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UNIVERSITY OF TORONTO
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B U S I N E SS & P R O F E S S I O N A L S T U D I E S
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Marketing: An Introduction SCS0978-135
Distance Learning – PDF- Winter 2012
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416.978.2400 w: learn.utoronto.ca e: learn@utoronto.ca
158 St. George St., Toronto, Ontario m5s 2v8
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© 2012 University of Toronto School of Continuing Studies All Rights Reserved
These materials are for the personal, non-commercial use of students
registered with the University of Toronto School of Continuing Studies, and
may not be reproduced, stored in any retrieval system, or transmitted, in
any form or by any means, whether by photocopying, recording, or by
electronic or mechanical means, or otherwise, without the written
permission of the University of Toronto School of Continuing Studies,
except as may be expressly authorized by the Copyright Act (Canada).
Table of Contents
Table of Contents..................................................................................................................1
Course Description ...............................................................................................................2
Course Content / Materials....................................................................................................3
Instructor Bio / Contact Information .......................................................................................4
Assignments .........................................................................................................................5
Assignment 1 .................................................................................................................... 6
Assignment 2 .................................................................................................................. 10
Assignment 3 .................................................................................................................. 13
Assignment 4................................................................................................................... 20
Assignment 5 .................................................................................................................. 26
About the Exam ..................................................................................................................27
Preparing for the exam .................................................................................................... 27
Tips for writing the exam.................................................................................................. 27
APPENDIX..........................................................................................................................29
Preparing a Case Analysis .................................................................................................. 30
Case and Sample Solution .................................................................................................. 32
Holiday Inn ...................................................................................................................... 32
Sample Analysis - Holiday Inn............................................................................................. 34
Sample Examination ...........................................................................................................37
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University of Toronto
SCH OOL of CON T IN UIN G ST UDIES
Professional Studies - Distance Learning
Marketing: An Introduction
(Course # SCS 0978)
Course Description
This course bridges the gap between marketing theory and application. It is of particular
relevance to students wishing to broaden their knowledge of the functional areas of
marketing. Basic marketing concepts are carefully examined and applied through case
analysis. The topics include the marketing mix, new product planning and management,
pricing, marketing communications, distribution, and consumer behaviour.
Learner Outcomes include the following:
•
•
•
•
Understand the importance of marketing in today's competitive global environment.
Understand the marketing process, the marketing concept and the marketing mix.
Understand the essence of marketing.
Apply the marketing process to practical marketing problems and opportunities.
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Course Content / Materials
Materials
Marketing
Eighth Canadian Edition
Authors: Frederick Crane; Rodger Kerin; Steven Hartley; William Rudelius
McGraw-Hill Ryerson
Website: www.mcgrawhill.ca
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Instructor Bio / Contact Information
Joseph Samuels is your instructor for this basic marketing course. He is president of J.P.
Samuels Research Inc., a company that provides consulting services in marketing and
marketing research to profit and non-profit organizations in Canada, the United States, and
the Caribbean.
He has B.Com. and M.B.A. degrees and extensive experience in product marketing and
marketing research in the automotive, banking, package goods, and pharmaceutical sectors.
He was a business consultant since 1986.
Joseph is a former director of the Toronto Chapter of the American Marketing Association
(AMA), and member of the Professional Marketing Research Society (PMRS).
Contact Information
Phone
Joseph Samuels
(416) 298-4459
School of Continuing Studies
(416) 978-2412
(800) 310-0006
Fax
Email
joseph.samuels@rogers.com
(416) 978-5673
scs.dlp@utoronto.ca
Special Contact Notes:
By telephone at: (416) 298-4459 on any weekday between 9:00 a.m. and 5:00 p.m.
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Assignments
Guidelines for Assignments
There are 5 assignments recommended for completion as you progress through this work.
These assignments are highly recommended in order to assist you to become familiar with
the exam format and the course material.
There is a significant correlation between students who do well in the exam and those who
submit these assignments. As per the School of Continuing Studies requirements,
these assignments count for 20% of your final mark.
Also, this is your opportunity to work through your understanding of the material as you go
along, and to receive feedback on how you are doing. Past experience has shown that your
chances of passing the exam are greatly increased if all assignments are completed and
submitted for comment.
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Assignment 1 (Due February 13th)
Readings: Marketing: 8th Canadian edition
Chapters 1 to 4
Chapter 1 – (50%) Customer Value, Satisfaction, Relationships, and Experiences
Match the terms with the correct definition listed below. Note: there are more terms listed
than definitions.
Process
Utilities
Target market
Sales
Place
Production
Make profits
McCain Foods
Up to 94%
Need
CRM
50%
Ethics
Customer friendly
Marketing mix
environmental factors
customer valuation
customer relationship management
customer lifetime value
customer experience management
donation to the Salvation Army
West Jet Airlines
satisfy consumer needs
organizational buyers
cultural marketing
social responsibility
societal marketing concept
socially responsible
vision statement
social media marketing
place
tactical profit
promotion
mass market
customer loyalty
production
Nikon Cameras
macro-marketing
purchasing agents
e.CRM
mega marketing
ultimate consumers
legal codes
marketing concept
micro marketing
1.____________The ability to buy a canned soft drink from a vending machine
demonstrates which element of the marketing mix?
2.____________ Forces that are largely beyond the control of the marketing
department and its organization are called:
3.____________ The process of building and developing long-term relationships with
customers by delivering customer value and satisfaction.
4. ___________ The profit generated by the customer's purchase of an
organization's product or service over the customer's lifetime.
5.____________ The specific group of potential consumers toward which an
organization directs its marketing program.
6.____________The means of communication between the seller and the buyer.
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7._____________During the sales era firms hired more salespeople to find new
buyers as a solution to this problem.
8.________________ is managing the customers' interactions with the organization
at all levels and at all touch-points so that the customer has a positive impression of
the organization, is satisfied with the experience, and will remain loyal to the
organization.
9._______________ An example of an organization marketing an idea.
10.______________ An example of an organization marketing a service?
11.______________ An example of an organization marketing a good?
12.____________The first objective in marketing is discovering the needs of
prospective consumers. The second objective is:
13. A _________ occurs when a person feels physiologically deprived of basic
necessities, such as food, clothing, and shelter.
14. New product development experts estimate that ____________ percent of the
over 30,000 new consumable products (food, beverage, household and pet)
introduced in North America annually do not succeed in the long run.
15. ____________ is the view that an organization should discover and satisfy the
needs of its consumers in a way that also provides for society's well-being.
16.______________ Flushing unused medication down the toilet is an illustration of
the issue of:
17.______________ is a Web-centric, personalized approach to managing long-term
customer relationships electronically.
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18._______________ Units such as manufacturers, retailers, or government
agencies that buy for their own use or resale are collectively referred to as:
19._______________The individuals who use the goods and services purchased for
a household are collectively referred to as:
20.______________How an individual organization directs its marketing activities
and allocates its resources to benefit its customers is known as:
21. The societal marketing concept is most closely related
to: ________________which looks at the aggregate flow of a nation’s goods and
services to benefit society.
22. Many environmentally friendly products have been costly to produce, and
consumers have not been willing to pay a premium for them. As a result, companies
often question if they can be both ______________ and competitive.
23._______________ The moral principles and values that govern the actions and
decisions of an individual or group.
24._____________ In the 1960s, Pillsbury defined its mission as, "We are in the
business of satisfying needs and wants of customers." This is a brief statement of
what has come to be known as the:
25. Some experts suggest that ____________ is the biggest shift in the economy
since the Industrial Revolution.
Question 2: (20%)
(Chapter 2 – Developing Successful Marketing Strategies)
Read video case 2 on pages 51-52 – “Canadian Tire”, and answer the following question:
Canadian Tire is known for having the first and most enduring loyalty programs in Canada –
Canadian Tire Money. How can the Company leverage this program to achieve additional
market growth?
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Question 3: (15%)
(Chapter 3 - Scanning the Marketing Environment)
Read Video Case 3 on pages 97-98 – “Geek Squad: A new Business for a new Environment”
and answer the following question:
What are the key environmental factors that created an opportunity for Robert Stephens to
start the Greek Squad?
Question 4: (15%)
(Chapter 4 – Ethics and Social Responsibility in Marketing)
Read Video Case 4 on pages 117 – 119 – “Starbucks Corporation: Serving more than
Coffee” and answer the following question:
How does Starbucks’ approach to social responsibility relate to the three concepts of social
responsibility described in the text?
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Assignment 2 (Due February 27th)
Readings: Marketing, 8th Canadian Edition.
Chapters 5 to 9.
Question 1: (50%)
(Chapter 5 – Consumer Behaviour)
Place a (T) true, or a (F) false to agree/disagree with the following statements. You can list
the question number (#), and then write your T or F next to that number corresponding with
the statement
1._____Selective perception is a filtering of exposure, comprehension, and retention.
2.____ Public sources of information for an external information search include sales
personnel.
3.____The objective and subjective attributes of a brand consumers use to compare different
products are called evaluative criteria.
4.____You want to buy some instant rice, and you are in the mood for wild rice. The store
you go to has two brands of instant rice: Uncle Bens and Minute Rice. Collectively, this group
of instant rice brands is called a consideration set.
5.____The brands that you learn of during your information search become part of your
awareness set.
6.____ Raul overheard one of his co-workers in a phone conversation say, "Thank you for
taking my call so quickly. I'd like to order number 1284H, the All-American Marie Osmond
doll. Can I use the easy pay plan?" The co-worker was in the purchase decision stage of the
consumer purchase decision process.
7.____ Rack-space is a Web hosting company. That means that if you want to have a site on
the Web, you could buy not only Internet space from them, but also technical support, and
design services. When its ad tells you that its users consider Rack-space "the risk-free host
because it offers dedicated and helpful support any time day or night," you know that Rackspace is trying to reduce new buyers’ cognitive dissonance.
8.____ You have just purchased a suit to wear to an important job interview. As you head
home from the store, you agonize in your mind about whether your choice of dark gray was
right, or whether you should have chosen dark blue. This is an example of purchasing angst.
9.____Consumers’ involvements refer to the personal, social, and economic significance of a
purchase.
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10.___ Limited problem solving would normally be used to purchase such items as
toothpaste, soda, or chewing gum?
11.____The golf club to which you belong is NOT an example of situational influences
affecting the purchase decision process.
12.____The three teen aged girls spent hours at the store trying on various outfits, looking at
possible combinations, and asking each other, "How do you think this outfit looks?" This
situation is most closely related to physical surroundings.
13.____ Motivation is the energizing force that causes behaviour that satisfies a need.
14.____Those needs which are basic to survival and which must be satisfied first are safety
needs.
15.____A magazine ad shows a cherubic baby sitting inside an automobile tire. The ad copy
touts the dramatically improved traction of Michelin radial tires in rain and snow and informs
parents of the ways in which the tires will help them protect and ensure the well-being of their
children. The marketers of Michelin tires are attempting to appeal to consumers' personal
needs.
16.____ A person's consistent behaviours or responses to recurring situations is known as
coping.
17.____ Ethnocentrism is a distinct set of personality characteristics common among people
of a particular country or society.
18.___The ad for Dove body wash asks the question, "How old will you be when you stop
feeling 29?" The ad is using the self-concept to appeal to its target market.
19. _____ Perception is the process by which an individual selects, organizes, and interprets
information to create a meaningful picture of the world.
20.____Because the average consumer operates in a complex environment, the human
brain attempts to organize and interpret information with a process called selective attention.
21.____ If you were to watch a television commercial for a new automobile, and not notice it
had dual airbags, side impact bars, and antilock brakes but that it did have a highperformance engine that could take it to high speeds as indicated in the film footage, this
would be an example of interpretive perception.
22.____Many experts suggest that the use of subliminal messages by marketers, effective or
not, is deceptive and unethical.
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23.___Providing minimal usage instruction is NOT a method marketers can use to reduce
perceived risk for consumers?
24.___ Learning is the psychological influence that refers to those behaviours that result from
repeated experience and thinking.
25.____Mary is hungry (drive); she sees an advertisement (cue), goes to the store and buys
the product (response). In terms of behavioural learning, the great taste of the food is an
achievement.
Question 2: (10%)
(Chapter 6 – Organizational Markets and Buyer Behaviour)
Effective marketing is becoming increasingly important in today’s competitive
environment. How can firms more effectively market to organizations?
Question 3: (10%)
(Chapter 7 – Reaching Global Markets)
As a novice in global marketing, which alternative for global market-entry strategy would you
be likely to start with? Why? What other alternatives do you have for a global market entry?
Question 4: (20%)
(Chapter 8 – Marketing Research: From Information to Action)
The government of British Columbia asked you (their marketing manager) to develop a new
tourism advertising campaign for the province. You have developed two advertising
concepts. But you need to test consumers’ response to them “online”. How would you go
about testing them? And, how would you measure the consumers’ responses? Would you
do this research yourself or would you use a qualified research company to implement this
phase of the project?
Question 5: (10%)
(Chapter 9 – Market Segmentation, Targeting, and Positioning)
Read Video Case 9 on pages 249-251– (Prince Sports, Inc. Tennis Racquets for every
Segment) then answer the following question:
In reaching global markets:
(a) What are some criteria that Prince should use to select countries in which to market
aggressively?
(b) What three countries best meet these criteria?
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Assignment 3 (Due March 12th)
Readings: Marketing, 8th Canadian Edition.
Chapters 10 to 14
Question 1: (50%)
(Chapter 10 – Developing New Products and Services)
Circle the letter which best describes your answer to the following questions:
1. The Build a Bear Workshop in West Edmonton Mall sells custom made Teddy bears
designed to be given as gifts for almost every occasion imaginable. The Romantic Roses
Curly Teddy is one bear it designed for people to give to each other on Valentine's Day. The
Romantic Roses Curly Teddy is an example of a:
A. Product item.
B. Product type.
C. Product class.
D. Brand item.
E. Product line.
2. During a recent shopping trip to the local Zellers store, Pat noticed several things. First, she
noticed that the store offered a tremendous variety of products, including toys, pet foods,
clothing for men, women, and children; health and beauty aids, small household appliances,
automotive products, and more. Further, Pat noticed Zellers offered an array of different
products within each product group. Each product group at Zellers is an example of a(n)
_____; all of the product groups together constitute Zeller's _____.
A. product tangibility; product unit
B. product mix; product unit
C. product line; product mix
D. product unit; product tangibility
E. product mix; product line
3. Which of the following would most likely be considered a consumer good?
A. ball bearings
B. back hoe
C. printing press
D. suitcase
E. mainframe computer
4. _____ are products that assist directly or indirectly in providing products for resale.
A. Industrial goods
B. Business goods
C. B2B goods
D. Organizational goods
E. All of these answers are correct
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5. A durable “good” is defined as a(n):
A. Item consumed in one or a few uses.
B. Item that usually lasts over an extended number of uses.
C. Item that lasts at least one year without becoming obsolete.
D. Product purchased by the ultimate consumer.
E. Product used in the production of other products for ultimate consumers.
6. _____ are items you purchase frequently, conveniently, and with a minimum of effort.
A. Industrial goods
B. Shopping goods
C. Specialty goods
D. Convenience goods
E. Unsought goods
7. Shopping goods are items:
A. Such as a Rolex watch that a consumer makes a special effort to search out and buy.
B. For which the consumer compares several alternatives on criteria such as price, quality, or
style.
C. Used to assist in producing other goods and services.
D. The consumer purchases frequently and with a minimum of shopping effort.
E. The consumer either does not know about or knows about but does not initially want.
8. Products which the consumer does not know about, or knows about but does not initially
want, are called:
A. Shopping goods.
B. Convenience goods.
C. Specialty goods.
D. Unsought goods.
E. Support goods.
9. Very infrequent purchases and only some comparison shopping are characteristic of the
purchasing behaviour for a type of consumer “good” such as burial insurance that a
prospective buyer may not initially want. These are called:
A. Shopping goods.
B. Convenience goods.
C. Specialty goods.
D. Unsought goods.
E. Support goods.
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10. Support goods are items used to assist in producing other goods and services. Support
goods include installations, accessory equipment, and:
A. Supplies and services.
B. Industrial equipment.
C. Consumer tie-ins.
D. Process materials.
E. Specialty and support.
11. A retail chain hires a company to design and install a computer network that would allow
each store in the chain to check the inventory of others in the chain for customer-requested
items. The retail chain would have purchased a(n):
A. Accessory equipment.
B. Service.
C. Supply material.
D. Component part.
E. Fabricating material.
12. Which of the following is NOT an attribute of a new “product” ?
A. The product is less than 6 months old.
B. The product requires a significant degree of "new" learning by consumers.
C. The product is "new" in legal terms.
D. The product is "new" from a competitor's perspective.
E. The product is "new" from the organization's perspective.
13. Prego recently introduced a Pasta Bake Sauce, which was made so that it was not
necessary to precook the pasta before blending pasta, sauce, meat, and cheese in a casserole.
Legally, this product would only be considered new:
A. for the first twelve months that it was regularly available.
B. until a competitor had issued a similar product targeted to the same market.
C. as long it retained these exact product characteristics.
D. until every member of its target audience was aware of its existence.
E. until its advertising had been read by every member of its target audience.
14. The terms continuous innovation, dynamically continuous innovation, and discontinuous
innovation, are classifications based on:
A. Generated sales.
B. Production technology.
C. Degree of learning required by the consumer.
D. Channels of distribution.
E. Industry growth.
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15. When automakers first added airbags to the passenger side of the automobile it was an
example of what is called a _____ because no new consumer behaviours must be learned.
A. Continuous innovation
B. Dynamically continuous innovation
C. Discontinuous innovation
D. Insignificant innovation
E. Interruptive innovation
16. One cause for product failure is incomplete market and product definition before product
development starts. This problem can be avoided if the company developing the new product
has:
A. A static organizational culture.
B. Top-management involvement in the development process.
C. A marketer-dominated source of information for consumers.
D. A protocol.
E. None of these answers are correct.
17. The sequence of activities a firm uses to identify business opportunities and convert them
into saleable goods or services is called the:
A. Situation analysis.
B. New-product process.
C. Strategic management process.
D. Industrial buying process.
E. Idea generation process.
18. Sources of good new-product ideas include:
A. Customers.
B. Employees.
C. Research and development.
D. Competitors.
E. All of these answers are correct.
19.
Which of the following statements about the screening and evaluation stage of the newproduct process is true?
A. The internal approach decides whether the new-product idea is technically feasible.
B. Concept testing is part of the external approach.
C. New-product ideas are eliminated during the screening and evaluation stage.
D. A mock-up of a movie based on the Friends series shown to moviegoers who are asked
their opinions of the movie is an example of a concept test.
E. All of these statements about the screening and evaluation stage of the new-product process
are true.
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20. In the new-product process, an idea on paper is turned into a prototype during the _____
stage.
A. idea generation
B. screening and evaluation
C. business analysis
D. development
E. commercialization
21. In the new-product process, the stage that involves exposing actual products to
prospective customers under realistic purchase conditions to see if they will buy is called:
A. Commercialization.
B. Screening and evaluation.
C. Business analysis.
D. Development.
E. Market testing.
22. When audiences are allowed to preview actual movies such as Pretty Woman and Honey, I
Shrunk the Kids before they are released to the general public it is a part of the _____ stage of
the new-product process.
A. market testing
B. business analysis
C. commercialization
D. screening and evaluation
E. concept testing
23. The market testing stage of the new-product process often involves test markets or
purchase laboratories in which the dependent variable is:
A. Consumer attitudes.
B. Price.
C. Advertising.
D. Brand awareness.
E. Sales.
24. Loblaws required that Birdseye pay $15,000 to get its new frozen stir-fry vegetable mix
placed in the freezers of Loblaws supermarkets. This payment is called a _____ by Loblaws.
A. Retail goodwill fee
B. Bribe
C. Product support fee
D. Slotting fee
E. Product development fee
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25. If a new grocery product does not achieve a predetermined sales target, some retailers
require a penalty payment by the manufacturer to compensate the retailer for sales its valuable
shelf space never made. What is this type of payment called?
A. A dropout charge
B. A loser fee
C. A failure fee
D. A retailer spiff
E. A drop-off settlement
Question 2: (10%)
(Chapter 11 – Managing Products and Brands)
Suppose you were launching a new service venture, perhaps a marketing consulting
company that would cater to small and medium-size Canadian companies.
(a) Determine your brand promise (what the brand will do for the customer).
(b) Create a name for the brand.
Question 3: (10%)
(Chapter 12 – Managing and Services)
Read Video Case 12 “The Canadian Football League” on pages 326-328 in your text and
answer the following question:
Examine Figure 1. Where do you think the ideal “brand space” would be for the CFL in terms
of effectively competing in the professional sports market?
Question 4: (20%)
(Chapter 13 - Pricing Products and Services)
Read Video Case 13 on pages 358-359 Washburn Guitars: “Using Break-even Points
to make Pricing Decisions”, then answer the following question:
In Washburn’s current plant, what is the break-even point for the new line of guitars if
the retail price is
(a) $329
(b) $359
(c) $299
(d) If Washburn achieves a sales target of 2000 units at the $329 retail price, what
will its profit be?
(Please do not use the price at which the product is sold to dealers and
wholesalers as the manufacturer’s price. He did offer them a mark-up of 50%
on his actual sale price).
SHOW YOUR CALCULATIONS!
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Question 5: (10%)
(Chapter 14 – Managing Marketing Channels and Supply Chains)
How do specialty, shopping, and convenience goods generally relate to intensive, selective,
and exclusive distribution? Give a brand name that is an example of each goods distribution
match-up.
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Assignment 4 (Due March 26th )
Readings: Marketing, 8th Canadian Edition,
Chapters 15 to 19
Question 1: (50%)
(Chapter 15 – Retailing)
Choose the letter which best describes your answer to the following questions. In replying:
(List the question number and place the letter corresponding to your answer beside
that question number.)
1. With 2700 locations coast-to-coast and $3.8 billion in revenues, Tim Horton's has become
__________________.
A. "a star"
B. "a great place to hang around"
C. "a force to be reckoned with"
D. "the people's restaurant"
E. None of these answers are correct.
2. Retailing is an important marketing activity. Not only do producers and consumers meet
through retailing actions, but retailing also creates ______ and has a significant impact on the
economy.
A. the nation's largest source of tax revenues
B. public service to charities
C. harvesting possibilities
D. customer value
E. traffic congestion
3. Major retail categories in Canada include:
A. automotive, coffee, furniture, and clothing.
B. automotive, food, furniture, and clothing.
C. SUV's, beverage, homes, and services.
D. SUV's, food, homes, and clothing.
E. None of these answers are correct.
4. A store selling over the Internet 24/7 is characterized with relatively _____ active customer
involvement and relatively______ active retailer involvement.
A. low, low
B. low, high
C. high, low
D. high, high
E. none of these answers are correct.
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5. During the days before Christmas, a health spa wants to recruit new clients. The owners
realize that many people make New Year resolutions and will be looking to become fitter.
What form of non-store retailing will likely be most cost effective in reaching potential new
clients and making them aware of a special time-limited promotion.
A. automatic vending
B. direct mail
C. television home shopping
D. online retailing
E. telemarketing
6. The number of different types of products a store carries and its product assortment is
referred to as its:
A. level of service.
B. method of operation.
C. product variety.
D. merchandise line.
E. retailing mix.
7. Which method of classifying retail outlets would be most appropriate for describing
McDonald's, Holiday Inn, and Subway–all franchise operations?
A. form of ownership
B. level of service
C. merchandise line
D. method of operation
E. revenue generated
8. Lighting-One is a national ______ that allows its independent members, retailers of lighting
fixtures, to concentrate their buying power and to plan collaborative promotional and pricing
activities.
A. administered system
B. contractual system
C. vertically integrated chain
D. franchised operation
E. corporate system
9. As a national franchisor, McDonald's assists its franchisees in selecting the store location,
setting up the store, advertising, and:
A. paying their bills promptly.
B. shopping for the best food values.
C. keeping premises clean.
D. training personnel.
E. disciplining dishonest employees.
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10. At which level of service would the retail customer perform the greatest number of
functions?
A. exclusive service
B. selective service
C. self-service
D. limited service
E. full-service
11. A Woman's Place is a retail store, created and staffed by women, that offers products and
services relating to maternity needs. It carries in stock 3,000 items for expectant mothers in all
dress sizes. This is an example of the ____ a Woman's Place carries.
A. depth of product line
B. breadth of product line
C. variety of product line
D. versatility of product line
E. product mix
12. Global Pigeon Supplies is one of the biggest retailers of racing pigeon supplies in the
country. The storeowner describes the store as "the Sam's [Club] of pigeon supplies." Which
product breadth/depth assortment would best fit this store?
A. narrow/narrow
B. narrow/broad
C. narrow/deep
D. broad/deep
E. broad/shallow
13. Which type of store gives shoppers the greatest variety of merchandise?
A. a specialty clothing store
B. a limited line gift store
C. a hypermarket
D. a clothing outlet
E. a discount store
14. The Country Curtains mail order catalogue is an example of _____ retailing.
A. intrusive
B. intertype
C. ownership
D. non-store
E. operative
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15. Which of the following is currently a threat to the continued success of mail-order
retailers?
A. market saturation
B. postal rate increases
C. increase in number of specialty catalogues targeted to market niches
D. legislation by some states requiring catalogue companies outside their borders to pay sales
taxes
E. All of these answers are correct
16. One dimension of the retail positioning matrix is breadth of product line, and the other is:
A. depth of line.
B. relative market share.
C. value added.
D. revenue generated.
E. stage in the life cycle.
17. Toronto-based Whole Foods supermarkets targets people who want to eat healthy. The
stores use placards throughout, which tell shoppers about the farmers who grew and harvested
various products. This use of signage to provide consumer information is a part of which
element of the retailing mix?
A. communications mix
B. discounts and allowances
C. variety and assortment
D. goods and services mix
E. physical distribution mix
18. Original markup is:
A. the difference between the final selling price and the retailer's cost.
B. selling brand name merchandise at lower than regular prices.
C. the difference between the initial selling price and the retailer's cost.
D. the amount added by the manufacturer to achieve the desired retail price.
E. the reduction in retail price, usually expressed as a percentage equal to the amount reduced,
divided by the original price, and multiplied by 100.
19. A retailer buys a painting for $200. She sets the price at $450. When the painting doesn't
sell after two months, she raises the price to $800 to appeal to a different market. The painting
sells for $800 the next day. What is the maintained markup?
A. $250
B. $350
C. $450
D. $600
E. cannot be determined because of insufficient information
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20. The largest inventory of wedding dresses in the Maritimes can be found at Low's Bridal
and Formal in Halifax, Nova Scotia. From December 26 to January 16, a prospective bride
shopping at Low's can find gowns once priced at $6,000 for $2,999, $800 gowns for $400,
and many other:
A. markdowns.
B. compressed mark-ups.
C. maintained mark-ups.
D. inventory shrinkages.
E. gross mark-ups.
21. Which of the following is TRUE about the difference between a lifestyle centre and a
power centre?
A. lifestyle centres rely less on big box retailers than power centres.
B. lifestyle centres rely more on big box retailers than power centres.
C. lifestyle centers rely less on restaurants than power centres.
D. lifestyle centers rely less on specialty retailers than power centres
E. All of these are true
22. Tudor Laundry is a new dry cleaning and laundry company. The owner wants to attract
people who will be within a 5 to 10 minute drive of the business. The best location for this
new dry-cleaning and laundry service would be:
A. the central business district.
B. a regional shopping centre.
C. a community shopping centre.
D. a strip location.
E. a power centre.
23. The key goal for retailers in the accelerated development phase of the retail life cycle is
to:
A. establish a dominant position in the fight for market share.
B. delay entering the decline stage of the life cycle.
C. find ways of discouraging their customers from moving to low-margin, mass-volume
outlets.
D. establish a retail concept which is a sharp departure from existing competition.
E. cover start-up costs.
24. Customers of the Village at Park Royal in West Vancouver don't go there to comparison
shop instead they go to visit specialty shops, get a bite to eat, or meet friend for a drink. This
would describe what type of store location?
A. power centre
B. eating centre
C. shopping centre
D. lifestyle centre
E. strip mall
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25. Home Depot began as a simple retailing concept to provide a one-stop shopping for
construction materials and tools whether for the professional or the do-it-your-self. It has
evolved into a home and garden centre. It now has professional home interior decorators
employed to help customers make decisions about lights, wallpaper, paint, etc. It also offers
installation services on many of the items it sells. From being a relatively simple concept,
Home Depot has become an international chain with higher margins and a diverse list of
products. This evolution of Home Depot is consistent with the:
A. wheel of retailing.
B. evolution of retailing.
C. retail cycle.
D. fast food retail cycle.
E. restaurant evolutionary cycle.
Question 2: (15%)
(Chapter 16 – Integrated Marketing Communications and Direct Marketing)
The Fisher Price Company, long known as a manufacturer of children’s toys, has introduced
a line of clothing for children. Outline a promotional plan to get this product introduced in the
marketplace.
Question 3: (10%)
(Chapter 17 – Advertising, Sales Promotion, and Public Relations)
Read Video case 17 – “AdFarm” on pages 482-483 of your textbook, then answer the
following question:
What do you think about AdFarm’s corporate culture and focus on employees? Why the
emphasis on attracting and retaining excellent employees?
Question 4: (10%)
(Chapter 18 – Personal Selling and Sales Management)
Read Video case 18 – “Xerox: Building Customer Relationships through Personal Selling” on
pages 510-511 of your textbook, then answer the following question.
Why is the Xerox training program so important to the Company’s success?
Question 5: (15%)
(Chapter 19 – Pulling It All Together: The Strategic Marketing Process)
Assume a firm faces an S-shaped sales response function. What happens to the ratio of
incremental sales revenue to incremental marketing effort at the:
(a) Bottom
(b) Middle
(c) Top of this curve
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Assignment 5 Case Study (100%)
(Review Chapters 1 to 19)
(Due April 9th)
Before answering this case, go to page 30 of your Course Notes and read “Preparing a
Case” and the sample analysis.(You should download the full Course Notes)
Read Video Case 19 on pages 537- 539 (General Mills Warm Delights: Indulgent,
Delicious, and Gooey”) then answer the following questions.
Synopsis
1.
Write a brief summary of the case.
(10%)
Problems/Opportunities
2.
What problems/opportunities do you see facing General Mills? (15%)
Analysis
3.
Answer questions 1 and 2, at the bottom of page 539.Use
a separate heading for each sub-segment of question #2 .
(40%)
Conclusions
4.
What are your conclusions regarding General Mills?
(15%)
Recommendations
5.
If you were a consultant to Vivian Callaway, what product
changes would you recommend to increase sales?
(20%)
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About the Exam
The final examination will consist of a case analysis, a true/false, a multiple choice, and
some essay questions. A sample exam is included in the appendix.
A recommended approach to analyze a case is also included in the appendix.
Preparing for the exam
The key in studying for an examination is early preparation. This marketing course
cannot be learned in a few days of cramming study. Marketers must have the discipline
and skills to be effective in today's competitive and global environment. The key in
doing this is decision making, that is choosing the right alternative course of action which
will result in successful utilization of the one's resources. Timing and project
management is always critical.
You can begin to practice these skills by:
•
Keeping your reading of the textbook up-to-date;
•
Completing each assignment as per schedule and submitting them regularly for
comments from your instructor;
Completing the true/false and multiple choice questions on the web-site;
Seeking help and clarification from your instructor as you go along.
•
•
Tips for writing the exam
The objective of the exam is to ensure that you know the marketing material as presented
in the course and can apply it in real life situations. It tests your specific knowledge of
marketing principles and practices. Case analysis will test the extent to which you can
apply the marketing approach to real-life situations. With the true/false and multiple
choice questions you will need to think about the concepts involved and how they might
apply in real life situations.
Before you begin writing be sure to read the questions over again carefully. Do not spend
time doing unnecessary work. For example, use only the space provided on the question
sheet to answer the true/false and multiple choice questions. Also use letters instead of
words, for example a "T" for true and a "F" for false. Do not write the full word.
For short descriptive questions do not provide long explanations. All that is needed is
enough material to convince the instructor that you know what the term means. Each part
of that question may be worth just three points and no amount of elaboration will increase
that score. Explain what the term is, and this should not take more than two to three
sentences or a short paragraph.
The mark assigned to each question is a good indication of how much time you should spend
on that question. Therefore a case analysis which is worth 45% should be given much more
thought and time than a true/false which is worth 15%.
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About the Exam – Continued
Before answering the case it may be a helpful to organize your thoughts and major points
on the un-ruled (left) side of your answer sheet. This is important when writing your case
summary and conclusion.
It is also recommended that you complete the easier questions first to calm down and
gain some confidence before attempting the case analysis and other difficult questions. Overall, it is
important that you relax and not allow a difficult question to unnerve you.
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APPENDIX
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Preparing a Case Analysis
Analyzing a case requires diligence and logical thinking. It is not enough to skim over the
material once or twice and then write down the first thought that comes to mind. The
solution is a progressive process that requires methodical and systematic behaviour.
You should read the case over several times, starting with a quick skim-through to get an
overall feel of the situation. Then read it over again and again for more detail so
you can know the facts and begin to think about the various aspects of the case.
Format for Preparing a Case Analysis
You must analyze your case using this format. Every section must start with the
appropriate heading and underlined before starting your analysis.
1. Case Summary/Synopsis
Under this heading state clearly and concisely in one or two paragraphs the key elements
of the case. For example, who is involved, what is happening, where it's happening, when,
and why. State only the facts as they appear in the case. Do not give your opinion at this
stage; there will be an opportunity later on to do so. This section should contain only the
most important facts as given in the case. Do not repeat word for word everything that is
written. The other points you left out will be dealt with later in the analysis. Try to imagine a
news article written in the daily newspaper. It may be three or more columns in length. Now
listen to that same news item on the radio or on television. It is not as long but it covers the
key points to give you an idea of what is happening; if you need more information you can
look up the full story in the newspaper. Your summary should be like the radio or television
report. The summary should be in essay form, not point-form.
2. Problem/Opportunities
Under this heading state clearly and concisely the problems and/or opportunities. They may
already been mentioned in which case all you have to do is restate it exactly as mentioned in
the text. If it is not mentioned then you will have to determine what it is from reading the
case. Many students state a symptom or symptoms as problem. You must go beyond the
symptoms and find out what is causing those symptoms.
Imagine that in your marketing plans you budgeted for a certain product to generate a profit
of $2,000,000. However, sales for the product were below estimate and the profit forecast
was not realized. What is the problem? It is not the drop in sales - this is a symptom,
and something happened that led to the drop in sales. When you find out what led to the
drop in sales, then you have your problem. It could be a downturn in the economy, poor
product performance, insufficient advertising support etc. You will be given all the
relevant information in the case to reach a "diagnosis" of the problem.
The problem statement should not be more than one or two paragraphs.
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Preparing a Case Analysis – Continued
3. Analysis
You may be given specific questions at the end of the case to comment on. Treat these
questions as your analysis. For example if you are given two questions, you write the first
question as your heading and proceed to answer that question. When you are through,
you write the second question as your heading and then analyze that question.
If no questions are given at the end of the case, then you are to analyze the case as you
see it and offer you interpretation.
The analysis section is crucial to the development of a case. It should be detailed using
information from the text in a logical way leading to the actions to be taken in solving the
problem. This is where you can bring in all the facts you omitted in your summary.
Consider the external environmental factors and what if any impact they may have on the
situation. Consider the marketing mix and their strengths and weaknesses. Do a SWOT
(strengths, weaknesses, opportunities, and threats) analysis on the company and its
products. How is the product positioned in the industry? At what stage is it in its life
cycle and the industry life cycle? Develop pros and cons, advantages and disadvantages
of alternative courses of action.
4. Conclusion
Similar to the summary at the beginning of your case, the conclusion is a summary of
your analysis. Again, mention only the key points and their implications. This section can
be in point form.
5. Recommendation
State in point form the course(s) of action you believe will be effective in solving the
problem and why. This is where your opinion is required and not in the summary.
NOTE
All cases assigned should be presented in the above format with the title heading. It will
also be required for the case analysis in the final exam, so be sure to follow this method.
Marks will be deducted if it is not followed.
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Case and Sample Solution
Holiday Inn
No hotel chain in the world is better known than Holiday Inn. The travelling public perceives
the Holiday Inn name as an old, mid-market, roadside property with a coffee
shop. For a marketing communications expert, there is no greater challenge than trying to
polish the image of a famous but tarnished brand name. Holiday Inn must forget about
the past and concentrate on its future. They are looking for a long-term brand and
positioning strategy, and a communications concept that will present a new and
consistent image to customers.
Holiday Inn has started the rejuvenation process by replacing or rejuvenating many of its
older, rundown properties for which it had become known. By the year 2001, following
the elimination of about 100 hotels a year in North America, the majority of facilities will
be less than 15 years old.
It must also overcome a marketing philosophy that many in the industry call slightly
haphazard. In recent years, the chain has added a number of sub-brands, such as Holiday
Express and Sun Spree. The mix has left travelers confused about what Holiday Inn
represents. Is it upscale, mid-market or budget? Competitors such as the Choice Hotel
chain offer numerous brand names but only in the budget segment. Their establishments
include Comfort Inn, Clarion, Roadside, and Quality Inn. The Choice Hotel strategy of
focusing on one segment of the market provides certain efficiencies when planning and
implementing a marketing and communications strategy.
Holiday Inn has to decide how much of a market there is for each type of brand, and their
advertising should be geared with right brand to right consumer. The positioning strategy
has to be clarified and a new communications is needed to portray that positioning.
Another decision that has to be made revolves around what target markets to concentrate
on. Essentially, the market can be divided into two segments: the family-vacation traveler
and the business traveler. The needs of each segment are quite distinct.
The family vacation travel segment is defined as follows:
Gender
Age
Marital Status
Income
Location
Lifestyle
male and female
30+
single, married with and without children
$30,000 family income
urban and suburban dweller
generally active; hectic lifestyle (dual income families); family
oriented
leisure
is
important
(indoor
and
outdoor
recreational and entertainment activities are important); for
younger families there is a focus on children's activities;
older
age
groups
are
more
focused
on
couples'
entertainment and recreation.
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Case and Sample Solution – Continued
The business travel market is defined as follows
Age
25+
Education
college and university
Income
$40,000+
Gender
Male and Female (70/30 split)
Location
urban
Lifestyle
fast-paced working life; scarce recreation time; like to mix some
pleasure
with
business
when
travelling;
healthy
lifestyle (recreational fitness orientation); like to socialize;
personal gratification is important; travel budgets restricted
(look for economy and best value when travelling on business).
The business segment is an attractive segment but to appeal to this group a hotel has to
offer additional services such as office equipment, communications equipment, and
casual meeting space. The business segment does not like surprises. They like to know
what they can expect in advance and if a hotel does not deliver, the customer won't
return. The needs of the family segment and the business segment are poles apart.
To reposition a hotel and develop a new image is a difficult task but not an impossible
one. To illustrate, Timex Corporation had the same problem in the late 1980s. Timex was a
watch brand that everyone knew but few wanted. Today, thanks to Timex's IndiGlo
technology and a lot of good advertising, the brand is doing well and verges on being hip.
Questions
1. Write a brief synopsis of the case.
2. How would you describe Holiday Inn's problem/challenge?
Analysis
3. Position Holiday Inn in the hotel market. You must also identify the market segments
the hotel should be operating in. Where should their priorities be?
4. Once you have clearly positioned Holiday Inn, identify the marketing communications
strategies you would recommend to improve Holiday Inn's image.
5. Conclusion
6. Recommendation
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Sample Analysis - Holiday Inn
1. Summary
Holiday Inn once well known, clean, comfortable and the hotel of choice among
middle class families has become a boring relic of its former self. It is now
perceived as an old, mid-market, roadside property with a coffee shop, and what
was once its strength has become its weakness. Competition, changes in consumer
behaviour, and lack of innovation have all contributed to this decline.
The Company has responded with a market segmentation strategy of producing
different Holiday Inn brands positioned at different consumer and business
travelers. For example, it has created Holiday Inn Express to appeal to the budget
traveler, that is, business travelers on a tight budget and consumers looking for
good value at a reasonable price.
Another strategy that the Company has adopted is to invest heavily in refurbishing
older properties and closing down unprofitable locations.
2. Problem/Opportunity
The problem facing Holiday Inn is that the new strategy is not being effectively
communicated to the consumer and business traveler. The challenge/opportunity
therefore is to develop a marketing communications strategy that will clarify the
repositioning and present a new image of the company to consumers.
3. Analysis - Positioning Holiday Inn
Choice Hotels is a major competitor to Holiday Inn. Their strategy is to operate
only in the budget segment but under a variety of brand (Comfort Inn, Clarion,
Roadside, Econo Lodge, and Quality Inn) names. Holiday Inn, on the other hand,
has created different brands to appeal to different segments of the travelling
market (Holiday Inns, Holiday Inn Express, SunSpree etc.). This probably is a
good positioning strategy providing that the company has the financial resources
to equip the brands to satisfy the needs of a more demanding consumer and a
product that is as good as or better than other brands competing in those market
segments.
Given the investment already made in Holiday Inn Express, it is probably wise to
retain this brand name. Holiday Inns' best prospects lie in offering better value to
the consumer and business traveler. In the case of Holiday Inn, value-added
services to the customer must be included to help differentiate it from the other
mid-market competitors. It has to offer some of the services that first class hotel
offer business clients if it hopes to attract the business market (e.g., business and
communications equipment in designated areas of the hotel, and special attention to the
female business traveler, etc.).
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Sample Analysis - Holiday Inn – Continued
The objective is to offer just enough at the right price so that the business traveler sees
good value.
The same principle should apply to the consumer market. Family travel packages
that are currently offered should be retained.
4. Marketing Communications Strategy
So far the major problem facing Holiday Inn is confusion among consumers as to
the difference between the different brands and the segment of the market to
which each is positioned. New communications strategy is therefore essential to
the effectiveness of the marketing strategy for each brand.
One communication strategy should focus on company image or corporate
advertising. Another should focus on the individual brands and feature guests
taking advantage of the value-added amenities and services of the "non-budget"
type brands. A multi-media campaign utilizing television, print, outdoor, radio,
etc., is necessary to create awareness of these brands primarily among the
business traveler but not exclusively the business market.
A clear and distinct campaign is needed for Holiday Inn Express. These Inns
simply started popping up with no advertising to tell travelers what they are all
about. They offer everything that Choice Hotels offer but are at a disadvantage
because of the extensive advertising done by Choice Hotels. Creating awareness
and interest in Holiday Inn Express is crucial. The emphasis should be on good
value, that is, good quality and service at a reasonable price. The brand should be
positioned primarily at the average family with children but businessmen on the run and
who do not need the value-added of the more affluent brands should not be excluded.
5. Conclusion
The goal of a good brand is to have consumers associate a strong image with it.
Take Nike for example. It stands for empowerment. Microsoft stands for
computer software domination. And what does Holiday Inn stands for: Clean,
comfortable, and boring. It is now considered by many travelers to be an old, midmarket, roadside property with a coffee shop, the place where you once take your
children and expect no unwelcome surprises. While no hotel chain in the world is
better known, its strength is now a weakness.
When a company reaches the decline stage of its lifecycle it must decide whether
to embark on an aggressive growth strategy or face certain death. Holiday Inn
slumbered on the successes of the past but must now re-organize to meet the
challenges of a new and demanding travelling public. Holiday Inn has faced the
challenge and must now execute its plans successfully. Marketing communication is a
basic pre-requisite for the plan to be effective.
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Sample Analysis - Holiday Inn – Continued
6. Recommendation
Given the market segmentation approach adopted by Holiday Inn the following
actions are essential to guarantee success:
•
•
•
•
•
Create awareness and interest among the consumer and business markets as to
the specific brand that will meet their travelling needs.
Use interactive slice-of-life advertising to show real-life situations of business
travelers using the value-added features of the "non-budget" brands.
Adopt a multi-media approach using, television, radio, newspapers,
magazines, and outdoor advertising to communicate the message.
Utilize a separate communication strategy for the Holiday Inn Express brand.
Emphasize the good value to the average family traveler.
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Sample Examination
UNIVERSITY OF TORONTO - SCHOOL OF CONTINUING STUDIES
BUSINESS AND PROFESSIONAL STUDIES – DISTANCE LEARNING
FINAL EXAMINATION
MARKETING: AN INTRODUCTION (SCS0978)
*PRINT YOUR NAME BELOW, AND ON EACH PAGE OF THE
EXAMINATION PAPER
SURNAME
FIRST NAME
This examination paper must be handed in with your examination booklets).
DO NOT SEPARATE THE EXAMINATION PAPER
INSTRUCTIONS:
1. Do questions 1, 2, 3, and any one of the remaining three questions.
2. Please answer questions 2, 3 and 4 in the spaces provided on the exam paper.
3. Please write your final answers to questions 1, 5 and 6 only on the ruled side of
the exam booklet.
4. Please use the un-ruled side (left side) of the exam booklet for your rough work.
5. Please place additional exam booklet(s) inside the first exam booklet and hand in
all the exam booklets and the exam paper.
6. This is a closed book exam. No texts and notes are allowed.
NOTE:
This examination has a total of 13 pages and 6 questions. The last page is marked
"End of Examination". Please ensure that you have a complete set of questions
before starting the exam.
Exam Summary
Question Marks
1
2
3
4
5
6
45
15
25
15
15
15
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Question 1 (45%)
Case Study
Reebok International Ltd.
“I think face-to-face selling is the most important and exciting part of this whole job. It’s not
writing the sales report. It’s not analysing trends and forecasting. It’s the two hours that you
have to try to sell the buyer your products in a way that’s profitable for both you and the
retailer,” relates Robert McMahon, key account sales representative. McMahon’s job
encompasses myriad activities, from supervising other sales representatives to attending
company-wide computer training sessions to monitoring competitors’ activities. But it’s the
actual selling that is most appealing to McMahon. “That’s the challenging, stimulating part of
the job. Selling to the buyer is a different challenge every day. Every sales call, as well as
you may have pre-planned it, can change based on shifts and trends in the market. So you
need to be able to react to those changes and really think on your feet in front of the buyer.
Reebok is the second largest athletic shoe manufacturer behind the market leader, Nike. In
addition to its athletic shoes, Reebok also sells Rockport, Greg Norman Collection, and
Ralph Lauren Footwear shoes. The Reebok sporting goods line remains the flagship brand,
though, and distinguishes itself on the market through the DMX cushioning technology in its
footwear. Reebok concentrates its resources on getting its footwear and sporting goods gear
into a diversified mix of distribution channels such as athletic footwear specialty stores,
department stores, and large sporting goods stores. Reebok is unique in that it emphasizes
relationships with the retailers as an integral part of its marketing strategy. As an employee at
MVP Sports, one of Reebok’s major retailer, puts it, “Reebok is the only company that comes
in on a regular basis and gives us information. Nike comes in once in a great while. New
Balance comes in every six months. Saucony has come in twice. That’s been it. Reebok
comes in every month to update us on new information and new products. They tell us about
the technology so we can tell the customers.” says Laurie Sipples, “vector” representative for
Reebok, “There’s a partnership that exists between Reebok and an account like MVP Sports
that sets us apart. That relationship is a great asset that Reebok has because the retailer
feels more in touch with us than other brands.”
Selling at Reebok includes three elements – building trusts between the salesperson and the
retailer, providing enough information to the retailer for them to be successful selling Reebok
products, and, finally, supporting the retailer after the sale. Sean Neville, senior vice
president and general manager of Reebok North America, explains, “Our goal is not to sell to
the retailer, our goal is ultimately to sell to the consumer.”
Reebok sells in teams that consist of the account representatives, who do the actual selling
to the retailer, and the “vector” representatives, who spend their time in the stores training the
stores salespeople and reporting trends back to the account manager. The selling teams are
organised geographically so that the salespeople live and work in the area they are selling in.
This allows the sales team to understand the consumer intuitively.
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Neville explains, “If you have someone from one city fly to another and try to sell someone on
the streets of that city what’s happening from a trends standpoint and what products to
purchase, it’s very difficult.”
On average, Reebok salespeople spend 70 percent of their time preparing for a sale and 30
percent of their time actually selling. The sales process at Reebok typically follows the six
steps of the personal selling process. Reebok identifies the outlets it would like to carry its
athletic gear. The sales force prepares for a presentation by familiarising themselves with the
store and its customers. A Reebok representative approaches the prospect and suggests a
meeting and presentation. As the presentation begins, the salesperson summarizes relevant
market conditions and consumer tends to demonstrate Reebok’s commitment to a
partnership with the retailer. The sales representative states what he/she hopes to get out of
the sales meeting, explains how the product works and reinforces the benefits of Reebok
products. The salesperson engages in an action close (gets a signed document or a firm
confirmation of the sale). Later, various members of the sales force frequently visit the retailer
to provide assistance and monitor consumer preferences.
The sales teams at Reebok are organized based on Reebok’s three major distribution
channel: athletic specialty stores, sporting goods stores, and department stores. The smaller
stores have sales team assigned to them based on geographical location. The sales force is
then further broken down into footwear and apparel teams. The sales force is primarily
organized by distribution channel because this is most responsive to customer needs and
wants. The sales force is compensated on both a short-term and a long-term basis. In the
short-term, sales people are paid based on sales results and profits for the current quarter as
well as forecasting. In the long-term, sales people are compensated based on their team
work and team building efforts. As Neville explains, “Money is typically fourth or fifth on the
list of pure motivation. Number one is recognition for a job well done. And that drives people
to succeed.” Management at Reebok is constantly providing feedback to the sales force
acknowledging their success, not just during annual reviews, and Neville feels this is the key
to the high level of motivation, energy, and excitement that exists in the sales force at
Reebok.
Reebok has recently issued laptop computers to the sales-force which enabled the sales
people to check inventories in the warehouses, make sure orders are being shipped on time,
and even enter orders while they are out in the field. Reebok is also focussing more on
relationship selling. McMahon describes his relationship with a major buyer as, “one of trust
and respect. It’s gotten to the point where we now are good friends. We go to a lot of sporting
events together, which I think really helps.”
Another recent innovation is for the sales force to “incentivize” the store’s sales clerks. For
instance, whoever sells the most pairs of Reebok shoes in a month will get tickets to a
concert or football game.
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Questions - Discuss this case as listed under the appropriate headings.
Case Summary
Write a brief synopsis of the case (not more than one-half page). (5%)
Problem/Opportunity
What, if any, is the problem/opportunity facing Reebok (not more than two
paragraphs)? (5%)
Analysis
1.
How does Reebok create customer value for its major accounts through relationship
selling? (10%)
2.
How does Reebok utilize team selling to provide the highest level of customer value
possible to its major accounts? (10%)
3
Is Reebok’s sales force organized based on geography, customer, or product? (5%)
4.
Conclusions
State your conclusions (5%)
5.
Recommendations
State your recommendations. (5%)
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Question 2: (15%)
TRUE/FALSE
Place a T (true) or an F (false) in the space provided for each question.
1_____ A competitive advantage is a unique strength relative to competitors, often based
on quality, time, cost, or innovation.
2_____Long-range plans state results sought (such as sales, profits, market share, etc.)
quantified for each quarter for the coming year.
3_____ Large organizations are often extremely complex. To deal with them, it’s useful
to understand the four building blocks that are vital to an organization’s success.
4____ The acronym SBU stands for strategic benefit of usage.
5____ The term demographics is used to describe the distribution of a population, their
age, sex, ethnicity, income, and occupation.
6____ Society’s values and standards that are enforceable in the courts are ethics.
7____ Consumer management is the term that describes the actions a person takes in
purchasing and using products and services.
8____ Archer Daniels Midland (ADM) Co. is the world’s largest cocoa-bean processor. It
buys cocoa beans and converts the beans into cocoa powder and cocoa butter, which
it sells to companies that manufacture consumer products that contain chocolate. The
cocoa-bean processor is operating in an industrial market.
9____ Michael Porter has identified four key elements to explain why some companies and
industries succeed globally while others fail. These four elements collectively are
called industrial diversity.
10___ Attempting to identify and define both marketing problems and opportunities and to
generate and evaluate marketing action is the role marketing research performs.
11___ Magazines, radio stations, and television stations almost always do descriptive
research to identify the characteristics of audiences.
12____At the maturity stage in the product life cycle profits usually peak.
13___ Aggregating prospective buyers into groups that have common needs and will
respond similarly to a marketing action is called aggregation marketing.
14___ A utility is the marketing term for a good, service, or idea consisting of a bundle of
tangible and intangible attributes that satisfies consumers and is received in
exchange for money or some other unit of value.
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15___ All of the different product lines offered by a company are collectively called its
product mix.
16___ The retail life cycle is the concept that describes the stages a new product goes
through in the marketplace from introduction to growth to maturity and decline.
17___ The popular “Got Milk” advertising campaign was sponsored by the National Milk
Board to encourage more people to drink milk. This ad campaign stimulated primary
demand.
18___ Intangible items such as airline trips, financial advice, or telephone calls that an
organization provides to consumers are called goods.
19____ Intangibility of services mean that services cannot be held, seen or touched
before the purchase decision.
20____ College tuitions, initiation fees, bus fares, and club dues are all examples of
prices.
21____ Value analysis is the ratio of perceived benefits to price.
22____ “Select an approximate price level” is the step in the price setting process where
a new product manager would decide whether to adopt a penetration or a
skimming pricing strategy for a new product she is about to introduce to the
market.
23____ Penetration pricing is not a competition-based pricing method.
24____ An agent or dealer is an intermediary with legal authority to act on behalf of the
manufacturer.
25____ In terms of distribution, when marketing channel members are engaged in
assorting, storing, and transporting, they are performing logistical functions.
26___ Nike spent $400 million streamlining the way it produces, ships, and delivers its shoes
to retailers in order to improve its intermodal transportation routes.
27___ The four utilities offered to consumers through retailing are: form, possession, time,
and performance.
28____Encoding is the process of the sender transforming an abstract idea into a set of
symbols.
29___ The purpose of a reminder advertisement is to tell people what a product is, what it
can do, and where it can be found.
30____Interactive marketing is identified as buyer-seller electronic communications in a
computer-mediated environment in which the buyer controls the kind and amount of
information received from the seller.
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Question #3 (25%)
MULTIPLE CHOICE
Please circle the letter that best expresses your answer to the following in the spaces below:
1.
The societal marketing concept is most closely related to:
a.
the controllable forces within an organization’s environment.
b.
the sociocultural environment.
c.
micromarketing.
d.
the economiv infrastructure.
e.
macromarketing.
2.
Profit is:
a
the point at which company assets equal company liabilities.
b.
the money left over after a firm’s total expenses are subtracted from its
total revenues.
c.
the goodwill earned from implementing the societal marketing concept..
d.
the money earned as long as the economic order quantity is maintained .
e.
accurately described by all of the above .
3.
The marketing manager for United Way reads in a business journal that despite
the Internet and television, Americans are actively engaged in their communities.
Fifty-four percent have performed volunteer work and 78 percent have donated
money to charities. She asks research and development personnel to identify
possible new ad campaigns that will encourage these high levels of communityconnectedness to continue. This potential ad campaign change is the result of the
managerial activity:
a.
ecological/technological forecasting.
b.
environmental scanning.
c.
macroeconomic analysis.
d.
strategic planning.
e.
Futuristic marketing.
4.
Culture serves as a socializing force that dictates what:
a.
is the will of the largest minority in a society.
b.
is morally right and just.
c.
is the considered opinion of a society’s elders.
d.
is exclusively the law of the land.
e.
expresses the diverse background of a nation’s subcultures.
5.
______ is the term that describes the actions a person takes in purchasing
and using products and services.
a.
Marketing
b.
Market research
c.
Consumer behaviour
d.
Consumer management
e.
Purchase development
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6.
Eddie, an avid football fan, is glued to the television every Sunday afternoon as he
watches his favourite teams. He thinks games would be more enjoyable on a big
screen television. Eddie has begun talking with his friends to learn more about the
various brands of big screen television available. In which step of the process is Eddie
engaged?
a.
problem recognition
b.
evaluation of alternatives
c.
purchase decision
d.
information search
e.
post purchase evaluation
7.
There are about 40,000 ____________ in Canada whose estimated value of
shipments are over $450 billion.
a.
real estate businesses
b.
wholesalers
c.
retailers
d.
government units
e.
manufacturers
8.
You are the research director of a major marketing research consulting firm. You
need to select an NAICS (North American Industry Classification System) code that
gives you the most detail about the competitors in a client’s industry. Which of the
following levels of classification would provide the greatest detail?
a.
Code 260
b
Code 423531
c.
Code 91
d.
Code 6575
e
Any of the above since each code designation provides an equal amount of
detailed information about competitors.
9
10.
The use of barter rather than money in making international sales is called:
a.
predatory pricing.
b.
a countertrade.
c.
cross-cultural exchange.
d.
economic adaptation.
e.
trade feedback.
Which of the following statements about Canada’s GDP is true?
a.
Canada’s GDP is valued at almost $1 trillion
b.
Canada exports almost 45% of GDP, and is an important trading nation.
c.
The three largest importers of Canadian goods and services are the United
States, Japan and the European Union (EU).
d.
Trade is one of the federal government’s key priorities.
e.
All of the above statements are true.
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11.
The process of defining a marketing problem and opportunity, systematically
collecting and analyzing information, recommending actions to improve an
organization’s marketing activities is called:
a.
market decision analysis.
b.
statistical analysis.
c.
marketing research.
d.
SWOT analysis.
e.
concept testing.
12.
When Proctor & Gamble introduced Crest toothpaste, the first flouride toothpaste, it
was intended for use by children and was therefore given a child-appealing
bubblegum flavour. Some time later the same basic formula was given a fresh, minty
flavour to appeal to adults. What is this marketing strategy called?
a.
product sampling
b.
product extrapolation
c.
product differentiation
d.
usage segmentation
e.
psychographic segmentation
13.
During a recent shopping trip to the local Zellers store, Pat noticed several things.
First, she noticed that the store offered a tremendous variety of products, including
toys, pet foods, clothing for men, women, and children, health and beauty aids, small
household appliances, automotive products, and more. Further, Pat noticed Zellers
offered an array of different products within each product group. Each product group
at Zellers is an example of a(n) _________; all of the product groups together
constitute Zellers __________.
a.
product tangibility; product unit
b.
product mix; product unit
c.
product line; product mix
d.
product unit; product tangibility
e.
product mix; product line
14.
Gillette spent $35 million in advertising to introduce the Sensor razor to
consumers. Such expenditures are often made to stimulate _________; or desire for
the product class, rather than for a specific brand, when there are no
competitors with the same product.
a.
additional marketing research
b.
innovative sapling
c.
primary demand
d.
initial data gathering
e.
repeat purchase
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15.
Consumers have more difficulty evaluating services than they do products; the
difficulty results from the:
a.
intangibility of services.
b
incongruity of services.
c.
inseparability of services from consumers.
d.
inflexibility of services.
e.
insignificance of services.
16.
A company that sets a low initial price on a new product to appeal immediately to the
mass market is using:
a.
skimming pricing.
b.
penetration pricing.
c.
price lining.
d.
odd-even pricing
e.
prestige pricing.
17.
Vincent Beckford’s salary as a sales rep for a computer software firm was $25,000
last year. He earned an additional $10,000 in sales commissions. His tax bill was
$9,000 and bills covering other necessities such as food, housing, and transportation
amounted to $10,000. What was Vincent’s disposable income last year?
a.
$35,000.
b.
$26,000.
c.
$25,000.
d.
$19,000.
e.
$16,000.
18.
Intermediaries performing a transactional function in distribution are engaged in
buying, selling, and:
a.
channeling.
b.
strategizing.
c.
liaising.
d.
risk taking.
e.
merchandising.
19.
Nike spent $400 million streamlining the way it produces, ships, and delivers its shoes
to retailers in order to improve its:
a.
supply chain management.
b.
ability to warehouse a growing number of SKUs.
c.
Extranets.
d.
intermodal transportation routes.
e.
production capabilities.
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20.
Tim Hortons is using ___________, which means that each outlet is owned by
relatively independent owners.
a.
horizontal diversification
b.
franchising
c.
countertrading
d.
family branding
e.
a licensing agreement
21.
After watching the 30-minute informercial on Oxy-Clean, Mariah was certain the
cleaning product would remove the grape stain from her white carpet. In terms of the
communication process, Mariah has engaged in:
a.
lead generation.
b.
receiving.
c.
decoding.
d.
messaging.
e.
encoding.
22.
An ad for Citrucel fiber supplement claimed that in a blind taste test consumers
preferred the taste of Citrucel to Metamucil 2 to 1. This ad is an example of _____
a.
reinforcement
b.
comparative
c.
persuasive
d.
informative
e.
reminder
23.
Which of the following statements does not describe a role personal selling plays in
an organization’s marketing efforts?
a.
Salespeople are the critical link between organizations and their customers.
b.
Salespeople match company interests with customer needs to satisfy both
parties.
c.
Salespeople play a dominant role in implementing an organization’s push
strategy.
d.
Salespeople monitor investments in R&D and production facilities.
e.
Salespeople are the organization in customers’ eyes.
24.
The key difference between the traditional marketplace and the new marketspace is
that the marketspace is a(n) ___________ environment.
a.
tangible
b.
electronic
c.
completely transactional
d.
information-oriented
e.
marketing
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25.
Sales analyses, profitability analyses and marketing audits are all tools used in
what phase of the strategic marketing process?
a.
the planning phase
b.
the implementation phase
c.
the control phase
d.
e.
the evaluation phase
none
DO ANY ONE OF THE FOLLOWING THREE QUESTIONS
Question 4 (15%)
Match the terms with the correct definition. Note: there are more terms than definitions.
Motivation
Marginal revenue
Development Price
Usage rate
Primary data
Learning
Suppliers
Industrial distribution
Idle production
Average revenue
Exporting
Data mining
Synergy
Intensive distribution
Bidders list
direct investment
a. _____________ Those behaviours that result from repeated experiences.
b. _____________ A list of firms believed to be qualified to supply a given item.
c. _____________ A domestic firm actually investing in and owning a foreign
subsidiary.
d._____________ The extraction of hidden predictive information from large
databases.
e_____________ The increased customer value achieved through performing
organizational functions more efficiently.
f._____________ Turning the idea on paper into a prototype.
g._____________When the service provider is available but there is no demand.
h ____________ The change in total revenue obtained by selling one additional unit.
i ____________ The price the seller quotes includes all transportation costs.
j ____________ A firm tries to place its products or services in as many outlets as
possible.
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Question 5 (15%)
A common theme among managers who succeed repeatedly in program implementation is
fostering open communication. What does this mean? And why is it so important?
Question 6 (15%)
How would the price equation apply to the purchase of (a) gasoline, (b) an airline ticket, and
(c) a chequing account?
End of examination
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