Final Exam P, questions and answers PDF

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Marketing final exams essay type questions ...

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Q.A1 (15 marks) Consumer Behaviour 137 New product pricing 275 What are bling h2O consumers’ purchase motivations? Do you think the company priced their bottled water correctly? Explain your answers with reference to marketing pricing strategies for new products (151,238, 275) (i.e., skimming (275,293) vs. penetration pricing). Bling h2O consumers purchase motivations are mainly based around the image that comes with the bottle rather than the actual product. Bling h2O is selecting the more for more overall positioning strategy which involves providing the most upscale product or service and charging a higher price to cover the higher costs. When consumers purchase bling h2O bottled water they focus on the augmented part of the product, the cork sealed glazed glass bottle, the Swarovski crystals, the triple filtering process and the all important celebrity status that comes with it. Thus these additional inputs and celebrity status become the motivation behind the purchase. Bling h2O priced their product correctly as the demand of their target market is high enough to purchase it without any issues. They are aiming their product at consumers whose behaviours involve feeling the need to feel above other people, like those who cannot afford this product are below them. The company would not have implemented penetration pricing but skimming as they set a high price to skim maximum revenue from the segments willing to pay the higher price in turn possibly making fewer but more profitable sales. The price of Bling h2O’s bottled water is therefor set correctly as they make more profitable sales and the high price does not really affect the target market selected. Q.A2 (15 marks) Positioning and benefits ie differentiation p189 What market positioning strategy do you think is used by bling h2O? What product and nonproduct related benefits are communicated? (190, 193-95, 50.74, 174,189) Bling h2O have chosen to use the more for more positional strategy. This strategy involves providing the most upscale product or service and charging a higher price to cover the higher costs. Bling h2O clearly does this as they charge a hefty price of $85 dollars per 750ml bottle, but it all makes sense when you realise the bottle is decorated with Swarovski crystals and sealed with a cork. These are just the non-product related benefits, the augmented part of the product. Bling h2O also goes through a 9-step purification and triple filtering process to ensure that they provide the best quality water to their customers. They are providing an upscale product and are charging a higher price to cover the higher costs which directly and clearly shows that Bling h2O have chosen to implement the more for more positional strategy. Q.A3 (15 marks) Sustainable marketing p459 List and discuss three different types of ethical concerns people might have about this product. If you were the brand manager for bling h2O, how would you respond to these ethical concerns? (27-28, 87, 189, 473) There may be many ethical concerns people could have about this product, such as Bling h2O creating false wants and their product having too much materialism, too few social goods and cultural pollution. Bling h2O goes through a 9-step purification process involving triple filtering their water to create as they say “the best quality water in the market”. To many people in the society water is water and in their eyes they may believe Bling is creating a false want for society to benefit the industry and company rather than the society and consumers. One thing bling also does it its water bottles is decorate them, they do this by having the water come in a frosted bottled, decorated with Swarovski crystals and seal it with a cork, one may think you were carrying a bottle of champagne. Now compare this to your average plastic bottled water and society may once again see that Bling h2O’s product now holds too much materialism, which is not

needed for a product such as bottled water. As brand manager I would respond by stating small groups don’t make up society at large, Bling h2O has its target market and have proven through their success that it meets their needs, wants and demands and that it was never our intention to create an unwanted need or be too materialistic we were only appealing to our target markets wants which is our job. People may also take on the idea that the product provided by Bling h2O could create a cultural pollution. Companies may hope their advertisements reach their chosen target market but because of mass-communication channels, some ads are bound to reach people with no interest in the product and would therefor be bored or annoyed with the company and its products. No social goods - we always had water added no real benefit Market = people who aspire to celeb lifestyle...