BAS 282: Value Creation: Homework

A shoe manufacturer introduces a new line of shoes for people who work in kitchens. The shoes help the wearers retain their balance and prevent them from slipping on slippery surfaces.

Creates Value

Coca-Cola begins marketing a new diet cola that is made from only natural ingredients and has no artificial aftertaste.

Creates Value

Twin Oaks uses ________ to communicate to customers the value of the brands it represents because it believes it to be the most important type of marketing.

word of mouth

Select all of the ways in which the Grizzlies use social media to promote the team and its events.

* providing photo galleries of team events. * offering ticket deals. * showing behind-the-scenes videos. * sharing stories of the Grizzlies players in the community.

Microsoft introduces a new software package that allows busy parents to schedule their children's activities.

Creates Value

A Chinese company begins selling printer ink cartridges at a low price, but these ink cartridges often result in smeared documents and leave large ink blotches on the printouts.

Does not create value

A publishing company publishes a new book about the history of Easter Island that nobody wants to read.

Does not create value

Faber-Castell begins selling a new line of pencils for $10 each; each pencil has an eraser that is 10 percent larger than the typical pencil eraser.

Does not create value

Aisha eats three meals a day to keep her strength up.

Need

Before David leaves to go to work, he puts on clothing and shoes.

Need

Benedetto lives in a small apartment to keep him safe from the elements and other possible dangers.

Need

Carole drinks three liters of water per day to keep herself hydrated.

Need

Emilie takes the bus to get to her job, because she works nearly 30 miles from where she lives.

Need

Which of the following facts about McDonald's emphasizes the importance of place in its marketing mix?

People who live in the United States are never more than 115 miles away from a McDonald's.

Amazon.com allows customers to shop 24 hours a day, seven days a week, from the comfort of their own homes, thus communicating its respect for customers' time and their need for convenience.

Place

If Gabby's mother places the highest value on convenience when looking for a cup of coffee, which of the marketing mix components is she most concerned with?

Place

In many locations, Domino's Pizza communicates its value by promising to deliver a hot, freshly made pizza to your door within 30 minutes.

Place

This element of the marketing mix includes the activities that a firm undertakes to make its goods and services available to potential consumers. It includes location, distribution, and inventory management.

Place

Gabby's father prefers the no-frills coffee offered at Joe to Go because it is inexpensive and offers 25-cent refills. Which component of the marketing mix does Joe to Go rely on to capture value from customers like Gabby's father?

Price

Premium watch companies such as Rolex and Patek Philippe communicate and emphasize the prestige that their products give to the consumer. For example, a Patek Philippe Grand Complication wristwatch retails for $877,200.

Price

This element of the marketing mix is the amount of something (money, time, or effort) that a seller uses to purchase or obtain a product. It relates to the customer's assessment of a product's value and quality. This element is typically the easiest component of the marketing mix to change.

Price

Tide communicates its desire to work with consumers' tight household budgets when it introduces a new line of laundry detergents called "Tide Simply Clean & Fresh" that sells for much less than other Tide detergents.

Price

Gabby prefers coffee made from artisanal beans, which means she is most concerned with which element of the marketing mix?

Product

The chain of Black Bear Diners communicates value by offering such large portion sizes that almost everyone takes home leftovers.

Product

Usually the first "P" considered, this element of the marketing mix is a specific combination of goods, services, or ideas that a firm offers to consumers. Plastic spoons, software packages, and gold jewelry all fall into this category.

Product

Volvo communicates its commitment to safety by manufacturing cars with an enormous number of safety features compared to the competition.

Product

Blinds.com, an online vendor of custom-made window shades and blinds, routinely offers online coupons for 20-50 percent off retail prices while emphasizing the well-known brand names that it sells.

Promotion

Ritz has developed a tasty new cheese cracker. To convince consumers that the new cracker is more delicious than any other cheese cracker, Ritz representatives give away free samples at supermarket chains across the country.

Promotion

This element consists of all the activities that communicate the value of a product and persuade customers to buy it. Four common components of this "P" are advertising, sales promotion, personal selling, and public relations.

Promotion

________ is changing the way marketers at Twin Oaks communicate value to customers in that it allows them to better connect with its brands and other consumers.

Social media

Francisco hopes to buy a brand-new BMW when he graduates from college and lands a good job.

Want

Gabriela is tired of living in a cramped apartment in the city and plans to move to a spacious house on three acres in the country.

Want

Hamoud's old iPhone still works, but he plans to buy the most recent, upgraded version of the iPhone.

Want

Irina knows that generic acetaminophen contains exactly the same ingredients as the name-brand Tylenol, which costs almost three times as much. But she chooses to buy Tylenol instead of generic acetaminophen.

Want

Jack is saving his money to visit Stonehenge in England.

Want

Because McDonald's place strategy focuses on making its menu available to customers quickly and easily, it must locate its stores in convenient locations. McDonald's also recognizes that many of its customers are eating on the run, so McDonald's must serve them quickly and efficiently. Which of the following areas would be the least desirable place for a new McDonald's restaurant to open?

in a tourist area that is busy only in the summer

As part of its place strategy, McDonald's likes to locate its restaurants (sometimes called stores) in areas with a lot of foot traffic—that is, in locations where many different people will be passing by. Based on that criterion, which of the following would be the best choice for opening a new McDonald's?

inside a major metropolitan airport

McDonald's sells over 75 burgers each second. Given the heavy demand for its burgers, each restaurant's managers must ensure that it always has enough hamburgers in its refrigerators and freezers to satisfy its customers. McDonald's stocking enough products to meet its customers' demands reflects which aspect of the "place" strategy?

inventory management

In an effort to connect to their target market, the Grizzlies have chosen a promotion mix including all of the following except

pricing plans.

Programs such as the Mentor of the Game and the Healthy Homecourt are examples of the Grizzlies using which promotional mix element?

public relations

The tools used by Grizzlies' marketers to promote the team and accomplish their communications objectives are called

the promotion mix.