POM Study Guide #2

139. Converse lets the customer be involved in creating the ad campaign. What do they do?

"Made by You" campaign allows customers to customize their own Converse and share their self-expression on social media

138. Of the ten different "execution styles" of advertising, what do you think are the three best?

(See #133)

101. A "Mega-retailer" now exists because of the growth of new Retail technology. Give a few examples of what stores are doing to implement new store-based technologies. This includes AR and VR

- Big Data: Retailers are using big data to gain insights into customer needs and behaviors, thus allowing them to tailor merchandise, promotions, recommendations, and service to individual customer profiles - Mobile Technology: Stores are now using mobile technology to improve customer convenience, a good example of this is the Amazon Go store, which uses a mobile app and camera/sensor technology to track customer orders so they don't have to wait in line - Beacon Technology: Bluetooth connections allow retailers to engage customers and improve their experience as they walk around in stores - AR and VR: AR and VR are still developing and difficult to implement, but right now they are used to provide customers with unique virtual experiences to help them better understand and engage with a company's products.

47. Segmented pricing" is used to pass along lower prices by segment, geography, demographic, age group or sex. Is this fair and why do they do it?

Under segmented pricing, different customers pay different prices for the same product. Which can be unfair, but does so often for elders, veterans. -For this to be successful, segmented prices should represent real differences in customers' perceived value (student discount movie ticket) -Must be careful to not treat customers in lower price tears as second class citizens

31. Customer "value-based pricing" is best determined in what whom and how?

Uses buyers' perceptions of value as the key to pricing. Marketers must consider price along with all other marketing mix variables before they set a marketing program

178. Why has Direct Marketing grown so fast over the past 7 years? Describe the new DM environment?

- Direct Marketing has grown so fast over the past 7 years because it is spurred by the surge in internet usage and buying and by rapid advances in digital technologies. Further, direct marketing allows companies to more effectively target certain customers. - US companies will spend an estimated $163 billion on direct and digital marketing this year, up more than 6 percent over the previous year - Total digital advertising spending - including online display and search advertising, social media, mobile, video, email and other - now accounts for the largest share of media spending, overtaking even television spending - Mobile ad spending grew by 66 percent due to consumers spending more and more time on their tablets and smartphones

140. When selecting advertising media, companies are no longer happy with being told how many have viewed their commercial but what is the "consumer expressions". Why is that more important?

- Engaged consumers are more likely to act upon brand messages and even share them with others -Rather than just track consumer impressions, they track consumer expressions that result, such as a comment, 'like', uploading a photo or video, or sharing brand content on social networks -Today's empowered consumers often generate more messages about a brand than a company can

177. What is made easier with using Digital Marketing? How is Social Media changing the way marketing is done?

- Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships, Also, they can tailor offers and content to the needs and interests of narrowly defined segments or individual buyers - Over time, social media evolved from a place to connect with friends to a place where you could follow brands, influencers, and celebrities that you resonate with. Social media has revolutionized the internet marketing landscape. It has opened up two-way communication between brand and audience. It has also given businesses full control over who they wish to target with their advertising.

125. What is Informative, Persuasive and Reminder advertising methods? (p.429)

- Informative advertising is used when introducing anew product category (communicating customer value, suggesting new uses for a product, explaining how a product works) -Persuasive advertising becomes more important as competition increases (engage with customers, create brand preference, change customer perceptions) -Reminder advertising is important for mature products (maintaining customer relationships, reminding consumers where to buy the product)

183. Both Kiosk Marketing and Direct response Television marketing require buyer involvement in the process and selection. Is this good or bad?

- Kiosk Marketing: Companies placing information and ordering machines - called kiosks - in stores, airports, hotels, college campuses, and other locations - Direct-Response Television Marketing: Direct marketing via television, including direct-response television advertising (or infomercials) and interactive television (ITV) advertising - Can be good when both forms of marketing tailor their offerings to buyers in a personal way, which evokes an emotional response - However, a failure to capture customer attention will most likely divert attention away from a purchase (all power is the hands of the consumer)

182. What is your assessment of Mobile Marketing? When is it best and what fears does it create?

- Mobile marketing: Marketing messages, promotions, and other content delivered to on-the-go consumers through their mobile devices - Best due to recent proliferation of mobile phones, smartphones, tablets, and mobile device penetration (now greater than 100% in the US) - Stimulate immediate buying, make shopping easier, enrich the brand experience; lets marketers provide consumers with information, incentives, and choices at the moment they are expressing an interest or when they are most likely to make a buying choice - Fears: Companies must use mobile marketing responsibly or risk angering already ad-weary consumers - The key is to provide genuinely useful information and offers that will make consumers want to engage without over-doing it

90. Why has the warehouse retailer model been so success, like COSTCO and SAM's Club?

- Prices: Offer ultralow prices and surprise deals on selected branded merchandise - Assortment: Offer a wide range of goods, from necessities to extravagances

58. How does a consumer use "Showrooming" to get the best price? Why do retailers hate the practice?

- ShowRooming is visiting a physical store and using a product to judge it then going online to buy it -Retailors spend money on allowing customers to try multiple different products and help them pick the right one, because of showrooming these costs are not paid back because shoppers go to buy their products from their competition

184. Consumer privacy, Spam, pop-ups, junk mail, pop-under, and big data issues have all created concerns and perhaps a need for great public policy? Why?

- Spam & pop-ups create direct marketing excesses that sometimes annoy or offend consumers - Some direct marketers have been accused of taking unfair advantage of impulsive or less sophisticated buyers - Fraudulent schemes such as investment scams and phony collections for charity have also multiplied in recent years - Internet fraud, phishing, worried about online and digital security - Many critics worry that marketers may know too much about consumers' lives and that they may use this knowledge to take unfair advantage of consumers - Big data and availability of information may leave consumers open to abuse

57. When a company adopts "High/ Low" pricing (JC Penney) and battles against EDLP pricing (Walmart) how do they compete?

- They make it appear as though they have high quality products by giving an originally high prices, then change to low prices using discounts. EDLP is just constant low pricing-High/Low: start by selling high price then later selling it on clearance or discounted price (JC P.)-Everyday low price (EDLP)-promising a low price without the need for discounts (Walmart)

180. What is a "viral marketing" campaign and how do you set one up?

- Viral Marketing: The digital version of word-of-mouth marketing: videos, ads, and other marketing content that is so infectious that customers will seek it out or pass it along to friends - Tap into emotional consumer responses and create powerful, instinctive messages - Aligns with company's core competencies - Produce multi-platform video campaigns that bridge traditional TV, online, and mobile media - Often have little control over where viral messages end up

135. What is the role and purpose of a public relations department in the company?

Activities designed to engage the company's various publics and build good relations with them -Responsible for press relations, brand publicity, public affairs, lobbying, investor relations, development

114. There are three methods of determining advertising budgets - % of sales, competitive-parity and objective/ task method. How do they vary in approach?

-% of sales: setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price -Competitive parity: setting the promotion budget to match competitor's outlays -Objective/task method: developing the promotion budget by (1) defining specific promotion objectives (2) determining the tasks needed to achieve these objectives (3) estimating the costs of preforming these tasks

186. What is the Alibaba business model and how is it different than Amazon?

-2 giant e-commerce players -Alibaba is a marketplace, which dominates the Chinese consumer retail industry. They do not own the inventory of the merchandise sold and merely connects buyers and sellers together. On the other hand, Amazon is a re-seller which owns inventory and supply chain of its merchandise and sell directly to the customer.

87. Why do companies use a "franchising" strategy and how does it help a company to grow? What is the downside of franchises?

-A contractual association between a manufacturer, wholesaler, or service organizations who buy the right to own and operate one or more units in the franchise system -Management at higher levels don't need to be concerned about day-to-day operations and can focus on other things; could be a downside because then they loose control of a part of the brand image

105. Name the five types of activities in the "Promotion Mix" and what roles do they play as they execute a Marketing program?

-Advertising: broadcast, print, online, mobile paid for by an identified sponsor -Sales promotion: short-term incentives to encourage the purchase or sale of a product, discount/coupon -Personal selling: personal presentation by the firm's sales force for the purpose of engaging customers, making sales and building customer relationships -Public relations: building good relations with the company's various publics by obtaining favorable publicity, building a good corporate image -Direct and digital marketing: engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and building lasting customer relationships

15. Google Moonshot has a development process that is unique? Describe the process.

-Allows engineers to spend a decent amount of time on crazy products that would get shot down right away in product development -They recognize that all these ideas wont be the next iPhone but one is destined to be the next revolutionary product, like a self-driving car

77. What is Third-Party logistics (3PL) and why have these companies grown over the past 20 years?

-An independent logistics provider that preforms any or all the functions required to get a client's product to market (FedEx Logistics, UPS Business Solutions) -Big companies often hate the grunt work that goes into logistics so they use these third parties -These providers can deal with logistics more efficiently and at a lower cost -Frees a company to focus more intensely on core business -Integrated logistic companies understand increasingly complex logistics environments

164. Blogs have enabled WOM, MOM and many other ways to communicate? What role do they play in the Marketing Mix?

-Blogs: online forums where people and companies post their thoughts and other content, usually related to narrowly defined topics - Their role in the Marketing mix is to offer a fresh, original, personal, and cheap way to enter into the online and social media conversations of consumers.

51. What are the different considerations when one changes, increase or decreases prices from the customer? From the competition?

-Buyer reactions: TO Increase - more exclusive/ better made or company being greedy TO Decrease - getting better deal or less quality -Competitor reactions: TO Increase: Might be trying to shift the market to more expensive prices or going for premium marketing strategy TO Decrease - Company trying to grab larger market share; doing poorly and need to boost sales; or want whole industry to cut prices to increase demand

23. How can a company make a lot of money even in the Maturity stage of a product?

-By modifying the market, the company tries to increase consumption by finding new users and new market segments for its brands -BY modifying the product, the company changes characteristics like quality, style and packaging to retain current users or attract new ones

44. Printer Manufacturers, Nintendo Swtich and shaving companies often use "captive" pricing to make profits. How does it work? When would you use "Price-Bundling" prices and what are the good and bad points?

-Captive pricing: setting a price for products that must be used along with a main product, such as blades for a razor and games for a video game console -Nintendo makes little or no profit on its Switch video game console but makes up for it through sales of higher-margin video games

62. Give some examples of "channel conflict" and how do "power" relationships play in channel management. What is "horizontal" conflict and "vertical" conflict?

-Channel power: degree to which any member of a marketing channel can exercise influence over the other members of a channel, conflict occurs when channel members become upset by the relationships with other parts of the channel -Horizontal conflict: occurs among firms at the same level of the channel ( Ford dealers in Chicago might complain that other dealers in the city steal sales from them by pricing too low or advertising outside their assigned territories) -Vertical conflict: conflict between different levels of the same channel (Mcdonald's increased its emphasis on aggressive discounting, which hurts the margins of franchises)

124. Why has the "You're Not you When You're Hungry? Campaign worked to Mars for ten years?

-Clear and consistently delivers the brand positioning in an engaging and memorable way -Appears on print ads, the candy wrappers, and even new product lines

24. International product and service Introduction must consider several critical issues. Name several issues and what the risks when introducing those products in other countries or regions.

-Companies want to standardize their offerings but markets around the world differ so companies need to adapt their offerings -Style of providing service goods also needs to be modified

72. Why is a company constantly re-evaluating their channel strategy? Economics, Control and Adaptability all play a role.

-Company must regularly check channel members performance against standards such as sales quotas, average inventory levels, customer delivery time, treatment of damaged and lost goods, cooperation in company promotion -Good intermediaries should be rewarded and bad ones assisted or replaces

126. Why is a "comparative" advertising tactic effective and what problems can it cause? How did Microsoft use it against Apple?

-Comparative advertising or attack advertising happens when a company directly or indirectly compares its brand with one or more other brands -Sometimes only focuses on the other brand and may use misleading information -Samsung only fixated on bashing Apple in their comparison

174. Describe the difference between competitor-centered, customer-centered, and market-centered approaches?

-Competitor centered: company whose moves are mainly based on competitors' actions and reactions -Customer centered: company that focuses on customer development in designing its marketing strategies and delivering superior to its target customers -Market centered company: a company that pays balanced attention to both customers and competitors in deigning its marketing strategies

106. What has changed and is new in today's "Marketing Communication Mix" that requires companies to adopt new tactics and strategies?

-Consumers are better informed and more communications empowered due to digital connection -Shifting away from mass marketing more towards engaging customers and building relationships -Digital technology have caused interactions with companies and customers: social media, email, brand websites

53. Pharma pricing model is often criticized. What are the two sides of the argument for why Pharma prices are set the way they are? What is Predatory Pricing? Price fixing?

-Consumers get frustrated that they pay different prices for medicine because of name brands or insurance companies -Pharma companies say that drug development is risky and need compensation -Predatory pricing: selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business -Price fixing: when sellers make agreements to only sell a product at a fixed price; often prohibited by antitrust laws

89. What is a "corporate" chain, a retail cooperative and a "voluntary" chain in retail?

-Corporate chain: two or more outlets that are commonly owned and controlled (Macy's, Target) - Retail Cooperative - group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts (Ace Hardware) -Voluntary chain: wholesaler-sponsored group of independent retailers that engage in group buying and common merchandising (Western Auto, True Value)

33. How does one practice Cost-Based Pricing and what is the advantage and disadvantage of this method? What is Cost-Plus method of pricing?

-Cost-based pricing: selling prices based on the costs of producing, distributing and selling the product plus a fair rate of return for effort and risk (fair to buyers but doesn't necessarily maximizes profits) -Cost-plus pricing: adding a standard markup to the cost of the product

12. Intuit's "Design for Delight" philosophy has helped their product development in what way?

-Customer-centered new product development by designing products with the expectation of providing experiences that exceed consumers expectations\ -Rather than sitting on successful products, they reinvent before competitors can, keeping them out of maturity or decline

39. Who within an organization should set price? Product Developers, Finance, Sale, Marketing?

-Depends on the organization's size; small companies often have prices set by top management; large companies often have prices set by divisional or product managers; in industrial markets salespeople often negotiate prices within a certain range; in certain industries, airline, companies have pricing departments -Ideally, all of these departments would coordinate in determining the price

161. Why has Direct Marketing grown so fast over the past 7 years? Describe the new DM environment?

-Direct and digital marketing: engaging with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships -Surge in internet usage and advances in technology has transformed direct marketing -Direct marketing on digital means

167. Consumer privacy, Spam, pop-ups, junk mail, popups, and big data issues have all created concerns and perhaps a need for great public policy? Why?

-Direct marketing sometimes annoy or offend consumers (DRTV commercials are too loud, spam emails are too frequent) -Take unfair advantage of impulsive or less-sophisticated buyers -Fraudulent schemes -Online security issues; people thing people are snooping on their online transactions/social media to collect personal information

166. Both Kiosk Marketing and Direct response Television marketing require buyer involvement in the process and selection. Is this good or bad?

-Direct response television marketing: direct marketing via television that persuasively describes a product and give customers a toll-free number or an online site for ordering -Kiosk marketing: information and ordering screens -Decide in real time if they want to buy

45. What is the difference between passing along discounts or rewarding allowances

-Discounts: a straight reduction in price on purchases during a stated period of time or of larger quantities -Allowance: promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacture's products in some way

65. "Disintermediation" is the constant concern of players in the marketing channel? When does it occur and give some examples of how companies fight it.

-Disintermediation: the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries -Occurs when product or service producers cut out intermediaries and go straight to final buyers (iTunes and streaming services have put traditional music stores out of business) -Can fight it by innovating and developing new channels (Netflix switched from DVD-by-mail to video streaming)

75. Why is your channel strategy so important in developing an International marketing program?

-Distribution channels vary from country to country and international marketers face a wide range of challenges -Local conditions can greatly influence how a company distributes products in global markets

52. What is the purpose of the "low-price fighter brand"? How are "store brands" used to serve this function?

-Low price fighter when a brand is adding a lower price item to the line or creating a separate lower price brand, This is necessary if the particular market segment being lost is price sensitive and will not respond to arguments of higher quality -Store brands are low-price fighters to name brands for example P&G has Charmin Essentials Soft but also Bounty Essentials as the low-price fighter that is the "affordable picker upper"

41. Gillette is very challenged in their market today on price and discounting competitors. What is their method and how does target marketing contribute to their strategy of what to charge?

-Faces pressure from discount subscription razor services -They want to stick with the idea that people know Gillette is synonymous with good quality and convenience -Sold at convenience drug stores, that's what people are paying for: value added of picking it up whenever you need -Lost market share in recent years to shave clubs and thus slashed cartridge prices (captive pricing) people need the cartridges once they have the razor

67. How does the selling models of Lyft and Uber threaten the existing car and taxi industry marketing channel strategy? What is the advantage and the disadvantage?

-Faster service, online/app channel makes it easier for consumer to find driver -Got rid of owning cars and let drivers use their own cars

127. What is the definition of Content Marketing? How is the Red Bulls Campaign and effective use of clear Content Marketing?

-Focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience -Red Bull focuses clearly on a thrill seeking audience and their content reflects this because they post content of adventurous people doing exciting things with their products

61. How does a franchise represent a marketing channel for a company and what is good and bad about it as a way of doing business? What is the difference between manufactured- sponsored retailer, wholesalers and service-firm-sponsored retailers?

-Franchise: a contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process -Carries the brand name and makes sales for the company -Good: company does not have to deal with day-to-day details of operating stores -Bad: if the franchise is bad, it can hurt overall brand image without the company's total control -Three types of franchises: 1. Manufacturer-sponsored retailer franchise system: Ford and its network of independent franchised dealers 2. Manufacturer-sponsored wholesaler franchise system: Coke licenses bottlers (wholesalers) in various world markets that buy Coke syrups and then bottle and then sell to retailers locally 3. Service-firm-sponsored retailer franchise system: Burger King and its franchise-operated restaurants around the world

190. Trade barriers are very common implementation in the International Trade System. How are "quotas" used, Tariffs set and non-tariffs implemented that would serve as barriers to open trade?

-Govts. may charge tarrifs or duties which are taxes on certain imported products -Countries may set quotas, limits on the amount of imports that they will accept in certain product categories -The purpose of a quota is to conserve on foreign exchange and protect local industry

102. How do membership fees help Costco compete better?

-Having paid the fee, members are more likely to visit Costco than a non-membership store that confers no special benefits -Gives them specialized consumer data

110. How does the Intuit "Giant Story" Advertisement fit in a content marketing strategy?

-Included Super Bowl and other TV ads plus shorter videos on Facebook, Instagram, and Twitter that encouraged viewers to watch the full video on Youtube -Manage brand conversations with and among customers and help those conversations catch fire across a fluid mix of channels

71. Describe the difference between an exclusive, selective or intensive distributor.

-Inclusive distribution: stocking the product in as many outlets as possible, maximum brand exposure -Exclusive: giving a limited number of dealers exclusive right to distribute the product -Selective: the use of more than one but fewer than all the intermediaries that are willing to carry the company's products

64. Gavina Coffee uses 11 different types of channels to help them grow. What are the variety that they use in the 20 states they sell their products?

-Increased prices of coffee made it hard to compete with large companies so they needed to use channels -Retail brand channel: anything that is sold through a customer to the end retailer (Kroger, Safeway) -Wholesaler: sell to companies who buy in large quantities (Costco) -Private label channels: created a new blend specifically for Mcdonald's and small bakerys

3. As with the case of Samsung, many companies develop an IOT strategy? What is IOT and what effect will it have on the economy?

-Internet of Things; a global environment where everything is digitally connected to everything else -Helps consumers realize the benefits of a seamless and simple connected life

2. Why is "Commercialization" key in successful new Product introduction?

-Introducing a new product into the market -Must deicide on intro timing and where to launch the new product

6. The "New Product Screening" process says one should ask three questions - R, W, W. This stands for - Is it real? Can we win? Is it worth doing? What does this mean?

-Is it real? Is there a real need and desire for the product and will consumers buy it? -Can we win? Does the product offer a sustainable competitive advantage and do we have the resources? -Is it worth it? Does the product fit the company's growth strategy and does it offer sufficient profit potential?

69. Why is the choice of marketing channels critical in maintaining your brand image / essence?

-It is important that the channels that a company selected remain in line with the brand image/essence of the brand -If these channels are unable to uphold standard of quality the brand image can be hurt

94. What is a "Limited- service Wholesaler" and give three examples like rack jobber, drop shippers?

-Limited-service wholesaler's offer fewer services than full-service wholesalers. 1. Cash and carry wholesalers: carry a limited line of fast-moving goods and sell to small retailers for cash 2. Truck wholesalers: preform primarily a selling and delivery function, carry a limited line of semi-perishable merchandise (milk, bread) which his sold for cash as deliveries are made to supermarkets, restaurants etc. 3. Drop shippers: do not carry inventory or handle the product, select a manufacturer who then ship the merchandise to the consumer; operate in bulk industries like coal, lumber and equipment

68. What is a "customer value delivery network" and how do marketing channels play a key role in satisfying consumer needs?

-Value delivery network is made up of the company, suppliers, distributors and ultimately, customers who partner with each-other to improve the performance of the entire system -Channels are used as a means of delivering the value to the customer, each member and level adds value for the customer

59. Laws prohibit "retail price maintenance" - where a manufacturer requires a dealer price a product at a certain level, creating MSRP. What is MSRP and what is Price Discrimination with channels?

-Manufacturers Suggested Retail Price (MSRP): the price that a manufacturer recommends for stores to sell their product -Michael Kors was charged with tagging products with false MSRP to make its supposed discounts more appealing -Retailors oppose this because it displays the production cost of goods, or the amount of money the producer of a product recommends the product be sold for.

175. What is the advantage of being a "market follower" as a strategy? Disadvantage?

-Market follower: a runner-up firm that wants to hold its share in an industry without rocking the boat -Follow closely or follow at a distance -Advantages: save costs of developing new products, expanding distribution and educating the market; instead copy or improves the leader's products and programs with less investment -Disadvantage: must know how to hold current customers and win new ones from the leader but also hold off retaliation (major target of attack by market challengers)

157. Why do organizations use "Sales Promotions" to enhance their marketing?

-May use consumer promotion to urge short term customer buying or boost customer-brand engagement -May use trade promotions to get retailers to carry new items and more inventory, buy ahead or get more shelf space -Business promotions are used to generate business leads; stimulate purchases; reward customers and motivate salespeople

128. What are the elements of a good advertising strategy? (p.433)

-Merging advertising and entertainment -message and content strategy -Message execution -Consumer generated content

21. What are some of the reasons that carrying a weak product in decline can hurt the company and be very costly?

-Might take up too much of managements time, requires frequent price and inventory adjustments, requires advertising and sales-force attention that might be better used on healthy products -BIG ONE: delays the search for replacements; creates a lopsided product mix; weakens company's foothold on the future

165. What is your assessment of Mobile Marketing? When is it best and what fears does it create?

-Mobile marketing: marketing messages, promotions, and other content delivered to on-the-go consumers through their mobile devices -Companies use mobile marketing to stimulate immediate buying, make shopping easier, enrich the brand experience -Most people don't want to be interrupted regularly by advertising, so marketers must be smart about how they engage people on mobile devices

66. Netflix is seen as a disrupter because they have not been afraid of "disintermediating" many companies business models and roles in the marketing chain. They believe in "disintermediating" themselves. What does that mean?

-Netflix is not afraid of making changes to their business model that make their old model obsolete -Their switch to video streaming caused the disintermediation of Blockbuster by finding a new channel

81. What is Omni-channel retailing? Why is it so important in today's environment for survival?

-Omni-channel retailing: creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping -Digital technologies have caused a huge shift in how and where people buy; people buying on mobile devices

173. A company can compete of any one of three "value disciplines", operational excellence, product leadership of customer intimacy. Define them by using Nordstrom's?

-Operational excellence: the company provides superior value by leading its industry in price and convenience; works to reduce costs and create a lean and efficient value delivery system (Walmart, Trader Joes) -Customer intimacy: the company provides superior value by precisely segmenting its markets and tailoring its products or services to exactly match the needs of targeted customers (Nordstrom, Amazon, Lexus) -Product leadership: the company provides superior value by offering a continuous stream of leading-edge products or services (Apple)

78. How does Target hope to implement their omni-channel strategy with same day delivery? How does the purchase of Shipt help them in implementing their vision?

-Order online and pickup in store -Shipt has implemented a process where shoppers complete deliveries for Target shoppers who purchased online

141. What is the difference between the different roles of a sales person?

-Order taker: department store salesperson behind the counter -Order getters: whose positions demand creative selling, social selling and relationship building for products ranging from appliances, airplanes, insurance and IT equipment

1. What are the many definitions of a "New Product" and why must a branding and marketing program be developed for each?

-Original products, product improvements, product modifications, and new brands -These have different product cycles and thus are marketed differently

144. What is the difference between Inside and Outside sales persons roles?

-Outside sales force: salespeople who travel to call on customers in the field -Inside sales force: salespeople who conduct business from their offices via telephone, online and social media interactions, or visits from prospective buyers

42. Peloton gets a strong premium price for their product and rarely discounts. Their competitors have created a cheaper alternative for their exercise equipment. How does Peloton counter them?How does product "bundling" help in raising prices and identifying "value" for customers?

-Peloton has a luxury brand reputation; counters with added a lot of value for their consumers in terms of fancy treadmills and added services -Cult following, join a community if you buy -They use bundling to add subscriptions to workout programs for customers to use their content with its intended exercise equipment

70. How is your Brand effected - If you are using a "prestige product" strategy? If you are use "comparison" pricing strategy? If you use a "technical or innovation selling" strategy?

-Prestige product: product is high quality, brand is a luxury, high-end -Comparison pricing strategy: directly compare their prices with that of a competitor, forms an association between the companies in the mind of consumers -Technical or innovation selling: makes you brand seem innovative or highly technologically advanced

43. does product "bundling" help in raising prices and identifying "value" for customers? New Product Pricing is very tricky. When a company practices "market - skimming" what are they doing? An aggressive approach to eliminate competition is "Market-penetration pricing". What is the goal and objective of this strategy?

-Price bundling can promote the sales of products consumers might not otherwise buy, but the combined price must be low enough to get them to buy the bundle -Market skimming: setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; company makes fewer but more profitable sales -Market penetration pricing: setting a low price for a new product in order to attract a large number of buyers and a large market share

7. What is the difference between product idea, product concept and a product image?

-Product idea: idea for possible product that the company can see itself offering to the market -Product concept: detailed version of the idea stated in meaningful consumer terms -Product image: the way consumers perceive an actual or potential product

13. What is the PLC - Product Life Cycle and why is it important to understand?

-Product life cycle is the course that a products sales and profits take over its life time -Company needs to understand that if they must continually innovate; or they will face extinction

192. What are three or four key decision points that must be decided on in developing Global Marketing Program?

-Product: can make adjustments for foreign markets or make new products or keep the same -Promotion: can either adopt the same communication strategy or change it for each local market -Price: uniform global prices, different economies and different costs in some countries -Distribution channel: how to get the product from seller to buyer

100. What does the term "Green Retailing" and how is it be implemented by IKEA?

-Promoting more environmentally responsible products and launching programs to help customers be more responsible -IKEA uses a "People and Planet Positive" sustainability strategy where their goal is to be 100% sustainable in operations and its products

162. What is the good and bad news of the many rapid changes brought by Digital Marketing revolution? Give some examples.

-Pros: for buyers, direct and digital marketing are convenient, easy and private; access to interact with sellers by phone or app | for seller, direct marketing provides a low-cost, efficient, speedy alternative for reaching their markets; increased flexibility -Cons: don't have control over consumer reactions to direct content -Allows for real-time social media marketing

116. What is the difference between "push' and "pull" strategies for advertising campaigns?

-Push strategy: involves "pushing" (usually by personal selling and trade promotion) the product through marketing channels to final consumers (John Deere's sales force works with Lowe's and Home Depot who in turn push John Deer products to final consumers) -Pull strategy: the producer directs its marketing activities (advertising, consumer promotion, direct and digital media content) toward final consumers to induce them to engage with and buy the product (P&G promotes its Tide laundry products directly to consumers using TV and print ads)

80. How does "RFID" and IOT technology make an integrated logistics management supply system simpler and inventory management more accurate?

-Radio frequency identification uses electromagnetic fields to automatically identify and track tags attached to objects -Allows companies to manage inventory with high accuracy and efficiency

48. A Manufacturer likes setting a "Reference price" as a psychological marker. How do they use it?

-Reference prices are prices that buyers carry in their minds and refer to when they look at a given product -Formed by noting current prices, remembering past prices, or assessing the buying situation

149. How does a Sales quota motivate sales people? What is the role of Sales Contests?

-Sales quota: a standard that states the amount a salesperson should sell and how sales should be divided among the company's products -Companies also sponsor sales contests to spur the sales force to make a selling effort above and beyond what is normally expected

189. IKEA has been very successful with implementing their Global Strategy. They have created a nice balancing act. What have they done well that could be copied?

-Same familiar blue and yellow stores with large selections at affordable prices all over the world (show locals how its standard products fit with their lives and cultures) -At the same time, they carefully adapt their merchandise and marketing to the unique needs of customers in specific global markets (different name in China, harder mattress in China, more rice cookers in China)

123. What are the major advertising decisions a firm has to make?

-Setting advertising objectives: specific tasks to be accomplished with a specific target audience during a specific period of time -Setting advertising budget: the dollars and other resources allocated to a company's advertising program -Developing advertising strategy: creating advertising messages and selecting advertising media

35. Why is "Competition-based pricing" method often preferred by the sales function? What are the pros and cons?

-Setting prices based on competitors' strategies, prices, costs and marketing offerings -No matter what price it charges (high/low) the company must be certain to give customers superior value for that price -Consumers base judgements on price for a product based on similar product prices

What are "Target-Profit Pricing" and "Break-Even Analysis" and how do determine price?

-Setting prices to breakeven on the costs of making and marketing a product, or setting price to make a target return -Uses break-even chart that shows total cost and total revenue expected at different sales volume levels

91. What is the role and the future of a "shopping center" and a "lifestyle center"? What is "retail convergence" and why is it so highly competitive?

-Shopping center: a group of retail businesses built on a site that is planned, developed, owned and managed as a unit -Lifestyle centers: Smaller, open-air malls with upscale stores, convenient locations, and nonretail activities - Future: Looking bright as malls have added new lifestyle elements to make themselves more social and welcoming. Malls now offer more of a social experience than just a place to shop. -Retail convergence: merging of consumers, products, prices and retailers; means greater competition for retailers and greater difficulty in differentiating the product assortments of various types of retailer

32. The airline industry pricing practices and the Spirit Airline strategy has many interesting rules? Describe Spirit Airlines pricing practices, like "ala carte" or auction-based pricing. What is the pros and cons? Why consumers like or dislike their methods?

-Spirit airlines build its marketing strategy around Bare Fare pricing and if you want more, you pay for it -Con: customers think it's deceitful for all the added charges -Pro: Spirit says it gives consumers control over what they pay for and what they don't

18. Style, fashion, fad... how does time differ for each?

-Style: a basic and distinctive mode of expression; many last for generations passing in and out of vogue; several periods of renewed interest -Fashion: a currently accepted or popular style; grow slowly, remain popular for a while and then decline slowly -Fad: temporary period of unusually high sales; shorter life cycle with steep growth and decline

76. Describe how good Supply chain management systems work to deliver marketing value for the consumer?

-Supply chain management: managing upstream and downstream value-added flow of materials, final goods and related information among suppliers, the company, resellers and consumers -If managed correctly, it will allow the company to provide higher quality goods and services for a lower cost to its consumers

10. Marketers roles in New Product Development might include testing by the consumer of new products. What advantage does involvement by the marketer have for the Process?

-Test marketing gives the marketer experience with marketing a product before going into the great expense of full introduction

131. Marketers are often asked about the "return on advertising investment". What is the problem and why is this important to track? (p. 444 - 445)

-The net return on advertising investment divided by the costs of the advertising investment. -Sales and profit effects of advertising are hard to measure because sales and profits are affected by many factors other than advertising (price, availability) -Tells whether the ads and media are communicating the ad message well

16. Why was Alphabet formed by Google to help their new product develop management?

-The parent holding company that contains all the diverse ventures and innovations -Continues to house information and Internet-software but also provides an independent home for the more far reaching projects

151. What is "personal selling"? What is the difference between Relationship Sales and Transactional sales? Difference between B2C and B2B selling?

-The steps in the just-described selling process are transaction oriented - their aim is to help close a specific sale with a customer -But in most cases, the company is not simply seeking a sale, they are looking to build a mutually profitable relationship -Difference between B2C and B2B?

143. How does the Sales team link the company with its Customers?

-They find and develop new customers and communicate information about the company's products and services. They sell products by engaging customers and learning about their needs, presenting solutions, answering objections, negotiating prices. -They relay customer concerns about company products and actions back inside to those who can handle them -Often times, the sales force is the company. It is the only tangible manifestation of the company that they see

4. How does "Design-Thinking" as with IDEO help in new product development?

-They get a full understanding of the consumer need they are filling and design around that need -Working together too allows many different ideas they can bounce off of

73. How does Amazon and P&G work together in their Vendor-flex program.

-They have partnered to make the fulfillment and shipping of P&G products purchases on Amazon more efficient. P&G's warehouse has an Amazon area for Amazon handling -Reduces storage costs for Amazon and P&G saves on the cost of transporting goods to Amazon

9. Why is LEGO's called the "apple of Toys? What can you learn about PLC from LEGO?

-They listen to its customers and actively taps its user community for new product ideas; customer-centered new product development -Teaches that in the Product Life Cycle innovation can come from outside of the research lab and in connecting with customers

37. Why is the shopper at the Whole Foods store willing to use a different type of pricing philosophy at that store and what is their main criteria for shopping there?

-Think they are getting more value; organic healthy foods -Paying more for presumed quality -Everyday luxury -VALUE ADDED

134. What is "Real time" marketing and how come it is so effective? Compare Oreo's Super Bowl RT with P&G's TIDE campaign as an example.

-Todays online and social media let advertisers create content that responds to events in real time -Red Roof Inn beams real-time ads to stranded travelers facing flight cancellations -Oreo's responded to a power outage during the Super Bowl with a Dunk in the Dark campaign

14. Important decisions must be made by a company at each step of the PLC. In the introduction stage, why must a toy maker look at in the current product line when introducing new products?

-Toys have an especially low PLC -New products must be seen as a type of extension and enhancement of later ones

38. Trader Joe's has a new Pricing Mix and marketing strategy that changes the nature of pricing decisions. How do they price? Good-Value or value-added pricing?

-Trader Joes uses GOOD VALUE: fair prices for off-brand -Brand names practice value-added -Made up of their own brands sold at cheaper prices than Whole Foods consumers are more willing to pay

5. Idea Generation is the life-blood of New Product Development and internal sources, external ideas, Crowd-Sourcing are all methods for new products to be introduced. How did Under Armour get new ideas from their "Future Show" method? How does Bose do it?

-Under Armour sponsors an annual crowdsourcing competition where entrepreneurs and inventors submit new product ideas -Bose is a company that's first goal is research and development and second goal is making quality products

145. How does "Team Selling" work? What is the advantage and disadvantage of the model?

-Using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts -Pro: when dealing with large, complex accounts, one salesperson can't be an expert in everything the customer needs -Cons: Salespeople are naturally competitive and are trained for individual performance and might have trouble working on a team; large teams of people may overwhelm and confuse customers; also compensation issues

63. What is Vertical Integration of your channels, "Corporate VMS"? Describe the issues of Direct versus Indirect channel management.

-Vertical integration happens when a company acquires business operations within the same distribution channel -Corporate VMS (Vertical Marketing System): one member of the distribution channel owns all other members of the channel, thereby having all the elements of production and distribution under a single ownership (Kroger owns and operates manufacturing plants, which gives it factory-to-store channel control) -Direct: ownership of channels or contractual, almost complete control -Indirect: less hands on

163. What is a "viral marketing" campaign and how do you set one up?

-Viral marketing: the digital version of word-of-mouth marketing: videos, ads, and other marketing content that is so infectious that customers will seek it out or pass it along to friends -Marketers usually have little control over where their viral messages end up; they can seed content online, but that does little good unless the message strikes a chord with consumers.

27. Describe the current strategies of Amazon and Walmart in their current Price War for Online Supremacy? What approach and competitive strategy are each one using?

-Walmart is using cost based pricing: setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk; to become low-cost producers -Amazon uses competition-based pricing based on competitors strategies, prices, costs and market offerings

60. What is a Marketing Channel? Give some examples of types of channels used by markets.

-Ways that goods and services are made available for use by the consumer -Examples: wholesales, direct-to-distributors, internet direct, consultant, catalogue direct, retail sales agent

93. Is "web-casing" (web-rooming) or "show-rooming" a better strategy to sell products?

-Web-rooming = Consumers first check out merchandise online, then buy it in a store -Show-rooming = When shoppers check out merchandise at physical store showrooms but then buy it online using a computer or mobile device, sometimes while in the store -Web-rooming because the customer buys from the retailer and it helps convert show-rooming shoppers into buyers when they visit the store; more profits in web-rooming

19. What decisions must be made in the Growth Stage of the PLC to extend the life of a product?

-When sales start climbing quickly -Increase price? Increase promotion? Focus on educating the market or meeting competition? New product features? -Trade-off between high market share and high current profit

92. What is a Wholesaler and what vital role do they play in the economy?

-Wholesaler: all the activities involved in selling goods and services to those buying for resale or business use -The vital role they play in the economy is providing businesses with inventory and reducing many costs which would negatively affect consumers.

156. Andre Thornton practiced relationship selling. What is that and what is important for success according to Thornton at GPI?

-perseverance is important for success. Applebees chains then president and CEO of GPI global procurement services.-long term, wide range of contacts-Relationship sales are very successful for both parties. On the sales side, they gain a long term client and relationship. On the client side, they gain a salesperson who truly understands their needs and can help solve them.

8. In developing a "Marketing Strategy Statement, what does a developer include in their initial proposal?

1) Describes the target market, planned value proposition, and the sales, market share and profit goals 2) Outlines the product's planned price, distribution and marketing budget 3) Describes the planned long-run sales, profit goals and marketing mix strategy

188. What three systems does a company decide on how to enter a Global Marketing?

1. Exporting: entering foreign markets by selling goods produced in the company's home country, often with little modifications 2. Joint venturing: entering foreign markets by joining with foreign companies to produce or market a product or service (licensing, contract manufacturing, management contracting, joint ownership) 3. Direct investment: entering a foreign market by developing a foreign-based assembly or manufacturing facilities

129. Of the ten different "execution styles" of advertising, what do you think are the three best? (p.437)

1. Lifestyle shows how a product fits in with a particular lifestyle. Athleta activewear shows a woman in a yoga pose. Appeal to lifestyle is a strong way to attract consumers that fit well with your brand 2. Personality symbol: character that represents the product (Ronald McDonald, Geico Gecko) makes a memorable pop culture image for a brand 3. Slice of life: shows one or more "typical" people using the product in a normal setting (IKEA shows people using their furniture) allows buyers to understand how the product will fit into their everyday life

150. What are the seven steps in the Selling Process?

1. Prospecting: salesperson or company identified qualified potential customers 2. Preapproach: salesperson learns as much as possible about a prospective customer before making a sales call 3. Approach: salesperson meets the customer for the first time 4. Presentation: salesperson tells the "value story" to the buyer, showing how the company's offer solves the customer's problems 5. Handling objections: salesperson seeks out, clarifies, and overcomes any customer objections to buying 6. Closing: salesperson asks the customer for an order 7. Follow-up: salesperson follows up after the sale to ensure customer satisfaction and repeat business

137. What are the major advertising decisions a firm has to make?

1. Setting Advertising Objectives - Defining whether the aim is to inform, persuade, or remind; based on past decisions about target market, positioning and marketing mix 2. Setting Advertising Budget - Setting its advertising budget for each product 3. Setting Advertising Strategy - Two important components; creating advertising messages and selecting advertising media. Traditionally, Media planning often was considered secondary to the message creation process. Now, media fragmentation, increasing media costs, and more concentrated target marketing strategies have recognized the importance of the media planning function. 4. Evaluating Advertising Campaign - Determining how much attention is put on the message behind the advertisement, as opposed to other elements like humor.

83. Describe the seven different types of Retail Store models and what they focus on as their business models? (Specialty, Department, Supermarket, Convenience, Discount, Off-price and Superstore).

1. Specialty stores: carries a narrow product line w/ deep assortment (Sunglass Hut, Sephora) 2. Department store: carries several product lines each operated as a separate department (Macy's) 3. Supermarket: large, low-cost, low-margin, high-volume, self service for grocery and household needs 4. Convenience store: small store located near residential areas, open 24/7, carrying a limited line of high turnover convenience products (7-Eleven) 5. Superstore: very large store that carries food and non food items (Walmart Supercenter, Best Buy) 6. Discount store: a store that carries standard merchandise sold at lower prices with lower margins and higher volumes (Walmart, Target) 7. Off-price retailer: Sells merchandise bought at less-than regular wholesale prices and sold at less than retail (TJ Maxx, Costco)

191. 7-Eleven has successfully adopted a Global Strategy. What have they done that made them successful?

7-Eleven seeks to become a part of the local culture and have established themselves as a "third-place" (away from home and work) all over the world. They know the whats, whens, and wheres through extensive market research in every country they put stores in. Very trendy hangouts in other countries.

196. Why should a Marketing team know the Global Supply Chain of their competitors as well as their own?

A competitive orientation is important in today's markets but companies should not overdo their focus on competitors

146. What are the four elements of sales force compensation?

A fixed amount, a variable amount, expenses and fringe benefits -The fixed amount, usually a salary, gives the salesperson some stable income. The variable amount, which might be commissions or bonuses based on sales performance, rewards the salesperson for greater effort and success.

85. What is a "category killer" in retailing?

A giant specialty store that carries a very deep assortment of a particular line (Best Buy)

86. What is a "service retailer" and what is their role or mission?

A retailer whose product line is actually a service like a hotel, airline, bank. Their mission is to offer a beneficial service which the customer would not be able to or would not be incentivized to receive in another way.

148. What is a Sales Opportunity Pipeline? How is it managed?

A sales pipeline is a visual snapshot of where prospects are in the sales process. Sales pipelines show you how many deals salespeople are expected to close in a given week, month or year and how close a rep is to reaching their sales quota.

30. Aldi's has implemented a unique pricing strategy. What do they do in designing their stores.

Aldi's takes away the frills of shopping (baggers, cart return, bags) to cut the costs on groceries. This allows them to buy higher quality products and sell them at a lower cost because they are saving on operating costs -Good value pricing: offering just the right combination of quality and good service at a fair price; Aldi uses everyday low pricing, a type of good-value pricing=-

159. How does Amazon make money from Digital Marketing?

Amazon interacts directly with customers via its website or mobile app to help them discover and buy almost anything and everything online

130. When selecting advertising media, companies are no longer happy with being told how many have viewed their commercial but what is the "consumer expressions". Why? (p.444)

An advertiser wants to chose media that will engage customers rather than simply reach them. Engaged customers are more likely to act upon brand messages and even share them with others. Rather than simply tracking consumer impressions for a media placement (how many people see it), we should tack the consumer expressions that result, such as a comment, a Like, or sharing brand content on social networks

36. How did the Ritchie Brothers establish price for their used Machinery and what did they do to increase that price? What is the advantage for the Seller when they use "auction-pricing"

Auction based pricing - They start the price at one that would cover their costs, and everything more is extra for them - Pro: people are likely to have a different mindset when bidding in an auction; person who values the good the most will be the buyer

109. What are the six stages of Buyer - Readiness"?

Awareness - Buyers become aware of your business and the products it offers Knowledge - Buyers learn more about your products and services by acquiring knowledge of what you offer Liking - Buyers start relating to the product and develop connections to it Preferences - Buyers prefer your product over the competitor's offerings Conviction - Buyers realize they need your products as you convince them to make purchases Purchase - Buyers have enough confidence in your product to make the purchase

98. Best Buy still thrives in the age of Amazon. What is their secret of success in the "Renew Blue" marketing campaign?

Best Buy was losing share to Amazon.com, which was encouraging consumers to view products at Best Buy and other physical stores and then buy them for a lower price online, a practice known as "showrooming." As a result they: -Focused on people -Encouraged this showrooming but lowered prices -Build relationships

194. How does the "Gray" market and "Black" market activities hurt the Global Brand managers international product rollout? (p. 546)

Black market typically involves transactions outside of the official economy (either not paying taxes or dealing with illegal goods or services), whereas gray market is more about diversion or counterfeiting They both adversely affect the introduction of products into new countries.

104. Burger King uses an untraditional marketing approach to try to compete again McDoanld's Give some examples of their messaging and promotions and why do they use this approach?

Bold, edgy ads that engage brand fans and keep the Burger King brand fresh and contemporary. -Whopper Freakout campaign, where they pretended to remove the Whopper from its menu -Posted pictures of stores on fire in a "Burning Stores" campaign to drive home their flame-grilled reputation

20. BOSE has a successful development philosophy. Describe it.

Bose's successful development philosophy has been to ignore existing technologies and start entirely from scratch. This allows them to focus on the technical specifications of creating a superior product rather than worrying about customer concern or innovating on standard technology.

22. How does a company nurture and develop a community of "Early Adopters" for their product?

By considering these characteristics: - Relative advantage - superior innovation to existing products - Compatibility - lining up with current consumer values - Complexity - making the product easier to understand and use - Divisibility - making the product able to be tested by a large consumer base - Communicability - making it easy to communicate the advantages and innovations of the product

147. What is Customer Relationship Management?

CRM helps businesses build a relationship with their customers that, in turn, creates loyalty and customer retention.

97. Why did Bass Pro Shop succeed where Cabela's failed? Was it a good idea to buy them?

Cabela's was unable to keep up with the times of online vendors, while Bass Pro Shop has been thriving at online marketing. They were approaching bankruptcy but still the second largest outdoor sports vendor so it was a good idea to buy them.

74. Microsoft Azure is a potential disinter-mediator as a cloud application. How are they offering change and how do they partner with large companies?

Changes Offered - "Not Amazon:" Many retailers are competitors to Amazon and would prefer not to benefit the competition - Partner-Building Capabilities: Takes a more human-partnering approach to cloud services by helping large companies to get the most out of their cloud services They partner with large companies by offering the beneficial service of helping them get the most out of their software, making them an essential business partner to the cloud-utilization process.

160. Coca-Cola is thought to have one of the best IMC marketing programs in business> What do they do real well?.

Coca-Cola has been an undisputed master of mass-media advertising and marketing. Coca-Cola is also great at getting expressions out of consumers, as their consumers share their products through brand-related exchanges and responses such as comments, retweets, photo uploads, advocating the brand, and sharing brand content on social media. Coca-Cola has also mastered incorporating new forms of digital, social media, and mobile content to engage consumers directly and interactively.

187. What is the new Digital Nordstrom's sales model in China?

Digital Nordstrom's sales model in China is livestream selling, which is when a host demonstrates a product in a live online video either through a social media platform, direct video call with a customer, or another avenue. The retailer can introduce themselves, their store, and the sale before describing each item and its price while holding it up so followers can clearly see the product. The trend has taken off in China, which is why Nordstrom has utilized this model in that country.

46. What is "Dynamic pricing" and how does Target implement it?

Dynamic pricing: adjusting prices continually to meet the characteristics and needs of individual customers and situations (Target app and price matching in store)

79. Logistics Information Management is critical to making a large enterprise run efficiently. What is ERP - Enterprise Resource Planning and how does it help a company replenish their products?

ERP: Process by which a company manages the important parts of its business; integrates planning, purchasing, inventory, sales, marketing, finance and HR It helps a company replenish their products through free flow of communication between business areas, a single source of information, and accurate, real-time data reporting, all of which can give greater access to inventory data

40. Why must the Price Demand curve be studied before any strategy or decisions are made on price?

Each price the company might charge will lead to a different level of demand.

119. Google uses a social responsibility marketing program called " Made with Code". Why do they go through all the trouble to develop it and spend the money?

Encourages young girls to pursue science and technology careers -Promoting social responsibility aligns consumer values with the brand; paints a human picture of a huge company, like Google

103. How did Snicker's bars use Digital Media to enhance their IMC campaign of "You're not you when you're Hungry".

Engaging and memorable -IMC: integrated marketing communications: carefully integrating and coordinating the company's many communications channels to deliver a consistent, clear message about the organization and its products - Snicker's used an analysis of the Internet's "mood" to determine whether prices would be lowered or raised at local 7-Eleven stores.

29. Price is one of the biggest headaches for Executive management but also the biggest opportunity to improve profitability. Why do executives not want to deal with it?

Finding and implementing the right pricing strategy is critical to success. But many marketing executives prefer to focus on the marketing mix, as pricing involves many external values apart from production costs and customer value. Executives often have to focus on many of the nuances that go along with setting prices such as the nature of the current market; marketing strategy, objectives, and mix; and the strategies and prices of their competitors

120. Red Nose day is an IMC campaign to fit hunger? What are the benefits both internal and external for Walgreen in conducting this campaign?

Fundraising effort to help end child poverty -Only outlet where official Red Nose noses can be purchased -By choosing Walgreens, customers choose to make a difference in the life of a child in need -Brings people in store to support a good cause

122. Insurance companies like GEICO, Allstate, Liberty, State Farm pounds away with one, simple message. Why was this effective and how did they move up to second place with double-digit revenue growth?

GEICO pounded away with its one, simple message by presenting that message with pizzaz and creativity to shake up the insurance advertising culture. This separated GEICO from the sleepy insurance industry and allowed viewers to remember and connect with their message.

169. How is Trip Advisor ( in normal times) the right product at the right time in Mobile Marketing?

Gives users as-they-travel access to crowd-sourced information about hotels, restaurants, places to go and things to see worldwide. And booking options are always just a tap away

193. L'Oreal uses the concept of "Universalization" as the cornerstone for their Global Strategy. There slogan is "Beauty for All. Beauty for each Individual. What is it and how have they have been successful?

Global-local balance that adapts brands to local markets while optimizing their impact globally -Universalization means that beauty exists in infinite diversity

176. What was the strategy of Google to buy You Tube? Of all of Google's competitors, which one should it attack?

Google's strategy was to tap into the media, video industry as things become increasingly more visual. People at Facebook even say they expect Facebook to be all video in a few years. Google should be nervous about Netflix's streaming capabilities, and also because Netflix has started to make their own content. There is now YouTube Red where people can use YouTube without ads, but Netflix is about the same price per month and you get TVs, videos, and Netflix content. However, Netflix is not a community the way YouTube is. This is an example of paying attention to market competitors, and seeing what the next big trend is.

112. Guerilla Marketing Campaigns have a unique but effective design. How do they work?

Guerilla marketing utilizes unconventional strategies to get consumers' attention and create buzz about the product or the brand being marketed

168. Why is Instagram called a WIN-WIN-WIN for the Company, Advertisers and Users?

Instagram has figured out how to integrate advertising with consumer content in a way that satisfies users, advertisers, and its own bottom line

121. What message is Gillette sending to their target market in their "The Best Men Can Be" promo?

Invites men to support positive change to be better at addressing issues of toxic masculinity and sexual harassment -They have been criticized for lumping all men into one but the campaign is meant to spark this difficult conversation that needs to happen

171. What strategic mistake did Kodak make when viewing who their competitor was?

Kodak didn't see the rise of digital photography and cameras that used no film at all coming -They held fast to film cameras and focused on out-innovating other film producers

99. What is "Experiential Retailing" and how might it save the "Shopping Mall"?

Lifestyle elements like fitness centers, restaurants, childrens play areas and theaters make them more social and welcoming. More like places to hang out than just to shop

50. Why are international prices hard to determine and what are the factors that go into setting them?

Most companies not all (Boeing sells jetliners and same price around the world) adjust prices to reflect local market conditions and cost considerations -The price that a company should charge in a specific country depends on many factors, including economic conditions, competitive situations, laws and regulations and the nature of the wholesaling and retailing system; consumer perceptions and preferences may also be different

113. Give some examples of "Non-personal" communications and what is their role in the Mix?

Non-personal communication channels are media that carry messages without personal contact or feedback -Major media: broadcast (TV, radio); print media (newspaper, magazines) -Atmospheres: designed environments that reinforce buyers leaning toward buying (lawyer's office) -Events: shows, exhibits, public tours

170. What is the new Nordstrom's business model in the internet world and how have they adapted?

Nordstrom's legendary customer service gives it a strong competitive advantage. The upscale retailer is obsessed with taking care of customers no matter what it takes

25. Why is the question what is a product not so easy to answer?

On the international level, products mean different things for different markets. Also people buy things for physical reasons as well as emotional reasons. Further products can be things such as services, which make it more difficult to define the tangibility of a product.

132. What new role has Public Relations Departments had to take with the development of Social Media? What is a Social Media Command Center? (p. 446-447)

PR is playing a bigger role in marketing content management -PR has always been responsible for creating relevant marketing content that draws consumers to a brand rather than pushing messages out -Social media is moving PR from the backroom, crafting press releases, to the forefront of brand development and customer engagement

28. How is a "price" created for each product and how is it validated by the marketplace?

Prices are set based on the cost required to make that product and the perceived value it will bring a customer

56. Psychological pricing is used when a store practices "even / odd pricing". What do they do?

Pricing that considers the psychology of prices and not simply the economics -9 endings sometimes suggest a bargain -High end retailers may favor prices ending in a whole number -8 is round and even which creates a soothing effect, whereas 7 is angular and creates a jarring effect

49. A "Promotional Price" is set but there are often restrictions on them... what are they?

Promotional pricing is temporarily pricing products below the list price and sometimes even below cost to increase short run sales to create buying excitement and urgency. There are often restrictions against the quantity of promotional prices that can be set to prevent "deal-prone" customers from exploiting the continually-offered lower prices or harming the brand image in the eyes of consumers through price confusion.

179. What is the good and bad news of the many rapid changes brought by Digital Marketing revolution? Give some examples.

Pros: - Direct and digital marketing is convenient, easy, and private - Buyers have anytime, anywhere access to an almost unlimited assortment of goods and a wealth of product and buying information - Provides a sense of brand engagement and community - a place to share brand information and experiences with other brand fans - Low-cost, efficient, speedy alternative for sellers reaching their markets - Also offers greater flexibility (adjust prices and other factors) Cons: - Invasion of consumer privacy - Irritation, unfairness, deception, and fraud

158. How did Red Bull turn their Sales Promotions into a great business?

Red Bull holds hundreds of events around the globe each year designed to bring the high octane world of Red Bull to its community of enthusiasts.

155. What is a "trade promotion" and what is it meant to accomplish?

Sales promotion tools used to persuade resellers to carry a brand, give it shelf space and promote it in advertising -An advertising allowance compensates retailers for advertising the product, whereas a display allowance compensates them for using special displays -Contests, premium, displays and push money can be offered

153. A National Account Selling team requires an effective leader and a great Selling Center. What are their roles?

Sales teams' roles are to unearth problems, solutions, and sales opportunities that no individual sales-person could, especially in servicing large, complex accounts.

154. What is the definition of a "Sales Promotion"? Give three to four examples.

Short-term incentives to encourage the purchase or sale of a product or a service -Best Buy newspaper ad about Black Friday deals; malls offering $20 in store cash for every $20 you spend; hardware store offers 10% discount

55. How are "shipping costs" used in geographic pricing as a tactic to pass along price discounts or increases? Example might be FOB-origin pricing, Uniform-delivered pricing, zone pricing, basing-point pricing or freight-absorption pricing.

Should the company risk losing the business of more-distant customers by charging them higher prices to cover the higher shipping costs? Or should the company charge all customers the same prices regardless of location? -FOB origin pricing: pricing in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination -Uniform-delivered pricing: pricing in which the company charges the same price plus freight to all customers, regardless of their location -Zone pricing: different prices for different zones -Basing-point pricing: pricing in which seller designates city as a basing point and charges customers freight costs to ship from that city -Freight absorption pricing: company absorbs all or part of the freight charges

133. Good message execution has many styles name four or five of the ones' that you think are the most effective styles.

Slice of life - Shows one or more "typical" people using the product in a normal setting. Lifestyle - Shows how a product fits in with a particular lifestyle. Fantasy - Creates a fantasy around the product or its use. Mood or image - Builds a mood or image around the product or service, such as beauty, love, intrigue, serenity, or pride. Musical - Employs music or dance to engage viewers with the brand. Personality symbol - Creates a character that represents the product Technical expertise - Shows the company's expertise in making the product. Scientific evidence - Presents survey or scientific evidence that the brand is better or better liked than one or more other brands. Testimonial evidence or endorsement - Features a highly believable or likable source endorsing the product.

152. Why should the Sales force identify the "Buying Center" to be successful?

So they know who to focus on; they want to call on those who are most likely to appreciate and respond to the company's value proposition

84. Name several types of new retail store models.

Specialty Store - A store that carries a narrow product line with a deep assortment (REI, Sunglass Hut, Sephora) Department Store - A store that carries several product lines, each operated as a separate department managed by specialist buyers or merchandisers (Macy's, Neiman Marcus) Supermarket - A large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products (Kroger, Publix, Safeway) Convenience Store - A small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods. (7-Eleven, Circle K, Speedway) Superstore - A very large store that meets consumers' total needs for routinely purchased food and nonfood items. (Walmart, Meijer, Best Buy, Staples) Discount Store - A store that carries standard merchandise sold at lower prices with lower margins and higher volumes. (Walmart, Target, Kohl's) Off-price retailer - A store that sells merchandise bought at less-than-regular wholesale prices and sold at less than retail (Mikasa, TJ Maxx, Costco)

96. Bass Pros Shop and Jungle Jim's are two Retail business models that represent "experiential retailing" shopping. Is this a trend and the way of the future for stores or is it VR?

Stuff happens in addition to selling, and shoppers do things besides buying. The idea is that a retailer offers consumers a chance to buy an experience rather than just an object or service.

117. Holiday Inn Express used Fallon Agency to help them develop the "I stayed at a Holiday Inn Last Night" campaign. what was their target marketing and approach that made it so effective?

The "I stayed at a Holiday Inn Last Night" was a highly successful ad campaign which played on a series of jokes about the "intelligent" traveler. Someone would very easily solve a problem, give advice, etc. and someone would ask "are you an expert?" and they would say, "No, but I stayed at a Holiday Inn Last Night." These commercials were extremely comedic and universally accessible; anyone could stay at a Holiday Inn and feel like an expert at travelling.

88. What is the role of a "sales agent" in the marketing value chain? How do they become more powerful and vital for a business?

The "sales agent" is part of the primary marketing value chain. They are responsible for creating, communicating, delivering, and exchanging offerings that have value for customers. They become more powerful and vital for a business when they are able to sell large amounts of a product.

115. Lululemon has 1,600 ambassadors represent the brand. How come their program has been so successful?

The ambassadors represent the brand to customers and nurture impact in their communities but also give valuable feedback to Lululemon

136. International Advertising can be very tricky in its' implementation. What problems can happen and how could they be avoided?

The degree to which global advertising should be adapted to the unique characteristics of various country markets -Standardization allows for lower advertising costs, greater global ad coordination and more consistent worldwide image but also ignores the diversity of different geographic markets -Advertising costs vary; laws restricting advertising vary; the media used in a certain country differs

95. What are the latest trends in wholesaling as technology changes and disintermediation occurs?

The increased use of computerized, automated and internet-based systems will help wholesalers contain the costs of ordering, shipping and inventory holding

107. How does the product line under the brand Method benefit from the new media mix?

The product line under the brand Method benefits from the new media mix because they are now able to integrate their line of products into new forms of digital content, such as social media campaigns, creative TV ads , and online ads. This is best shown through Method's "Life's Messy Moments" ad campaign.

142. How do companies like "Salesforce" help improve selling effectiveness for a company?

The sales force serves as a critical link between a company and its customers. They represent the company to customers and they also represent customers to the company.

108. The discipline of "Content Marketing" requires many creative people to build the new messaging communication method. They must succeed over "paid, owned, earned and shared communication channels. How do they do this?

These channels include media that are both traditional and new as well as controlled and not controlled. It's not just advertising anymore, it's about mapping the customer journey to start a conversation with consumers, one that leads to engagement, purchase, loyalty, and advocacy at different touch points

17. Mattel has been extremely successful managing the Product Life Cycle of the Barbie Doll? Describe what they have done and implemented and why is it so important for their survival.

They focused on creating many basic barbie dolls and constantly adding enhancements for barbie to use that are sold separately

26. How does APPLE use a "premium price" strategy to highlight their value?

They have a reputation for having sleek, modern and well-designed products that people are willing to pay a higher price for.

197. 7-Eleven store are very successful in Global Markets. Why do you think they might be more successful around the world then here in the United States?

They might be more successful around world than here in the US because in other countries they have adapted themselves as a trendy hangout space. In the US, they are just another convenience store, which is very common in the US.

11. What does it mean to "Commercialize" a product? What role does marketing play in the process?

To commercialize is to introduce the new product into the market, it is the final decision about whether to launch a new product

54. TESLA and Michael Kors take prestige pricing to the limits. What do they do to get value and such high price products?

To get value, they market themselves as a high-end luxury product. Their value comes from their exclusivity. In Tesla's case, this exclusivity has also been capitalized upon to get people interested in their technological innovations.

172. Why is it important to develop a "competitive" approach to your market strategy? How is it best to conduct a review of your strategy and its' effectiveness?

To win in today's marketplace, companies must become adept not only in managing products but also in managing customer relationships in the face of determined competition and a difficult marketing environment

195. What is a "trade promotion" and what is it meant to accomplish?

Trade promotion strategies are push strategies. Their purpose is to push product out of warehouses to retail points of purchase where consumers shop.

185. How is Trader Joe's competing and expanding into markets like Notre Dame?

Trader Joe's puts its own twist on the food price-value equation, they call it "cheap gourmet" -Creates a culture experience for shoppers with exotic luxuries and affordable products exclusive to Trader Joe's

118. Volvo Trucks IMC required great synergy in working with the many different ways to advertise. What did they do? How did they use "Live Tests"?

Volvo developed a "Live Tests" campaign, which was a multi-feature, long-running campaign to demonstrate certain technical feats of Volvo Trucks. One such video was called "The Ballerina," in which world record-holding highliner Faith Dickey walked a wire between two speeding Volvo trucks, completing the run just in time to duck as the trucks entered two opposing sides of a tunnel, violently snapping the tight wire. The video was designed to demonstrate the tremendous steering precision of the new Volvo trucks.

111. Define WOM marketing and when is it most effective?

WOM marketing is the impact of the personal words and recommendations of trusted friends, family, associates and other consumers on buying behavior -Most effective for expensive/risky products

82. What is Walmart's strategy to beat their rivals, especially Amazon?

Walmart has a huge physical store advantage and it keeps spiffing up stores and expanding its private label lines you can't buy on Amazon. They've also invested in omni-channel with a mobile app, personal shopper service, free two-day shipping.