Principles of Management ESSAY QUESTIONS AND ANSWERS (100+ ESSAYS WITH ANSWERS)

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Table of Contents I) CHAP 1 WHAT IS MARKETING ?...................................................................................1 1) Briefly compare and contrast the concepts of needs, wants, and ... demands, giving an example of each. Discuss how these concepts relate to marketing practices........................................................................................................................................ 1 2) In a short essay, explain how and why marketers go beyond selling a product or service to create brand experiences..............................................................................................1 3) Compare the selling and marketing concepts, listing the key components of each philosophy............................................................................................................................1 4) Briefly explain the societal marketing concept. Give an example of an organization that has effectively used the societal marketing concept..........................................1 5) What should sellers consider if they wish to avoid marketing myopia?................................3 6) You are a manufacturer of tents, sleeping bags, and outdoor cooking equipment. How might you go about creating brand experiences for your customers?.................................................................................................................................... 3 7) Think about suppliers and other marketing partners. A modern marketing system relies on profitable relationships all along the way. How might Wal-Mart rely on their marketing partners in order to offer low prices?..............................................................3 8) When demand for the latest talking Elmo was at its highest, it was suggested that manufacturers purposefully maintain strong demand by limiting supply, which would drive prices up. If this were the case, explain how such manufacturers were NOT carrying out the production concept.....................................................................................3 9) The marketing team at Bead Beautiful, a line of jewelry targeted at preteenage girls, is meeting to formulate the products' value proposition. What should team members consider as they define a value proposition for Bead Beautiful? ..........................4 10) Company X carries organizational and office supplies and follows the selling concept. Explain how Company X may lose sight of customer relationships with their marketing orientation...................................................................................................................4 64 11) In nineteenth-century Dublin, Molly Malone sold cockles and mussels while shouting to passers by, "alive-alive-oh." Was Molly taking an outside-in or insideout perspective? Explain...............................................................................................................4 12) Explain why electronics and pharmaceuticals manufacturers may use customer-driving marketing..........................................................................................................4 II) CHAP 3 MARKETING ENVIRONMENT...........................................................................4 1) Who are the major players in a company's microenvironment? Explain the role each major actor plays..................................................................................................................4 2) 102) In a short essay, differentiate between the basic marketing intermediaries............................................................................................................................... 5 3) In marketing, what is a public? Briefly describe the seven main types of publics faced by marketers and explain how marketing might communicate with these publics..........................................................................................................................................5 4) 104) How can marketers use information about the demographic environment?...............................................................................................................................5 5) Explain the impact of the baby boomers, Generation Xers, and Millennials on today's marketing strategies.........................................................................................................6 6) What are the major trends in today's natural environment? How do these trends affect companies?..............................................................................................................6 7) 107) Why is the technological environment such a dramatic force in today's market?......................................................................................................................................... 6 8) Describe the three main reasons the business legislation is enacted, giving an example of each type of legislation...............................................................................................6 9) What is cause-related marketing? Give two examples of the practice and explain why companies participate in cause-related marketing....................................................7 10) What is the cultural trend in how people view nature? How does this affect marketers?.................................................................................................................................... 7 11) What is the cultural trend in how people view nature? How does this affect marketers?.................................................................................................................................... 7 65 12) How have large retailers such as Wal-Mart changed the dynamics behind partnering with resellers?.............................................................................................................8 13) What are two potential drawbacks of creating separate products and marketing programs for each generation?.....................................................................................8 14) How do baby boomers today differ from previous generations as they neared and reached their sixties?.................................................................................................8 15) Why might marketers want to target segments of the population based on lifestyles rather than age groups?.................................................................................................8 16) How might geographic shifts in population impact marketers?........................................8 17) In terms of ethnic and racial makeup, why is the United States today more accurately characterized as a "salad bowl" than a "melting pot"?................................................8 18) What is the cultural trend in how people view nature? How does this affect marketers?.................................................................................................................................... 9 19) How have large retailers such as Wal-Mart changed the dynamics behind partnering with resellers?.............................................................................................................9 20) What are two potential drawbacks of creating separate products and marketing programs for each generation?.....................................................................................9 21) How do baby boomers today differ from previous generations as they neared and reached their sixties?.................................................................................................9 22) Why might marketers want to target segments of the population based on lifestyles rather than age groups?.................................................................................................9 23) How might geographic shifts in population impact marketers?........................................9 24) In terms of ethnic and racial makeup, why is the United States today more accurately characterized as a "salad bowl" than a "melting pot"?...............................................10 25) Why might it be beneficial for marketers to help develop solutions to problems facing the natural environment, such as increased pollution and shortages of raw material?..........................................................................................................................10 26) One purpose of government regulation is to protect consumers from unfair business practices. List two areas in which this may occur..........................................................10 66 27) How might a marketer act in a socially responsible way toward the general public? Answer: Marketers may work to protect the long-run interests of their consumers and the environment by making products safer, interacting responsibly with the natural environment, and supporting social organizations through causerelated marketing........................................................................................................................ 10 28) What is the difference between a core belief and a secondary belief? Give an example of each.....................................................................................................................11 29) Why is it important for marketers to understand people's views of themselves?................................................................................................................................11 30) What steps might a marketer take to shift from a reactive stance to the marketing environment to a more proactive stance?..................................................................11 III) CHAP 4 MARKETING RESEARCH.............................................................................11 1) Discuss the makeup and functions of a marketing information system (MIS)......................11 2) Marketers can obtain needed information from internal data, marketing intelligence, and marketing research. Explain some common sources for each of these........................................................................................................................................... 11 3) Describe the basic marketing research process...................................................................12 4) Briefly compare the three different types of research approaches for gathering primary data...............................................................................................................................12 5) Provide the advantages/benefits of each of the contact methods......................................12 6) 111) What would a researcher need to decide when designing a sample?..........................13 7) Compare and contrast closed-end questions and open-end questions for gathering data............................................................................................................................. 13 8) How can a company overcome the problem of gathering internal data for research purposes when the data is usually scattered widely across the organization?..............................................................................................................................13 9) Discuss several ways in which smaller organizations can use marketing research techniques at little or no expense...............................................................................................13 10) Explain the common problems that international marketing researchers encounter.................................................................................................................................... 14 67 11) Briefly explain the following statement: "Too much information can be as harmful as too little."..................................................................................................................14 12) You have decided to run for a local political office. You want to hand-deliver campaign materials in person to the homes of voters. Explain how marketing intelligence plays a role in this scenario......................................................................................14 13) When do marketers need marketing research?..............................................................14 14) Explain why exploratory research, descriptive research, or causal research would be most useful for determining whether shoppers in the Midwest are more sensitive to a price increase for laundry soap than shoppers on the East Coast are....................15 15) Why is it important for the statement of the problem and the research objectives to guide the entire research process?.........................................................................15 16) Sales have dropped at XYZ Corporation. Give two specific pieces of information for which the company's marketing researcher might call.......................................15 17) Why is it important for a research plan to be presented as a written proposal?....................................................................................................................................15 18) You want to determine whether no-smoking policies have affected employee morale in the United States in the past two decades. Are any secondary data likely available? Why?.........................................................................................................15 19) You want to determine whether no-smoking policies have affected employee morale in the United States among workers in companies that employ fewer than 50 workers in Fort Wayne, Indiana. Are any secondary data likely available? Why?..........................................................................................................................16 20) Give two ways that a researcher should evaluate information in online databases.................................................................................................................................... 16 21) Give an example of primary data that could effectively be collected via observation.................................................................................................................................16 22) You are trying to determine whether retired people drink more coffee at McDonald's during lunch than they do during dinner. Why is observation research NOT effective in this scenario?....................................................................................................16 23) How might survey research be a better approach than observation research when attempting to assess customer satisfaction?......................................................................16 68 24) A marketer of frozen dinners has decided to collect consumer feedback via a focus group interview. How might the marketer know for certain whether peas or green beans should be included with the turkey entrée?............................................................16 25) A researcher is collecting data in an airport. Why might a sample be most appropriate?...............................................................................................................................17 26) How would you design the sample to determine whether retired people drink more coffee at McDonald's during lunch than they do during dinner? Explain. 17 27) Give an example of a closed-end question......................................................................17 28) Explain why it's important for both the researcher and the marketing manager to interpret the findings of market research.................................................................17 29) Why is it difficult to obtain relevant and reliable secondary data when conducting international marketing research?............................................................................17 30) Why has consumer resentment toward marketing research been growing?...................18 Jason West,.................................................................................................................................18 31) What type(s) of marketing intelligence, if any, did Jason West use in this scenario?..................................................................................................................................... 18 32) 157) How did Jason know he needed marketing research?.............................................18 33) In what way(s) did Jason's project require descriptive data?..........................................19 34) In what way(s) did Jason's project require causal research?...........................................19 35) 160) What type(s) of secondary data did Jason collect?..................................................19 36) Could Jason have collected observational research effectively? Explain.........................19 37) What types of contact methods did Jason utilize in this scenario?..................................19 IV) CHAP 5 CONSUMER BEHAVIOR..............................................................................19 1) Explain the role of marketers in the information search step of the buyer decision process. Give an example of how the marketer might execute this role........................19 2) Why should marketers set up systems that encourage customers to complain about products?..........................................................................................................................20 69 3) Describe some important strategies for a marketer of a high-involvement product.......................................................................................................................................20 4) Listing them in the proper order, what are the stages in the buyer decision process? Describe each...............................................................................................................20 5) What strategy should a marketer use upon learning that consumers are not buying a product because they do not perceive a need for it?....................................................20 6) What are the differences between innovators and early adopters?....................................21 7) Identify and describe the stages in the adoption process. ...................................................21 8) Identify product characteristics that influence the rate of adoption. Explain how each characteristic affects the rate of adoption...................................................................21 9) Cultural factors exert a broad and deep influence on consumer behavior. The marketer needs to understand the role played by the buyer's culture, subculture, and social class. Compare the roles of culture, subculture, and social class................................21 10) Many subcultures make up important market segments. Examples of four such important subculture groups include Hispanics, African Americans, Asian Americans, and mature consumers. Describe the general characteristics of each of these groups...............................................................................................................................22 11) A consumer's behavior is influenced by social factors, such as the consumer's small groups, family, and social roles and status. Explain the differences among these social factors..........................................................................................................22 12) Each person's distinct personality influences his or her buying behavior. Personality is usually described in terms of traits. What are these traits, and how do they affect the way people purchase items? Give at least one example......................................23 13) Explain Maslow's Hierarchy of Needs.............................................................................23 14) Compare and contrast the four types of buying decision behavior exhibited by consumers..............................................................................................................................23 15) Describe some important strategies for a marketer of a high-involvement product.......................................................................................................................................23 16) Listing them in the proper order, what are the stages in the buyer decision process? Describe each...............................................................................................................24 70 17) Identify and describe the stages in the adoption process. ..............................................24 18) Identify the product characteristics that influence the rate of adoption. Explain how each characteristic affects the rate of adoption.......................................................24 19) 136) What role do the four Ps play in consumer behavior?.............................................24 20) Give an example of a cultural shift that may impact the marketing of products or services....................................................................................................................25 21) Why might the Hispanic market be a viable targeted group for a new marketer of products?................................................................................................................. 25 22) In what way might a marketer rely on opinion leaders?.................................................25 23) How does marketing through online social networks differ from more traditional marketing?................................................................................................................. 25 24) Explain why typical husband-dominant or wife-dominant products of the 1970s may no longer be regarded as typical................................................................................25 25) Explain the concept of brand personality........................................................................25 26) Explain why selective attention is not controllable by a marketer...................................25 27) Explain how selective distortion is somewhat controllable by a marketer......................25 28) Knowing that selective retention prevents consumers from remembering everything about an ad, what might a marketer do to enhance retention?.................................26 29) Explain the role of marketers in the information search step of the consumer decision-making process. Give an example of how the marketer might execute this role. 26 30) Explain how marketers may be able to reduce post purchase cognitive dissonance..................................................................................................................................26 31) Why should marketers set up systems that encourage customers to complain about products?..........................................................................................................26 32) What strategy should a marketer use upon learning that consumers are not buying a product because they do not perceive a need for it?....................................................26 33) What are the differences between innovators and early adopters?................................26 V) CHAP 7 STP................................................................................................................26 71 1) 126) Explain the four major steps in designing a customer-driven marketing strategy.......................................................................................................................................26 2) 127) Explain the four major segmenting variables for consumer markets...........................27 3) 128) Describe how marketers use multiple-segmenting bases to their advantage...................................................................................................................................27 4) 129) Why do businesses segment their markets?................................................................27 5) 130) Why do international markets need to be segmented?...............................................27 6) 131) Imagine that you are presenting a workshop on the Requirements for Effective Segmentation. Briefly describe the five items that will help your audience understand your topic.................................................................................................................28 7) 132) Explain how companies identify attractive market segments and choose a target marketing strategy............................................................................................................28 8) 133) Compare and contrast four major segmenting strategies............................................28 9) 134) In what ways might a marketer engage in socially responsible target marketing?..................................................................................................................................29 10) 135) Explain the concept of positioning for competitive advantage................................29 11) 136) Why do marketers segment the market?................................................................29 12) 137) When might be the best time for a marketer to use geographic segmentation?............................................................................................................................29 13) 138) Why might demographic segmentation be the most common type of segmentation?............................................................................................................................29 14) 139) Why must marketers guard against stereotypes when using age and life cycle segmentation?.................................................................................................................... 29 15) 140) If Kool-Aid promotes a year-round campaign that "Kool-Aid isn't just a summertime drink," what type of segmentation is being used?.................................................30 16) 141) What is one way in which a marketer can attract nonloyal consumers? 30 17) 142) How might a marketer benefit most from using PRIZM NE?...................................30 72 18) 143) List three variables not applicable to the consumer market that may be used to segment business markets..............................................................................................30 19) 144) What factors may impact segment attractiveness?.................................................30 20) 145) What is one major assumption made by marketers who choose to use an undifferentiated marketing strategy?.....................................................................................30 21) 146) XYZ Computers, Inc., a business with limited resources, is a market nicher. How might XYZ benefit from this?...................................................................................30 22) 147) BMW allows customers to design their own vehicle from a set of options at BMW's Web site. What is this called?.........................................................................30 23) 148) Explain how market variability impacts the choice of a target-marketing strategy.......................................................................................................................................31 24) 149) Why might a marketer of laundry detergent be interested in viewing a perceptual positioning map?.......................................................................................................31 25) 150) In what ways might a marketer be able to gain competitive advantage through channel differentiation?.................................................................................................31 VI) CHAP 8 PRODUCT..................................................................................................31 1) Products and services fall into two broad classes based on the types of consumers that use them. Name these two broad classes and describe how they are different from each other............................................................................................................31 2) Name and describe three decisions that companies make regarding their individual products and services.................................................................................................31 3) Compare product mix width, length, consistency, and depth..............................................32 4) A manufacturer has four brand sponsorship options. Describe what they are....................32 5) A company has four choices when it comes to developing brands. Describe what they are.............................................................................................................................. 32 6) Good service companies focus attention on both customers and employees. Describe what the service-profit chain and internal marketing are, and how they differ from each other.................................................................................................................32 7) How can service providers use a differentiated offer, delivery, and image to avoid competing solely on price?................................................................................................33 73 8) Give an example of the most basic level of product, the core benefit.................................33 9) Give examples of the second level of product, the actual product......................................33 10) Give an example of an augmented product....................................................................33 11) Give three examples of convenience products................................................................33 12) Give three examples of shopping products.....................................................................33 13) Give three examples of specialty products......................................................................33 14) What do industrial supplies and consumer convenience products have in common? How do they differ?....................................................................................................33 15) How does a brand name add value to a product?...........................................................34 16) How might a flower shop engage in line stretching?.......................................................34 17) Why might a company pursue a strategy of less product line consistency?.....................34 18) Consumers form relationships with products via brands. What might happen that allows a consumer to move from merely recognizing a brand to preferring a brand? 34 19) Why is it important for a brand promise to be simple and honest?................................34 20) Consider such brand names as A1 Steak Sauce, 409, A & D Ointment, A & W Root Beer, and Super 8. Why might such names with alphanumeric characters aid in brand name selection?................................................................................................................34 21) How might measuring service quality be more difficult than measuring product quality?.......................................................................................................................... 34 22) As a service provider, why might you perceive the buyer-seller relationship in the service encounter to be especially critical?.......................................................................35 VII) CHAP 9 NEW PRODUCT DEVELOPMENT.................................................................35 1) Explain why so many new products fail and how a company can improve its odds of new product success.......................................................................................................35 2) Provide the major sources of external new product ideas and explain why these sources offer advantages over internal sources.................................................................35 3) Distinguish among a product idea, a product concept, and a product image......................36 4) Explain concept testing.......................................................................................................36 74 5) Define commercialization. Explain the two important issues on which the company must decide during this stage......................................................................................36 6) What are the two advantages of an innovation management system for developing new products? Provide four ideas for a company to use to establish a successful system........................................................................................................................36 7) Each product will have a life cycle, although its exact shape and length is not known in advance. Briefly explain each step in the PLC...............................................................36 8) PLC can be applied to more than just brands. Your assignment is to prepare a presentation about the application of the PLC to as many of your company's operations as possible. What would you include?.......................................................................37 9) Describe three public policy issues or regulations that marketers should carefully consider as they make decisions about adding or dropping products...........................37 10) How might a firm benefit from implementing an "intrapreneurial" program? 37 11) How might competitors be a good external idea source?...............................................37 12) You have recently sent a proposal for a fictional novel to an editor at a major publishing firm. The editor, alone, will carry out the idea screening. Why might you feel this process is unfair?...........................................................................................................38 13) How might a firm benefit from implementing an "intrapreneurial" program? 38 14) How might competitors be a good external idea source?...............................................38 15) You have recently sent a proposal for a fictional novel to an editor at a major publishing firm. The editor, alone, will carry out the idea screening. Why might you feel this process is unfair?...........................................................................................................38 16) What elements may help to create a product image?.....................................................38 17) The potential market strengths and weaknesses are being determined for a new-product idea at Art for Kids. In what stage of the new-product development process does this occur?.............................................................................................................. 38 18) What may be learned in a test market?..........................................................................38 75 19) A marketer has selected a single city in which to conduct a test market. What might we conclude from this choice of a single-city test market?......................................39 20) A marketer has chosen a multiple-city test market. What might we conclude from this choice of a multiple-city test market?..........................................................................39 21) 144) Why might a company choose to develop a planned market rollout?.....................39 22) Why might individual departments prefer sequential product development? 39 23) 144) Why might a company choose to develop a planned market rollout?.....................39 24) Why might individual departments prefer sequential product development? 39 25) Explain how the PLC applies differently to a product class than to a product form. 40 26) Why might ad expenditures be high for products in the introduction stage of the PLC?......................................................................................................................................40 27) Why might ad expenditures remain high in the growth stage of the PLC?......................40 28) Marketers can prolong the lives of many products in the maturity or decline stages of the PLC, sometimes even moving these products back into the growth stage. How can this happen?.......................................................................................................40 29) Why has the cost of product liability insurance risen so dramatically?...........................40 30) Pricing and price competition account for the number-one problem facing many marketing executives. What are some of the frequent problems that companies encounter?................................................................................................................40 31) Discuss the importance of consumer perceptions of value and costs to setting prices............................................................................................................................... 40 32) Explain how break-even analysis can be used for target profit pricing............................41 33) Identify and define the internal factors affecting a firm's pricing decisions. ....................41 34) Compare pure competition with oligopolistic competition.............................................41 35) Compare oligopolistic competition with a pure monopoly..............................................41 36) Describe what a demand curve is and explain how it helps businesses..........................41 76 37) What does price elasticity reveal about a product?........................................................42 38) The company must consider the impact its prices will have on resellers. Identify three ways the company can help resellers....................................................................42 39) When setting prices, the company must consider its external environment. Describe four parts of the external environment and how they affect businesses......................42 40) How important is price among the elements of the marketing mix?...............................42 41) Why is price considered to be one of the most flexible elements of the marketing mix?...........................................................................................................................42 42) Explain the concept of a price floor.................................................................................42 43) ) Explain the concept of a price ceiling............................................................................42 44) What must a company using value-based pricing find out about its customers?.................................................................................................................................. 43 45) Explain good-value pricing..............................................................................................43 46) What must a firm do to retain pricing power?................................................................43 47) What costs make up a product's total cost?....................................................................43 48) Explain the significance of a downward-sloping experience curve..................................43 49) A marketer's fixed costs are $400,000, the variable cost is $16, and they expect the product to sell for $24. What is their break-even point in units?...............................43 50) A marketer's fixed costs are $400,000, the variable cost is $16, and they expect the product to sell for $24. What is their break-even point in dollar sales?......................43 51) A marketer's fixed costs are $400,000, the variable cost is $16, and they expect their product to sell for $24. If the marketer has sales of $1,440,000, what is their profit on this product?........................................................................................................43 52) Who typically sets prices in small companies? In large companies?................................43 53) Explain a pure monopoly................................................................................................44 54) If demand is elastic, will sellers consider lowering their prices? Explain.........................44 VIII) CHAP 11 PRICING STRATEGY..................................................................................44 77 1) 126) Companies bringing out a new product can choose between two broad strategies: market-skimming pricing and market-penetration pricing. Distinguish between the two......................................................................................................................... 44 2) 127) Sensenig Propeller manufactures replica antique wooden airplane propellers. In the process of producing these products they generate a great deal of scrap hardwood. Which pricing mix strategy should they use, and how does it function?..................................................................................................................................... 44 3) 128) Explain product line pricing.........................................................................................44 4) 129) Why do businesses use cash discounts when they are in essence losing some money on the sale?...........................................................................................................45 5) 130) Describe the differences between dynamic and fixed pricing......................................45 6) 131) Explain the factors involved in setting international pricing........................................45 7) 132) When would price cuts and price increases be necessary?..........................................45 8) 133) When are competitors most likely to react to price changes? How can a firm anticipate the likely reactions of its competitors?................................................................45 9) 134) What regulates pricing activities when the federal government does not? 46 10) 135) Compare the practices of price-fixing and predatory pricing, explaining why each is prohibited by law.....................................................................................................46 11) 136) For what types of products might marketers use market-skimming pricing?.......................................................................................................................................46 12) 137) For what types of products might marketers use market-penetration pricing?.......................................................................................................................................46 13) 138) Why is product line pricing used?...........................................................................46 14) 139) Give two examples of products for which marketers may use optionalproduct pricing............................................................................................................................ 46 15) 140) Give two examples of products for which captive-product pricing may be used.......................................................................................................................................47 16) 141) Give two examples of by-product pricing................................................................47 17) 142) How do consumers benefit from product bundle pricing?......................................47 78 18) 143) Give an example of a cash discount........................................................................47 19) 144) List four types of segmented pricing.......................................................................47 20) 145) Explain the psychology behind a price of $9.99 instead of $10.00...........................47 21) 146) L.L. Bean sells its catalog items FOB-origin pricing. Who pays the freight charges?...................................................................................................................................... 47 22) 147) Explain two different ways a consumer might view a price cut...............................47 23) 148) Why is predatory pricing considered illegal?...........................................................47 24) 149) How can a manufacturer avoid using retail price maintenance but still exert some influence over the price retailers charge for its product?..........................................48 25) 150) How does deceptive pricing harm consumers?.......................................................48 IX) CHAP 12 PLACE......................................................................................................48 1) 126) Explain why "value delivery network" is a more relevant expression to use than the terms supply chain and demand chain..........................................................................48 2) 127) How do channel members add value to a marketing system?.....................................48 3) 128) What are the eight key functions that members of the marketing channel perform?.....................................................................................................................................48 4) 129) Compare and contrast a conventional distribution channel with a vertical marketing system (VMS).............................................................................................................48 5) 130) Why are multichannel distribution systems gaining popularity today?.......................49 6) 131) How have changes in technology and the growth of online marketing affected the design of marketing channels?................................................................................49 7) 132) Distinguish between the three distribution strategies.................................................49 8) 133) Explain how companies select, motivate, and evaluate channel members. 49 9) 134) Discuss how public policy affects distribution decisions..............................................50 10) 135) Why are more and more companies turning to third-party logistics providers (3PLs)?......................................................................................................................... 50 11) 136) What is the role of marketing intermediaries?........................................................50 79 12) 137) Give an example of horizontal conflict....................................................................50 13) 138) Give an example of vertical conflict........................................................................50 14) 139) Explain channel power in a conventional distribution channel...............................50 15) 140) Explain channel power in a vertical marketing system............................................50 16) 141) How can a firm benefit from involvement in a contractual VMS?...........................51 17) 142) How can a firm benefit from participating in a horizontal marketing system?....................................................................................................................................... 51 18) 143) Give two examples of multichannel distribution systems.......................................51 19) 144) What types of products are intensively distributed?...............................................51 20) 145) What types of products are exclusively distributed?...............................................51 21) 146) What types of products are selectively distributed?...............................................51 22) 147) What are two considerations when selecting intermediaries?................................51 23) 148) When would an exclusive dealing contract be legally problematic?........................51 24) 149) How can a company benefit through a just-in-time logistics system?......................51 25) 150) Explain why a firm's suppliers tap into the firm's inventory levels with a vendor-managed inventory system (VMI)...................................................................................52 X) CHAP 14 PROMOTION...............................................................................................52 1) A company's marketing communications mix—also called its promotion mix— blends five different components. List and define these components.........................................52 2) Why should a company be concerned about integrating communications from different sources within the company?.......................................................................................52 3) How do integrated marketing communications build brand identity?.................................52 4) Why are profound changes in marketing communications creating both exciting and scary times for marketing communicators?.............................................................52 5) Explain the concept of integrated marketing communications (IMC)..................................53 6) What are the four major communication functions?..........................................................53 7) Why is the consumer's field of experience important to a marketer?.................................53 8) In the communication process, what is noise and what is its significance? .........................53 80 9) Describe the three types of appeals that marketers use.....................................................53 10) What role does message format play in print advertisements?......................................53 11) Why do marketers value opinion leaders?......................................................................54 12) Explain how the message source affects consumers' perceptions of the message......................................................................................................................................54 13) The background for the QuickRelief allergy medication ad appearing in the magazine Better Homes and Gardens shows green grass and lovely flowers. The headline states "QuickRelief is 54% more effective than the leading prescription." At the bottom of the ad, in small print, is an explanation of how the effectiveness of QuickRelief was determined. The ad also shows a package of QuickRelief so consumers can easily recognize it at the store. Identify the different components of the communication model for this advertisement......................................................................54 14) Outline the steps in developing effective marketing communications............................54 15) Describe the six buyer-readiness stages along with the marketing strategies used at each stage....................................................................................................................... 55 16) Discuss sales promotion.................................................................................................55 17) Describe the significance of public relations as a promotion tool...................................55 18) Discuss direct marketing.................................................................................................55 19) When is it advisable to predominantly use sales promotions in a promotion mix? 56 20) Marketers can choose from two basic promotion mix strategies—push promotion or pull promotion. Compare these two strategies.....................................................56 21) What is the FTC three-day cooling off rule? What purpose does the rule serve? 56 22) Discuss the percentage-of-sales method used for setting the total budget for advertising..................................................................................................................................56 23) Discuss the affordable method of setting the total budget for advertising......................56 24) What is personal selling? What are the advantages and disadvantages of a firm using personal selling to promote a product or service?......................................................57 25) Discuss the advantages and disadvantages of advertising...............................................57 81 26) A company's marketing communications mixalso called its promotion mixblends five different parts. Name and define these parts.................................................57 27) Why are profound changes in marketing communications creating both exciting and scary times for marketing communicators?.............................................................58 28) Explain the concept of integrated marketing communications (IMC)..............................58 29) Name and define the four major communication functions............................................58 30) The background for a Benadryl allergy medication ad appearing in the magazine Better Homes and Gardens shows green grass and lovely flowers. The headline states "Benadryl is 54 percent more effective than the leading prescription." At the bottom of the ad, in small print, is an explanation of how the effectiveness of Benadryl was determined. The ad also shows a package of Benadryl so consumers can easily recognize it at the store. Identify the different components of the communication model for this advertisement..................................................................59 31) Outline the steps in developing effective marketing communications............................59 32) Describe the six buyer-readiness stages along with marketing strategies that may be used at each stage..........................................................................................................59 33) Describe four common methods used to set the total budget for advertising. 60 34) Marketers can choose from two basic promotion mix strategies–push promotion or pull promotion. Compare these two strategies.....................................................60 35) Explain how advertising may change as a product moves from the introductory stage to the growth stage of the product life cycle.................................................60 36) How are advertising and direct marketing different?......................................................60 37) How can marketers benefit from media fragmentation?................................................60 38) Why do some marketers predict a marketing "chaos scenario"?....................................61 39) Why should a company be concerned about integrating communications from different sources within the company?...............................................................................61 40) How do integrated marketing communications (IMC) build brand identity?...................61 41) Why is the consumer's field of experience of interest to a marketer?.............................61 42) In the communication process, what is noise and why is it important?..........................61 82 43) Describe the three types of appeals marketers use........................................................61 44) What role does message format play in print advertisements?......................................61 45) Why do marketers value opinion leaders?......................................................................61 46) Explain how the message source affects consumers' perceptions of the message......................................................................................................................................62 47) When is it most advisable to predominantly use advertising in a promotion mix? 62 48) 148) When is it advisable to predominantly use personal selling in a promotion mix?..........................................................................................................................62 49) When is it advisable to predominantly use sales promotions in a promotion mix? 62 50) Describe the FTC three-day cooling off rule....................................................................62 [Show More]

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