SRINATH.

PARVATANENI
MARKETING STRATEGY
MK---6943-031
ID: 1302023
TRINE UNIVERSITY
ANGOLA,IN

CHAPTER 4:

1. Anheuser-Busch would appear to apply a utilitarian moral logic since it has

obviously measured the advantages of its support to advance mindful drinking and its
projects to diminish litter and strong waste against its costs. The organization has
connected the societal duty idea of social duty, given its emphasis on the overall
population.
2 . The Consumer Bill of Rights systematized the morals of trade between purchasers
and
dealer. The four rights supported are the privilege to: (1) safety, (2) be informed, (3)
choose,
furthermore, (4) be heard. The American Marketing Association (AMA) as of late
upgraded its Code of Ethics. The correlations between the two are exhibited below:
Consumer Bill of Rights AMA Code of Ethics
The privilege to safety
"Advertisers must do no damage."
The privilege to be informed
"We will speak to our items in a reasonable path in offering, promoting, and other
types of correspondence; this incorporates the evasion of false, deceptive, and
misleading advancement."
"We will clarify noteworthy item or administration dangers, part substitutions or
other predictable projections that could influence clients or their view of the buy
choice."
"We will completely reveal list costs and terms of financing and also accessible
value arrangements and alterations."
The privilege to choose
"We will dismiss controls and deals strategies that mischief client trust."
"We won't take part in value altering, ruthless estimating, cost gouging, or 'snare
and-switch' strategies."
The privilege to be heard
"We will listen to the requirements of our clients and attempt every sensible exertion
to screen and enhance their fulfillment on a continuous premise."
"We will acknowledge helpful feedback from our clients and other partners."
3. Friedman is an advocate of the benefit duty idea of social duty. All things
considered, he believes that an association's straightforward obligation is to boost
benefits for its proprietors or stockholders insofar as it takes part in open and free
rivalry without duplicity or extortion. This perspective is limited because it
concentrates exclusively on the firm and not the different voting demographics of the
firm. Then again, the moral position reflected in the evasion of double dealing or
extortion. illustrates a more extensive perspective of the association's relationship
with its constituencies.

4. The most visible national cause programs are associated with the (PRODUCT)RED
global program to fight AIDS in Africa and the Susan G. Komen Breast Cancer
Foundations Race for the Cure.

CHAPTER 7:
1. Quotas represent a hidden tax on consumers because they limit supply of
products, which in turn increases prices. Tariffs are literally a government tax
imposed on imported goods.

2. A severe restriction may be a significant tax on profits, a reduction in the

expiration time frame of a patent for a branded drug product, thus enabling other
manufacturers to market generic versions, etc. Merck and other pharmaceutical
makers benefit from the educational system in the U.S. Medical, engineering,
business, and other institutions of higher learning provide Merck with a rich talent
pool from which to hire top-notch researchers, marketers, and salespeople that
contribute to the successful commercialization of its drug products. In general, the
demand for many drugs in the U.S. is derived: physicians prescribe them to
ultimate consumers within certain legal restrictions. For a few FDA-approved
drugs, consumers can purchase them directly without a prescription. Merck and
other drug makers do employ both a push and pull strategy to reach U.S.
consumers: Push: Common marketing practices to reach doctors is to conduct
seminars to educate them about new drug products and provide free samples to
them to give to their patients. Its hospitals, medical clinics, physician offices, and
pharmacies serve as an efficient and effective distribution system for Merck's
offerings. Because it takes millions, or even billions, of dollars to develop and
bring a new drug to market, fewer firms are able to generate this amount of
research and development and marketing funds.

3. The best alternative for a novice firm is indirect exportingselling its

domestically produced goods in a foreign country through an intermediary, such
as a distributor, that has the marketing know-how and the resources necessary for
the effort to succeed. This will allow consumers in the target country to try the
firms products and to begin to recognize its name. It also entails the lowest risk
and investment from the firm. Other alternatives in order of increasing level of
risk and investment are: a. Direct exporting. Selling the firms domestically
produced goods in a foreign country without intermediaries. b. Licensing.
Offering the right to a trademark, patent, trade secret, or other intellectual property
in return for a royalty or fee. c. Joint venture. Occurs when a firm and local firm
invest together in a foreign country to create a local business. d. Direct

investment. Entails a domestic firm actually investing in and owning a foreign

subsidiary or division.

CHAPTER 1:
1. Consumer wants or benefits met by each of four products or services include: a.
Carnation Instant Breakfast. Time saving in preparing a breakfast; nutrition; vitamins.
b. Adidas running shoes. Safety through having a running tread; cushioning for the
foot; status. c. Hertz Rent-A-Car. Time saving for business or vacation travelers who
may fly to a destination and need local transportation without being able to use local
buses or rail transit. d. Television home shopping programs. A variety of hard and soft
goods; low prices; convenience of shopping from home; delivery to any location.
2. The demographic characteristics of the target market for each product or service are:
a. National Geographic magazine. Older age group; high income; highly educated. b.
Wired magazine. Mainly under 30 years old; middle income; some knowledge about
computer and communication technologies. c. New York Giants football team. New
York City metropolitan area (includes northern New Jersey and southwestern
Connecticut); most age, income, and education groups. d. U.S. Open tennis
tournament. Most age groups; upper income groups; middle to upper levels of
education.
3. Marketing mix actions to reach these target market customers include: a. Product. The
content of each degree program, certificate program, or course offered to target
market customers. b. Price. The tuition or charge for taking the course. c. Promotion.
Course catalogs, direct mail informational brochures, posters, and ads run in local
newspapers or on local radio stations are examples of the kind of promotional
activities a college often undertakes. d. Place. Includes the place and time at which the
course is offered. Increasingly, colleges and universities are taking their courses to the
location of their students rather than asking students to come to the campus itself.
4. Yes, a firm has the right to create wants in an attempt to persuade consumers to buy
products they didn't know about in the past; new medicines to treat those having high
blood pressure or heart attacks are good examples. The conflict is over good and
bad want creation. In a free society where we value free choice by the individual it

is difficult to condemn bad candy bars and soft drinks over good apples and
orange juice if the individual's choice only affects him or her. Our society says that
what is good and bad is up to the individual unless there are major costs to
society as a whole in letting the individual have free choice. Thus, in the case of
products like firearms and drugs, society determines what is good and bad and
sets rules or laws controlling their use.

CHAPTER 2:
1. a. A mission statement is an expression of the organizations function in society,
often identifying its customers, markets, products, and technologies. Medtronics
mission statement is to contribute to human welfare by application of biomedical
engineering in the research, design, manufacture, and sale of instruments or
appliances that alleviate pain, restore health, and extend life. The rising mural in
its headquarters powerfully communicates the inspiration and focus of its mission to
its stakeholders: employees, doctors, and patients alike. Moreover, it appears on a
medallion that is presented to each new employee. Finally, each December five or six
patients and their physicians describe to assembled employees how Medtronic
products have changed their lives. These activities send clear messages to employees
and other stakeholders about Medtronics strategic direction.
b. An example of a mission statement for a students career might be: To be
recognized as an outstanding, ethically and environmentally responsible, global
marketing executive.
2. When a product is introduced, it is usually a question mark because it is new
and there is uncertainty about consumers acceptance of them. After a period of time,
depending on the product category, the not-so-new product could be classified as a
star if its growth rate is sizeable and has a significant share of the product category.
If the growth rate in the product category falls substantially and there is great
competition from competing brands, the product probably will fall in the cash cow
category. If, however, the product isnt supported with an effective marketing
program, it could become a dog.
3.
a. Planning phase. Results are formal marketing plans that identify specific objectives
to be achieved by a particular time and the specific actions to achieve those
objectives.

b. Implementation phase. Results are formal measurements of the results achieved,

which can be compared with the plans established in the planning phase to determine
if any deviations from plans occurred.
c. Evaluation phase. Results are new actions taken to exploit opportunities where
deviations from plans are better than expected or to take corrective actions where
deviations from plans are worse than expected.
CHAPTER 3:
1. Three trends that may affect Gerber baby food are: a. An aging population. Gerber
may want to develop food for seniors who live alone and would like single-sized
servings. Because Gerber foods often require only warming up, this market may
be attracted to a product that is simple to prepare. Gerber soft foods may also
appeal to an older segment that has trouble chewing or digesting more traditional
food items. b. Growing health concerns. Growing health concerns may require
Gerber to reformulate their foods to contain more or less of some ingredients, or
the company may want to promote the natural ingredients of their items. c.
Environmental consciousness. Environmental concerns may lead Gerber to tout
the recyclable value of their small glass containers.

2.a. What businesses benefit. Businesses involved in transportationboth mass and

individualand in product distribution are likely to see increased demand for their
products and services. Communication businesses, particularly the telephone, satellite
TV, cable, and Internet providers, will see increased demand. Many businesses may
find that they are able to move from high-cost urban sites to lower cost exurbian and
penturbian sites for some operations, and they may find that telecommuting of some
employees will lower their costs of infrastructure. b. How will retailers change.
Smaller cities and communities will experience a demand for additional shopping;
retailers may respond with either localized strip malls and centers or larger regional
centers located along transportation corridors. Demands on distribution networks will
increase; retailers may respond by greater reliance on Internet commerce.
3. In terms of the continuum of competition, the brewing industry was historically
oligopolistic. A few large producers accounted for the bulk of sales. In recent years,
the brewing industry has moved more to a position of monopolistic competition.
There are a large number of sellers where the unique aspect of each one may be their
distinct taste.
4. The problem for the Xerox Corporation would be serious. If the name Xerox is
increasingly referred to by consumers as the process by which photocopies are made
rather than the trademark of the company that invented and branded the technology,
Xerox runs the risk of having the term rendered generic. The result is that Xerox
would then have to identify itself by some other term in all its advertising and sales. A
large amount of money would need to be spent to get people to recognize the old
company known as Xerox by some other name.

CHAPTER 5:
1. Smart phone attributes that are considered important include: Retail price Voice
quality Display Battery life Navigation Camera resolution (megapixels) Based on
the attributes shown in Figure 5-2, the Apple iPhone 3GS has the highest ratings
across three of the four major attributes and is tied with all the other smart phones
on the other.
2. a. Explanation
their Porsche
experienced a
decision.
b. Remedies
phoning those
decisions.

of the behaviour: The fact that several persons backed out of

contracts within two weeks of signing suggests that they
high level of cognitive dissonance following their purchase
to recommend: A salesperson might remedy this situation by
individuals who recently signed contracts and reinforcing their

3. a. Life insurance -Safety b. Cosmetics- Social c. Wall Street Journal- Personal d.

Hamburgers- Physiological.
4. Perceived risk represents the anxieties felt because the consumer cannot anticipate
the outcomes of a purchase but believes that there may be negative consequences
(cost, safety, performance, or psychosocial). Typically, the greater the perceived
risk, the more extensive the external research phase is likely to be for consumers
before a purchase is made in an attempt to reduce the negative consequences that
may result after the purchase. Accordingly, this extensive exterthem, may
experience cognitive dissonance, a feeling of post-purchase psychological tension
or anxiety, or wishing they had bought one of the other alternatives.
CHAPTER 6:
1. a. Industrial firm: which account for the majority of all organizational buyers,
in some way reprocess a product or service they buy before reselling it again
to the next buyer. b. Resellers: the second largest group of organizational
buyers, consist of wholesalers and retailers that buy physical products and
resell them again without any reprocessing. c. Government units: the smallest
of the three groups, consist of federal, state, and local agencies that buy goods
and services for the constituents they serve.

2. Although the buying processes organizations go through when making a

purchase also apply to consumer buying, there are some key differences: a.
Organizations buy products and services to help them achieve organizational
objectives, namely, to increase profits through reducing costs or increasing
revenues. b. Demand for products and services from organizations is derived
from the demand for consumer products and services. c. The size ($ or #) of
organizational purchases is much larger than consumer purchases. d. There are

fewer organizational buyers than consumer buyers. e. The buying criteria for
organizational buyers generally focus on three critical factors: (1) ability to
meet quality standards, (2) ability to deliver the product on time, and (3) past
performance on previous contracts. f. Several people, typically in a buying
center, get involved in an organizational purchase. g. The postpurchase
evaluation is often more formalized.
3. Firms can more effectively market to organizations by following four
guidelines when designing and implementing their marketing strategy:
(1) understand the organizations needs,
(2) get on the right bidders list,
(3) find the right people in the buying center, and
(4) provide value to organizational buyers.