Answer – SWOT Analysis – POWER SWOT

SWOT Analysis – POWER SWOT

Dada Sky Inc.

Answer – Implementing a POWER SWOT

Personal experience.

Vijay has a wealth of business experience which he will put to work for him on this marketing project for Dada. However he will need assistance and advice regarding digital media and satellite technologies. This could mean the recruitment of an experienced assistant marketing manager, the use of a consultant or some marketing research. If an advertising agency is to be recruited, then it too will need expertise in this sector. At some point Vijay might consider some marketing training to consolidate and update his practical experience e.g. an Executive MBA.

Here is the final POWER SWOT for Dada Sky Inc.

Strengths.

  • Dada will be the first to launch its new services in the summer. Being first to market will help it to land grab early customers. Competitors will need to work hard to get them to swap brands especially if they are satisfied with Dada’s offering. 75%
  • Dada has one of three new 25 -year government licenses to supply satellite service across India. It is the only Indian national company to win this prestigious contract and this fact will undoubtedly help the company attract important early adopters keen to support their flag carrier brand. 25%

Weaknesses.

  • Dada is a well-known brand in India for cars. It is not renowned for its technology brands. A rebranding exercise needs to be undertaken. It should emphasize the innovative nature of the brand. A large investment must be considered here. 60%
  • Dada is a well-known brand in India for industrial products. The company is 3 months behind schedule with its launch programme. This could mean that a competitor could launch before Dada. 40%

Opportunities.

  • Huge expansion of TV and Internet access in India. The expansion is growing by 100% per annum. The potential value of such a business could be huge. Services will include telephone, mobile devices, pay-per-view TV, all sorts of channels supplying services such as Bollywood movies to Test Cricket. 80%
  • Education will soon be delivered to remote Indian villages via the Internet and laptops. This is a government funded programme worth $1 billion US. This opportunity will see regular income from the winning provider. As the national brand, this is vital business for Dada. 20%

Threats.

  • A large Australian competitor brand has announced a joint-venture with a national terrestrial TV Indian brand. The Indian TV brand is the most popular independent TV company in the country. This will help the consortium to seamlessly enter the market. 60%
  • A large European competitor brand has also entered the market. The company has years of international satellite experience and can build upon the synergy with its expanding British business. 40%

Final comments…

This is a POWER SWOT Analysis, applied to Dada Sky Inc. A longer POWER SWOT would have more categories and factors within strengths, weaknesses, opportunities and threats. The next stage would be to look at potential marketing objectives and marketing strategies, focusing on the highest ranking factors first.

Order – strengths or weaknesses, opportunities or threats.

A single strength has been changed to a weakness.

Weight.

All elements have been weighted by their importance and impact.

Emphasize detail.

Detail and justification has been added to the analysis so that it is more robust for the marketing decision-making that follows.

Rank and prioritize.

Finally after the detail has been added, elements are ranked and prioritized. This starts with a focus upon marketing opportunities.

Answer – Profit and Loss Statement

Profit and Loss Statement Exercise

Profit and Loss Statement Answer

Fishbourne Marketing

1) Cost of Goods Sold reduces Gross Sales to arrive at Total Income.

2) Net Income would increase by $5,000.

3) Net Income would increase by $5,000.

Profit and Loss Statement

Fishbourne Marketing

January 1, 2014 to December 31, 2014

Income
Gross Sales
$323,789.40
Less Returns and Allowances
$10,000.00
Net Sales
$313,789.40
Cost of Goods
Merchandise
inventory, January 1
$160,000.00
Purchases
$90,000.00
Freight Charges
$2,000.00
Total Merchandise Handled
$252,000.00
Less Inventory, December 31
-$100,000.00
Cost of Goods Sold
$152,000.00
Gross Profit
$161,789.40
Interest Income
$2,500.00
Total Income
$164,289.40
Expenses
Salaries
$50,360.40
Utilities
$5,800.00
Rent
$23,000.00
Office Supplies
$2,250.00
Insurance
$3,900.00
Advertising
$8,650.00
Telephone
$2,700.00
Travel and Entertainment
S$2,550.00
Dues and Subscriptions
$1,100.00
Interest Paid
$2,100.00
Repairs and Maintenance
$1,250.00
Taxes and Licenses
$35,589.00
Total Expenses
$139,289.40
Net Income
$25,000.00

Answer – Internet Marketing and Promotion: Internet Advertising

Internet Marketing and Promotion: Internet Advertising

Answer – Manor Grange Hotel – Internet Advertising – Recommendations

(a) Online Promotion.

Register for a Google Adwords account, by visiting the Google homepage, and clicking on Advertising Programmes. Cost out a campaign for keywords such as ‘Inverness’ – ‘Scottish Salmon’ – ‘Birds Scotland’ and any others that you consider important to potential visitors.

Of course there will be many other ways to promote your business, which would be contained in a fuller marketing plan – such as rate reductions and special offers at times of low occupancy. The Hotel could also provide free guides on local birds and fishing spots.

You could also consider registering with Yahoo! Search Marketing, perhaps under Local Search – Scotland, Inverness.

You could register your website with Commission Junction. Your site would be attractive to affiliate programme owners such as airlines, and travel companies. This could become a source of additional revenue.

(b) Offline Promotion.

You need to create a media release and send it to tourism magazines and institutions ( those that promote tourism businesses in Scotland).

Keep a record of previous visitors, and mail shot them with news on the Hotel.

Print your domain name on all printer material such as business cars, compliments slips, and brochures.

Answer – Promotion

Integrating the Promotions Mix – Answer

‘www.cuttingitshort.com’ – The Campaign

Personal Selling.

It was decided very early on that personal selling did not suit the nature of the business. The other elements of the promotions mix were far better suited to the mass market.

Sales Promotion.

A promotion was organized with a national daily newspaper that share the same target consumer. Coupons were put in seven separate issues. Once collected, the consumer would post them to www.cuttingitshort.com for a free mountain bike spanner (a product that was very slow moving anyway).

Public Relations.

The company invested around $100,000 in a first rate public relations agent.

Direct Mail.

Direct mail was passed up in favour of an e-mail campaign to existing users promoting the recent additions to the site.

Trade Fairs and Exhibitions.

The company invested $50,000 in a special stand that used Internet technology to explain the virtues of buying www.cuttingitshort.com’s products using the Web.

Advertising.

A huge $2,000,000 was spent on an international campaign which used TV, Radio and poster media.

Sponsorship

A decision was made to invest $1,000,000 on sponsoring a round-the-world yacht race.

As with all case studies, there could be many realistic answers. How did you get on.

Answer – eMarketing Product

eMarketing Product

The answers are below. How did you get on?

B – Online Alternative

The Online Alternative is a new start-up that uses the Internet as an original channel of distribution to get products, brands, services or solutions, currently available elsewhere, to market. Some segments may be better targeted with this online alternative, for example remote or fragmented markets.

eMarketing Product

C and D – Online Innovators

Online Innovators come in two forms:

  • C – Online Innovators are existing businesses that see a benefit to launching new and innovative products, brands, services or solutions online by leveraging new technology. Existing businesses have a wealth of knowledge and learning that underpin their moves onto the Web. Remember, the Internet is not a business paradigm shift (at least not yet) and so current business approaches are often adapted for the Internet. Existing businesses have experience.
  • D – Online Innovators are start-ups that seize the opportunity to launch new and innovative products, brands, services or solutions online. Despite not having as much knowledge and learning as some of their competitors, they are flexible and can move much more quickly. Start-ups often lack experience.

Company One is a successful commercial bank with a very well-known and popular brand. It has decided to launch a new online brand which uses online technology as a channel to market its current portfolio of services – employing a new and energetic branding theme pitched at youth segments. Answer: Innovator (Existing Business).

Company Two is also a commercial bank. However its strategy is to use the Internet as a way of communicating with, and accessing its traditional segments with its existing portfolio of brands. Answer: Online Extender.

Company Three is a new business that has gained a large amount of venture capital for its innovative business idea. It is employing Web 2.0 technology to build a community of practice for African farmers that currently work in remote regions, but may soon have access to the Internet in many local towns. Answer: Online Innovator (Online Start-Up).

Company Four is also a new business. Its owners have seen an opportunity to get jewellery to consumers by building a website which employs e-commerce technologies. Essentially the site owners intend to advertise using Google Adwords based upon keywords such as ‘wedding ring’ and ‘bling.’ Hopefully the pay-per-click adverts will move traffic to their site where sales will be made. Answer: Online Alternative

A – Online Extender

An Online Extender is an existing business that has a strategy whereby it extends its marketing activities to the Internet. It could be any traditional, terrestrial organisation that has historically grown through using traditional channels of distribution to get existing products, brands, services or solutions to market.

Answer – Standard Costing

Standard Costing

Answers are below: McReynolds, Inc is a manufacturing company, producing electronic circuit boards.
In recent years it has generated its product primarily by the traditional manufacturing method.

(5) McReynolds plans to adjust its standard costing operations, which may result in which of the following benefits:

  • A. The change may align company performance management with cost accounting
  • B.  McReynolds may now adjust faster and beat Nolan Industries to new markets
  • C. Pertinent information allow revisions and more realistic standard costs
  • D. The firm gains the ability to utilize recent information compiled by key cost centers
  • E.  The certainty of replacing Nolan as regional market share leader
  • Answers

    • 1) B, Establish Cost Accounting Committee
    • 2) A, Manufacturing
    • 3) D, Current Level Standards
    • 4) E, All of the above
    • 5) A, B, C and D

    In the company’s inaugural year the president and founder determined that its standard costs should be based upon the ten year averages associated with the region’s market leader Nolan Industries. Nolan had recently experienced dramatic growth, aided in part by great labor relations, setting the pace in innovation, and stable material prices.

    The President acknowledges that his rationale in establishing such ideal standard costs was a desire to develop a company theme of high performance goals.

    McReynolds has kept copious operations and expenses records. The company is contemplating a transition to a Flexible Management System. The strategy shift was influenced by a company Cost Accounting Committee, which focused on the benefits of shifting its cost accounting methods. They were influenced by a review of the marketing department’s competitive analysis which revealed certain vulnerabilities in Nolan Industries.

    While the competitive analysis highlighted Nolan’s inflexibility in chasing new market demand, the Standard Costing Committee suggested that if operations were to be revised so should its cost standards.  Mc Reynolds ultimate goal is to be able to utilize machines that are adaptable to shifting product demands and to utilize more current standards.

    Considering the history and current status of McReynolds Inc, how would you answer the following questions?

    (1) Which of the following Standard Costing Plan development procedures are highly recommended?

    • A.Outsource to college freshmen
    • B.Perform séance requesting assistance from dead founder
    • C.Establish Cost Accounting Committee
    • D.Invite major competitors to submit suggestions

    (2) Which of the following companies are most likely to employ a standard costing procedure?

    • A.Manufacturing
    • B.Cartooning
    • C.Public Relations
    • D.Media Records
    • (3) The proposed shift in manufacturing procedures represents a change from traditional to flexible, which of the following costing method is most applicable?

      • A. Regional Marketing Standards
      • B.  Royal Industry Standards
      • C.  Overall Cost Standards
      • D.  Current Level Standards

      (4) What were some of the erroneous aspects of the original standard costs done d by McReynolds?

      • A.Basing standards on goals
      • B.Basing standards on ideal conditions
      • C.Establishing standards without key input
      • D.Relying solely on outside data to determine standards
      • E.All of the above

Answer – The Six Living Generations In America


The Six Living Generations In America

Exercise: Marketing A Laptop Computer to Different Generations

Consider the Six Living Generations: If you were marketing a laptop, what would be the product offering? What would you talk to them about? How would you promote the laptop to each generation? Complete the table below, then check your answer.

Product Offerings:Talk To Them About:Promotion:
GI Generation.Warranty; Easy to understand Instructions, Live help from a 1-800 number.Talk about how much the world has changed (in a positive way) and how the computer can make doing certain things easier and cheaper.In Newspaper and with knowledgeable in-store salesperson.
Mature Generation.Warranty; Easy to understand Instructions, Live help from a 1-800 number.Talk about how they can use it to have fun, look up old classmates and see (and share) photos and video of their grandchildren.In Newspaper and with knowledgeable in-store salesperson; also during the Nightly News.
Baby Boom Generation.Use Credit to pay for it; Wi-Fi and portability.Talk positively about how easy it is to learn to use it; also talk a lot about the Wi-Fi and portability.TV and with knowledgeable in-store salesperson.
Generation X.Use Credit to pay for it; storage capabilities are important and compatability with office/school equipment.Talk about how they can play games, watch movies instantly; use it for career advancement and enhancing the education of their children; Use it to start up their own business or advance education; also play up the reliability of the brand name.TV and Internet.
Generation Y."Free" Upgrades and extras; ability to create "skins" to make it a unique reflection of their personality.Make sure you respect the knowledge they already have about the product; Unlimited access to friends, information; Use it to start up their own business or advance education; they can use it to make a contribution to their community; their ability to schedule their life; also mention the Wi-Fi and portability.Internet.
Generation Z"Free" Upgrades and extrasMake sure you respect the knowledge they already have about the product; talk about the ability to play games online, create their own videos and stay connected with friends; remember they are brand savvy, they know what they want already.Internet and showing product being used by celebrity spokesperson that they can identify with.

Answer – Swot Analysis

SWOT Analysis

Strengths, Weaknesses, Opportunities and Threats (SWOT).

Highly Brill Leisure Center has hired you to help them with their marketing decision making.

Perform a SWOT analysis on Highly Brill Leisure Center, based upon the following issues:

Answer

As you can see Marketing Teacher’s answer does not completely agree with yours. This does not mean that you are wrong. It simply means that the results of your analysis are represented in a different way. Points 2 and 10 are difficult to place. Point 2 depends on whether or not wave machines or a whirlpool have a distinct competitive advantage over a competition standard pool. Point 10 is an internal strength and an external opportunity.

Answer – Three Levels of a Product

Three Levels of a Product

Here’s a recap before the answer (below): The CORE product is NOT the tangible, physical product. You can’t touch it. That’s because the core product is the BENEFIT of the product that makes it valuable to you. So with the car example, the benefit is convenience i.e. the ease at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly.

Here are the answers. How did you do?

Product or service or brand

Core Product

Actual Product

Augmented Product

Ford Focus

Freedom to travel

A motor car

Ford finance

Spanish Holiday

Relaxation

Two weeks in a resort

Holiday insurance

Budget/No Frills Airline e.g. EasyJet or Ryanair –

Gets you from A to B cheaply

An airline journey

Food bought during your flight

Chelsea Football Club

Excitement and leisure

Sporting event

Personalised shirts and other merchandise

Nike

Association with the best in sports

Shoes and other clothing

Nike online allows you to personalise your trainers

Hilliers’ Garden Centres

Leisure and relaxation

Goods for gardens

Hilliers’ gardening club

The ACTUAL product is the tangible, physical product. You can get some use out of it. Again with the car example, it is the vehicle that you test drive, buy and then collect.

The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car’s manufacture, and any after-sales service.

Answer – Annual Reports for Marketers

Annual Reports for Marketers

To apply your knowledge of Annual Report contents and recommended principles found in the Marketing Teacher, answer the following multiple choice questions: (answers at the bottom of this page)

5. Which of the following company facts about Lassiter Boots are amenable to marketing in a letter to the Stockholders or a positive depiction on the cover of their Annual Report?

  • (a) The Industry Standard Award for Quality
  • (b) The growth trends in Annual Sales
  • (c) The positive dividend growth rate
  • (d) The government citation for unsafe working conditions

Answers

  1. (c) A Summary of Nutritional Contents
  2. (b) Company Employees and (c) Potential Business Partners
  3. (c) A Summary of Nutritional Contents
  4. (c) The Securities Exchange Act of 1934
  5. (a), (b) and (c)
  6. 1. Which of the following elements are not typically found among Annual Reports contents?

  • (a) A Balance Sheet
  • (b) An Income Statement
  • (c) A Summary of Nutritional Contents
  • (d) A Letter to Stockholders

2. Which of the following entities are stakeholders with a legitimate interest in the past 12 months at Lassiter Boots?

  • (a) Elementary School #56
  • (b) Company Employees
  • (c) Potential Business Partners
  • (d) The Screenwriters Guild

3. Which of the following elements are not typically found among Annual Reports contents?

  • (a) A Balance Sheet
  • (b) An Income Statement
  • (c) A Summary of Nutritional Contents
  • (d) A Letter to Stockholders

4. Which of the following pieces of United States legislation addressed Annual Reports for publicly traded companies?<

  • (a) The Fair Tax Act
  • (b) The Federal Employment Protection Act of 1924
  • (c) The Securities Exchange Act of 1934
  • (d) The Existential Domain Act of 1943

Answer – The Product Life Cycle (PLC)

The Product Life Cycle (PLC)

Here’s a recap of the Product Life Cycle (PLC). It is followed by the PLC answer (below).

Introduction.

The need for immediate profit is not a pressure. The product is promoted to create awareness. If the product has no or few competitors, a skimming price strategy is employed. Limited numbers of product are available in few channels of distribution.

Decline.

At this point there is a downturn in the market. For example more innovative products are introduced or consumer tastes have changed. There is intense price-cutting and many more products are withdrawn from the market. Profits can be improved by reducing marketing spend and cost cutting.

Here are the products plotted in the PLC. You may disagree with some of the positioning. However, the exercise demonstrates the way in which marketers would use such a tool.

Answer:

Product Life Cycle

Growth

Competitors are attracted into the market with very similar offerings. Products become more profitable and companies form alliances, joint ventures and take each other over. Advertising spend is high and focuses upon building brand. Market share tends to stabilise.

Maturity.

Those products that survive the earlier stages tend to spend longest in this phase. Sales grow at a decreasing rate and then stabilise. Producers attempt to differentiate products and brands are key to this. Price wars and intense competition occur. At this point the market reaches saturation. Producers begin to leave the market due to poor margins. Promotion becomes more widespread and use a greater variety of media.

Answer – Place, distribution, channel, or intermediary

Place, distribution, channel, or intermediary

Here’s a recap of the short case. The answers are below.

Welcome to Newtown. It sits 25 miles from Commerce Town, 10 miles away from Friesner Airport, and 35 miles away from Poshbury.

Option 3 is the preferred option, followed closely by option 1. How did you get on?

  • This site is close to Newtown. However the 7,000 of the 10,000 citizens of Newtown work in Commerce Town and spend little time at home during the working week. This site site some 5 miles away from Newtown and 4 miles away from the growing Friesner Airport. It is situated on the only road between Friesner airport and Newtown.
  • Which place would you recommend to Floor-Mart? Justify your recommendations.

    Answer:

    Place Answer

    Floor-Mart are considering where to put their new store. Their store will sell groceries and provisions 24 hours a day (at a premium price of course).They have three options, each one is considered below. You must recommend a place for the position of the new store.

    • This site is next to Commerce Town. It has very few inhabitants. However 7,000 people travel there everyday to go to work. It already has a competing store (C). There are plans to build low cost housing in the area.
    • This site is very close to the exclusive Poshbury. It has 1,000 very exclusive, wealthy inhabitants. There is no competition in the locality.
    • Evaluation of the three options:

      • Commerce Town has very few houses. Most of the people that visit it are working. However this could be an advantage if people went shopping during their lunch or after work. There is a competitor in the locality. The future will see a new low cost housing, so there is potential for the long-term.
      • If Floor-Mart were to locate here there would be no competition. The problem with this location is the lack of inhabitants. With Poshbury being so exclusive, further building is unlikely.
      • The final location is has a large population. It is also on the main route between Newtwon and the growing Friesner Airport. People could shop on their return from work since Floor-Mart is open for 24 hours every day.

    Answer – Activity-Based Costing (ABC)

    Activity-Based Costing (ABC)

    With this overview in mind please answer the following questions (answers are below):

    1. A Traditional costing model might entail which of the following aspects?

    • A. An embroidered recognition of achievement affixed to a plaque
    • B. The accounting practice of basing costs on machine usage per hour

    Answers

    • 1. B.
    • 2. D.
    • 3. A and D.
    • 4. B.
    • C. Conventional wisdom with regard to inventory depreciation methods
    • D. Wages established by regional standards for a five year period

    2. A company which routinely adjusts factory procedures to pursue impromptu opportunities might benefit from which of the following accounting models?

    • A. Lone Wolf  Accounting Software
    • B. Senate sub-committee accounting principles
    • C. Labor Department pay rate guidelines
    • D. Activity-based accounting model

    3. How might the possession of the most accurate production costs benefit a company?

    • A. Allow the sales team more certainty in marketing and promotion materials.
    • B. Encourage competitors to utilize prison labor.
    • C. Remove accounting method sanctions
    • D. Facilitate project bids based on more accurate cost estimates

    4. Which of the following might be a negative outcome resulting from utilizing the Traditional costing model?

    • A. Negative Citing by the Basic Register of Illegal Activities
    • B. Increased production without corresponding increased profits
    • C. Increased incidence of basic occurrences
    • D. Revocation of membership to Activity Based Council

    Answer – Marketing Plans and Consumer Behavior

    Marketing Plans and Consumer Behavior

    A reminder of your task (answers below)

    Taking into account the company’s history , contemplated initiatives and applicable marketing plan concepts, please answer the following questions:

    1. Haversham’s initial focus on the needs and profit potential in the professional market represents which marketing plan concept?

    • a. Stereotyping
    • b. Indemnification
    • c. Segmentation

    2. Haversham’s specific identification of middle management executive in the downtown district represents which marketing plan element?

    • a. Young Urban Professionals
    • b. Goal Setting
    • c. Targeting

    3. Based upon current consumer perceptions and behavior, which of the following entities appears to more readily meet their needs?

    • a. Haversham Business School
    • b. Other Business School competitors

    4. In order to better understand current consumer behavior, which of the following elements should be considered?

    • a. Culture
    • b. Attitude
    • c. Brand Choice
    • d. Location Choice
    • e. All of the above

    5. When Haversham begins to alter its curriculum, offer lower course fees and relocate, it can be said to employ which of the following marketing plan concepts?

    • a. Re-engineering
    • b. Marketing Inputs (Product, Place Promotion, Price)
    • c. Positioning
    • d. Change Management

    Answers

    • c. Segmentation
    • c. Targeting
    • b. Other Business School Competitors
    • e. All of the above
    • b. Marketing Inputs and c. Positioning

    Answer – Return On Investment (ROI)


    Return On Investment (ROI)

    Answers are below: Alexandra Cavanaugh, founder and CEO of Alexandra Cavanaugh Apparel is the creative genius behind a popular line of a line of pre-teen apparel and accessories such as t-shirts, sweatshirts and jeans using fabrics that are comfortable and stylish. The firm was launched three year ago and makes profit by selling to major fashion brands. However the business always had it eye on establishing its own brand and opening its own retail outlets.

    (4) Based upon the available financial data, what is the ROI for Alexandra Cavanaugh’s direct mail campaign?

    • (a) 241
    • (b) 1st percent
    • (c) 19th Quartile
    • (d) 19%

    Answers

    • (1) D, Because it desires that company expenditures contribute to profits
    • (2) C, A percentage
    • (3) D, All of the above
    • (4) D, 19%

    The company finds itself at a fork in the road where it must ratchet up sales to continue its ambitious goals or cut costs to insure survival. Recently the firm opened four retail outlets as a part of its own-brand expansion plans. The company budgeted a substantial amount to promote the new outlets and its products. The investments were made before the recent economic downturn and are now getting a close review.

    The CEO is particularly focused on the firm’s expenditure in the direct marketing category. Since data on its target market show a propensity for shopping via the internet and its website produces a steady stream of subscribers – the CEO is skeptical of continued investments in direct marketing. She has challenged the marketing team to produce Return On Investment (ROI) data on direct marketing promotions. Below are data available for calculation:

    Annual Profits: $103,000

    Annual Direct Mail Investment: $5,150

    Answer the following questions to demonstrate an understanding of Return On Investment (ROI) and how it is applies to Alexandra Cavanaugh:

    (1) Why should Alexandra Cavanaugh Apparel be interested in determining whether its promotions are reaping the rewards desired?

    • (a) Because such data goes into tax preparation
    • (b) Because the information may support last years personnel decisions
    • (c) Because attendance at the company picnic is down
    • (d) Because it desires that company expenditures contribute to profits

    (2) How is the ROI calculation result expressed?

    • (a) Number of units sold
    • (b) Contribution margin per unit
    • (c) A percentage
    • (d) Variable costs per percentage
    • (e) All of the above

    (3) In addition to scrutinizing the ROI for its direct marketing campaign what other aspects of its advertising could be reviewed?

    • (a) Newspaper display ads
    • (b) Radio commercials
    • (c) Website catalog
    • (d) All of the above

    Answer – Core Competences

    Core Competences

    The Core Competences of Amazon.com

    Once again, here’s a recap. A core competence is the result of a specific unique set of skills or production techniques that deliver value to the customer. Such competences give an organization access to a wide variety of markets. Hamel and Prahalad (1990) refer to a number of organizations and their products to support their concept including NEC, Honda and Canon.

    Three tests of core competence.

    • Provides potential access to a wide variety of markets.
    • Should make a significant contribution to the perceived customer benefits of the end product.
    • Should be difficult for competitors to imitate.

    Check your answers below. How did you get on?

    • Answer 1. What are Amazon’s core competences, threshold competences, scarce resources, and threshold competences? Plot them onto the diagram.

    Core Competences

    • Answer 2. What are Amazon’s material resources, human resources, and intangible resources? Plot them onto the diagram.

    Core Competences

    Answer – Balance Sheet

    The Balance Sheet

    Answer

    1) Accounts receivable are current assets.
    2) Yes, Accounts receivable and cash on hand total $35,000 while Taxes and accounts payable total only $27,500.
    3) Land ownership represents 21% of the company’s fixed assets ($38,000)

    Summary

    As mentioned, a company’s origin, priorities and degree of success can be clearly gleaned by a review of It’s Balance Sheet. Not only can it reveal the past it can also highlight a prescription for suggested changes.

    Balance Sheet Ending December 31st 2014.


    Assets
    Current Assets
    Cash on Hand

    $10,000.00

     
    Accounts Receivable

    $25,000.00

     
    Inventory

    $15,000.00


    Total Current Assets

    $50,000.00
    Fixed Assets
    Garage and Equipment

    $40,000.00

    Less Depreciation

    ($12,000.00)

    Land Owned

    $8,000.00

     
    Other (Intangible Assets)

    $2,000.00

     

    Total Fixed Assets

    $38,000.00



    Total Assets

    $88,000.00
      

    Liabilities & Shareholder Equities
    Liabilities
    Accounts Payable

    $20,000.00

    Taxes Payable

    $7,500.00

     
    Long-Term Loan

    $15,000.00

     
      

    Total Liabilities

    $42,500.00


     
      
    Shareholder Equity
    Common Stock

    $45,000.00

    Retained Earnings

    0


    Total Shareholder Equity

    $45,500.00



    Total Liabilities $ shareholder Equity

    $88,000.00

     

    Answer – The Loyalty Ladder

    The Loyalty Ladder

    Farley’s Irish Dream

    Recommendations for Farley’s Irish Dream’s launch into European markets are as follows:

    Prospect

    Sponsor well-known professional skiers, snowboarders and bobsleigh teams in order to gain some early awareness amongst prospects.

    Employ a promotions agency that will visit top competitive events throughout Europe to hand out small trial bottles to prospects.

    Customer

    Target bars, supermarkets and hotels in the winter sports regions. Here run sales promotions and distribute free merchandise such as ski hats, point-of-sale and drip trays carrying the Farley’s brand.

    The Loyalty Ladder

    Client

    Sponsor websites that carry news and information about ski resorts and their current climate. Get clients to register their e-mail address and mobile phone numbers for e-mail and text information about skiing conditions.

    Begin a campaign that aligns the brand with aspiring, 25-40 year old professionals by advertising in targeted magazines.

    Advocate

    This is the culmination of the previous three sections. Use text and e-mail to promote Farley’s to advocates, and reward them for forwarding e-mail and texts to their friends (using viral techniques). Record data on the success of campaigns by individual advocate, and continue to develop innovative and fresh ideas to keep your valuable advocates loyal.

    Answer – Boston Matrix

    The Boston Matrix

    The Boston Consulting Group’s Product Portfolio Matrix – Answer

    Recap: Analyze your product portfolio using the Boston Matrix.

    • Oliver is the market leader in handsaws with 40% of the market. Manor Way has only 25%. There is little house building and nowadays many amateurs use power tools. However is is still quite profitable.
    • Manor Way has a high share in the new market for sandpaper replacement products. Their Wayplate is a steel sandpaper replacement for which they have sole rights. They have 5% of this growing market.
    • What about the javelins?

    The matrix below offers a possible solution

    Boston Matrix

    As you can see, each of the products is positioned upon the Matrix. You’ll notice that the Javelins do not appear – they were thrown away long ago.

    • Manor way still make a range of barbed fish hooks which are now banned in some markets.
    • Both Oliver and Manor Way have invested heavily in gardening tools and expect sales to increase in the future since people have more leisure time and a larger disposable income. Maner Way has 10% of the new market, and Oliver has 15%.

    Answer – Marketing in a Credit Credit Crunch

    Marketing in a Credit Credit Crunch

    A quick reminder of your questions (with answers below)

    1. A great framework for conducting a situational analysis which takes into account economic and political factors is a part of which of the following

    • a. Transactional Analysis
    • b. Nutritional Analysis
    • c. Systems Analysis
    • d. PEST Analysis

    2. The Mystic Company’s current lack of information on customer opinions hinders its understanding of which of the following factors?

    • a. Customer needs
    • b. Brand Perception
    • c. The buyer decision process
    • d. Consumer values
    • e. All of the above

    3. Mystic Company personnel most likely to be assigned to monitor and adapt to changes in the marketing environment is which of the following?

    • a. The Company Attorney
    • b. The Truck Mechanic
    • c. The Marketing Manager
    • d. The Auditor

    4. Which of the following approaches is most likely to result in the development of Smart Objectives?

    • a. Following the leader
    • b. Proceeding on instinct
    • c. Outlining specific, realistic and achievable tactics
    • d. Crossing your fingers

    5. Which of the following current or planned initiatives will aid Mystics formulation of its advertising tactics and decision-making?

    • a. Assessing the cause of customer complaints
    • b. Continuing to mirroring the moves of competitors
    • c. Conducting a customer feedback survey
    • d. Utilizing information provided by the Association

    Answers

    • d. PEST Analysis
    • e. All of the Above
    • c. The Marketing Manager
    • c. Outlining specific, realistic and achievable tactics
    • a, c and d.

    Answer – International Marketing and Culture

    International Marketing and Culture

    A Cultural Analysis of China

    Language

    The national and official language of the People’s Republic of China (PRC) is Mandarin Chinese (Putonghua) with 1.3 billion speakers. There are a further 200 languages in use as well as a countless number of dialects. People from differing provinces often have trouble understanding each other.

    Values and attitudes

    Chinese culture is influenced by the philosophical principles of key thinkers. Despite the ideological changes encountered during the Cultural Revolution and more recent market orientation, Confucianism still has a strong cultural impact upon Chinese society (Chan 1999). The culture in China strongly respects a good education and degrees and diplomas enhance a virtuous education (Oh 1991). The Chinese have a value orientation (Zhu and He 2002). Communism, materialism and Post-materialism are the three competing value orientations. The communist values see a selfless dedication to the well-being of society and mankind. The materialism values see the pursuit of immediate rewards and physical happiness. The post-materialism values see a way of life where the importance of material rewards is downplayed and there is an emphasis upon harmony between people and nature ( Inglehart, 1979). To understand the place of education in the GRC one need only to look at the expansion of education in the GCR and the increasing number of Chinese learners gaining Western qualifications. Whichever value the student subscribes to, education is highly regarded.

    Aesthetics

    There are a series of cross-cultural differences between Western designed websites and Chinese developed sites (Hedberg and Brown 2002). The results of their study into visual media and cross cultural meaning holds some interesting results for websites that undergo a straight translation from English into Putonghua. For example the left edge of the page may not be the point where the student begins to read. The aesthetics of Chinese art may hold the key to web design that suits Chinese learners. The Chinese are keen gamblers and game players. Games tend to be rich in colour and appear very complicated to the Western eye, and this is reflected in the popularity of Internet gaming. The cultural understanding of colour and images could also lead to confusion in communication. For example parts of Chinese culture see people marrying in black and being buried in white. Logos and symbols associated in marketing may not carry the same impact to Chinese learners as they do with their Western counterparts. According to the Chinese Peoples Daily top Chinese brands include Hongtashan (cigarettes), Haier (household appliances) and Wuliangye (liquor).Chinese branding and images need to be considered when constructing case studies or using examples.

    Law and Politics

    The National People’s Congress is the highest organ of state power in the PRC. The Government is controlling and this makes commerce very different to that in Western culture. The recent problems encountered during the SARS virus outbreak may make the Chinese government less prone to holding back information that is in the public interest. Copyright remains a huge grey area. This means that website content could be copied or reproduced without permission. Censorship still exists if one wishes to publish an educational text in China. The Asian Law Centre links to resources on Chinese law and banking and finance, competition law, commercial law and e-commerce law, amongst many other legal areas. China has its own laws on e-commerce and e-transactions, privacy and information security that need to be considered especially if an e-learning project is to collect information, collect fees or protect any intellectual property.

    Technology and material cultures

    Filtering is a problem for Western websites. Effectively the Chinese government censors websites by blocking access from China. The Chinese government maintains an active interest in preventing users from viewing certain web content. It has managed to configure overlapping nationwide systems to effectively block such content from users who do not regularly seek to circumvent such blocking. Such blocking systems are becoming more refined (Zittrain and Edelman 2003). Blocked sites tend to fall into one of a number of categories including democracy, health, news, government, religion, Taiwan, Tibet, entertainment and education. Indeed both the Western and GCR Marketing Teacher websites suffer from filtering. They share this disability with MIT and the Learning Channel as well as almost 700 sites list in Yahoo’s education directories (Zittrain and Edelman 2003). The Chinese government does not co-operate on the issue of filtering and this makes it difficult to accurately represent the extent of this problem. Until its extent is understood, strategies for overcoming the problem cannot work. This is a huge problem for providers of free or chargeable content. One could invest time and effort in created online materials and promoting their existence only to find that your site has been filtered and that no right of appeal exists. As technology develops apace there is a sources of very up-to-date information on China and technology.

    Education

    An overview of the educational system of China is offered by Surowski (1996) and includes systems for primary, secondary, higher and adult education. E-learning is one aspect of blended learning and has its own series of issues that are evaluated as follows. A simple text translation into Mandarin has a series of problems. It should be appreciated that learning is an active process and teaching materials should be variegated (Liu, Lin and Wang 2002). The activity associated with online learning is seen as a clear advantage. It is the critical engagement with the World that ensures that learning takes place (Dewey 1916). The system of education in the PRC is demanding and often begins at a young age. Learning Putonghua demands a good deal of effort as well as time consuming rote learning. Chinese culture is collectivist and often depends upon informal chains of communication. Therefore open discussion albeit in forums or web casts could see an infringement of cultural values (Can 1999). Western educators need to be sympathetic to the successful teaching strategies used by Chinese teachers, and embed them into e-learning projects. Levy (2003) explains that most learning in China takes place in classrooms. Even where technology such as television or software is used it tends to be heavily instructor lead.

    Social organization

    Liu, Lin and Wang (2000) advocate that the individual learning styles and preferences of e-learners need to be taken into account since a simple text translation may suit some learners whilst a multimedia approach is beneficial to others. Indeed it is possible to take a deeper look into the learning styles of Chinese students. Confucian philosophy has a role in shaping Chinese thinking and learning styles (Chan 1999). So there is an opportunity to conduct leaning styles surveys (Kolb 1984, Mezirow 1991). This may give an indication of the preferred learning environment of the Chinese e-learner. Then web content can be developed to suit the preferences of a number of individuals. There is a need for further research into the learning styles of e-learners from the Greater China Region.

    Bibliography

    Chan, S. (1999), ‘The Chinese learner – a question of style,’ Education and Training, Vol 41 No. 6/7, pp. 294-304.

    Friesner, T and Hart, M.C. (2004) ‘A Cultural Analysis of eLearning for China’ Electronic Journal of eLearning, Vol 2, Issue 1.

    Inglehart, R. (1979) , ‘Value priorities and socio-economic change,’ Cited in Zhu, J.J.H., and He, Z. (2002), ‘Information accessibility, user sophistication, and source credibility: the impact of the Internet on value orientations in mainland China,’ The journal of computer-Mediated Communication, Vol. 7 (2).

    Kolb, D.A. (1984) Experiential Learning: Experience as the source of learning and development. New Jersey: Prentice Hall.

    Liu, L., Fuzong, L and Xue, W.(2003), ‘Education practice and analysing behaviour in a web-based learning environment: and exploratory study from China,’ Online Information Review, Vol. 27 No. 2, pp. 110-119.

    Mezirow, J. (1991) Transformational Dimensions of Adult Learning, Jossey-Bass.

    Oh, T.K. (1991), ‘Understanding managerial values and behaviour among the gang of four: South Korea, Taiwan, Singapore and Hong Kong,’ Journal of Management Development, vol 10 No. 2, pp. 46-56.

    Zhu, J.J.H., and He, Z. (2002), ‘Information accessibility, user sophistication, and source credibility: the impact of the Internet on value orientations in mainland China,’ The journal of computer-Mediated Communication, Vol. 7 (2).

    Dislaimer:
    This exercise is based upon an adaption of Friesner and Hart (2004). It is written from a Western European perpsective. Therefore if you live in the Greater China Region your local knowledge may be more detailed and realistic than that contained in this exercise. So please take into account that it is meant as an exercise for marketing learners, rather than as a source of decsion-making information on the country of China. It is simply a case study, and nothing more

    However the dialects do have a common written form and this would be a saving grace when it comes to communicating with the whole GCR. Translation of the Marketing Teacher website is an important issue and indications show that direct word-for-word translations are not adequate. Therefore any Western co-ordinators of e-learning projects need to beware the pitfall of self-referencing. From a Western perspective it would be like a Chinese website being translated into English, and as one respondent commented ‘It would be very boring.’

    Hedberg and Brown (2002) comment that grammar is context specific in Chinese languages so that the student builds up a picture of the meaning of symbols as the text is being read. Hence graphics and pop ups can distract the reader and confuse the context of the communication. So catchy homepages that are intended to grab the eye can also confuse the non-Western reader and therefore have the opposite effect.

    Religion

    Taoism, Confucianism and Buddhism are the main religions. Care should be taken to make sure that religious beliefs are not contravened. However there may be a benefit in recognising the behaviour of Chinese e-learners. For example, one respondent pointed out that by recognising a particular religious event or festival a website could earn favour and respect.

    Answer – Marketing Plans

    Marketing Plans

    Case Study – Counselling on the Internet. A new innovation

    To: Steve Bull – 1st January 2019

    From: ABC Adviser

    Marketing Plan for the Cannon Counselling Internet

    ANALYSIS.

    After conducting marketing research and analysing all available desk research, the following marketing plan is recommended.

    OBJECTIVES.

    To register 30 new counselling clients by December 31st 2010.

    STRATEGIES.

    We will set-up and interactive website. The site will enable counsellors and clients to communicate over a secure connection. The consultation will guided by exactly the same regulations as a regular face-to-face meeting. The only difference if that it will take place in real-time using the internet.

    TACTICS.

    Price.

    Clients will be charged sixty Australian Dollars for a 30 minute consultation. For a course of twelve sessions the cost will be six hundred Australian Dollars. Payments will be made by credit card at the beginning of the consultation.

    Place.

    All consultations will take place over a secure Internet connection using webcams.

    Promotion.

    The new interactive service will be advertised to doctors’ surgeries via trade press. Cannon Counselling will also attend relevant exhibitions and conferences.

    Product.

    An interactive session with experienced and qualified counsellors.

    CONTROLS.

    Monitor the quantity of new client registrations on a weekly basis Record visits and revisits to the site. Check income against projections.

    That’s all that is required from an outline marketing plan. Obviously, the fuller document would have a lot more detail. However, the marketing plan should be succinct and easily understood by all, as this example shows.

    Answer – Personal Selling

    Personal Selling

    Fishbourne Financial Services

    (a) Mr Boosh raises the following objection – ‘Your pension scheme seems very expensive’ – How would you handle it?

    Yes, but the final pension is much better in comparison with other schemes, when you actually retire. [i.e. ‘yes but.’]

    Why do you think the pension scheme is expensive? [i.e. ask ‘why?’]

    Our pension scheme is too expensive? [i.e. restate]

    I appreciate your point. However, in comparison to the pension schemes offered by our competitors, this scheme is very reasonable [i.e. contradiction]

    (b) You have reached the end of the sales call. How would you close the deal for the pension scheme with Mr Boosh?

    Shall I arrange the pension for you? [i.e. ask for the business]

    You like the easy monthly payments, the payment holiday if needed, the added bonus for remaining with us and not moving your pension to another provider, and the free travel clock, so shall I arrange the pension for you? [i.e. summary close ]

    Would you like to pay by cash weekly or by regular monthly salary deductions?[ [i.e. alternative close.]

    Answer – Internal Marketing

    Internal Marketing

    Casey Brothers Insurance (CBI) goes to Las Vegas

    Objectives.

    To communicate the long-term benefits of the change to staff by August 2019.

    Strategy.

    Internal Marketing

    Execution/Implementation/Tactics

    Tactic
    Supporters
    Neutral
    Opposers
    Notice Board
    Y
    Y
    N
    Intranet
    Y
    Y
    N
    Video
    Y
    Y
    Y
    Roadshow
    Y
    Y
    Y
    CEO presentation
    Y
    N
    N
    Team Meeting
    Y
    Y
    Y
    Newsletter
    Y
    Y
    Y
    Suggestion Scheme
    N
    Y
    Y
    Application of power
    N
    N
    Y
    Financial Incentive
    Y
    Y
    Y
    Education
    N
    Y
    Y
    Negotiate
    N
    N
    Y
    Satisfaction Survey
    Y
    Y
    Y

    Controls/Evaluation.

    • Results of satisfaction survey
    • ‘Visits’ to intranet site and use of forum.
    • Attendance to CEO presentation.
    • Results of suggestion scheme.
    • Disciplinary rates.
    • Acceptance of any relocation package.
    • Acceptance of any redundancies/early retirement.

    Answer – Pricing Strategies

    Pricing Strategies

    Here is the ‘Pricing Strategies Matrix’ with the answers overlaid. Here are the more detailed explanations.

    • Burger King introduces a new range of value meals. There is a lot of price competition in the fast food market, hence the value approach.
    • Nokia launch a new videophone. This is a new, innovative product that can claim a higher price. Skimming is only an option in the short-term since competition will be inevitable.
    • Wall-Mart launch a new range of own-label soups. This is an economy brand.
    • Cunard launch two new cruise ships. The service is high price and high quality with a premium price.

    Pricing

    • A cable TV provider moves into a new area and needs to achieve a market share. The company uses a penetration approach to gain market share. Prices could be increased at a later date.
    • Holiday Inns try to fill hotels during winter weekends. This is an example of ‘off peak’ pricing.

    Answer – Value Chain Analysis

    Value Chain Analysis

    Fen Side Golf Course – Solution

    Here’s a reminder, Fen Side Golf Course is an internationally known Scottish golf facility. It is not just an eighteen hole world-class golf course, it has a five star hotel with 250 luxury rooms, and private leisure centre, indoor tennis courts, as well as a series of top class restaurants.

    • D. Fresh fruit and vegetables are delivered and prepared every day.
    • E. The hotel has an advanced room reservation system.
    • F. Fen Side is promoted through magazines targeted at the weathly and influential.
    • G. The whole experience is based upon high quality, professional service at every stage.
    • H. Limousines are available to take guests to airports as they finish their stay.
    • I. Fen Side has a series of contracts with suppliers of meat and fish.

    Below are a series of nine activities that add value to the Fen Side experience. Print out the value chain above and place the appropriate letter (below) onto the value chain. Here’s our suggested solution:

    Value Chain

    • A. All staff are trained to the highest industry standards.
    • B. The hotel management team focus on goals set out in their strategic plan.
    • C. All golf course fairways are trimmed and watered daily.

    Answer – Traffic Lights

    Traffic Lights

    Dubliner’s Ale

    Red – STOP.

    • Depending upon narrow and out modish, traditional products. Today’s drinkers much prefer lagers than old fashioned beers.
    • Spending a disproportionate amount of our marketing communications budget on products that consumers no longer value, simply because the campaigns are great.
    • Develop want tomorrow’s consumers will want, and jump one step ahead of our competitors.
    • Generate stylish and creative marketing communications campaigns for our new products that enhance and build upon our reputation for marketing excellence.

    Amber – PROCEED WITH CAUTION, and make some improvements.

    • Positioning was great but now needs to be altered. Let’s reposition our traditional brand to make it appeal to today’s drinkers. This could even mean making ‘beers’ in general more acceptable to new segments.
    • Differences between international and domestic marketing need to be addressed. Continue with international marketing activities where the traditional brand is easier to protect. Reconsider domestic marketing.
    Traffic Lights
    Traffic Lights
    Traffic Lights

    Green – Go or Let’s carry on with this activity.

    • Develop new and innovative products to compete in the new, exciting and innovative markets. Let’s develop (or buy into) a new lager brand, a new cider brand and an innovative spirit-based designer brands.

    Answer – Five Forces Analysis

    Analysing the environment – Five Forces Analysis

    The market for online education

    Answers are below: Place the following eight points onto the five forces model:

    • Start up costs are very low.
    • Sudents have access to books, videos, and paper-based distance learning packs.
      • Companies, governments, and self funding students invest huge amounts in their education.
      • There are very few high quality web sites available.

      Answers

      • Start up costs are very low (threat of entry – low barriers to entry).
      • Students have access to books, videos, and paper-based distance learning packs (product-for-product substitution).
      • Companies, governments, and self-funding students invest huge amounts in education. (High bargaining power of suppliers).
      • There are very few high quality web sites available (high bargaining power of suppliers).
      • Traditional colleges and universities are adapting their products for on-line learning (threat of new entrants – learning curve effects).
      • Government legislation in the US and Europe encourages on-line learning (threat of entry reduced – by legislation).
      • The more innovative learning sites give lesson for free just for the love of it (threat of entry – differentiation).
      • More people with access to the web every second (bargaining power of buyers).
      • Traditional colleges and universities are adapting their products for on-line learning.
      • Government legislation in the US and Europe encourages on-line learning.
      • The more innovative learning sites give lesson for free just for the love of it.
      • More people with access to the web every second.

    Answer – PEST Analysis

    PEST Analysis

    Political Factors.

    • Controls on immigration.
    • A fairly new country formed in 1957 (Malaysia) and 1963 (Malay, Sabah, Sarawak, and Singapore).
    • Parliament and hereditary rulers.

    How did it go? Why not try a different lesson?

    Go to SWOTFive Forces Analysis

    Economic Factors.

    • Recovering from a very severe recession.
    • High government spending.
    • Very low inflation and unemployment.
    • Favorable prediction for growth in the economy.
    • Lack of corporate reform (high corporate debt and competition)

    PEST Analysis

    Socio-cultural Factors.

    • Mixture of Chinese, Indian, and Malaysian.
    • Variety of religions.
    • Low rates of literacy among women.

    Technological.

    • Good national and international lines.
    • A variety of TV and radio stations.
    • ISPs and airports available.

    Answer – Introduction to Marketing Research

    Introduction to Marketing Research

    Puerto Vallarta Autos

    To: Doreteo Dominguez – Sales Manager.

    From: Account Representative – Punta Mita Marketing Research.

    Recommendations for Marketing Research Methodology.

    The Marketing research Process.

    Marketing research is gathered using a systematic approach. An example of one follows:

    1. Define the problem. Never conduct research for things that you would ‘like’ to know. Make sure that you really ‘need’ to know something. The problem then becomes the focus of the research. For example, why are sales falling in New Zealand?

    2. How will you collect the data that you will analyze to solve your problem? Do we conduct a telephone survey, or do we arrange a focus group? The methods of data collection will be discussed in more detail later.

    3. Select a sampling method. Do we us a random sample, stratified sample, or cluster sample?

    4. How will we analyze any data collected? What software will we use? What degree of accuracy is required?

    5. Decide upon a budget and a timeframe.

    6. Go back and speak to the managers or clients requesting the research. Make sure that you agree on the problem! If you gain approval, then move on to step seven. 7. Go ahead and collect the data.

    8. Conduct the analysis of the data.

    9. Check for errors. It is not uncommon to find errors in sampling, data collection method, or analytic mistakes.

    10. Write your final report. This will contain charts, tables, and diagrams that will communicate the results of the research, and hopefully lead to a solution to your problem. Watch out for errors in interpretation.

    The most appropriate marketing research method is telephone interview. Telephone interviews have the following advantages and disadvantages: Advantages can be geographically spread – so we can contact customers from Guadalajara, Mexico, and even North America. Europe is a little too expensive to contact. It can be set up and conducted relatively cheaply. We have a tele-research team set up already.

    Random samples can be selected. We will purchase a database from the local tourist office and select a random sample. It is cheaper than face-to-face interviews. Disadvantages? Respondents can simply hang up. In such a case we will select another respondent from our list. Interviews tend to be a lot shorter. They interviews will be very short and succinct. Visual aids cannot be used. Although they are not really needed for this piece of research.

    If the above information has been helpful, please contact me so that I can arrange for the questionnaires to be designed.

    Answer – Contrbution Analysis

    Contribution Analysis

    The answers are below:

    (1) Boreland should employ which of the following accounting principles?

    • (a) Restitution Calibration
    • (b) Transactional Analysis
    • (c) Constitutional Analysis
    • (d) Contribution Analysis  

    (4) True or False, generally speaking Contribution Analysis identifies overhead costs by accounting for all known fixed, direct and variable costs and then subtracting that amount from revenues.

    • (1) D, Contribution Analysis.
    • (2) D, All of the above.
    • (3) D, All of the above.
    • (4) True, although other variations may be employed.

      (2) To calculate a products contribution to profits, Boreland will need to assemble which of the following data?

      • (a) Number of units sold
      • (b) Contribution margin per unit
      • (c) Price records
      • (d) Variable costs per unit
      • (e) All of the above

      (3) Which of the following are potential benefits Boreland might realize as a result of      employing a Contribution Analysis?

    • (a) Identifying previously unkown costs
    • (b) Assisting in categorizing costs
    • (c) Guidance in setting a prices for totally new projects
    • (d) All of the above

    Answer – Balanced Scorecard

    Balanced Scorecard

    1. Finance

    Objective

    Measure

    To be the cost leader in our market by 2004

    Unit cost

    To increase profitability by 20% by 2005

    Return On Capital Employed (ROCE)

    3. Business Processes

    Objective

    Measure

    To lead the market in speedy delivery by 2008

    Average time taken for customers to receive complete orders

    To produce products that are right first time within 3 months

    Statistical process control

    4. Learning and growth

    Objective

    Measure

    To build a sports and social club by March 2009

    Employee satisfaction rates

    To train and develop all team leaders by 2006

    Employee retention rates

    2. Customer

    Objective
    Measure

    To reduce customer churn by 75% within 12 months

    Customer retention rates

    To achieve 99% customer satisfaction within 5 years

    Customer feedback or complaints

    Answer – Consumer Buyer Behaviour

    Consumer Buyer Behaviour

    The Buyer Decision Process

    Here’s a recap: If a marketer can identify consumer buyer behaviour, he or she will be in a better position to target products and services at them. Buyer behaviour is focused upon the needs of individuals, groups and organisations.

    • Make decision. Go with service XYZ inc.
    • Action – Buy phone from store.
    • Post-purchase behaviour i.e. Did it work? What was the telephone bill? Did you friends like it?

    It is important to understand the relevance of human needs to buyer behaviour (remember, marketing is about satisfying needs).

    Describe the Buying Decision Process for a mobile/smartphone. Fit your description around the five stages that follow:

    The Buyer Decision Process.

    • Recognition of a need – to communicate with friends, as a fashion item.
    • Choice of level of involvement (i.e. justifying you time and effort e.g. low for bubble gum, high for a holiday). Medium level of involvement to justify cost and coverage of telephone.
    • Identification of alternatives. Which companies are offering the most suitable packages? ABC inc. or XYZ inc.?

    Answer – Ansoff’s Matrix – Planning for Growth

    Ansoff’s Matrix – Planning for Growth

    Ansoff's Product/Market Mix Answer

    As you can see there are many strategic options for Ricardo. As a marketer you now have to decide upon which strategy or strategies the company should actually implement. This is based upon a number of factors such as competitive activity, available resources, the good old ‘gut feeling’, and others. Marketing Teacher looks at these themes in further lessons in our Lessonstore.

    Answer – Advertising

    Advertising

    What kind of products and services did you come across? For example:

    Cars

    Food

    FMCG

    Alcohol

    Transport e.g. cars

    Cosmetics

    Sport

    White goods

    Others?

    Why did the adverts catch your attention? For example:

    Humour

    Testimonials

    Music

    Facts

    Cartoons

    Before and after

    Personalities

    Free phone numbers

    Others

    How were the adverts targeted at you and your segment? For example:

    0-$5000

    $5001-$10,000

    $10,001 – $15,000

    $15,001 – $20,000

    $20,000-$35,000

    $35,000 – $50,000

    $50,001 – $75,000

    $75,001 – $100,000

    $100,000 +

    Would you buy this product or service based upon the advert? For example:

    Yes

    No

    Maybe

    Answer – Cash Flow Statement

    Cash Flow Statement

    Fishbourne Marketing

    Here are the answers (see the cash flow statement below):

    • 1) Beginning Cash Balance.
    • 2) Sales & Receipts, Advertising, Inventory Purchases, Supplies.
    • 3) Advertising may be influencing sales and receipts, sales and receipts may be influencing supplies and inventory purchases and taxes are impacted by total cash inflows.
    January
    February
    March
    April
    May
    June
    Beginning Cash Balance

    15,000

    20,548

    22,296

    23,493

    24,191

    180,955
    Cash inflows:
    Accts. Rec. Collections
    180,955
    180,955
    182,455
    185,855
    181,455
    180,955
    Loans on proceeds
    Sales & receipts
    5,000
    0
    3,500
    0
    4,500
    6,000
    Other:
    Total Cash Inflows

    185,955


    180,955

    185,955

    185,955

    185,955

    186,955
    Available Cash Balance
    200,955
    201,503
    208,251
    209,448

    210,146
    212,244
    Cash Outflows (Expenses):
          
    Advertising
    300
    300
    300
    400
    400
    400
    Bank Service Charges
    45
    45
    45
    45
    45
    45
    Credit Card Fees
    35
    35
    35
    35
    35
    35
    Delivery
    Health Insurance
    478
    478
    478
    478
    478
    478
    Insurance
    200
    200
    200
    200
    200
    200
    Interest
    25
    25
    25
    25
    25
    25
    Inventory Purchases
    1,000
    1,000
    450
    750
    450
    1,000
    Miscellaneous
    300
    300
    300
    300
    300
    300
    Office
    1,000
    1,000
    1,000
    1,000
    1,000
    1,000
    Payroll
    83,300
    83,300
    83,300
    83,300
    83,300
    83,300
    Payroll Taxes
    7,300
    7,300
    7,300
    7,300
    7,300
    7,300
    Professional Fees
    250
    250
    250
    250
    250
    250
    Rent and Leases
    1,000
    1,000
    1,000
    1,000
    1,000
    1,000
    Subscriptions and Dues
    90
    90
    90
    90
    90
    90
    Supplies
    200
    200
    100
    200
    100
    200
    Taxes and Licenses
    44,629
    43,429
    44,629
    44,629
    44,629
    44,829
    Utilities and Telephone
    130
    130
    130
    130
    130
    130
    Other
    Subtotal

    140,282

    139,082

    139,632

    140,132


    139,732

    140,622
    Other Cash Out Flows:
    Capital Purchases
    Loan Principal
    125
    125
    125
    125
    125
    125
    Owner’s Draw
    40,000
    40,000
    45,000
    45,000
    45,000
    40,000
    Other:
    Subtotal

    40,125

    40,125


    45,125

    45,125

    45,125

    40,125
    Total Cash Outflows
    180,407

    179,207

    184,757

    185,257

    184,857

    189,747

    Ending Cash Balance
    20,548
    22,296
    23,493
    24,191
    25,289
    31,497

    Answer – Arthur D Little (ADL) Strategic Condition Matrix

    Hello Arthur D Little (ADL) Strategic Condition Matrix

    A – This SBU is one of the biggest and oldest brands of lens photographical lenses in the World. It used to be the biggest supplier of lenses to both professional and amateur photographers, before the growth and current dominance of digital cameras. It needs to invest in a change programme that will downsize its business and give it a new and rejuvenated strategic direction.

    Ans: Favourable/Mature – This SBU operates in a niche or narrow segment. It should target and defend educational sectors within its traditional markets.

    E – This SBU manufactures and promotes the World’s most well know lenses brand. This designer lens is marketed through retails outlets throughout the World and tends to command a premium price not only for precision but also through its association with fashion and celebrity.

    Ans: Strong/Embryonic – Embryonic since it is based upon fashion which tends to have short Product Life Cycles (PLC), and so industries are never mature and always rejuvenating.

    Ans: Weak/Aging – Manage for change if the brand can be rejuvenated, or with draw.

    B – This SBU manufactures high technology lasers that are used in the manufacture of specialist components for the production of aircraft. It has a number of unique patents as well as a 10 year contract with the World’s largest aircraft manufacturer.

    Ans: Dominant/Growth – Act offensively and grow business. Be prepared to defend your position from competitors with rival solutions.

    C – This SBU is photocopier manufacturer that is currently under increasing attack from budget priced competitors that offer a very similar product and service package with a no frills brand. The SBU is finding it difficult to hold on to market share.

    Ans: Tenable/Mature – Try to recapture market share, but may ultimately be doomed so withdrawal may be necessary sooner rather than later.

    D – This SBU markets high quality optical equipment for use in laboratories, mainly in schools in Europe and the United States.

    Answer – Annual Accounts

    Annual Accounts

    Answers are below: Sterling Patterson Insurance is a three year old firm engaged selling health insurance in the United States. They specialize in providing Long Term Health Insurance Policies.
    The company has set forth a strong expansion strategy which includes a low budget marketing plan. Sterling Patterson sees an opportunity to enter the international market for health insurance. Its strategy includes developing an affiliate program to recruit local agents. The Company’s health insurance marketing efforts will focus on those in upper socioeconomic classes with a proven ability to pay.

    (4) Which of the following companies may be most likely required to provide more detailed financial information in the form of annual accounts?

    • (a) Limited liability companies
    • (b) Insurance companies
    • (c) Savings Institutions
    • (d) Barber Shops Limited

    Answers

    • (1) All of the above
    • (2) C, The International House of Pancakes
    • (3) All of the above
    • (4) a, b, and c

    Six months from its planned launch in Europe and Asia, Sterling Patterson has realized that it has insufficient knowledge of accounting implications associated with complying with various international regulations. In addition to having a fine marketing plan, Sterling Patterson now realizes it must prepare a path through a maze of various accounting guidelines.

    It was most recently determined that the company would increase accounting staff expertise and capabilities in order to avoid potential catastrophes such as failing to meet financial deadlines. It will submit the required annual accounts needed for participation in diverse international markets. Sterling Patterson understands the risk that such failures to disclose might jeopardize potential relationships and investments.

    Demonstrate your understanding of annual accounts and how they might impact Sterlings planned expansion, by answering the following questions:

    (1) How does information in the annual accounts differ from a basic annual report?

    • (a) Potentially more notes of explanation
    • (b) Increased occasions to illustrate data showing multiple years
    • (c) Requires more effort in identifying interested parties and their concerns
    • (d) All of the above

    (2) Which of the following is not a governmental entity regulating the content of annual accounts?

    • (a) International House of Pancakes
    • (b) American Securities Exchange Commission
    • (c) International Accounting Standards Board

    (3) What are reasons why more notes, explanations and disclosures might be necessary when doing business in international markets?

    • (a) They may reveal different accounting policies that are applicable
    • (b) They may provide clarification on differing tax rules
    • (c) Valuation rules concerning assets may vary from country-to-country
    • (d) All of the above

    Answer – Bowman’s Strategy Clock

    Bowman’s Strategy Clock

    The Strategy Clock: Bowman’s Competitive Strategy Options

    Once again, here’s a to recap of the various options from Bowman’s Strategy Clock. The exercise is at the bottom of this page.

    Option one – low price/low added value

    Option five cheap jerseys – focussed differentiation

    Option six – increased price/standard

    • Answer higher margins if competitors do not value follow/risk of losing market share.

    Option seven Workshop – increased price/low values

    • only feasible in a monopoly situation.

    Option eight – low value/standard price

    • loss of market share.

    How did you get on? Bowman’s Strategy Clock is a useful tool for deciding upon corporate strategy.

    • likely to be segment specific.

    Option two – low price

    • risk of price war and low margins/need to be a ‘cost leader’.

    Option three – hybrid

    Bowman's Strategy Clock

    Option four – differentiation

    (a)without a price premium:

    • perceived added value Festivals by user, yielding market share benefits.

    (b)with a price premium:

    Answer – Financial Ratios

    Financial Ratios

    The answers are below: Jumpys is a neighborhood restaurant famous for its jolting coffee. Named for its owner Jumpy Johnson, the restaurant specializes in a breakfast menu that has many loyal fans among the locals. But every since Jumpys neon dancing coffee cup sign went up, cheap MLB jerseys the owner has wanted to expand in an even Star bigger way.

    Answers

    1. (d) Identify good candidates for financial assistance

    2. True

    3. False (1.88:1)

    4. False (0.15 or 15%)

    Jumpys is located in a region that holds a round of championship events at the same time every year. Johnson noticed wholesale NBA jerseys that increased promotions during those events brought a tremendous influx of new Nazis, customers to the advertisers. He is convinced that once those new customers visit Jumpys, they will be captured forever.

    In prior years Johnson has not been prepared financially to capitalize on the event, but cheap nfl jerseys recently he has been working closely with his accountant to monitor the restaurants wholesale nba jerseys financial cheap NBA jerseys health with the idea of seeking a loan. His accountant has provided the following summary of pertinent company financial information:

    Current Emeli Assets: $32,000

    Current Liabilities: $14,000

    Net Profit: $15,000

    Net Sales: $100,000

    Net Worth: $34,000

    Total Debt: $18,000

    Answer – Four Banding Alternatives

    Four Banding Alternatives

    Banana Computers

    Recommendations for Banana’s branding strategy:

    • New Product – Banana Computers launched a digital media wholesale jerseys player that can be used to store music, images and video. It has a huge memory and cheap jerseys builds a very diverse Jubileusz and loyal client base due to its cult status. It is IRA a design icon of its era.
    • Flanker Brand – Banana Computers wholesale nfl jerseys uses its technology to build pocket computers (PDA’s)

    Four Branding Alternatives

    • Line Extension – A new faster and more compact personal split computer is launched. It is the next generation of the well-known Banana.
    • Franchise Extension – Banana go into the music download business.

    Of on course there are many alternatives that you could create and cheap nfl jerseys suggest. However, the Banana example gives you an idea of how Tauber’s Four Banding Alternatives could be used to design a branding strategy.