Review and Applications
1.1 – Identify the six components of the CRM process.
The first step is to identify customer relationships. This could include learning who the customers are, where they are located, or even what products or services they are using. The second step is that the company should understand the interactions with the current customers. A company can complete this step by collecting data on all types of communications a customer has had with the company. The third step would involve the company capturing relevant customer data on interactions. The company can collect relevant information such as when the customer last had contact with the company and how often they make purchases, etc. The fourth step is to store and integrate customer data through information technology. It would be useful for the company to collect high quality, actionable data from many sources. The fifth step would be identifying the best customers. A company can do this with the information it has collected on the customer. The sixth step would be to leverage the customer information. The company would want to send that customer information to all areas of the company to improve the relationship with the customer.
4.1 – Comment on the types of customer data the Hard Rock Web site is designed to capture, and explain how that data would benefit your local Hard Rock operation.
You can purchase products such as clothing and other memorabilia in which the company would gain access to your demographic information. You can also join as a member of their three different clubs where you receive coupons and other things, which also gives the company your demographic information. You can reserve tables for a group over twenty in which you have to give out your business or group information. You can fill out a survey on the restaurant visit from the number on the bottom of your receipt. This would give them specific information on what your party ordered. You can also reserve hotel rooms online. All of these can help identify target markets and specific customer information. If customers are joining the membership groups then they probably visit the restaurant or hotels frequently and you would be able to tell if this would include your local operation.
Sunday, April 19, 2009
Chapter 18
Review and Applications
1.1 – A manufacturer decides to produce antique-style rolltop desks. They will be charging a low price and plan on a high volume to reduce their risks. Comment.
I think the company should use the price skimming strategy in which they charge a high introductory price coupled with heavy promotion. This strategy is usually used for new products that the target market perceives as having unique advantages. The antique rolltop desk would have unique advantages. It would be a modern computer desk mixed with the antique style. By using the price skimming strategy they can try to attract the consumer that would be willing to buy the product at the higher price. If that doesn’t work the company can always lower the price. If the company starts at a lower price first, then they may not gain market share and fail because it would be considered a cheap product. The company may also face losses from producing a high volume that will not sell.
2.1 – What are the three basic defenses that a seller can use if accused under the Robinson-Patman Act?
*Cost – a company can charge a different price to different customers of the prices represent a manufacturing or quantity discount savings.
*Market conditions – the company can have price variations if they are to meet fluid product or certain market conditions.
*Competition – the company can reduce the price if trying to stay in competition with other companies.
3.5 – How is the “information age” changing the nature of pricing.
With the information age people can now go onto the internet and shop around for the cheapest price on a certain product. Sometimes the company may even lower the price of a product if it is purchased on the internet. If companies aren’t watching their prices compared to the competition on the internet they could be losing out on sales.
5.1 – During a recession, what pricing strategies would you consider using to gain or maintain market share? Explain your answer?
I would use either value-based pricing or the bundling strategy. The value-based pricing would stress to consumers that they are getting a good value for their money on a certain product. It would show that the company has a better price than its competitors. The bundling strategy would stress to consumers that they are getting a better value than a competitor. A company may put together a package that is a better deal then purchasing each item separately.
Websites
Web Stats from ClickTracks
One solution for an entire marketing team.
Useful for running an online marketing campaign,
You can fix deliverability before sending.
There is a team calendar and message board.
You can see what visitors are doing on your site.
Google Analytics
This function can help tell your company how people find your site, how they navigate through it, and how they become customers.
Detailed reports are only a click away and they use segmentation menus.
The company can tell the value in geographic areas and the highest target markets.
The company can also tell how the design and layout of the site affects their bottom line.
Comparison
I found the Google site to be more informative and easier to navigate through. They gave a lot of information and even went into the process of how you can sign up. If I had to choose one of these programs I would definitely choose Google Analytics. It also was easier to understand and they did have helpful hints on how to read and analyze each report.
1.1 – A manufacturer decides to produce antique-style rolltop desks. They will be charging a low price and plan on a high volume to reduce their risks. Comment.
I think the company should use the price skimming strategy in which they charge a high introductory price coupled with heavy promotion. This strategy is usually used for new products that the target market perceives as having unique advantages. The antique rolltop desk would have unique advantages. It would be a modern computer desk mixed with the antique style. By using the price skimming strategy they can try to attract the consumer that would be willing to buy the product at the higher price. If that doesn’t work the company can always lower the price. If the company starts at a lower price first, then they may not gain market share and fail because it would be considered a cheap product. The company may also face losses from producing a high volume that will not sell.
2.1 – What are the three basic defenses that a seller can use if accused under the Robinson-Patman Act?
*Cost – a company can charge a different price to different customers of the prices represent a manufacturing or quantity discount savings.
*Market conditions – the company can have price variations if they are to meet fluid product or certain market conditions.
*Competition – the company can reduce the price if trying to stay in competition with other companies.
3.5 – How is the “information age” changing the nature of pricing.
With the information age people can now go onto the internet and shop around for the cheapest price on a certain product. Sometimes the company may even lower the price of a product if it is purchased on the internet. If companies aren’t watching their prices compared to the competition on the internet they could be losing out on sales.
5.1 – During a recession, what pricing strategies would you consider using to gain or maintain market share? Explain your answer?
I would use either value-based pricing or the bundling strategy. The value-based pricing would stress to consumers that they are getting a good value for their money on a certain product. It would show that the company has a better price than its competitors. The bundling strategy would stress to consumers that they are getting a better value than a competitor. A company may put together a package that is a better deal then purchasing each item separately.
Websites
Web Stats from ClickTracks
One solution for an entire marketing team.
Useful for running an online marketing campaign,
You can fix deliverability before sending.
There is a team calendar and message board.
You can see what visitors are doing on your site.
Google Analytics
This function can help tell your company how people find your site, how they navigate through it, and how they become customers.
Detailed reports are only a click away and they use segmentation menus.
The company can tell the value in geographic areas and the highest target markets.
The company can also tell how the design and layout of the site affects their bottom line.
Comparison
I found the Google site to be more informative and easier to navigate through. They gave a lot of information and even went into the process of how you can sign up. If I had to choose one of these programs I would definitely choose Google Analytics. It also was easier to understand and they did have helpful hints on how to read and analyze each report.
Saturday, April 18, 2009
Chapter 17
Review and Applications
2.1 – Give an example of each major type of pricing objective.
The three pricing objectives in the text were profit-oriented pricing, sales-oriented pricing, and status quo pricing. An example of the profit-oriented pricing would be the target return on investment. This would be the net profit of a company after taxes are divided by total assets. Menards would be an example of a profit oriented company. An example of sales-oriented pricing would be market share. The sales-oriented pricing objectives are based on market share, which using the company’s product sales as a percentage of the total sales in that industry. An example of a sales oriented comapany would be a Costco or Walgreens. The status quo pricing would be maintaining the company’s existing price or changing the price to meet the competitor’s prices. An airline or gas station would be an example of a status quo princing company.
3.1 – Explain the role of supply and demand in determining price.
First the company would have to make a demand curve and a demand schedule. The lower the price the higher the demand. This would tell the company the quantity demanded at which price. The company would then have to create a supply curve and a supply schedule. The higher the price the higher the supply. This would tell them the quantity supplied at a certain price. When you combine the demand and supply curve you come up with an equilibrium price. This price would tell the company at price at which demand and supply are equal and when they would make the most profit.
3.2 – If a firm can raise its total revenue by raising its price, should it do so?
Yes, because it would be considered an inelastic demand, which means the increase in price does not significantly affect the demand for the product. If the company can raise the price on a product and consumers will still buy it they should. It would have to be a product that is already relatively inexpensive.
3.3 – Explain the concepts of elastic and inelastic demand? Why should managers understand these concepts?
Elastic demand happens when consumers buy more or less of a product when the price of that product changes. An increase in total revenue when the price falls indicates that the demand is elastic. Demand tends to be elastic if consumers can easily find substitutes. Inelastic demand happens when an increase in or decrease in the price of a product does not affect the demand for that product. An increase in total revenue when the price increases indicates that the demand is inelastic.
Websites
E-mail Marketing Constant Contact
- The e-mail marketing would make it easier to tell who has read your e-mails and followed your links.
- You get a free 60 day trial to see if it works for you or not.
- You can keep a contact list and have people sign up to get added to list and to get newsletters.
- They give you sample e-mail templates to use to help in the design of certain e-mails.
- They help manage other lists of things.
2.1 – Give an example of each major type of pricing objective.
The three pricing objectives in the text were profit-oriented pricing, sales-oriented pricing, and status quo pricing. An example of the profit-oriented pricing would be the target return on investment. This would be the net profit of a company after taxes are divided by total assets. Menards would be an example of a profit oriented company. An example of sales-oriented pricing would be market share. The sales-oriented pricing objectives are based on market share, which using the company’s product sales as a percentage of the total sales in that industry. An example of a sales oriented comapany would be a Costco or Walgreens. The status quo pricing would be maintaining the company’s existing price or changing the price to meet the competitor’s prices. An airline or gas station would be an example of a status quo princing company.
3.1 – Explain the role of supply and demand in determining price.
First the company would have to make a demand curve and a demand schedule. The lower the price the higher the demand. This would tell the company the quantity demanded at which price. The company would then have to create a supply curve and a supply schedule. The higher the price the higher the supply. This would tell them the quantity supplied at a certain price. When you combine the demand and supply curve you come up with an equilibrium price. This price would tell the company at price at which demand and supply are equal and when they would make the most profit.
3.2 – If a firm can raise its total revenue by raising its price, should it do so?
Yes, because it would be considered an inelastic demand, which means the increase in price does not significantly affect the demand for the product. If the company can raise the price on a product and consumers will still buy it they should. It would have to be a product that is already relatively inexpensive.
3.3 – Explain the concepts of elastic and inelastic demand? Why should managers understand these concepts?
Elastic demand happens when consumers buy more or less of a product when the price of that product changes. An increase in total revenue when the price falls indicates that the demand is elastic. Demand tends to be elastic if consumers can easily find substitutes. Inelastic demand happens when an increase in or decrease in the price of a product does not affect the demand for that product. An increase in total revenue when the price increases indicates that the demand is inelastic.
Websites
E-mail Marketing Constant Contact
- The e-mail marketing would make it easier to tell who has read your e-mails and followed your links.
- You get a free 60 day trial to see if it works for you or not.
- You can keep a contact list and have people sign up to get added to list and to get newsletters.
- They give you sample e-mail templates to use to help in the design of certain e-mails.
- They help manage other lists of things.
Friday, April 17, 2009
Chapter 14
Review and Applications
3.1 – Why is understanding the target market a crucial aspect of the communication process?
Marketers need to understand their target market so they know the best way to communicate with them and to be able to develop the appropriate message. The marketers need to know how to inform and persuade certain target markets so they purchase goods and services. If the marketers know their target market the communication can be two way communication.
4.1 – Why might a marketing manager choose to promote his or her product using persuasion? Give some examples of persuasive promotion.
Persuasive promotion is designed to motivate a purchase. It emphasizes the products competitive advantages, which sometimes appeals to people’s emotional needs. Persuasion can help products that are in their mature stage and the can also make customers switch from their common brand.
5.1 – Discuss the AIDA concept. How do these different stages of consumer involvement affect the promotional mix?
AIDA is the model used to show stages of consumer involvement within the message. The acronym stands for attention, interest, desire, and action. It is the steps involved when a customer is buying a good or a service. When using the promotional mix and the AIDA concept it is easy to tell when they elements of promotion (advertising, public relations, sales promotion, and personal selling) are most useful. An example would be in the attention stage of the AIDA models it is good to use either sales promotion or personal selling.
5.2 – How does a Web site’s ease of use affect its ability to create attention, interest, desire, and action? Visit the kitchen and bath pages of Kohler’s Web site and determine how successful the company is at moving consumers through the AIDA process.
Websites that have a higher ease of use will have more customers looking at it, therefore getting their information out to the customers.
Attention – Kohler uses innovative products and puts pictures of them on their Website. You can also design and create your own kitchen or bathroom. They also had a link to all new products.
Interest – When looking at certain products it tells their features and benefits. Also, there was a link to a video about saving water and other videos about Kohler and their products.
Desire – Not only does Kohler offer bath products, but also kitchen products. If a customer was looking to remodel both they would only have to look in one place.
Action – They have good advertising on their Website and they send out newsletters to e-mails if the customer chooses that option.
3.1 – Why is understanding the target market a crucial aspect of the communication process?
Marketers need to understand their target market so they know the best way to communicate with them and to be able to develop the appropriate message. The marketers need to know how to inform and persuade certain target markets so they purchase goods and services. If the marketers know their target market the communication can be two way communication.
4.1 – Why might a marketing manager choose to promote his or her product using persuasion? Give some examples of persuasive promotion.
Persuasive promotion is designed to motivate a purchase. It emphasizes the products competitive advantages, which sometimes appeals to people’s emotional needs. Persuasion can help products that are in their mature stage and the can also make customers switch from their common brand.
5.1 – Discuss the AIDA concept. How do these different stages of consumer involvement affect the promotional mix?
AIDA is the model used to show stages of consumer involvement within the message. The acronym stands for attention, interest, desire, and action. It is the steps involved when a customer is buying a good or a service. When using the promotional mix and the AIDA concept it is easy to tell when they elements of promotion (advertising, public relations, sales promotion, and personal selling) are most useful. An example would be in the attention stage of the AIDA models it is good to use either sales promotion or personal selling.
5.2 – How does a Web site’s ease of use affect its ability to create attention, interest, desire, and action? Visit the kitchen and bath pages of Kohler’s Web site and determine how successful the company is at moving consumers through the AIDA process.
Websites that have a higher ease of use will have more customers looking at it, therefore getting their information out to the customers.
Attention – Kohler uses innovative products and puts pictures of them on their Website. You can also design and create your own kitchen or bathroom. They also had a link to all new products.
Interest – When looking at certain products it tells their features and benefits. Also, there was a link to a video about saving water and other videos about Kohler and their products.
Desire – Not only does Kohler offer bath products, but also kitchen products. If a customer was looking to remodel both they would only have to look in one place.
Action – They have good advertising on their Website and they send out newsletters to e-mails if the customer chooses that option.
Chapter 12
Review and Applications
2.1 – What kind of marketing channel functions can be performed over the Internet? Why do you think so?
Parts of the transactional functions such as contacting potential customers, promoting products and soliciting orders. All of the logistical functions can be performed over the internet. The research part of the facilitating function could be performed over the internet.
3.1 – Describe the most likely marketing channel structure for each of these consumer products: candy bars, Tupperware products, nonfiction books, new automobiles, farmers’ market produce, and stereo equipment. Now, construct alternative channels for these same products.
Candy bars – uses the wholesaler channel, an alternative channel would be selling the candy bars through a catalog for a fundraiser or even a specialty candy store that makes their own candy.
Tupperware – uses the retailer channel such as Wal-Mart selling Tupperware. Tupperware is also sold directly to consumers through people having parties to sell Tupperware.
Nonfiction books – uses the retailer channel, an alternative channel would be the bookstores on the internet selling directly to the consumer.
New automobiles – uses the retailer channel, an alternative channel would be a company purchasing a large number of new cars and buying directly from the producer.
Famers’ market product – uses the direct channel, an alternative would be the farmers selling their produce to natural, organic co-op food stores.
Stereo equipment – uses the retailer channel, an alternative channel would be catalog and selling on the Internet.
2.1 – What kind of marketing channel functions can be performed over the Internet? Why do you think so?
Parts of the transactional functions such as contacting potential customers, promoting products and soliciting orders. All of the logistical functions can be performed over the internet. The research part of the facilitating function could be performed over the internet.
3.1 – Describe the most likely marketing channel structure for each of these consumer products: candy bars, Tupperware products, nonfiction books, new automobiles, farmers’ market produce, and stereo equipment. Now, construct alternative channels for these same products.
Candy bars – uses the wholesaler channel, an alternative channel would be selling the candy bars through a catalog for a fundraiser or even a specialty candy store that makes their own candy.
Tupperware – uses the retailer channel such as Wal-Mart selling Tupperware. Tupperware is also sold directly to consumers through people having parties to sell Tupperware.
Nonfiction books – uses the retailer channel, an alternative channel would be the bookstores on the internet selling directly to the consumer.
New automobiles – uses the retailer channel, an alternative channel would be a company purchasing a large number of new cars and buying directly from the producer.
Famers’ market product – uses the direct channel, an alternative would be the farmers selling their produce to natural, organic co-op food stores.
Stereo equipment – uses the retailer channel, an alternative channel would be catalog and selling on the Internet.
Sunday, April 5, 2009
Chapter 11
Review and Applications
1.1 – To keep track of how service employment is affecting the US economy, go to http://www.bls.gov/bdm/home.html. Look at the right side bar which gives the latest numbers for Business Employment Dynamics. What trends do you see? Do the numbers support the information from the chapter?
The trends show a high number of jobs being in the service sector. This matches what the book says about the service industry.
2.1 – Assume that you are a manger of a bank branch. Write a list of the implications of intangibility for your firm.
The services of the bank can’t be touched, seen, tasted, heard, or felt. It is harder for the customers to evaluate the quality of services because of the fewer search qualities. It would also be harder for marketers to communicate the benefits of the service customers will receive from the bank.
3.1 – Analyze a recent experience that you have had with a service business in terms of your expectations and perceptions about each of the five components of service quality.
The experience I had was at Ruth’s Chris Steakhouse. I went there for the first time and had a great experience.
Reliability – The service at the restaurant was great. Not only from the waiter, but from all the other service workers at the restaurant.
Responsiveness – The service was quick and the waiter was at the table every time we needed something. We conveniently made reservations online so our table was ready right when we got there.
Assurance – The waiter went through the options of meals we were considering. He did this because we had never been there. He also suggested wines to pair with different dinner courses.
Empathy – The waiter talked to us throughout the meal to make sure everything was good and meeting our expectations. We even received a post card from the waiter in the mail a couple days after our dinner thanking us for coming into the restaurant.
Tangibles – The interior of the restaurant was very nice. The wait staff was dressed in white shirts and ties, which looked very nice.
Application Exercise
New car – physical good and difficult to assess.
Designer jeans – physical good and difficult to assess.
Oil change – service and easy to assess.
Dry cleaning – service and easy to assess.
Haircut – service and easy to assess.
Tax preparation software – both a good and a service and easy to assess.
College education – service, easy to assess.
The services were quicker to assess in terms of satisfaction, but services are more difficult to assess prior to purchase. People spend more time trying to search for a good product, but don’t know the benefits until they have already bought the product.
1.1 – To keep track of how service employment is affecting the US economy, go to http://www.bls.gov/bdm/home.html. Look at the right side bar which gives the latest numbers for Business Employment Dynamics. What trends do you see? Do the numbers support the information from the chapter?
The trends show a high number of jobs being in the service sector. This matches what the book says about the service industry.
2.1 – Assume that you are a manger of a bank branch. Write a list of the implications of intangibility for your firm.
The services of the bank can’t be touched, seen, tasted, heard, or felt. It is harder for the customers to evaluate the quality of services because of the fewer search qualities. It would also be harder for marketers to communicate the benefits of the service customers will receive from the bank.
3.1 – Analyze a recent experience that you have had with a service business in terms of your expectations and perceptions about each of the five components of service quality.
The experience I had was at Ruth’s Chris Steakhouse. I went there for the first time and had a great experience.
Reliability – The service at the restaurant was great. Not only from the waiter, but from all the other service workers at the restaurant.
Responsiveness – The service was quick and the waiter was at the table every time we needed something. We conveniently made reservations online so our table was ready right when we got there.
Assurance – The waiter went through the options of meals we were considering. He did this because we had never been there. He also suggested wines to pair with different dinner courses.
Empathy – The waiter talked to us throughout the meal to make sure everything was good and meeting our expectations. We even received a post card from the waiter in the mail a couple days after our dinner thanking us for coming into the restaurant.
Tangibles – The interior of the restaurant was very nice. The wait staff was dressed in white shirts and ties, which looked very nice.
Application Exercise
New car – physical good and difficult to assess.
Designer jeans – physical good and difficult to assess.
Oil change – service and easy to assess.
Dry cleaning – service and easy to assess.
Haircut – service and easy to assess.
Tax preparation software – both a good and a service and easy to assess.
College education – service, easy to assess.
The services were quicker to assess in terms of satisfaction, but services are more difficult to assess prior to purchase. People spend more time trying to search for a good product, but don’t know the benefits until they have already bought the product.
Chapter 10
Review and Applications
5.1 – Describe some products whose adoption rates have been affected by complexity, compatibility, relative advantage, observability, and and/or trialability.
- Complexity – the new Blu Ray DVD players would be an example of a product affected by complexity. These players are more technologically advanced and require the purchase of a higher definition cable that connects to the television.
- Compatibility – prescription drugs would be a product that is affected by compatibility. Some people might not believe in prescription drugs, but have no other choice if they want to keep living.
- Relative advantage – a hair straightener would be superior to the old way of fixing hair with a curling iron. Straighteners can add volume and even curl hair.
- Observability – the Croc brand of shoes and sandals that came out a few years ago would be an example of observability. They are very popular, but are also very comfortable shoes.
- Trialability – the shampoo and lotion samples that are given away in women’s magazines are examples of trailability products. People try them and if they like the new or existing product they are likely to buy them next time they visit a store.
5.2 – What type of adopter behavior do you typically follow? Explain.
I usually follow the early majority behavior. I don’t like to buy new products right away because of the price, but also because eventually there will be a new a better product. At the same time I like to have the new technology like everyone else.
6.1 – What is Cheerios doing to compete successfully in the maturity stage? Go to its Web site http://www.cheerios.com to find out.
They have catered to different ages on their website giving more of a market share. Cheerios has also started targeting adults who need to lower their cholesterol. They use the bee to cater to children. In the children section on the Web site they can download screensavers and wallpapers. They can also play games on the Web site. The company is also coming out with new flavors of cheerios. This will help target consumers who like a variety of cereals and not plain cheerios.
Web Site
The tipping point – WikiSummaries
- The children’s shows today still helping children to develop literacy.
- Cleaning up dirty areas of the city reduced crime.
- The book helped to initiate paradigm shifts in different fields.
- Gladwell identifies three key factors that play a role in whether a particular trend will tip. The factors are the Law of the Few, the Stickiness Factor, and the Power of Context.
- The reasons some trends fail have been thought to be mysterious.
5.1 – Describe some products whose adoption rates have been affected by complexity, compatibility, relative advantage, observability, and and/or trialability.
- Complexity – the new Blu Ray DVD players would be an example of a product affected by complexity. These players are more technologically advanced and require the purchase of a higher definition cable that connects to the television.
- Compatibility – prescription drugs would be a product that is affected by compatibility. Some people might not believe in prescription drugs, but have no other choice if they want to keep living.
- Relative advantage – a hair straightener would be superior to the old way of fixing hair with a curling iron. Straighteners can add volume and even curl hair.
- Observability – the Croc brand of shoes and sandals that came out a few years ago would be an example of observability. They are very popular, but are also very comfortable shoes.
- Trialability – the shampoo and lotion samples that are given away in women’s magazines are examples of trailability products. People try them and if they like the new or existing product they are likely to buy them next time they visit a store.
5.2 – What type of adopter behavior do you typically follow? Explain.
I usually follow the early majority behavior. I don’t like to buy new products right away because of the price, but also because eventually there will be a new a better product. At the same time I like to have the new technology like everyone else.
6.1 – What is Cheerios doing to compete successfully in the maturity stage? Go to its Web site http://www.cheerios.com to find out.
They have catered to different ages on their website giving more of a market share. Cheerios has also started targeting adults who need to lower their cholesterol. They use the bee to cater to children. In the children section on the Web site they can download screensavers and wallpapers. They can also play games on the Web site. The company is also coming out with new flavors of cheerios. This will help target consumers who like a variety of cereals and not plain cheerios.
Web Site
The tipping point – WikiSummaries
- The children’s shows today still helping children to develop literacy.
- Cleaning up dirty areas of the city reduced crime.
- The book helped to initiate paradigm shifts in different fields.
- Gladwell identifies three key factors that play a role in whether a particular trend will tip. The factors are the Law of the Few, the Stickiness Factor, and the Power of Context.
- The reasons some trends fail have been thought to be mysterious.
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