and logo (Sonic's distinctive yellow thunderbolt) will be displayed on our products and packaging as well as in all marketing campaigns.

Pricing The Sonic. These prices reflect a strategy of (1) attracting desirable channel partners and (2) taking share from established competitors.

Distribution :

well-known stores and online retailers, we will add channel partners until we have coverage in all major U.S. markets, We will also investigate distribution through cell-phone outlets maintained by major carriers such as Verizon Wireless. In support of channel partners, we will provide demonstration products, detailed specification handouts, and full-color photos and displays featuring the product. Finally, we plan to arrange special payment terms for retailers that place volume orders.

Marketing Communications By integrating all messages in all media, we will reinforce the brand name and the main points of product differentiation. Research about media consumption patterns will help our advertising agency choose appropriate media and timing to reach prospects before and during product introduction. Thereafter, advertising will appear on a pulsing basis to maintain brand awareness and communicate various differentiation messages.

Marketing Mix The Sonic 1000 will be introduced in February. Here are summaries of action programs we will use during the first six months to achieve our stated objectives.

Marketing OrganizatiOn Sonic's chief marketing officer, Jane Melody, holds overall responsibility for all of the company's marketing activities. shows the structure of the eight-person marketing organization. Sonic has hired Worldwide Marketing to handle national sales campaigns, digital, trade and consumer sales promotions, and public relations efforts.

1- In what competitive spheres (industry, products, and applications, competence, market the segment, vertical, and geographic) should Sonic operate?

QUESTION

You're responsible for researching and analyzing the consumer market for Sonic's smart-phone product. Look again at the data you've already entered about the company's current situation and macroenvironment, especially the market being targeted. Now answer these questions about the market and buyer behavior.

3- Which aspects of consumer behavior should Sonic's marketing plan emphasize, and why?

4- What marketing activities should Sonic plan to coincide with each stage of the consumer buying process?