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1 Give practical examples of 2 companies: one, following selling philosophy and second, following marketing philosophy.

Please explain the differences in their approach for the consumer.


Selling Philosophy: a selling philosophy predominates where the selling function is most valued. The assumption is that any product can be sold if enough selling effort is given to it. Marketings job is to sell whatever the organization decides to produce. Although selling is one component of marketing, organizations driven by a selling philosophy emphasize selling efforts to the exclusion of other marketing activities. Marketing Philosophy: a marketing philosophy suggests that the organization focuses on satisfying the needs of customers. This focus applies to people in the marketing function as well as to those in production, personnel, accounting, finance, and other functions. Production and selling are still important, but the organization is driven by satisfying customer needs. One example of a selling philosophy wherein the selling function is of most importance is Amazon.com. Amazon.com seeks to be the world's most customer-centric company, where customers can find and discover anything they might want to buy online at a great price. Amazon.com and sellers list millions of unique new and used items in categories such as apparel and accessories, electronics, computers, kitchenware and housewares, books, music, DVDs, videos, cameras and photo items, toys, baby items and baby registry, software, computer and video games, cell phones and service, tools and hardware, travel services, magazine subscriptions and outdoor living items. Another tech company meanwhile emphasizes the Marketing philosophy technique which concentrates on the customer empowerment experience. The marketing process for Dell.com is emphasized from the frontend through the back-end to make a seamless online shopping experience.

2 Give practical examples of the ways how McDonalds increases the satisfaction of their customers.
Credit card acceptance During the rush hours additional order scheme Wider range of meal Opens Mac-autos in all restaurants Free gifts for kids Increase the share of healthy food (salads, decrease oily and spicy food)

3 Explain the role of Walmart as one of marketing performers in a physical product distribution.
Physical distribution is simply the act of getting product in the hands of the consumer. Sam Walton was one of the first to understand this when he created Wal-Mart. He created the discount superstore store concept and concentrated on lowering the cost of physical distribution to rock bottom. He did not sell any. The concept of the discount superstore has been wildly successful at lowering the cost of everyday items. Walmart through the companies use of a precise physical distribution; including suppliers, manufacturers, wholesalers, and use of the JIT inventory management, distribution centers, modes of transportation, superstores and hypermarkets, has been able to become a leader in the its market worldwide. With stores in the US, Mexico, UK, Japan, India, Argentina, Brazil, and Canada require the company to review every aspect of the organization and minimize cost. Physical distribution would be one of the largest expenses outside of employees where the company could save money. In such the company and refined every aspect of the process to reduce cost, increase customer satisfaction and continue to expand in global dominance.

4 Please implement SWOT-analysis for TOYOTA in the Russian market.

Strenghts - Toyota Manufacturing Company is the worlds largest vehicle manufacturer by production and sales - Toyota is best known for environmentally safe, quality, durability, reliability, value of money and convenience - Strong distribution and marketing efforts focused on meeting diverse needs and close involvement with customers - Initiates new technology - First Russian branch was flung Opportunities - Production of fuel-efficient cars can attract more customers - To expand more aggressively into new segments of the market. The launch of new model by Toyota is intended to take market share in youth market

Weaknesses - From the last quarter of 2009 to the first quarter of 2010 it recalled more than 8 mln trucks and cars worldwide including Russia in numerous recall campaigns - Most brands are offered in key markets, such as USA and Japan, not RF

Threats - Saturation and increased competition, intense marketing campaigns increasing competitive pressures - Changing demographics e.g. number of large families is declining. Decreasing of the demand for large family cars - Rising oil prices (fuel costs) and the costs of maintaining cars

5 Please implement SWOT-analysis for Unilever in the Russian market.


Strenghts - Company operates around 100 countries - Strong portfolio of brands - Wide range of products (from laundry to food & beverages) - Company spend huge amount on Research and development worldwide. - Price quality and variety - Competitive advantage - Promotion and advertising - Effective and attractive packaging - Economy of scale (it operates 270 manufacturing sites around the globe. That is how they can achieve economy of scale easily. It gives competitive advantage to company) Opportunities - Changing life styles according to peoples demand for innovations - Emerging new markets (company can expand their business to cover such markets as Iran, Iraq and Afghanistan) - Increase production volumes - Move operations to undeveloped countries Weaknesses - Strong competitors (P&G, Kraft, Nestle, etc) - Substitute products

Threats - Economic downturn - Environmental effects (Peoples don't like to buy products which can be harmful for the environment. Company needs to focus on how to become environment friendly) - Global competition (need to focus on innovations) - New local products - Legal effects (If the government introduces any law for tax or new limits for production.)

6 Please implement SWOT-analysis for McDonalds in the Russian market.

Strenghts - strong global presence - uses economies of scale for reducing the cost - brand equity world-wide - successful items: Happy Meal, Big Mac, etc. - Balance sheet position - one of the worlds most recognized logos - adapts to the cultural differences regarding the region Opportunities - It can adapt to the needs of the societies and undergo an innovative product line. - create new product offerings - Joint ventures with retailers (e.g. supermarkets) - Respond to social changes - Only serving 1% of the worlds population

Weaknesses - high employee turnover - price competition with competitors resulting in low revenue - lack of innovative products - Declining market share - Slowed revenue and income growth - It has yet to accomplish going on the trend of organic food. Threats - Foreign currency fluctuations are regarded to be a major problem as it uses standard pricing for its food items - Health issues regarding the fast food chain. - Emergence of major fast food competitors: Burger King, Wendys, Taco Bell, KFC - Recession or down turn in economy may affect the retailer sales

7 Please describe the marketing mix for Zara (Inditex) in the Russian market.
Zara is a popular Spanish clothing store that uses a very unique marketing strategy. Because they do not outsource their manufacturing, the company is able to more quickly respond to fluctuating customer demands in fashion trends. Zara's Unique Selling Proposition (USP) is to create or imitate the latest trends within a short two-week period; the new styles are available on sales floors for no longer than 4 weeks. In the case that a product does not sell, its inventory is immediately pulled from the floors and discontinued after one week. Zara is said to have the "most unusual strategy...its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead." Zara's marketing strategy is very effective because of its 1) Affordable prices 2) Unique response to market demands. Because items move so quickly through Zara stores, customers feel the pressure to buy an item for fear that it may not longer be there next time.

8 Please describe the marketing mix for Ford in the Russian market.
The marketing mix for Ford can be best described through 4ps: product, price, placement, promotion. So, let us start: Product: it is obvious that Ford is one of the leading world producers of automobiles. It has quite a strong influence on the Russian market. It provides a big range of automobiles from sedans to various rovers, but the most popular in Russia are cars of medium and business class such as Ford Focus and Mondeo. Price: Ford has a very good pricing model on Russian market, it is quite easy for the customer to find a golden mean between affordability and desirable automobile. Moreover it has such offerings like leasing and simple credit. Placement: Ford uses specific dealers to make its products available, nowadays it has 120 points of sales in more than 77 cities of Russia and has 106 official dealers. Moreover it has its own plant in the given region which makes its products cheaper and even more attractive. In other words, placement of Ford involves all activities that make the product available to the targeted customer. Promotion: Ford uses numerous channels of distribution of its advertising to customers: through internet, tv, newspapers, magazines, billboards, etc. Moreover it is an official sponsor of many sport events such as Champions League and various motocross championships. And finally its moto: Go Further.

9 Please formulate and justify the key marketing objective for VTB 24 for the Russian market that you believe may be included into their strategic marketing plan.
VTB24 is continuously striving to develop their business and improve the quality and efficiency of operations. It adopted the VTB Group 20102013 Development Strategy, which is their response to dynamic changes in the economic and social environment. VTBs new strategy efforts are focused on growth points. The key priorities include improving the efficiency of business, achieving target return on equity level and increasing the Banks market capitalisation. They pay particular attention to strengthening international standing. Corporate social responsibility is at the heart of VTBs business and is the foundation of the Groups longterm success. They maintained their traditional focus on strengthening investor and shareholder relations. The Russia Calling Investment Forum has helped improve the overall investment climate in the country. VTB24 supports key economic sectors, which include the high-tech sector, power generation, transport infrastructure, car manufacturing, public utilities, the food industry and agriculture.

10 Please give an example of key steps of the market development strategy according to I.Ansoffs matrix using any company upon your choice. (Tesco)
Market penetration Increase in its share of the grocery business at the expense of Sainsburys Market development Movement into the convenience store market Expansion abroad Product development Expansion into petrol sales Development of financial services Diversification Today Tesco is so all embracing that diversification would have to involve something entirely outside Tescos current range of activities and sold in foreign markets or to business customers

11 The Company A 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 area of BCG matrix may this product go into? Please explain your decision.
In our case this product will go into a category of a question mark because it has relatively small market share but it is a new fast growing market. That is why, in order to have higher profits and obtain more cash from this product the company should invest in this product and gain higher market share to transform it from question mark into a star and later into a cash cow.

12 Consider the global market for restaurants. Place the following restaurants onto the Porter Generic Strategies matrix - McDonalds, Subway, KFC, Burger King.

McDonalds, KFC and Burger King gain competitive advantage from being able to produce at the lowest cost. Factories are built and maintained, labor is recruited and trained to deliver the lowest possible costs of production. 'Cost advantage' is the focus. Costs are shaved off every element of the value chain. Subway satisfy the needs of customers through a sustainable competitive advantage. This allows the company to desensitize prices and focus on value that generates a comparatively higher price and a better margin. The differentiating organization will incur additional costs in creating their competitive advantage. These costs must be offset by the increase in revenue generated by sales.

13. Assume that the company does not not know who their customer is and hence cannot target advertising. Based on this, how can you define the research problem in this case? 14 Assume that the company wants to know why their sales are falling in New Zealand. Based on this, how will you collect the data that you will analyze to solve this problem?
Marketing Research Involves collecting, tabulating, and analyzing data about specific issues related to the marketing of goods, services, organizations, people, places, and ideas. 1. We put a problem why our sales are falling? 2. Examination of secondary data. Internal(Accounts Receivables/ Payables, P & L Statements) and External (Government Publications, such as Census Figures, Nongovernment Publications) 3. Generation of Primary Data. We need to make a survey of our potential customers. There are several methods: In person, by telephone, by mail and by internet. Then we are collecting the observations about human their preferences and etc. Also we are able to experiment with our customers. 4. Analyze the data that we have collected.

15 Assume that the company wants to know why their sales are falling in New Zealand. Based on this, please provide a brief research design outline.
Research Design Outline: Who collects data: the company

What information: exploratory/conclusive: we should use exploratory research, because first of all we need to identify the problem. Exploratory research is conducted to explore a problem to get some basic idea about the solution at the preliminary stages of research. It may serve as the input to conclusive research. Who or what to be studied: target consumers Technique to be used: observation & experiment of past and current performance of the company Cost Factors: competitors, distribution channels, customers preferences, etc. Methodology: it is possible to use more than one research design. We can start with secondary research to get background information, then conduct a focus group (qualitative research design) to explore the issues. Time Frame: last years of companys performance and current situation When & Where: in New Zealand

16 Please give a profile that describes a target market consumers for Mars chocolate bars.
Every chocolate bar has an ideal target market (buyers) and this is broken down into: Age, gender (male/female), money/economics/lifestyle, values/interests. Most of the MARs bars were targeted at the middle aged consumers. Recently theyve changed the target consumers, as the sales were falling, and launched the Break From The Norm adverts so people began to see their bars as chocolate for teenagers. The profile would be the following: a young man of 14-21 years old, of the average income family, having the best moments of his life with friends and Mars bars.

17 Please give a profile that describes a target market consumers for McDonalds
McDonalds uses demographic segmentation strategy with age as the parameter. The main target segments are children, youth and the young urban family. So to attract children McDonalds has Happy Meal with which toys ranging from hot wheels to various Walt Disney characters are given. For this, they have a tie-up with Walt Disney. At several outlets, it also provides special facilities like Play Place or birthday parties where children can play arcade games, air hockey, etc. This strategy is aimed at making McDonalds a fun place to eat. This also helps McDonalds to attract the young urban families wanting to spend some quality time while their children have fun at the outlet. To target the teenagers, McDonalds has priced several products aggressively, keeping in mind the price sensitivity of this target customer. In addition, facilities like Wi-Fi are also provided to attract students to the outlets.

18 Please give a profile that describes a target market consumers for Levis.
Levis provides a wide range of products that target different market segments, capturing demands. They have different clothing lines, but the main category is the youth from 15 to 25 years old, that is 501 product line", and for older consumers there is "original fit" line. Levis brand is: mens, womens and kids jeans, jeans related products, knits and woven tops, outerwear and accessories. The company markets a broad line of branded clothing that appeal to diverse demographic groups in markets around the world. Through a number of sub-brands they target specific consumer segments and provide product differentiation for their retail customers in their selected distribution channels.

19 Lets assume you represent the company that runs musicals in Moscow. What you may want to study and then adopt using a benchmarking from an airline company? Please explain your decision.

As we know Benchmarking is the process of identifying "best practice" in relation to both products (including) and the processes by which those products are created and delivered. The search for "best practice" can taker place both inside a particular industry, and also in other industries. In this case we, as the representatives of the company that runs musicals, must examine how an airline company achieves its performance levels and understand the processes they use. Since airline company isnt our competitor, we deal with Functional Benchmarking it is when businesses look to benchmark with partners drawn from different business sectors or areas of activity to find ways of improving similar functions or work processes. One similar function for both companies is selling tickets for providing services. So, we can be interested in pricing strategies of an airline company because everybody know that it is a strong point of such companies, and, moreover, we also can adopt it in our industry. Very efficient method of pricing strategy which airline companies use is price discrimination which is setting a different price for the same product in different segments to the market. For example, this can be for different ages, such as classes, or for different opening times. Hence, we can sell tickets for musicals at different prices, according some constrains which will give us best results and profits.

20 Using the S.M.A.R.T. Approach please give a specific (e.g. Numeric and qualititive) objectives for the generic marketing plan.
Specific, measurable, achievable, realistic and time specific (SMART) As an example, ABC stationary supplier sells its goods to newsagents across the country and they want to boost revenue for their product range. To detail this objective more clearly, we could define it using the "SMART" approach as follows: To gain 30% market share for stationary by 2010. Specific - need to understand the latest preferences of customers in the identified segments and appropriately target each stationary item such as pens, exercise books, rulers, and calculators to maximise sales volumes Measurable - current market share is 20%, will set a target of 30% market share, meaning we need an extra 10%, market share amounts can be established based by monitoring the overall value of sales in terms of dollars Achievable - ensuring technical competency and commitment of all personnel involved in the development and implementation of strategy. This can range from having an experienced and knowledgeable marketing team to capable sales staff. Access to funding is also necessary for the acquisition of extra stock to fulfill increased demand. Realistic - the objective is realistic as the marketing resources are in place to conduct the segmenting and targeting exercise and access to the extra stock required Time Specific - the increase in market share is to be achieved within 12 months, a regular progress update will be taken every month to track level of success

21 Please formulate 3 levels of product using a single word or a simple phrase for Nike sport shoes. core- association; actual shoes& other clothing; nike online allows you to personalize your trainees. 22 Please draw your estimated perceptual map for Auchan, Metro, Real, Perekrestok based on location convenience and product variety dimensions. 23 Put the following products on the Product Life Cycle: MS-DOS, Internet Telephones (WAP or 3G), Palmtop computers, Play Station 2, Sega Megadrive, Fax machines.
Introduction: Internet Telephones

Growth: Palmtop Computers Maturity: Playstation, Fax machines Decline: MS-Doc, Sega Megadrive

24 Please provide any new product idea that you may currently have and prove that this new product will be well accepted in the market.
The Removal Template Process: Identify the component parts and features of an existing product. Now, remove one. Does the new product configuration offer any benefits? Keep returning to the original product, removing different components, and asking this question. Consider a simple chair comprised of a seat, legs and back rest. If you remove the legs, for example, you have the beginnings of a new product for children: a booster seat.

Note that removal innovations are ideally more than just the unbundling of a product to achieve a reduced price, like IKEAs cheap furniture with all the assembly required. Instead, the new product should offer new benefits. 25 Lets assume that you are owner of the regular restaurant. What specific actions you may want to implement to add consumer value to your service? 26 Calculate the price elasticity index in the following conditions: product A - Price at $12,000, sales 12,000 units, price reduced to $10,000 then the sales recorded of 100,000 units - Product B - Price at $50,000, sales 18,000 units, price reduced to $40,000 then the sales recorded of 20,000 units.
Product A 12000 10000 12000 100000 -44,00 Product B 50000 40000 18000 20000 -0,56

Price 0 Price 1 Quantity 0 Quantity 1 Price elasticity of demand

Price elasticity of demand = ((Q1-Q0)/Q0)/((P1-P0)/P0)

27

Please calculate the price using markup pricing method based on the following data: product cost $100, markup 20%.
Price=100/((100-20)/100)=125 Price = Product cost (100 Markup percent)/100

28 Assume that you own a small company manufacturing fish hooks. What types of distribution channels you may want to use to organize the sales for your products? Please explain your decision. 29 Assume that you work for company manufacturing dairy products. What types of distribution channels you may want to use to organize the sales for your products? Please explain your decision. Having access to good distribution is fundamental to good marketing. And before choosing distribution channels we should consider some important factors. Company manufacturing dairy products must take into consideration that fact that the shelf life of their products approximately 4-7 days, that is why only short distribution channels should be adopted. Those are direct and retail outlet distribution channels. Selling directly to consumers can be done from a small shop, usually attached to the processing facility, or at the local retail market. The advantage of selling directly is keeping the full retail selling price and do not have to pay the margins of wholesalers and retailers. The advantages of Selling to retailers include selling greater quantities because your products are on sale in many more locations than if you were doing your own marketing. And also you can devote most of your time to processing. All other channels wont be appropriate for this type of product because of their long way and time from the factory to a consumer. 30 Assume that you work for company manufacturing designer clothing. What types of distribution channels you may want to use to organize the sales for your products? Please explain your decision.
A key ingredient in retailing success is the strength of a company's distribution channels. The conventional distribution model for clothing has three levels: the producer, the wholesaler and the retailer. This is a timetested system with many well-established members at all levels. The conventional distribution model, however, calls for all parties in the channel to protect their own best interests. If I have worked for a company manufacturing designer clothing I would better choose direct distribution because not all clothing retailers use this distribution model and it will give our company advantage over others by maintaining low costs and a fast time to market. Unlike many industries, time-to-market is critical to retail clothiers, as trends and fashions can change quickly. With low-wage, high-volume production in China and Turkey, the company can maintain low input costs and often outfit its stores with the latest trends within a month of the initial design.

31 Assume that you work for company manufacturing designer clothing. What types of means may want to use to promote your products? Please explain your decision.
For promoting designer clothing first of all advertising type of promotion should be used, especially fashion magazine advertising. Advertising would be an effective way to enhance companys image and form brand awareness. Personal selling that involves oral communication would also be effective because in this sector

of products (clothing) consumers expect sales assistance and service in stores, personal selling can involve the development of longstanding client relationship, so a client can come back to the particular store to his/her personal assistant. Another way would be sponsorship, to associate the image of the company with a particular event, for example a fashion week or a film premiere. Of course in such a sphere of fashion clothing, public relations as a part of the marketing communication mix should not be ignored. It is important that companys designers are available to generate goodwill fot their organization, that is why it is important for them to proactively deal with the media in a positive way.

32 Assume that you work for company manufacturing dairy products. What types of means may want to use to promote your products? Please explain your decision. 33 Assume that you own a small company manufacturing fish hooks. What types of means may want to use to promote your products? Please explain your decision.
Promotion is the marketing term used to describe all marketing communications activities and includes personal selling, sales promotion, public relations, direct marketing, trade fairs and exhibitions, advertising and sponsorship. Promotion needs to be precisely coordinated and integrated into the businesses global communications message, and that is why the best way of promoting your products would be to use Integrated Marketing Communications. Among all the means of promotion, advertising remains one of the most effective ones, because it has several benefits for the advertiser. In our case, our company targets a specific consumer who takes a great interest in fishing. An effective way of promoting our product would be to place advertising in specialized magazines for fishermen, on specialized channels for fishermen. Another good way of promoting fish hooks would be sales promotion. For example, using Vouchers and coupons, printed in the specialized magazines and newspapers. Also trade fairs and exhibitions can be a good way to increase awareness of the product or find trade partners (manufacturers of fishing rods).

34 Assume that you work for company manufacturing designer clothing. What types of international distribution channels you may want to plan to organize the sales for your globally? Please explain your decision.
I would use to different way to sell my clothes. Id sell by wholesale; its an "indirect-marketing channels". Many clothing lines sell their clothing like that. I would also have the possibility to sell my clothes online and even to start my business with that, to see if there is a real demand. Wholesale is when you sell your clothing to other businesses only, know as business to business (B2B). These businesses are usually the stores where my customers will purchase my clothing. I dont need to open my own store and I avoid the risk that opening a store in a foreign market brings in. To reduce the costs, I would do a "direct-marketing" channel, it has no intermediary levels. In this case the manufacturer (me) sells directly to customers. I would sell my products directly on the internet and reduce the costs.

35 Assume that you work for company manufacturing dairy products. You are planning to market product internationally and are researching the options for the first foreign market penetration. You have two first options - Germany or Russia. What country you may want to enter first and why? Please explain your decision.
The choice is difficult because Russia imports a lot of milk, because it is usually cheaper. According to an article in Business Insider, we can see that the Russian market is hard to penetrate. The spokesman for Danone, has announced: We sometimes face unfair competition from the smaller players. in reference to the fact that Russian local producers are being accused of adding cheap palm oil imported from Southeast Asia instead of the more costly butterfat required by Russias product standards. One year ago, Danone bought out Unimilk and Pepsi bought Wimm Bill Dann, the two Russias largest

producers of dairy products. It resulted that the two companies held about 60% of the Russian milk market. Today the market share of the Danone and Pepsico groups is reported to be 45%, suggesting that they have been losing market share to the smaller, region-based Russian competition.

36 Assume that you work for company manufacturing heavy machinery. You are planning to market product internationally and are researching the options for the first foreign market penetration. You have two first options - Latvia or Japan. What country you may want to enter first and why? Please explain your decision.
We will inevitably choose Latvia due to a number of reasons: Less competition More market share => more future profits Developing country => stable economic growth => more demand for means of production Less regulations and requirements Lower costs (administration, advertising, salaries, etc.)

37 Assume that you work for company manufacturing mobile phones of a regular mediumpriced segment. You are planning to market product internationally and have selected to enter Russian mobile phones market which is very competitive at the moment. What type of international price strategy you may want to consider and why? Please explain your decision.
We will obviously choose penetration pricing as it pursues the objective of quantity maximization by means of a low price. It is most appropriate when: Demand is expected to be highly elastic; that is, customers are price sensitive and the quantity demanded will increase significantly as price declines. Large decreases in cost are expected as cumulative volume increases. The product is of the nature of something that can gain mass appeal fairly quickly. There is a threat of impending competition This all perfectly fits the situation.

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