Deck 10: Manage Pricing Decisions

Question 1

The chapter discusses the role of the marketing manager in promotional strategy (Exhibit 17.10 and accompanying discussion). The trend today in both large and small firms is for much of the promotion function to be outsourced.
a. Comment on this outsourcing trend. What are the major reasons for the trend What are the pros and cons What is your personal view about outsourcing all or part of promotion
b. Assume you are a marketing manager for a firm that outsources promotionto a creative agency. In what ways does this arrangement impact your jobIn particular, concentrate on how it impacts your marketing planning (beingmindful that promotion planning is a key element). How would you interactwith the agency as a manager representing your firm (assume you haveresponsibility for the agency relationship with your company) That is, whatare the key things you should do to ensure a productive relationship
Reference Exhibit 17.10:

Answer 1

Market Mix:
Market mix refers to the different strategies that are undertaken by the company to increase its overall sales and attain the organisational objectives. There are 4 major Ps' in a marketing mix which is as follows:
1) Product
2) Place
3) Price
4) People
A) Outsourcing:
Outsourcing refers to the process of delegating some of the non-essential work to the third-party service provider to minimize the cost and to attain a higher quality of service output.
Outsourcing has become a major trend in almost all the business operations of all the different industries because it provides easy and wider access to a skilled human resource without actually investing a huge amount of resources in technological or infrastructural requirements.
Advantages of outsourcing are as follows:
1) Outsourcing helps a firm to minimize the operational cost.
2) Outsourcing helps a firm to have access to a much wider range of skills.
3) It helps save resources on technology and infrastructural requirements.
4) It helps in improving the efficiency and effectiveness of the work.
5) It helps in saving time of the management which then they can focus on more core areas of the business operations.
Disadvantages of outsourcing are as follows:
1) There is a risk of confidential data being leaked or sold to unauthorised service partners.
2) There can be hidden costs involved which can impact the overall cost-benefit of outsourcing in the first place.
3) It is difficult to find a service provider who provides a high-quality product at an affordable price and also shares a similar set of values.
Outsourcing is an important element of every business plan and it should be conducted in a manner which ensures a higher quality of work at an affordable price. It should help minimize the workload of the managers so that they can focus on more core areas of the business operations.
B) If the promotional aspect is outsourced to the company then there should be a contact person who co-ordinates the functioning between both the companies to ensure that the work is done promptly while maintaining a higher standard of quality.
While market planning, the client company will have to understand the capability of the service provider and will have to come up with a strategy that utilizes their strengths in a manner which helps them attain their overall objectives.
Interaction between the manager and the service provider should be clear and short as it will help ensure that both parties know what is required of them and how best it can be achieved with the given number of limited resources.
Key things to do to ensure a productive relationship are as follows:
1) Ensure proper, correct and timely convey of information.
2) Only one point of contact between both the companies to ensure that there is no confusion about the requirements.
3) Ensuring that both parties properly understand the contractual terms to avoid any misunderstanding in terms of payment timelines or scope of work etc.

Question 2

Review the Common Approaches to Advertising Execution (Exhibit 17.14) and Pros and Cons of Key Advertising Media (Exhibit 17.15). Review some ads in any three of the seven different types of media identified, watching for examples of the different execution approaches.
a.Make notes about the ads you reviewed and the different types of media execution you witnessed. Which ads do you think were the most effective Why
b.For the same ads, based on the chapter's list of pros and cons for each, identify specific examples of ads for which one or more of the pros and cons apply.
c.Share your findings with another student or with the class.
Reference Exhibit 17.14:

Reference Exhibit 17.15:

Answer 2

Advertising is one of the most commonly used and traditional methods of promotion. The company spends a good amount of money to advertise its products and services to the customers in the form of visual ads. With the help of such advertisements, customers are able to relate themself with the visual content displayed as marketers try to showcase and can relate their products.
Internet ad displayed by "Company G" in 2017 which followed the common approaches like a slice of life and lifestyle. Second, the print ad of "Company K" (2018) which designed their packet in a reverse company name and include approaches like humor, class, and lifestyle. And third was the Television ad of " Company P" (2012) showcasing the executive approach like humor, a slice of life, and lifestyle. The most effective ad was of the "Company P" where the marketer identified the story of the Olympic athletes and story behind their moms who spend much time doing the laundry. It hit the target audience that how the washing powder is so essential for these sports player families also.
The pros related to an Internet ad by "Company G" was that it worked for an interactive capabilities audience and the disadvantage was when the user has the fluctuations in its connectivity of the internet. On the other hand, it is the advertising done by " Company K" which proved in good success because of high geographic and lifestyle selectivity whereas not everyone is interested in watching the print ads as it is a bit time- consuming. Lastly, the ad displayed by" Company P" appealed to the multiple senses and relate to mass and selected audiences, the clutter of competing ads is the biggest con for such TV commercials.
.

Question 3

Consider the concept of integrated marketing communications (IMC). Select any company and investigate its use of IMC in developing and executing promotional strategies. Look for evidence through their media and messages.
a. What evidence leads you to conclude the company is or is not successfully practicing an IMC approach Be specific and connect the evidence to the discussion of IMC in the chapter.
b. Is there evidence that the firm practices internal marketing If so, please share what leads you to this conclusion. If not, speculate on how internal marketing would be of value to the organization.
c. For this or any firm, what are the major advantages of taking an IMC approach What are the downsides of not practicing IMC

Answer 3

a.Integrated marketing communications (IMC) is a strategic approach to communicating the brand and company message to targeted customers in ways that are clear, concise, and consistent and yet are customizable as needed to maximize the impact on a particular audience.
b.Internal marketing is the application of marketing concepts and strategies inside an organization. Much research has shown that if members of your organization aren't knowledgeable about its offerings, don't understand who the customers are, and can't effectively articulate the branding message, successful marketing management is very difficult.
c.An IMC approach lends itself to better integration of the communication elements. The marketing managers' consideration of the elements takes place in a holistic decision process. That is, each element impacts the others and the whole is likely more than the sum of the parts. A strong focus on a unified branding message and theme occurs throughout the process.
Importantly, because an IMC approach is an inherently more strategic approach to communicating with customers, managers employing it are much more likely to communicate the right brand messages to the right customers at the right time via the right media.

Question 4

Chipotle relies heavily on free samples as a way to get new customers. How could it make this sales promotion strategy more effective by using other elements of the promotion mix

Question 5

Marketers: Should a marketer be allowed to use information from an individual's social networking profile Is targeted messaging based on analysis of personal information ethical

Question 6

Think of a situation you've experienced in which some communication process you were involved in did not go as well as it might have(it doesn't have to be marketing communications). Using the Communication Process model (Exhibit 17.7) and accompanying discussion as a guide, systematically retrace the steps of that communication experience through the elements of the model and identify (a) where the problems occurred and (b) what could have been done differently at each problem step to make the communication experience better.
Reference Exhibit 17.7:

Question 7

Do you think event marketing would work as part of Chipotle's marketing mix Why or why not

Question 8

Teenagers: Should teenagers be able to provide false information to gain access to Web sites restricted by age or some other characteristic

Question 9

Consider a major purchase you have made recently. Review the AIDA model (Exhibit 17.8) and accompanying discussion.
a.Think back on the process that led up to your purchase and reconstruct the types of promotion that you experienced during each stage of the AIDA model. Which of the promotional forms was most effective in your situation, and why
b.As you reconstruct this purchase experience and the promotional messages you received during it, what other promotion mix elements that you did not experience at the time might have been effective in convincing you to make the purchase At what stage of the AIDA model would they have been helpful, and in what ways do you believe they might have impacted your decision process
Reference Exhibit 17.8:

Question 10

What are some other ways (besides sampling) that Chipotle could generate buzz or PR without spending a lot of money Do you, personally, find these strategies to be more persuasive than traditional advertising messages