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Chapter 18 Assignments
Critical Thinking and
Discussion Questions
1.Imagine that you are the
marketing manager for a U.S.
manufacturer of disposable
diapers. Your firm is
considering entering the
Brazilian market. Your CEO
believes the advertising
message that has been
effective in the United States
will suffice in Brazil. Outline
some possible objections to
this. Your CEO also believes
that the pricing decisions in
Brazil can be delegated to
local managers. Why might
she be wrong? While babies'
behinds serve the same
function in all cultures, and the
product's technical standards
may be similar, sensitivity to
bodily functions does vary
across cultures. Thus, the
advertising message may need
to be changed for different
attitudes towards what is
appropriate advertising.
Likewise, where it might be
progressive to show an ad with
a male changing a diaper in
some countries, in other
countries this message could
be lost or misinterpreted.
Another consideration would
be the noise level created by
the advertising message of
competitor's products, which
may well be different in
Brazil. While local demand
and price elasticity decisions
should play an important role
in Brazil, pricing should not be
left solely to the discretion of
the local managers. Since this
is a global business, your firm
will likely be competing in
Brazil with some of the same
competitors as elsewhere.
Thus pricing decisions in one
country can have an impact on
pricing and competition in
other markets. Similarly, your
firm may want to position and
price the brand similarly
across different South
American countries. 2.Within
20 years, we will have seen
the emergence of enormous
global markets for
standardized consumer
products. Do you agree with
this statement? Justify your
answer. With the increase in
consumer awareness due to the
advent of the internet and
social media, companies are
trying to customize their
products as per the customer
requirements. They have been
investing in data analytics to
understand consumer buying
behaviors and trends and
design the products
accordingly. Customers also
receive notifications and
emails on recommendations of
products.But slowly, the trend
has been changing to
standardization of
customization wherein
companies strive to customize
the products but it will lead to
a standardization where a large
number of customers will look
forward to buying the same
product.With increase in
globalization and international
trade, the products which were
earlier restricted to a specific
market or country are now
available in other countries.
Firms that are committed to
Global standardization theory
view the world as a single
entity rather than as a mix of
various cultures having
different preferences. The
basic idea of the product and
the marketing remains the
same with differences in the
product parameters viz. price,
promotion etc.Firms are
working on providing products
with optimum features and
parameters to deem those fit
globally. The ideal fit should
be a high proportion of
globalization with a little
localization with respect to the
marketing mix. 3.You are the
marketing manager of a food
products company that is
considering entering the Indian
market. The retail system in
India tends to be very
fragmented. Also, retailers and
wholesalers tend to have long-
term ties with Indian food
companies; these ties make
access to distribution channels
difficult. What distribution
strategy would you advise the
company to pursue? Why? As
a marketing manager, I would
prefer the firm to sell either to
wholesalers or import agents.
In a fragmented retail system
no retailer has a majority of
the market share to influence
the industry. This means that it
would cost heavily for the firm
to contact each retailer and
explain about the product.
Both import agents and
wholesalers have long-term
relationships with the
wholesales, resellers, retailers
and other import agents.
Wholesalers have long-term
relationships with the retailers
and their business has stability.
These advantages make it a
best choice for the firm to
choose the wholesaler or the
import agents who have ties
with the retailers. One other
advantage is that the number
of wholesalers and/or import
agents would be less when
compared to the retailers or
retail outlets. This helps the
company to have more access
and control over the
distribution channel partners
namely, wholesalers and/or
import agents in this case. An
agent/wholesaler is a good
choice as they help to move
the goods to the market
quickly than other distribution
channels. 4.Price
discrimination is
indistinguishable from
dumping. Discuss the accuracy
of this statement. In some
specific instances this
statement is correct, but as a
general rule it is not. When a
firm is pricing lower in a
foreign country than it is in its
domestic market, it can be
difficult to distinguish
dumping from price
discrimination unless it is clear
that the firm is selling at below
cost in the foreign market. Yet
when costs are reasonably well
known and all prices are above
these, or if the firm is pricing
lower in its domestic market
than in foreign markets, it can
be reasonably concluded that
price discrimination rather
than dumping is occurring.
5.You work for a company that
designs and manufactures
personal computers. Your
company's R&D center is in
Michigan. The computers are
manufactured under contract in
Taiwan. Marketing strategy is
delegated to the heads of three
regional groups: a North
American group (based in
Chicago), a European group
(based in Paris), and an Asian
group (based in Singapore).
Each regional group develops
the marketing approach within
its region. In order of
importance, the largest
markets for your products are
North America, Germany,
Great Britain, China, and
Australia. Your company is
experiencing problems in its
product development and
commercialization process.
Products are late to market, the
manufacturing quality is poor,
costs are higher than projected,
and market acceptance of new
products is less than hoped for.
What might be the source of
these problems? How would
you fix them? The dispersion
of activities makes sense -
products are produced in the
lowest cost location and
marketed by people familiar
with local conditions. (The
R&D in North Dakota must be
a historical fluke.) Yet this
makes the coordination task
extremely complex, and
information required for
successful commercialization
is likely not being effectively
communicated among all the
appropriate people. Greater
cross-functional integration in
the new product development
process should help to
improve product development
and commercialization. Case
Discussion Questions
1.Should it be the
responsibility of news media
and social media organizations
like Facebook, Twitter,
Instagram, and LinkedIn to
monitor fake news, or should it
be up to consumers to interpret
the messages? Fake news
spreading on social media has
become a serious issue and
this declines the interest of the
consumers on the social media
.It therefore keeps the power
to influence the public
opinions based on news and
facts .The news media must
involve new technology to
combat the quality of
journalism in the country .This
would not only help in
stopping the fake news to
spread but also help in
attracting audience towards
itself . A strong news media
that would provide its
customers with current
detailed news and not other
kind of misinformation would
help them in gaining public
confidence as well.It becomes
the responsibility of the major
social media platforms like
facebook , twitter , instagram
etc ,to keep in house
professionals to keep a check
on the fake news and facts
spreading across the social
media .This would help to
check the accuracy on the
news on the social media . It is
not only the responsibility of
the news media to keep a
check on the fake news , we as
consumers can also play a
major role in it .We should
read the news carefully and
must figure it out ourselves if
we find a particular news to be
suspicious or fake . People
must tell their friends or even
family members how they can
do research on news and can
report if they find that there
are no reliable sources of news
on the internet. We can read
news and if we find a
particular news to be
suspicious we can go on other
news sites to see whether they
have posted such kind of news
or not .We can check on the
link they have provided and
can check each and every
detail of the news there .
Hence rather than totally
relying on the social media
platforms to check the fake
news we as consumers also
have the responsibility to raise
red flags or report against the
fake news. 2.Most people
would argue that information
and data should be presented
in an accurate, trustworthy,
and correct manner. The focus
is instead on interpreting the
truth of the data and
information. Can we trust
people to correctly interpret
the information flowing on
social media and in media in
general? Why or why not?
Marketing research almost
always starts with a very
vague idea on the research
objectives which provides
inputs to determining the data
sources. This is the most
challenging aspect of market
research as there are abundant
data sources to choose from
especially when considering
the international market. There
is also the cost factor to
consider as and so
organizations start to rely on
data collected previously so as
to cut down on expenses. But
this source may be unreliable
for understanding the needs of
the consumers and may also
be from alternative facts
databases.Each organization
that is involved in data
analysis comes from a
previous agenda that is suited
to their organizational
objectives. Therefore to think
that whatever data that is
presented to the consumers is
accurate and taking the news
and information at face value
is very wrong on our part.
Definitely the consumer has to
be aware of the background of
the information presented on
social media and make
informed decisions keeping in
mind the strategies that
organizations use to advertise
their products and services.
People in general cannot
always correctly interpret the
information presented in social
media if they are not aware of
the background on which the
research was based. This is
again pertaining to the
presentation of data from
analysis of the primary data
obtained
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