1.1
The six components are to identify customer relationships, understand interactions with current customer base, capture data based on transactions, store and integrate customer data usiing IT, identify best customers and leverage customer information.
4.1
Information can be collected for large groups such as company name, size of the group, what the event is and where they would like to hold it. This information can be helpful for a local Hard Rock as they have to information to target specific companies to encourage them to continue to have events and parties with Hard Rock. Another aspect of gathering customer data is the membership clubs they offer. These clubs offer information on local customers to Hard Rock cafes and allow them to target these loyal members and gain their business through discounts, benefits and perks.
Monday, December 15, 2008
Chapter 18 Review and Applications
1.1
I would suggest using a price-skimming method instead because it is a specialty product that should exude higher class and quality. I think they would be more successful in portraying the product that way instead of starting low.
2.1
The three defenses are
Cost: a firm can charge different prices to different customers if the prices represent manufacturing or quantity discount savings
Market conditions: price variations are justified if designed to meet fluid product or market conditions.
Competition: a reduction in price may be necessary to stay even with the competition.
3.5
The information age gives consumers more of an advantage in comparing prices and finding the best and the best quality for the best price. With the advances in technology consumers can find information quickly and efficiently using the web.
5.1
During a recession it can be beneficial to use strategies such as bundling or unbundling; this adds features to a bundle so the consumer feels like theyre getting a better value or value-based pricing is also useful during this time as it stresses to customers that they are getting the best value for their money.
I would suggest using a price-skimming method instead because it is a specialty product that should exude higher class and quality. I think they would be more successful in portraying the product that way instead of starting low.
2.1
The three defenses are
Cost: a firm can charge different prices to different customers if the prices represent manufacturing or quantity discount savings
Market conditions: price variations are justified if designed to meet fluid product or market conditions.
Competition: a reduction in price may be necessary to stay even with the competition.
3.5
The information age gives consumers more of an advantage in comparing prices and finding the best and the best quality for the best price. With the advances in technology consumers can find information quickly and efficiently using the web.
5.1
During a recession it can be beneficial to use strategies such as bundling or unbundling; this adds features to a bundle so the consumer feels like theyre getting a better value or value-based pricing is also useful during this time as it stresses to customers that they are getting the best value for their money.
Click Tracks Observations
1. Similar to google analytics, but does not have the google name association.
2. Has many options as to what and how you can track customers.
3. Great tool for seeing what motivates customers to purchase.
4. Allows the business to see what parts of the website are most effective and what could be taken out.
5. Seems easy to set up and maneuver through the set up wizard.
2. Has many options as to what and how you can track customers.
3. Great tool for seeing what motivates customers to purchase.
4. Allows the business to see what parts of the website are most effective and what could be taken out.
5. Seems easy to set up and maneuver through the set up wizard.
Google Analytics Observations
1. Has the google name attached to it so it conveyst that company's image as well.
2. Easy to follow allow and understand.
3. Helpful tools for analyzing where business it coming from.
4. Similar to Click tracks information.
5. Helps marketers and advertisers find out useful information as to what is working with their tactics and what is not as well as what areas are having the most effect on business.
2. Easy to follow allow and understand.
3. Helpful tools for analyzing where business it coming from.
4. Similar to Click tracks information.
5. Helps marketers and advertisers find out useful information as to what is working with their tactics and what is not as well as what areas are having the most effect on business.
Monday, December 8, 2008
Chapter 17 Review and Apps
2.1
Profit oriented: an example would be a company introducing a new product that they are wanting to not only break even but make a profit on. When the X-box or Playstation 2 and 3's first came out they were priced high not only to make a profit but to show their newness and their quality.
Sales oriented: a company that wants to make money in the case that they are unsure of their future or strapped for cash will sell as much as they can or to sell off excess inventory. Excess inventory is sold after holidays at places like Target or Wal Mart to boost sales and get rid of extra.
Status Quo: a company in the mature state of their product life cycle would want to keep their price in check with that of competitors. Examples would be products like deodorant, many of those are similarly priced.
3.1
Explain the role of supply and demand in determining price.
There is an inverse relationship with demand and price if the price is low the demand is high if the price is high the demand is lower. In the case of prestige products they may be directly correlated that when price goes up demand also goes up.
3.2
If a firm can increase its total revenue by raising its price, shouldn't it do so?
Of course firms want to make the greatest amount of revenue but by raising prices they may alienate their target market and drive away customers they once had until they raised their prices too high.
3.3
Explain the concepts of elastic and inelastic demand. Why should managers understand these concepts?
Elastic demand means that as price flutuates so does the demand for the product. Managers must know this so that they take this into consideration when adjusting prices on products. Will increasing the price significantly drop the demand? If the product is inelastic then the change is price will have little to no effect on the demand for the product. Managers need to realize if their product is elastic or inelastic.
Profit oriented: an example would be a company introducing a new product that they are wanting to not only break even but make a profit on. When the X-box or Playstation 2 and 3's first came out they were priced high not only to make a profit but to show their newness and their quality.
Sales oriented: a company that wants to make money in the case that they are unsure of their future or strapped for cash will sell as much as they can or to sell off excess inventory. Excess inventory is sold after holidays at places like Target or Wal Mart to boost sales and get rid of extra.
Status Quo: a company in the mature state of their product life cycle would want to keep their price in check with that of competitors. Examples would be products like deodorant, many of those are similarly priced.
3.1
Explain the role of supply and demand in determining price.
There is an inverse relationship with demand and price if the price is low the demand is high if the price is high the demand is lower. In the case of prestige products they may be directly correlated that when price goes up demand also goes up.
3.2
If a firm can increase its total revenue by raising its price, shouldn't it do so?
Of course firms want to make the greatest amount of revenue but by raising prices they may alienate their target market and drive away customers they once had until they raised their prices too high.
3.3
Explain the concepts of elastic and inelastic demand. Why should managers understand these concepts?
Elastic demand means that as price flutuates so does the demand for the product. Managers must know this so that they take this into consideration when adjusting prices on products. Will increasing the price significantly drop the demand? If the product is inelastic then the change is price will have little to no effect on the demand for the product. Managers need to realize if their product is elastic or inelastic.
Chapter 14 Review and Applications
3.1
Why is understanding the target market a crucial aspect of the communication process?
Understanding the target market is a crucial aspect of the communication process because if you do not understand who you are targeting than you may miscommunicate and in turn turn off the customer you are trying to attract.
4.1
Why might a marketing manager choose to promote his or her product using persuasion? Give some current examples of persuasive promotion.
A marketing manager would want to promote his or her product using persuasion in a mature state when more competitors with similar products are coming into the market. Another time would be in the decline stage of a product so as to persuade customers back to use their product. An example of persuasive marketing would be laundry detergents that compare their product with another leading brand and demonstrate the superiority of their product.
5.1
Discuss the AIDA concept. How do these different stages of consumer involvement affect the promotional mix?
The AIDA concept discusses Attention, Interest, Desire, and Action. In responding to a marketing message a consumer's attention needs to be drawn to it, they need to be interested in continuing to read or look at the promotional material, create a desire to want to take action and purchase the good or service.
5.2
How does a Web site's ease of use affect its ability to create attention, interest, desire, and action? Visit the kitchedn and bath pages of Kohler's Web site and determine how successful the company is at moving consumers through the AIDA process.
Attention is definitley peaked in looking at the website. The images are interesting and innovative, colorful and somewhat futuristic making the viewer want to browse the through the products and even design their own kitchen or bath. The desire for a new refurbished, modern look is also there as well. The only thing I dont exactly see is a drive to make the consumer want to take action. The online store only sells accessories and does not entirely encourage sales.
Why is understanding the target market a crucial aspect of the communication process?
Understanding the target market is a crucial aspect of the communication process because if you do not understand who you are targeting than you may miscommunicate and in turn turn off the customer you are trying to attract.
4.1
Why might a marketing manager choose to promote his or her product using persuasion? Give some current examples of persuasive promotion.
A marketing manager would want to promote his or her product using persuasion in a mature state when more competitors with similar products are coming into the market. Another time would be in the decline stage of a product so as to persuade customers back to use their product. An example of persuasive marketing would be laundry detergents that compare their product with another leading brand and demonstrate the superiority of their product.
5.1
Discuss the AIDA concept. How do these different stages of consumer involvement affect the promotional mix?
The AIDA concept discusses Attention, Interest, Desire, and Action. In responding to a marketing message a consumer's attention needs to be drawn to it, they need to be interested in continuing to read or look at the promotional material, create a desire to want to take action and purchase the good or service.
5.2
How does a Web site's ease of use affect its ability to create attention, interest, desire, and action? Visit the kitchedn and bath pages of Kohler's Web site and determine how successful the company is at moving consumers through the AIDA process.
Attention is definitley peaked in looking at the website. The images are interesting and innovative, colorful and somewhat futuristic making the viewer want to browse the through the products and even design their own kitchen or bath. The desire for a new refurbished, modern look is also there as well. The only thing I dont exactly see is a drive to make the consumer want to take action. The online store only sells accessories and does not entirely encourage sales.
Chapter 12 Review and Applications
Chapter 12
2.1
What kind of marketing channel functions can be performed over the Internet? Why do you think so?
Transactional functions, logistical functions and facilitating functions are the three marketing channel functions of these three using the Internet these days all of them can be done. Mostly though I would say transactional and facilitating functions would be performed. Contacting and promoting to potential customers as well as advertising to solicite new customers are done with ease via the internet using borders on web pages, contacting using emails and follow up emails from orders. Facilitating functions can also assist in gathering information about other channel members and consumers, financing can also be done using the internet. So much can be done electronically these days so storing, sorting and distribution can also somewhat be done using the internet as well at least keeping track of orders as well as inventory.
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: Retail or wholesale
Tupperware: Retail or Using an agent
Nonfiction books: Retail or wholesale
New Autos: Retail or alternatively perhaps an agent
Farmers' market produce: Direct or possibly retail
Stereo equipment: Retail or wholesale
2.1
What kind of marketing channel functions can be performed over the Internet? Why do you think so?
Transactional functions, logistical functions and facilitating functions are the three marketing channel functions of these three using the Internet these days all of them can be done. Mostly though I would say transactional and facilitating functions would be performed. Contacting and promoting to potential customers as well as advertising to solicite new customers are done with ease via the internet using borders on web pages, contacting using emails and follow up emails from orders. Facilitating functions can also assist in gathering information about other channel members and consumers, financing can also be done using the internet. So much can be done electronically these days so storing, sorting and distribution can also somewhat be done using the internet as well at least keeping track of orders as well as inventory.
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: Retail or wholesale
Tupperware: Retail or Using an agent
Nonfiction books: Retail or wholesale
New Autos: Retail or alternatively perhaps an agent
Farmers' market produce: Direct or possibly retail
Stereo equipment: Retail or wholesale
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