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Take Home Assignment Name Mehri  Mahmood Student Number : 007909404

1) List and describe marketing's controllable marketing mix factors.

There are  Four Ps: Controllable Marketing Mix Factors ‣Product: a good, service, or idea to satisfy the consumer's needs. ‣Price: what is exchanged for the product. ‣Promotion: a means of communication between seller and buyer. ‣Place: a means of getting the product into the consumer's hand Product creates value ‣Promotion communicates value ‣Place delivers value ‣Price exchanges value

2) Identify the three phases of the strategic marketing process and briefly describe what happens during each phase. The three phases of the strategic marketing process are the Planning Phase, the Implementation Phase, and the Control Phase. 1. Planning Phase has 3 steps: Step 1 : SWOT ( Situation Analysis) ● Identify Industry Trend ● Analyze Competitors ● Assess Own Company ● Research own customer Step 2: Market-Product Focus and Goal Setting ‣Set marketing and product goals: new/existing product, new/existing market ‣Select target markets ‣Find points of difference: at the product level l‣Position the product: communication Step 3 : Marketing  Program

 ‣ Develop programs marketing mix ‣ Develop the budget by estimating revenues, expenses and profit. 2. Implementation Phase: ‣ Obtain Resources ‣ Design Marketing Organization ‣ Develop Schedule ‣ Execute Marketing Program 3. The Evaluation Phase ‣Comparing Results with Plans to Identify Deviations ‣Acting on Deviations ‣Correcting a negative deviation ‣Exploiting a positive deviation 3) Identify and describe the four critical factors in a SWOT analysis that help an organization identify the critical strategy-related factors that could have major effects on it. The four critical factors in a SWOT analysis are: Strengths, Weaknesses, Opportunities and Threats ● Strengths are the characteristics that give an advantage to the organization over its competitors. For example, a strong brand image in the market, huge market share, loyal employee base, and better technology ● Weaknesses are the characteristics that put an organization behind its competitors. This can include a lack of commitment from top management, limited production capability, lack of accessibility to innovative technologies, and poor organizational policies ● Opportunities are the circumstances that an organization can exploit to its advantage. If there is an opportunity, the organization can acquire a small-scale, financially stable firm within the same industry to strengthen its base in the existing market and expand into new target markets. Similarly, tariff cuts could be an opportunity for an organization to export its products to a new market and increase the market share. ● Threats are the circumstances or elements that could cause trouble to an organization. For instance, a situation like an abrupt change in people’s lifestyles or new technologies can be a threat to the organization. Nokia and Kodak are examples of how organizations succumb to their inability to recognize threats 4) Identify and describe the four market-product strategies an organization uses to identify alternative market opportunities. The four market-product strategies an organization uses to identify alternative market opportunities are: MARKET PENETRATION The aim of this strategy is to increase sales of existing products or services on existing markets, and thus to increase your market share. To do this, you can attract customers away from your competitors and/or make sure that your own customers buy your existing products or services more often. This can be accomplished by a price decrease, an increase in promotion and distribution support; the acquisition of a rival in the same market or modest product refinements. MARKET DEVELOPMENT

This means increasing sales of existing products or services on previously unexplored markets. Market expansion involves an analysis of the way in which a company's existing offer can be sold on new markets, or how to grow the existing market. This can be accomplished by different customer segments ; industrial buyers for a good that was previously sold only to the households; New areas or regions about of the country ; Foreign markets PRODUCT DEVELOPMENT The objective is to launch new products or services on existing markets. Product development may be used to extend the offer proposed to current customers with the aim of increasing their turnover. These products may be obtained by: Investment in research and development of additional products; Acquisition of rights to produce someone else's product; Buying in the product and "branding" it; Joint development with ownership of another company who need access to the firm's distribution channels or brands. DIVERSIFICATION This means launching new products or services on previously unexplored markets. Diversification is the riskiest strategy. It involves the marketing, by the company, of completely new products and services on a completely unknown market. Diversification may be divided into further categories

5) Name the four basic forms of competition and give an example of each. ● ● ● ●

Monopoly : One seller who sets price a unique product eg : De Beers and diamond Oligopoly : Few sellers who are sensitive to each other's prices eg: Coca Cola and Pepsi Monopolistic Competition :Many sellers who compete on non-price factors eg: Restaurants Pure Competition: Many sellers who follow market price for identical, commodity products eg: Foreign Exchange markets as all currencies are homogenous

6) Name the five situational influences that affect our purchase decision processes.

Situational Influences‣The purchase task (gift or for personal use)

‣Social surroundings (presence of others)

‣Physical surroundings (decor and music)

‣Temporal effects (time of day or the amount of time available)

‣Antecedent states (mood or amount of cash on hand)

7) Name the five psychological influences that affect our purchase decision

‣Problem Recognition: Perceiving a Need‣Information Search:

‣Internal search

‣External search

‣Personal sources: relatives and friends

‣Public sources: Consumer Reports, social media postings?

‣Marketer-dominated sources: advertising, salespeople

Evaluation: Assessing Value

‣Evaluative criteria

‣What is important: brand? Price? Ease of use?

‣From whom to buy

‣When to buy

‣Post-purchase Behaviour

‣Cognitive dissonance: focus on what we might have missed

processes.

8) Name the four socio-cultural influences that affect our purchase decision processes.

● Personal Influence ● Reference Groups ● Family Influence ● Social Class 9) Give one example each of (1) a leading question, (2) two questions in one, (3) an ambiguous question, and (4) a non-mutually exclusive answer. leading question: Are you more likely to shop at Superstore over Costco because of your experience Yes or No Two Questions in one: How satisfied with the quality and quantity of our product Ambiguous Question: Is the Cleaning agent you bought really clean Non-Mutually exclusive Answer: How many times you eat out in a month 10) List and describe the three major types of research techniques and indicate when each method would be most appropriate. ‣Exploratory Research: preliminary research conducted to clarify the scope and nature of the marketing problem, normally including secondary data, focus groups, and depth interviews. ‣Descriptive Research: research designed to describe the basic characteristics of a given population or to profile particular marketing situation, often using survey and observation. ‣Causal Research: research designed to identify causeand-effect relationships among variables.

11) What are the steps needed to segment and target a market? Step 1: Group Potential Buyers into Segments ‣Ways to Segment Consumer Markets ‣Geographic Segmentation ‣Demographic Segmentation ‣Psychographic Segmentation ‣Behavioural Segmentation ‣Ways to Segment Organizational (Business) Markets ‣Geographical segmentation ‣Demographic segmentation ‣Behavioural segmentation ‣Step 2: Group Products to Be Sold into Categories ‣Step 3: Develop a Market-Product Grid and Estimate Size of Markets ‣Step 4: Select Target Markets ‣Criteria to Use in Picking the Target Segments (focus more on profitability) ‣Market size ‣Expected growth ‣Competitive position ‣Cost of reaching the segment ‣Compatibility with the organization’s objectives and resources ‣Choose the Segments ‣Step 5: Take Marketing Actions to Reach Target Markets-product, price, promotion, place

12) What are the three main sales forecasting techniques often used by marketers? Describe

each. ‣Judgments of the Decision Maker ‣Direct forecast: involves estimating the value to be forecast without any intervening steps. ‣Lost-horse forecast: involves making a forecast using the last known value and modifying it according to positive or negative factors expected in the future. ‣Surveys of Knowledgeable Groups ‣Survey of buyers’ intentions forecast: involves asking prospective customers if they are likely to buy a product during some future time period. More fits the B-B context .‣Salesforce survey forecast: involves asking a firm’s salespeople to estimate sales during a coming period; individual differences.

‣Statistical Methods (note: it is still human doing the calculations) ‣Trend extrapolation: involves extending a pattern observed in past data into the future .‣Simple but with Assumptions: ‣The underlying relationships in the past will continue into the future (e.g., advertising effectiveness) ‣Linear trend extrapolation when the pattern is described with a straight line.

13) What are the criteria to be used in selecting target segments?

.Market size ‣Expected growth ‣Competitive position ‣Cost of reaching the segment ‣Compatibility with the organization’s objectives and resources 14) Compare continuous, dynamically continuous, and discontinuous innovations. Give examples of each type. Continuous: Requires No new learning by consumers eg: Tooth Brush Dynamically continuous: Disrupts consumers normal routine but does not require Totally new learning : Electric Toothbrush Discontinuous innovations: Requires new learning and consumption patterns by consumers. Eg: Self driving car 15) Identify and describe the four branding strategies used by product marketers.

Multiproduct Branding : Company uses one name for all product

MultiBranding: Giving each Product distinctive name

Private Branding: Manufactures products sells under wholesaler

16) Identify and describe the stages of the generalized product life cycle. For each stage, specify the marketing objective a firm should attempt to achieve. ‣Introduction Stage: could have negative profit ‣Primary demand: desire for the product class ‣Selective demand: demand for a specific brand ‣Examples: space travel

‣Growth Stage: profit usually peaks ‣Competitors appear ‣The emphasis of adverting shifts to simulating selective demand ‣Maturity Stage: a slowing of total industry sales or product class revenue. ‣Decline Stage: occurs when sales and profits begin to drop. Frequently, a product enters this stage not because of any wrong strategy on the part of the company but because of environmental changes. ‣Deletion: drops a product from a company’s product line. ‣Harvesting: retains the product but reduces marketing support costs.

17) Ships Ahoy is a small company that makes model sailboat kits priced at $120 each. (There is no quantity discount.) The costs of the materials that go into each kit are $45. It costs $5 in labour to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising in sailing and hobby magazines, and $3,500 for the monthly salary of its owner. If Ships Ahoy sells 150 kits in a given month, its monthly profit will be 5300 (Please show your calculation steps)

Profit = total revenue - total cost = (unit price x quantity sold) - (fixed cost + variable cost) = $18,000 ($5,200 + $7,500) = $5,300.The variable cost is the labor and materials for each kit ($5 + $45) times the number of kits sold (150 kits) or $50 x 150 = $7,500. The profit is 5,3000 18) The Precision Writing Instruments Company makes two pen designs - the Cordova design and the Savannah design. These data apply, regardless of which of two pen designs is being implemented. Materials cost per pen is $6. Labour cost per pen is $5. Production overhead is $1,000,000. Advertising and promotion is $1,000,000. Marketing research has estimated the following demand functions for the next year of sales for the two pen designs where Q represents demand in thousands and P represents price. For the Cordova design, Q = 150 - 2.5P. For the

Savannah design, Q = 175 - 2.1P. What are the total costs for sales of 500,000 units of the Cordova design? (Please show your calculation steps) TC= FC+VC FC= 10000000x2 2000000+(11)500000 = 7500000 19) T20) The Precision Writing Instruments Company makes two pen designs - the Cordova design and the Savannah design. These data apply, regardless of which of two pen designs is being implemented. Materials cost per pen is $6. Labour cost per pen is $5. Production overhead is $1,000,000. Advertising and promotion is $1,000,000. Marketing research has estimated the following demand functions for the next year of sales for the two pen designs where Q represents demand in thousands and P represents price. For the Cordova design, Q = 150 - 2.5P. For the Savannah design, Q = 175 - 2.1P. A price skimming strategy is proposed for the Savannah design and a price of $40 is selected. What will be the profit or loss for the first year? (Please show your calculation steps) Quantity of the savannah design sold is given Q= 175-2.1 P=175-(2.1x25)= 122.5(in thousands) =122,5000 units. profit=total revenue-total cost=(PxQ)-(FC+UVC)=($25x122,500units)-(2,000,000+$11x122,500units= -285000 loss

21) Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $6 million and unit variable costs of $5 per pair. Ace would like to earn a profit of $2 million; how many pairs must they sell at a price of $15? (Please show your calculation steps)

2000000=(15xQ) - FC+(UVCxQ)

2000000=15Q-6000000-5Q

8000000=10Q = 800 000

22) Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $6 million and unit variable costs of $5 per pair. Suppose a consultant tells Ace it can sell 700,000 heel repair kits, what price must it charge to achieve a profit of $2.5 million? (Please show your calculation

Profit = (PxQ)-FC+(UVCxQ)

2500 000= (Px700 000)-600 000+(5x700 000)

12 250 00= 700 000p

P= $17.50

23) Ampro-Mag is a small company that makes materials for safely controlling hazardous spills of all kinds. It sells these items as a neutralizing kit priced at $120. The costs of the materials that go into each kit are $45. It costs $5 in labour to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising in trade journals, and $3,500 for the monthly salary of its owner. What is Ampro-Mag's monthly break-even point in terms of number of neutralizing kits sold? (Please show your calculation steps) (1000+200+500+3500) /[120-(5+2+13+30] 5200/(120-50) =74.3 Kits

24) Lady Marion Seafood, Inc. sells 5-pound packages of Alaska salmon. Assume its variable costs per package is $30, and its fixed cost is $250,000. It wants a target profit of $38,000 on a volume of 16,000 packages. What should it charge for a 5-pound package of salmon? (Please show your calculation steps)

Profit = total revenue - total cost = (unit price x quantity sold) - (fixed cost + variable cost)

38000=16000P[250000+930x16000)]

768000=16000P $48= P Hence P = $48

25) A custom kitchen cabinet storeowner wishes to use target profit pricing to establish a price for a typical section of cabinets. Assume variable cost is $200 per unit, fixed cost is $44,000, and the storeowner desires a target profit of 20 percent of sales on an annual volume of 400 cabinets. What price should be charged for a typical cabinet section? (Please show your calculation steps) 20% of X = (PxQ) Fixed Cost-UVC Q 0.20X=400x=44,000+200x400 124000/399.80x = $310 26) What is the promotional mix? Briefly describe each of the five promotional alternatives: advertising, personal selling, public relations, sales promotion, and direct

marketing. 27) List the key elements of the communication process. Briefly describe each. ‣Communication: the process of conveying a message to others and requires six elements: ‣Source: a company or person who has information to convey ‣Message: the information‣Channel of Communication: such as a salesperson, advertising media, or public relations tools ‣Receivers: consumers who read, hear, or see the message ‣Encoding and Decoding: ‣Encoding is the process of having the sender transform an abstract idea into a set of symbols ‣Decoding is the reverse. ‣Field of experience: similar understanding and knowledge ‣Feedback‣Response ‣Noise 28) List two advantages and two disadvantages of using television, radio, magazines, newspapers, direct mail, and billboards for advertising. TV: Reaches large audience and target specific audience, High cost short exposure time Radio: Low cost use of sound and humor, No visual and short exposure Magazines: Target Specific audience and Quality Color, High Cost and Competition NewsPaper: Quick and Low Cost , Poor color and Competition Direct Mail: High Quality and Personalized Message , High cost and junk Mail Billboards: High Visibility and Low Cost , Criticized by traffic and messages are short 29) What are the six stages of the personal selling process? What is the objective of each stage?

Prospecting - the search for and qualification of potential customers

Preapproach - Obtaining further info on the prospect and deciding the best method of approach

Approach - the initial meeting between the salesperson and the prospect, where the objectives are to gain the prospect's attention, stimulate interest, and build the foundation for the sales presentation and the basis for a working relationship

Presentation - core of the order-getting process, objective is to convert a prospect into a customer by creating a desire for the product or service

Close - involves obtaining a purchase commitment from the prospect. most important and most difficult because the salesperson must determine when prospect is ready to buy

Follow up - Includes making certain the customer's purchase has been properly delivered and installed and addressing any difficulties experienced with the use of the item. solidifies the buyer-seller relationship

30) During the presentation stage, a salesperson may encounter objections. What are the six basic types of objections, and how should they be handled? ‣Handling Objections: in a courteous , ethical, and professional manner. ‣Acknowledge and convert the objection ‣Postpone ‣Agree and neutralize ‣Accept the objection ‣Denial ‣Ignore the objection...