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Principles Of Marketing Textbook Questions And Answers

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b Chapter: 11 -Problem: 18 /b Could Casper have achieved the same level of success with a different pricing strategy? Explain. Casper is one of many direct-to-consumer companies that has flipped the mattress industry upside down. It was only a matter of time. A few mattress

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Chapter: 11 -Problem: 18 >> Could Casper have achieved the same level of success with a different pricing strategy? Explain. Casper is one of many direct-to-consumer companies that has flipped the mattress industry upside down. It was only a matter of time. A few mattress manufacturers had held consumers hostage for too long with overpriced products and a distribution model that left them with little choice but to endure a c
Answer Preview: Not likely. The direct-to-consumer model for mattresses is a fairly new concept. And w…

, Chapter: 4 -Problem: 7 >> Visit www.nielsen.com/us/en/insights/reports.html and select an example of a recent research report. Include the URL in a response that describes the study or studies that informed the report. Where did Nielsen get the data that informed the insights in the report? (The report may include more than one source of data.) What are the strengths and weaknesses of the types of data used? How is the inf
Answer Preview: a. Nielsen got the data from different sources and samples. b. The type of data th…

, Chapter: 12 -Problem: 14 >> Calculate the price at which a bar will sell one 14.5-ounce glass of craft beer if the desired 80 percent margin is based on selling price. What is the bar’s dollar markup on a glass of craft beer? Refer to Setting Price Based on External Factors in Appendix 2: Marketing by the Numbers to learn how to do this analysis. The post-Prohibition “three-tier system” requires the separation of the product
Answer Preview: In general, a dollar markup is the difference between a c…

, Chapter: 1 -Problem: 1 >> What are the paths to profits under the marketing concept?
Answer Preview: Customer focus and value are the paths to sales and profits unde…

, Chapter: 12 -Problem: 16 >> As completely as possible, diagram the value delivery network for Target’s grocery business, from raw materials to finished consumer goods.There is a frenzy to get out in front of home grocery delivery. Amazon and Walmart are getting all the attention. But pretty much every grocery chain large and small is fighting for a piece. Target knew it had to get serious and purchased Shipt, a startup compa
Answer Preview: 1. The value delivery system network for Targets grocery business would be in the following order:1 Farmer2 Wholesaler3 Distributor4 Target5 Shipt6 Co…

, Chapter: 13 -Problem: 18 >> In terms of the major types of retailers, how would you classify Ulta Beauty?In today’s retail environment, there is plenty of buzz about the “retail apocalypse”—the growing phenomenon that is likely to result in the closing of more than 6,000 brick-and-mortar chain stores this year. But all the buzz about ailing retail chains overlooks the areas of retail that are thriving. There are plenty of ch
Answer Preview: Answer 1 The targeting strategy of Ulta Beauty can be generally defined based laid commitments in ensuring a complete utilization of its target market through proper marketing approaches as far as the …

, Chapter: 8 -Problem: 9 >> Musical performer Rhianna recently launched her own make-up line called Fenty. If Fenty make-up does not succeed, how could it impact Rhianna as a person brand?
Answer Preview: Rhianna has a strong human brand. If we think of her as a product, she has engaged in many ap…

, Chapter: 14 -Problem: 18 >> Will the “In It Together” campaign be effective?There is no question that social media has become a crucial part of the fabric of society. Professional networking site LinkedIn is one of the largest in the world with more than 560 million members worldwide. Only a handful of social media sites are larger. And of those, none have been around as long. But LinkedIn has established an image as a “whit
Answer Preview: In It Together campaign will break through the image of LinkedIn being a white colla…

, Chapter: 9 -Problem: 4 >> Provide an example of a firm that motivates innovation from internal sources by creating time and physical space for its employees to explore ideas and innovate.
Answer Preview: Google is a company that is well-known for encouraging innovation from its …

, Chapter: 3 -Problem: 14 >> Calculate the percentage change in the 65-and-over population between 2011 and 2016 for both sexes, males, and females.  As marketers focus on millennials embarking on major first-time consumption decisions related to careers, homes, and families, another generation should not be forgotten: the aging baby boomers. The U.S. 65-and-older population will increase to almost 100 million people by 2060.
Answer Preview: So. % change % change % changeBoth % changeMales % changeF…

, Chapter: 8 -Problem: 16 >> Discuss how MINI has endured for 60 years as a brand, despite being owned by various companies.Longstanding brands face the challenge of remaining true to loyal customers while also addressing different and unique needs of new generations of customers. Iconic British car brand MINI has accomplished this feat, all while enduring the seemingly condition of being passed from one owner to another no l
Answer Preview: One of the biggest factors that led to MINIs early success is the fact that in the automotive busine…

, Chapter: 3 -Problem: 1 >> Write a market-oriented mission statement for Dyson. Dyson started out as so many storybook success stories do—by one person, in a garage, tinkering away at a product idea. In this case, it took James Dyson over 15 years and 5,000 prototypes to come up with his first product. Dyson quickly became known as an innovative vacuum cleaner company. But this story quickly reveals that Dyson is about much
Answer Preview: Searches of the internet in general and the Dyson site in specific do not reveal a mission s…

, Chapter: 13 -Problem: 5 >> List and describe the functions wholesalers perform that add value to both retailers and consumers.
Answer Preview: Wholesalers add value by performing the following functions: Selling and promoting. Wholesalers sale…

, Chapter: 15 -Problem: 14 >> Calculate both the overall CPM and the CPM for the 18-49 demographic for each show. Refer to the “Selecting Specific Media Vehicles” section of “Selecting Advertising Media” in the chapter to learn how to do this calculation. Which programs are the most efficient media buys for advertisers? A common measure of advertising efficiency is cost per thousand (CPM), which is the ad cost per thousand pot
Answer Preview: So, for This is Us, Notice that the ad cost does not change when …

, Chapter: 9 -Problem: 10 >> Visit a social media channel (Twitter, Instagram, or Facebook) and search for the hashtag #iRobotLove. What do the user posts suggest about iRobot’s ability to solve major customer problems? How could the user-generated content inform the new product development process? Although robot vacuums have been around for more than a decade, recent updates made them smart-home gadgets, allowing consumers
Answer Preview: a. The posts suggest that the customer has a major problem. They …

, Chapter: 2 -Problem: 8 >> Locate the mission statements for the following organizations: (a) USAA, (b) United Airlines, (c) South Carolina State University (SC State), and (d) IKEA. Evaluate each statement using the criteria for creating a sound mission statement. What could be done to improve each organization’s mission statement?
Answer Preview: (a) USAA mission statement is excellent. It is clear, concise, and well-thought out. The mission sta…

, Chapter: 10 -Problem: 12 >> Why would an airline charge less for a longer flight that passes through the destination city than for a shorter flight to the destination city? Some travelers use cheap travel websites and book at off-peak times to save money. Other travelers have tried to increase their savings by booking a one-way ticket through a connecting city where they intend to stay in the layover city. For example, a tra
Answer Preview: One reason is that some travelers use cheap travel websites and book at off-peak times to save money…

, Chapter: 1 -Problem: 3 >> Identify the two important questions a marketing manager must answer to design a winning marketing strategy. Briefly describe why the answer to each question is important.
Answer Preview: The two questions a marketing manager must answer to design a winning market…

, Chapter: 12 -Problem: 10 >> Is it wise for Petco to expand its same-day delivery offerings to additional customers through Shipt? Why or why not? Petco recently formed a partnership with Target-owned Shipt to expand its same-day delivery options, which it already offers in some markets through Instacart’s PetcoNow service. Shipt now delivers goods from Petco stores to nearly 70 million households in as little as one hour. Ma
Answer Preview: It is wise for Petco to offer additional same-day delivery only if Petco customers value it as execu…

, Chapter: 6 -Problem: 8 >> Hybrid-electric airships are slow moving, helium filled airships that compete with helicopters. While both hybrid-electric airships and helicopters can take off and land without an airport, hybrid-electric airships can carry more people and more cargo and travel further. Suppose you are a salesperson selling hybrid-electric airships to businesses, governments, and institutions that want to shift c
Answer Preview: The kinds of information I would provide is the following: 1. Businesses I would explain to business that hybrid-electric airships are safe, green, an…

, Chapter: 12 -Problem: 4 >> Define disintermediation and describe how it affects the nature and design of marketing channels.
Answer Preview: Disintermediation occurs when product or service producer…

, Chapter: 1 -Problem: 16 >> Describe the Buffalo Wild Wings market offering based on the concepts of needs, wants, and demands, differentiating the three.Buffalo Wild Wings has emerged as the largest pourer of draft beer, the largest server of chicken wings, and one of the fastest growing restaurant chains in the U.S. The reason for its success goes far beyond its menu offerings. Rather, BWW is in the business of fueling the
Answer Preview: The Buffalo Wild Wings market offering entails a process of identifying wants and needs, and then ma…

, Chapter: 11 -Problem: 12 >> Should the firm charge $20 more for the pink helmet? Why or why not? Your firm did market research and realized it can maintain demand and charge $20 more for a pink version of a bicycle helmet than the blue version. Both helmets cost the same amount to produce. Your manager asks you whether the firm should charge a higher price for the pink helmet. As you research your response, you come across a
Answer Preview: No, the firm should not charge $20 more for the pink helmet. Altho…

, Chapter: 15 -Problem: 12 >> What challenges might Burger King face if it chose to take this campaign global? Burger King recently launched “Real Meals” in select markets to deliver an important message about mental health. Real Meals come in five varieties, including a Pissed Meal (for when you’re mad) and a Blue Meal (for when you’re sad). The ads extend Burger King’s concept of letting customers have it their way to the id
Answer Preview: 1 . One challenge that Burger King might face if it chose to take this campaign global is that not a…

, Chapter: 12 -Problem: 9 >> Research how vendor-managed inventory (VMI) compares to a traditional inventory management system. Given their benefits, why wouldn’t all suppliers and retailers establish VMI systems?
Answer Preview: In a traditional inventory management system , the retailer is responsible for managing inventory le…

, Chapter: 3 -Problem: 5 >> Based on Dyson’s past, predict the outcome of Dyson’s future in the automotive business.Dyson started out as so many storybook success stories do—by one person, in a garage, tinkering away at a product idea. In this case, it took James Dyson over 15 years and 5,000 prototypes to come up with his first product. Dyson quickly became known as an innovative vacuum cleaner company. But this story quick
Answer Preview: Dyson has had many successes in the past. However, it has also had various failures (e g., the Contr…

, Chapter: 12 -Problem: 17 >> Is Target a producer, a consumer, or an intermediary? How about Shipt? Explain.There is a frenzy to get out in front of home grocery delivery. Amazon and Walmart are getting all the attention. But pretty much every grocery chain large and small is fighting for a piece. Target knew it had to get serious and purchased Shipt, a startup company that specialized in grocery delivery by using existing gr
Answer Preview: As a standalone company prior to the acquisition, Shipt is …

, Chapter: 3 -Problem: 7 >> Vice Media’s Broadly site, which tells stories that focus on the experiences of women, gender non-conforming people, and LGBTQ individuals, recently offered to the public The Gender Spectrum Collection, a stock photo library of more than 180 images of 15 transgender and non-binary models (whose gender identities are not exclusively masculine or feminine). The goal was to avoid stereotypes that res
Answer Preview: Marketers need to be aware of increasing diversity. Many …

, Chapter: 12 -Problem: 1 >> Describe a value delivery network. How does it differ from a supply chain? Explain.
Answer Preview: A value delivery network is a network composed of the company, suppliers, distributors, and, ultima…

, Chapter: 4 -Problem: 4 >> What is customer relationship management (CRM)? How is it related to big data and artificial intelligence? Provide an example of a company using artificial intelligence.
Answer Preview: CRM consists of sophisticated software and analysis tools that integrate cust…

, Chapter: 7 -Problem: 17 >> Which market targeting strategy is 5-Hour Energy following? Justify your answer.Breaking into a mature and fragmented industry where veteran brands reign is fraught with barriers to entry. But by finding and targeting an underserved and overlooked segment, 5 Hour Energy emerged an unlikely victor. It avoided direct competition with the likes of the Coca-Cola Company and Pepsico by sidestepping the
Answer Preview: Breaking into a mature and fragmented industry where veteran brands reign is fr…

, Chapter: 5 -Problem: 5 >> Identify the five adopter groups and briefly describe each group.
Answer Preview: There are 5 types of adopters for products; innovators, earl…

, Chapter: 13 -Problem: 8 >> In a small group, present a plan for a new retail store. Who is the store’s target market? Describe the merchandise, atmospherics, price points, services provided, location, and how you would promote your retail store. Describe how you will differentiate your store from competitors.
Answer Preview: Addressing all these questions will help students to understanding the number of decisions th…

, Chapter: 1 -Problem: 5 >> What are the outcomes of creating superior customer value? Why should companies pay attention to these outcomes?
Answer Preview: By creating superior customer value, the firm creates satisfied customers who stay loyal, bu…

, Chapter: 11 -Problem: 17 >> Which new product pricing strategy does Casper employ? Why does it work? Casper is one of many direct-to-consumer companies that has flipped the mattress industry upside down. It was only a matter of time. A few mattress manufacturers had held consumers hostage for too long with overpriced products and a distribution model that left them with little choice but to endure a cumbersome sales process.
Answer Preview: There are two new product pricing strategies discusse…

, Chapter: 3 -Problem: 3 >> Why should marketers pay attention to geographic shifts in the U.S. population?
Answer Preview: Consumers who live in different regions of the country buy differently. As consumers continue t…

, Chapter: 9 -Problem: 13 >> Would you use such a product? Why or why not? Support your answer. The road to autonomous cars could be right around the corner but automakers will likely face twists and turns getting there as these vehicles make their way to the marketplace. Companies like Waymo, General Motors, Tesla, and even Uber and Lyft are piloting various autonomous vehicle technologies that will likely be seen on streets
Answer Preview: You would not use such a product because there are still too many safety conce…

, Chapter: 15 -Problem: 18 >> Discuss issues of selecting advertising media for the Mayhem campaign. How might this process differ from that of campaigns for other companies?Once a group of massively boring companies, auto insurance firms were not known for creative advertising. That has changed dramatically in the past decade as all of the top companies have developed creative and entertaining campaigns based on widely recogn
Answer Preview: The issues of selecting advertising media for the Mayhem campaign entails selecting a media mix (bro…

, Chapter: 13 -Problem: 6 >> Discuss the marketing mix decisions faced by wholesalers. What current challenges do wholesalers face?
Answer Preview: Wholesalers add customer value though the products and services they offer. They are often under gre…

, Chapter: 2 -Problem: 1 >> Discuss the role marketing plays in the company-wide strategic planning process.
Answer Preview: Strategic planning sets the stage for the rest of planning in the fi…

, Chapter: 13 -Problem: 2 >> Differentiate between retailers based on the amount of service they offer. Provide an example of each type.
Answer Preview: Different types of retailers based on the amount of service they offer include self-service retailers, limited service retailers, and full-service retailers. Self-service retailers are those where the customers generally do not receive any assistance from the employees and are expected to serve themselves. Limited service retailers are those where the employees provide some assistance to the customers, but the level of service is still not as comprehensive as that of full-service retailers. Full-service retailers are those where the employees provide a high level of service to the customers, and the customers can expect to receive assistance with almost anything they need. An example of a self-service retailer …

, Chapter: 2 -Problem: 6 >> What is marketing return on investment (ROI)?
Answer Preview: Marketing ROI is an important marketing performance m…

, Chapter: 9 -Problem: 19 >> With respect to the product life cycle, what challenges does Bose face in managing its product portfolio?
Answer Preview: Bose has diversified. Its primary products are speakers and headphones. It …

, Chapter: 1 -Problem: 11 >> What can other not-for-profit marketers learn from the Cincinnati Zoo’s use of social media to generate interest in Fiona? How does it fit with the Cincinnati Zoo’s overall social media strategy?Fiona, a young hippo who was born prematurely and survived, lives in the Cincinnati Zoo’s Africa exhibit. Fiona became a star when the zoo’s communication director and her team started posting every move s
Answer Preview: Solution - 1-10. The marketers of Cincinnati Zoo are extremely sensitive in their posts on the zoo resident animals. They have been cautious in creati…

, Chapter: 12 -Problem: 11 >> Transportation, inventory, warehousing, and information management activities can interact in inverse ways. What trade-offs will Petco have to make in offering its customers same-day delivery? Petco recently formed a partnership with Target-owned Shipt to expand its same-day delivery options, which it already offers in some markets through Instacart’s PetcoNow service. Shipt now delivers goods fro
Answer Preview: 1 . Pet co will have to trade off between offering a wider variety of products and being able to del…

, Chapter: 3 -Problem: 5 >> Why should marketers pay close attention to the cultural environment?
Answer Preview: The cultural environment consists of institutions and …

, Chapter: 9 -Problem: 1 >> Explain how firms obtain new products and why it is an important process for companies and customers.
Answer Preview: A firm can obtain new products in two ways. One is through acquisitionby …

, Chapter: 3 -Problem: 2 >> Identify the five major generational groups and briefly describe their impact on today’s marketing strategies.
Answer Preview: The five major generational groups are: baby boomers, Generation X, millennials, Generation Z, and Generation Alpha. Baby boomers were born in the pos…

, Chapter: 10 -Problem: 7 >> You just won your state lottery and will be receiving a check for $1 million. You have always wanted to own your own business and have noticed the increase in the number of food trucks in your local area. A new food truck with a kitchen and related equipment costs about $100,000. Other fixed costs include salaries, gas for the truck, and license fees and are estimated to be about $50,000 per year.
Answer Preview: Answer: Total Fixed cost = $ 100000 + $ 50000 = $ 150000 Variable cost per unit ( V ) = $ …

, Chapter: 15 -Problem: 6 >> Discuss the major tools used by the public relations team to communicate relevant marketing content.
Answer Preview: As with the other promotion tools, in considering when and how to use produc…

, Chapter: 9 -Problem: 11 >> Visit www.pcmag.com/roundup/341251/the-best-robot-vacuums. How do the reviews of iRobot vacuums compare to competitive robot vacuums? Does the information from the review match the value proposition that is communicated using the user-generated content? What are the implications of your observations for consumer evaluations of the iRobot robot vacuums? Although robot vacuums have been around for m
Answer Preview: In general, the reviews of iRobot vacuums are positive, with many reviewers praising the machines fo…

, Chapter: 2 -Problem: 5 >> Why do marketers need to practice constant marketing control?
Answer Preview: Marketers need to evaluate results and take correct…

, Chapter: 8 -Problem: 2 >> Name and explain the five important decisions that marketers must make in developing and marketing individual products and services?
Answer Preview: For developing marketing plans and strategie…

, Chapter: 3 -Problem: 9 >> Visit engageforgood.com/halo-awards/ to learn about companies that have won Halo Awards for outstanding cause-related marketing programs. Present an award-winning case study to your class.
Answer Preview: Solution: Halo Awards are designed to recognize organizations that have created and implemented succ…

, Chapter: 9 -Problem: 15 >> What other factors must a therapist consider before adding this in-home service to his or her in-office service?According to the American Massage Therapy Association, the therapeutic massage industry grew more than 7 percent between 2013 and 2018, reaching $18 billion in revenue. The industry will continue to grow an estimated 4 percent or more through 2022. Although the majority of massages are p
Answer Preview: There are a few things to consider before adding an in- home service to an already established in- o…

, Chapter: 14 -Problem: 4 >> What are the steps in developing an effective integrated communications and promotion program?
Answer Preview: 7 Steps To Create An Integrated Marketing Communication Plan. . …

, Chapter: 8 -Problem: 14 >> What brand development strategy is Coca-Cola undertaking? Coca-Cola launched Coca-Cola Plus in a limited market in Japan last year and now plans to launch it nationwide in that country. Coca-Cola Plus is a zero-calorie soda (essentially Diet Coke) with 5 grams of an indigestible dietary fiber called dextrin. Although some might just call it Diet Coke with a laxative, Coca-Cola Plus is touted in Ja
Answer Preview: Coca-Cola is using a line extension strategy, extending an existing br…

, Chapter: 3 -Problem: 10 >> Many businesses have now crafted responses to the #MeToo movement. Research the issue and discuss how companies are communicating their positions to customers. What online or social media platforms are they using? Are they communicating the message clearly and effectively?Recent times have seen the rise of the #MeToo movement, focused on creating awareness and change relating to sexual harassment,
Answer Preview: People speaking up under #MeToo movement are the ones who either could not register their complaint at the time when the incident happened, or the one…

, Chapter: 14 -Problem: 15 >> Analyze the “In It Together” ads based on the process of creating an advertising message as outlined in the text. There is no question that social media has become a crucial part of the fabric of society. Professional networking site LinkedIn is one of the largest in the world with more than 560 million members worldwide. Only a handful of social media sites are larger. And of those, none have bee
Answer Preview: A response to this question should address the following: Creative concept: This is summed up pretty …

, Chapter: 3 -Problem: 4 >> Is Dyson a customer-centered company? Explain. Dyson started out as so many storybook success stories do—by one person, in a garage, tinkering away at a product idea. In this case, it took James Dyson over 15 years and 5,000 prototypes to come up with his first product. Dyson quickly became known as an innovative vacuum cleaner company. But this story quickly reveals that Dyson is about much more
Answer Preview: This is a good question for discussion and debate. Dyson seems to star…

, Chapter: 15 -Problem: 16 >> Why has Allstate’s “good hands” slogan withstood the test of time to become advertising’s longest-running slogan? Once a group of massively boring companies, auto insurance firms were not known for creative advertising. That has changed dramatically in the past decade as all of the top companies have developed creative and entertaining campaigns based on widely recognized personality symbols. Each
Answer Preview: A strong emotional appeal is the core of a good campai…

, Chapter: 14 -Problem: 9 >> How did communications integration affect the “Buy a Lady a Drink” campaign’s effectiveness?In 2017, Stella Artois and National Geographic collaborated on a “Buy a Lady a Drink” campaign by which, for every Limited-Edition chalice sold, Stella Artois helped water.org provide five years of clean water for one person in the developing world, where 665 million people live without access to safe water
Answer Preview: The message is integrated across several different social media touchpoints and on broadcas…

, Chapter: 15 -Problem: 2 >> What is native advertising and why has its usage by marketers increased?
Answer Preview: Native advertising is content that advertises a brand but looks like editorial content from the medi…

, Chapter: 1 -Problem: 12 >> Patagonia’s mission realignment and its focus on counteracting the causes of global warming may seem more appropriate for a nonprofit organization than for a business. How might Patagonia’s new mission affect its reputation among consumers who rely on it to make and market the best products?Companies are increasingly building social and environmental responsibility into their company value and mis
Answer Preview: Patagonia's mission statement is inspiring and it clearly says the company is highly conscious abou…

, Chapter: 4 -Problem: 19 >> Discuss Qualtrics’ tools in the context of research approaches. In today’s environment of data proliferation, companies don’t need more data—they need better data. Qualtrics provides a suite of online data gathering and analysis tools that give companies the ability to handle the data they have access to. As a pioneer in online surveys, Qualtrics has evolved, creating a suite of products that go b
Answer Preview: There are three basic research approachesobservational, survey, and experimental. The most ob…

, Chapter: 3 -Problem: 15 >> How many more females than males age 65 and over were there in 2011 and 2016? What percentage of the population did females make up in each year? Draw some conclusions regarding this data. As marketers focus on millennials embarking on major first-time consumption decisions related to careers, homes, and families, another generation should not be forgotten: the aging baby boomers. The U.S. 65-and-
Answer Preview: The difference in the number of females and males and the percentage of females for each ye…

, Chapter: 4 -Problem: 8 >> Imagine you own a pet grooming business. You want to use market research to identify how you can grow your business but you are on a limited budget. Review the marketing research techniques outlined in the chapter to determine which ones can be used for your small business. What information will you need and how will you obtain it?
Answer Preview: Marketing research helps you target more customers as well as helps us in creating more compelling m…

, Chapter: 14 -Problem: 8 >> Recently, a former creative director from Netflix founded a canned water start-up called Liquid Death Mountain Water. The brand positions itself as a sustainable alternative to energy drinks and soda, and targets the straight-edge punk crowd that abstains from drugs and alcohol using the tagline: “Murder Your Thirst.” The brand aims to make the world’s healthiest beverage, water, as funny and ente
Answer Preview: Based on the consumer focus, where the things that differentiate the water are directed at …

, Chapter: 8 -Problem: 19 >> Do you think BMW is taking MINI in the right direction with its current branding strategy? Why or why not? Longstanding brands face the challenge of remaining true to loyal customers while also addressing different and unique needs of new generations of customers. Iconic British car brand MINI has accomplished this feat, all while enduring the seemingly condition of being passed from one owner to
Answer Preview: BMW has a track record for remaining true to the MINI brand as it redesigned this brand multiple tim…

, Chapter: 2 -Problem: 2 >> How does a firm evaluate and analyze its business portfolio?
Answer Preview: The best business portfolio is the one that fits the companys streng…

, Chapter: 9 -Problem: 3 >> What is idea generation? List and explain the sources of new product ideas.
Answer Preview: Idea generation is the first step in new product development. It is the systematic search for new pr…

, Chapter: 14 -Problem: 16 >> Discuss issues of selecting advertising media for the “In It Together” campaign. How might this process differ from that of campaigns for other companies? There is no question that social media has become a crucial part of the fabric of society. Professional networking site LinkedIn is one of the largest in the world with more than 560 million members worldwide. Only a handful of social media site
Answer Preview: The campaign was designed from the beginning as a multiplatform, integrated campaign re…

, Chapter: 10 -Problem: 17 >> Historically, did Gillette employ good-value pricing or value-added pricing? Explain. For more than 100 years, Gillette has dominated the razor industry. It has stood as a brand in relentless pursuit of the closest, most irritation free shave by launching more razor innovations than any other company. With a reputation for having the best blade in the business, not only has Gillette held the lion’
Answer Preview: Gil lette has employed good- value pricing in the past , but has recently switched …

, Chapter: 14 -Problem: 13 >> Calculate both companies’ advertising-to-sales ratios for each year. What is each’s average ratio over the five-year period? Refer to the percentage-of-sales method in the chapter to learn about this method. Although consumption of carbonated beverages has been decreasing, it is still an $81 billion industry in North America, which far exceeds alternatives such as water ($23 billion) and sports dr
Answer Preview: Solution: a. Calculate both companies advertising-to-sales ratios for each year. 2008: $4,700,000/($…

, Chapter: 12 -Problem: 15 >> Determine the brewer’s cost per 14.5-ounce serving (one glass). What price would a brewer sell that glass of beer for to achieve an 80 percent margin based on its selling price at its own taproom or brewpub? What dollar and percentage margin would a brewer realize if the glass of beer was sold for the same price as it is sold in bars? Is the brewer better off using the direct channel compared to t
Answer Preview: First, the brewers cost per 14 5-ounce service must be determined because it is not $0 88 as it is f…

, Chapter: 15 -Problem: 5 >> Define public relations and explain the many public relations functions.
Answer Preview: Public relations (PR) involves building good relations with the companys various publics by …

, Chapter: 8 -Problem: 4 >> Describe the service profit chain. Provide an example.
Answer Preview: The service profit chain links service firm profits with employee and customer satisfaction. This ch…

, Chapter: 15 -Problem: 8 >> Visit the website for the OBIE Awards, which celebrates creative excellence in advertising. Go to the section for current winners and select one of the winning campaigns (obieawards.org/Current-Winners). Evaluate the campaign. Describe how the advertiser used the media vehicle(s) to reach the target audience and get them to engage.
Answer Preview: The advertiser used the media vehicle(s) to reach the targ…

, Chapter: 10 -Problem: 13 >> In your opinion, is it ethical for consumers to skiplag/use hidden cities to save money? Why or why not?Some travelers use cheap travel websites and book at off-peak times to save money. Other travelers have tried to increase their savings by booking a one-way ticket through a connecting city where they intend to stay in the layover city. For example, a traveler flying from Los Angeles to New York
Answer Preview: They may feel the airline does not lose money because t…

, Chapter: 14 -Problem: 10 >> Companies and brands have been criticized for aligning with social causes in a self-serving way, exploiting the social cause for the company’s gain. Did the Stella Artois “Buy a Lady a Drink” campaign exploit the cause—the disproportionate impact of the water shortage on women—to build the Stella Artois brand? Explain.How did communications integration affect the “Buy a Lady a Drink” campaign’s ef
Answer Preview: While the Stella Ar to is " Buy a Lady a Drink " campaign did focus on the disproportionat…

, Chapter: 12 -Problem: 20 >> Will Target’s acquisition of Shipt result in growing revenues in the coming years? Explain.There is a frenzy to get out in front of home grocery delivery. Amazon and Walmart are getting all the attention. But pretty much every grocery chain large and small is fighting for a piece. Target knew it had to get serious and purchased Shipt, a startup company that specialized in grocery delivery by using
Answer Preview: 1. The value delivery system network for Targets grocery business would be in the following order:1 Farmer2 Wholesaler3 Distributor4 Target5 Shipt6 Co…

, Chapter: 4 -Problem: 9 >> Go to Google Trends (trends.google.com). Assume you are a consumer goods marketer that oversees a sparkling water product. How could the Google Trends information help your company improve its understanding of its market? Conduct a search that could provide information that might increase profits. Explain what you searched and what insights you gained that could inform decision making.
Answer Preview: a. It will help me improve my understanding of its market by giving me an idea about the demand and …

, Chapter: 11 -Problem: 14 >> Assuming a contribution margin of 25 percent and sales of $4 billion, with a 20 percent price increase, by how much can sales decrease before profitability (total contribution) drops below its current level? Refer to Financial Analysis of Marketing Tactics: Price Decrease in Appendix 2: Marketing by the Numbers to learn how to perform this analysis but determine the maximum drop in sales before to
Answer Preview: Solution: Amount can sales decrease before profitability = Tota…

, Chapter: 14 -Problem: 17 >> Based on the information in this case, how might LinkedIn measure the effectiveness of the “In It Together” campaign? There is no question that social media has become a crucial part of the fabric of society. Professional networking site LinkedIn is one of the largest in the world with more than 560 million members worldwide. Only a handful of social media sites are larger. And of those, none have
Answer Preview: LinkedIn can measure the effectiveness of the In It Together campaign by analyzing various data sour…

, Chapter: 9 -Problem: 6 >> What special challenges do international product and services marketers face?
Answer Preview: International marketers need to figure out what products and services to in…

, Chapter: 15 -Problem: 17 >> Analyze Mayhem ads based on the process of creating an advertising message as outlined in the text (for Mayhem ads, check out www.allstate.com/mayhem-is-everywhere.aspx). Once a group of massively boring companies, auto insurance firms were not known for creative advertising. That has changed dramatically in the past decade as all of the top companies have developed creative and entertaining campa
Answer Preview: There are numerous different examples of Mayhem ads that students can analyze. But each of them foll…

, Chapter: 10 -Problem: 6 >> How is target costing different from other pricing strategies?
Answer Preview: Target costing sets an ideal selling price based on customer value …

, Chapter: 15 -Problem: 10 >> Plum Organics chose to focus its advertising on lifestyle dimensions associated with parenting rather than on its products. What are the positives and negatives of this approach? Plum Organics, an organic baby food brand, recently created a video-led campaign called Parenting Unfiltered that celebrated the messiness and complications associated with parenting. The campaign did not feature a produc
Answer Preview: Plum Organics chose to use the advertising to try to be known as a brand …

, Chapter: 1 -Problem: 9 >> Visit the Clorox website at www.clorox.com. Scroll to the bottom of the page and notice how Clorox is currently connecting with customers on social media platforms including Facebook, Twitter, Pinterest, YouTube, and Instagram. Click on one or more of the platforms to view ways in which Clorox is building and maintaining customer linkages while illustrating value and providing information behind t
Answer Preview: The Cloroxs effectiveness in creating customer engagement through its web a…

, Chapter: 1 -Problem: 4 >> What is consumer-generated marketing? What are the challenges associated with consumer-generated marketing?
Answer Preview: A growing part of the new customer dialogue is consumer-generated marketing, …

, Chapter: 15 -Problem: 20 >> Has the Mayhem campaign been effective? Support your answer. Once a group of massively boring companies, auto insurance firms were not known for creative advertising. That has changed dramatically in the past decade as all of the top companies have developed creative and entertaining campaigns based on widely recognized personality symbols. Each of them have also poured more and more money into ad
Answer Preview: it would seem that this campaign has all the right elements as a winner. But when assessing any camp…

, Chapter: 3 -Problem: 6 >> Provide an example of how people’s views of nature might affect their food choices.
Answer Preview: Assuming you are referring to people's views of the natural world around t…

, Chapter: 3 -Problem: 9 >> Speculate on Square’s future by discussing current and future trends that may further shape the company.In 2010, Square launched its credit-card-reading dongle for smartphones. Ever since, Square has sought to find ways to make payments even less painful. Last year, the company introduced Square Terminal: a single-screen card-reading device that offers wireless connectivity, a touch screen, and re
Answer Preview: The Square seem to have a good future in the financial industry as the company is consistently havin…

, Chapter: 15 -Problem: 19 >> Based on the information in this case, how might Allstate measure the effectiveness of the Mayhem campaign?Once a group of massively boring companies, auto insurance firms were not known for creative advertising. That has changed dramatically in the past decade as all of the top companies have developed creative and entertaining campaigns based on widely recognized personality symbols. Each of the
Answer Preview: Allstate can measure the effectiveness of the Mayhem campaign by comparing its market share before a…

, Chapter: 3 -Problem: 7 >> Describe how Square has evolved based on the forces of the macroenvironment.In 2010, Square launched its credit-card-reading dongle for smartphones. Ever since, Square has sought to find ways to make payments even less painful. Last year, the company introduced Square Terminal: a single-screen card-reading device that offers wireless connectivity, a touch screen, and receipt-printing capability. T
Answer Preview: Economic While not discussed, Square launched as the economy was recovering from the Great Recession…

, Chapter: 2 -Problem: 11 >> As Lush UK implements the change, how can it measure the effects of leaving social media on the achievement of its marketing goals?Lush Fresh Handmade Cosmetics UK sells hand-made premium beauty products such as body washes, bath bombs, and face masks through 900 cosmetics shops around the globe. Until recently, it engaged customers with captivating Instagram posts, which contributed to its massiv
Answer Preview: It can measure the effects of leaving social media by measuring the n…

, Chapter: 1 -Problem: 10 >> Go to www.facebook.com/cincinnatizoo and find posts that feature Fiona the hippo. How does the zoo’s communications team engage with Fiona’s fans?Fiona, a young hippo who was born prematurely and survived, lives in the Cincinnati Zoo’s Africa exhibit. Fiona became a star when the zoo’s communication director and her team started posting every move she made from the day she was born prematurely. Sh
Answer Preview: Solution - 1-10. The marketers of Cincinnati Zoo are extremely sensitive in their posts on the zoo resident animals. They have been cautious in creati…

, Chapter: 14 -Problem: 12 >> What legal and ethical issues should a company consider before it makes claims about its commitment to a social purpose?A recent study by social-impact consultancy DoSomething Strategic showed that 58 percent of young consumers were more likely to buy from brands that back a good cause. However, it can be tricky for marketers to tell consumers what things a brand is doing to make a social impact i
Answer Preview: When making claims about its commitment to a social purpose , a company should consider the followin…

, Chapter: 2 -Problem: 4 >> What is an integrated marketing mix, and why is it important for a firm’s marketing strategy? How do the 4As relate to the 4Ps?
Answer Preview: The marketing mix consists of everything the firm can do to engage consumers and deliver customer va…

, Chapter: 3 -Problem: 12 >> Debate the pros and cons of purchasing the Echo Dot Kids Edition for a child.Amazon recently introduced its Echo Dot Kids Edition, which the company markets as a sturdy, safe, kid-friendly, transaction-free smart speaker with voice-activated virtual assistant Alexa. Designed for kids, the device has parental controls that can limit activities and content that parents do not want children to access
Answer Preview: The Echo Dot Kids Edition is a smart speaker with voice- activated virtual assistant Alexa , designe…

, Chapter: 3 -Problem: 4 >> Discuss the natural environment and the three trends that will impact future marketing plans.
Answer Preview: The natural environment involves the physical environment and the natural resources that are …

, Chapter: 1 -Problem: 14 >> Assuming a contribution margin of 60 percent, what sales would be necessary to breakeven (that is, maintain the current total contribution) on the 12 percent across-the-board price reduction? Refer to Financial Analysis of Marketing Tactics: Price Decrease in Appendix 2: Marketing by the Numbers to learn how to perform this analysis. Gillette, Proctor & Gamble’s powerhouse razor brand, is experien
Answer Preview: let the fixed cost be 60000 reverse calculating the break even sales …

, Chapter: 15 -Problem: 4 >> What three characteristics should advertising appeals have?
Answer Preview: Advertising appeals should have three characteristics. First, they should be mea…

, Chapter: 5 -Problem: 4 >> Identify the stages of the adoption process and describe what might happen at each stage when a consumer considers a new smart phone.
Answer Preview: The adoption process is a mental process in which an individual learns about an innovation to finall…

, Chapter: 15 -Problem: 1 >> What major decisions should a marketing manager consider when developing an advertising program?
Answer Preview: Marketers must make four important decisions when developing an advertising progr…

, Chapter: 1 -Problem: 15 >> What absolute increase and percentage increase in sales does this represent? Gillette, Proctor & Gamble’s powerhouse razor brand, is experiencing challenges from consumer trends and upstart digital competitors. Gillette and close competitor Schick have focused on product innovation and higher prices. Indeed, their cartridges first contained two blades, then three, and now five. Razors now have swi
Answer Preview: Answer : let the fixed cost be 60000 reverse calculating the break eve…

, Chapter: 5 -Problem: 7 >> The characteristics of a new product affect its rate of adoption. Identify the five characteristics that influence the rate of adoption and describe how each factor will influence the rate of adoption of a relatively low technology product: the Vinton watch from Shinola.
Answer Preview: Five characteristics are especially important in influencing innovation rate of adoption: Relative a…

, Chapter: 1 -Problem: 17 >> Discuss Buffalo Wild Wings’ success and stagnation in terms of customer perceived value.Buffalo Wild Wings has emerged as the largest pourer of draft beer, the largest server of chicken wings, and one of the fastest growing restaurant chains in the U.S. The reason for its success goes far beyond its menu offerings. Rather, BWW is in the business of fueling the sports fan experience. Every aspect o
Answer Preview: Buffalo Wild Wings success and stagnation entails the companys ability to deliver …

, Chapter: 4 -Problem: 12 >> If you used an app like WeChat, what information would you be comfortable having tied to your identity? What information would you prefer not be tracked? What is the trade-off between convenience and privacy?WeChat, an app in China, offers its users a “one-stop shop” for features. Users can chat, shop, form new social connections, order and pay for food, make payments, identify crowded locations,
Answer Preview: a. The information would be what was required in order to use the app. If the app needed to know my …

, Chapter: 1 -Problem: 18 >> Which of the five marketing management orientations best applies to Buffalo Wild Wings? Buffalo Wild Wings has emerged as the largest pourer of draft beer, the largest server of chicken wings, and one of the fastest growing restaurant chains in the U.S. The reason for its success goes far beyond its menu offerings. Rather, BWW is in the business of fueling the sports fan experience. Every aspect o
Answer Preview: The marketing management orientation that best applies to Bu…

, Chapter: 4 -Problem: 15 >> Create a histogram (that is, a bar chart) that shows the number of times each attitude score is given by a consumer in the dataset. What conclusions can you draw from these descriptive statistics? As you read in the chapter, the objective of descriptive research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product. Thr
Answer Preview: Solution: My conclusions that I can draw from above is that the maj…

, Chapter: 15 -Problem: 9 >> Nike recently offered a Snapchat Lens that lets users wear the U.S. women’s soccer kit virtually. Fans of the U.S. women’s national soccer team could try on home and away jerseys through an augmented reality filter then swipe-up to purchase it at Nike.com. What factors may have influenced Nike’s decision to advertise in this way?
Answer Preview: Nike may have recognized that the target audience was using Snapcha…

, Chapter: 3 -Problem: 8 >> Are there factors in the marketing environment not mentioned in this case that are affecting Square?In 2010, Square launched its credit-card-reading dongle for smartphones. Ever since, Square has sought to find ways to make payments even less painful. Last year, the company introduced Square Terminal: a single-screen card-reading device that offers wireless connectivity, a touch screen, and receip
Answer Preview: Disclaimer: Since you have asked multiple question, we will solve the first question for you. If you want any specific question to be solved then plea…

, Chapter: 1 -Problem: 13 >> How should a public firm that wants to engage in corporate social responsibility in a way that might sacrifice short-term profitability explain this decision to shareholders? Companies are increasingly building social and environmental responsibility into their company value and mission statements. More than 500 American companies have signed the UN Global Compact, a commitment to standards that i
Answer Preview: There are a few different ways that a public firm that wants to engage in corporate social responsib…

, Chapter: 1 -Problem: 6 >> Explain the growing importance of digital and social media marketing.
Answer Preview: Digital and social media marketing involves using digital …

, Chapter: 2 -Problem: 15 >> Go to Yahoo! Finance (http://finance.yahoo.com/) and find the income statements for two other competing companies. Perform the same analyses for these companies that you performed for the previous question. Which company is doing better overall and with respect to marketing? For marketing expenses, use 75 percent of the company’s reported “Selling General and Administrative” expenses, as not all o
Answer Preview: To compare the marketing efficiency of Facebook and Google, you can calculate the marketing ROI for …

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, Chapter: 19 -Problem: 5 >> Briefly outline the strategies used for adapting products to a global market. Provide an example for each strategy.
Answer Preview: The three product strategies are straight product extension, product adaptation, and product inventi…

, Chapter: 16 -Problem: 9 >> Design a consumer promotion to increase brand awareness and trial of cricket flour-based Chirps Chips (www.eatchirps.com).
Answer Preview: - Create an interesting and fun cricket chip recipe - I…

, Chapter: 18 -Problem: 13 >> Marketing by the Numbers and calculate market shares for each company for both years. Calculate the percentage change in year-over-year unit sales for each company. What can you conclude from the market shares and year-over-year changes that you calculated? Greek philosopher Heraclitus certainly understood modern-day markets when he said, “The only thing that is constant is change.” The smartphone
Answer Preview: Market share = (company sales market sales) x 100 Students need to add up all companies sales to det…

, Chapter: 18 -Problem: 11 >> Phat Beets and Imperfect Produce are in different categories but serve similar target markets with similar products. How should Phat Beets differentiate itself from Imperfect Produce, if at all?Following a USDA report that nearly one-third of food is wasted at the retail and consumer levels, “ugly produce” innovators began receiving millions of dollars in private funding to address food waste. How
Answer Preview: Phat Beets may want to differentiate its offering based on its supply chain (it suppor…

, Chapter: 16 -Problem: 2 >> Name and explain the major steps in sales force management.
Answer Preview: Sales force management involves analyzing, planning, implementing, and controlling sales force activ…

, Chapter: 19 -Problem: 10 >> The cultural environment is likely having the greatest impact on Tinder’s growth in India. The decline in arranged marriages and the increase in young people working in cities may be fueling demand for people looking to make their own connections within a specific location. Other responses may note the size of the market, since India’s population is the second largest in the world; technological f
Answer Preview: The cultural environment is likely having the greatest …

, Chapter: 16 -Problem: 7 >> Write a job description for an order getter at Snap-on tools, a company that sells advanced tools to auto mechanics and technicians.
Answer Preview: The job description entails making the purchase of new tools and equipment …

, Chapter: 20 -Problem: 9 >> “Greenwashing” is the practice of promoting a product by misleading consumers about its environmentally beneficial aspects. Products might be labeled as “natural,” “green,” “environmentally friendly,” or biodegradable” but have little or no environmental benefits. Go to www.truthinadvertising.org/six-companies-accused-greenwashing/ and choose one of the 10 examples of companies that are not as env
Answer Preview: L'Oreal is one of the companies accused of greenwashing They …

, Chapter: 20 -Problem: 7 >> Products can be classified according to their degree of immediate consumer satisfaction and long-run consumer benefit as deficient, pleasing, salutary, or desirable products. Identify two products for each of the four categories and explain why they belong in that category.
Answer Preview: Deficient products, such as bad-tasting and ineffect…

, Chapter: 20 -Problem: 3 >> How do marketing efforts impact society? Discuss both sides of this issue.
Answer Preview: Positive Impact Marketing drives a consumer economy, promoting goods and services and targeting cons…

, Chapter: 18 -Problem: 9 >> Compare Uniqlo’s approach on Instagram (www.instagram.com/uniqlousa) to Madewell’s approach (www.instagram.com/madewell). Based on your comparison, is Uniqlo a market challenger, market follower, or niche marketer? Explain your response.Uniqlo targets young, urban, professional, and practical American shoppers with fashions that are not unique and bear no labels. It offers low prices (e.g. jeans f
Answer Preview: Uniqlos approach is in line with a market follower. It is not attacking a market leader. And efforts …

, Chapter: 8 -Problem: 5 >> Identify and briefly describe the three major marketing tasks service companies face.
Answer Preview: 1 . Gener ating awareness of the company and its services is the first and foremost marketing ta…

, Chapter: 7 -Problem: 6 >> What is a value proposition? Discuss the five winning value propositions on which a company might position its products and give an example of each.
Answer Preview: The five winning value propositions are more for more, more for the same, the same for less, less fo…

, Chapter: 20 -Problem: 15 >> Discuss the pros and cons of the company’s decision to price the MyEye 2.0 so high. Is the company following the principle of societal marketing? Should it?MyEye 2.0 is a thumb drive-sized device that weighs less than an ounce and attaches magnetically to the stem of almost any pair of glasses. It helps people with impaired vision to “see.” It recognizes paper money dominations, faces based on sto
Answer Preview: They should indicate an understanding of the societal marketing concept. Following the principle …

, Chapter: 14 -Problem: 2 >> How has the role of marketing communicators shifted in response to the increasingly fragmented and digital communications environment?
Answer Preview: Marketer communicators now view themselves as content marketing managers instead of as peop…

, Chapter: 20 -Problem: 6 >> What guidelines should firms follow when developing corporate marketing ethics policies?
Answer Preview: The finest guidelines cannot resolve all the difficult ethical situations the marketer faces but the…

, Chapter: 17 -Problem: 1 >> Compare and contrast the new direct marketing model with the traditional direct marketing model.
Answer Preview: Early direct marketerscatalog companies, direct mailers, and telemarketersgathered customer names an…

, Chapter: 17 -Problem: 10 >> Discuss QVC’s shift in strategy. What competitive advantages can now be achieved?With many online retailers having to look giants Amazon and Walmart directly in the eye, home shopping network QVC is rethinking how it can compete and stay relevant in a tight retail marketplace. The infamous network that began in 1986 has grown to an $8.8 billion-plus global shopping organization. One aspect QVC is
Answer Preview: One key QVC shift is the transition from television-only shopping …

, Chapter: 7 -Problem: 9 >> In a small group, look at InsomniaCookies.com. Using the steps described in the chapter, describe the company’s customer value-driven marketing strategy. Write as a positioning statement for this business.
Answer Preview: The companys customer value-driven marketing strategy entails creating a brand na…

, Chapter: 16 -Problem: 8 >> A sales manager for a telecommunications company is trying to calculate the optimal number of salespeople. The company has 500 A-level accounts and 3,000 B-level accounts. A-level accounts require 20 calls per year; B-level accounts require 10 calls per year. The average salesperson can make 1,000 calls per year. What is the workload? How many salespeople should the sales manager hire? What other
Answer Preview: If the company has 500 A-level accounts that require 20 calls per year and 3,000 B-level …

, Chapter: 19 -Problem: 8 >> Lululemon, a Canada-based retailer, is facing increased competition from less expensive alternatives to its $100 yoga pants. However, instead of lowering prices or expanding beyond its own 440 stores or website, it will launch new products (for example, deodorant and sneakers) and expand via e-commerce and physical stores into international markets, including China. What barriers might slow Lulule
Answer Preview: The Canadian firm should be aware of international dynamics that affect trade neg…

, Chapter: 7 -Problem: 3 >> What major structural factors affect long-run segment attractiveness?
Answer Preview: There are a variety of structural factors that can affect long-run segment attractiveness. Some of the most important ones include market size, growth …

, Chapter: 16 -Problem: 18 >> Discuss some ways that the CBD structure may be more effective than a single sales rep for each step in the personal selling process.P&G is the largest consumer products firm in the world and one of the largest corporations in the U.S. Its products are sold through almost every grocery, discount, and general merchandise retailer. The sales effort involved in moving P&G products thr

Additional Information

Book:
Principles Of Marketing
Isbn:
ISBN: 9781292341132
Edition:
18th Edition
Author:
Authors: Philip Kotler, Gary Armstrong
Image:
623d9cfbcc095_6471.jpg

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