TOPIC II. PROMOTION, SALES, PRICING AND INTERNATIONAL 33 ED 5 Mandeep Singh, Western Illinois University John T. Drea, Western Illinois University ANALYZING MARKETING MESSAGES It is estimated that each individual is exposed to hundreds of commercial messages on any given day. This enormous clutter of marketing messages requires marketers to create messages that are clever, focused, and specific in their communication objectives. The intent of this exercise is to allow students to select a commercial message of their choice and critically analyze each of its components. It is hoped that this exercise provides students with an opportunity to apply the theoretical concepts of communication theory in a real world setting while impressing upon them the difficulty associated with creating effective messages. How it Works This assignment is typically handed out post coverage of the Advertising and Promotion sections of the principles course. Students are asked to pick a marketing message of their choice for critical evaluation. This message may be drawn from TV, radio, the WWW, or any other media source. The following assignment outline is furnished: 1. Briefly describe the commercial of your choice. The intent of this section is to give the reader a basic understanding of the various components of the commercial. This explanation must communicate the gist of the commercial and be vivid in communicating the essential features to enable a critical analysis even if the reader has not viewed the message previously (5 points) 2. Identify the target market. Who is the marketer attempting to reach? This involves developing a detailed description of the intended target market. Identify the demographic and psychographic components while you evaluate the target market in terms of its homogeneity within, heterogeneity between, substantiality, and operationalizability (5 points). 34 GREAT IDEAS FOR TEACHING MARKETING Ed 5 3. Product strategy. Every product should have something which makes it unique. Recognize that customers buy benefits and not features. With this in mind identify the benefits the marketer is providing for its target market. Example of a product feature being positioned as a usable benefit: 4. Feature. This toaster has the following dimensions 12” x 6” x 7” 5. Benefits. This toaster is small and fits easily in cramped spaces. 6. Also identify the values being offered to the intended target market: functional value, social value, emotional value, or experiential value (10 points). 7. Critique the message in terms of each element of the communication process, i.e., encoding, the message, the channel, the decoding, and the provision of a system for feedback. This section represents the heart of your paper and I would reckon that you will expend the greatest amount of effort on this section (20 points). Some Points to Consider While examining the encoding and message section, once again evaluate the signs, symbols, verbal cues, and non-verbal cuss used to communicate the message. Are these cues optimal in terms of targeting the identified market segment? What mechanisms has the marketer adopted to break through the clutter? Has any attempt been made to deal with an individual’s selective processes (attention, perception, and retention)? 5. Message strategy. On this section you are required to identify the marketers’ objective for the identified ad. Does this ad provide information? Serve as a reminder? Attempt to add new attributes? Build image? Remember that a message may actually possess more than one objective. What is the marketer's intended route to persuasion, the central or the peripheral route? Discuss (5 points). 6. The last evaluative section of the paper actually examines the chosen message channel, i.e., was this ad on television, radio, or TOPIC II. PROMOTION, SALES, PRICING AND INTERNATIONAL 35 ED 5 print. Was this channel selection optimal for the intended market (5 points)? Scott R. Swanson University of Wisconsin – Whitewater UNDERSTANDING “THE MESSAGE” IN ADS When discussing the area of advertising in my marketing class I frequently receive very simplistic “like” or “dislike” comments from students about advertising campaigns. Often times they indicate that a particular advertisement must not be very effective if they themselves do not like it. This project helps students better understand that advertising message creation is driven by the characteristics of the target market, and specific corporate objectives. Assignment Find a series of three ads from a current advertising campaign. The ads can be taped from the television or clipped from magazines or newspapers, but must accompany the report. You are to rate and discuss the effectiveness of the chosen advertising campaign based on your analysis or the following: (1) the specific target market the ad campaign is directed at, (2) the identified objective(s) of the ad campaign, and (3) the created message being utilized. The message analysis should focus on four key points: 1. Content: What is being said (e.g., the appeal). 2. Structure: How is the message being presented logically (e.g., order presentation, conclusion drawing, one- or two-sided arguments). 3. Format: How is the message being presented symbolically (e.g., executional style, lecture or drama, color). 4. Source: Who is presenting the message (e.g., credibility issues of expertise, trustworthiness, and likability). 36 GREAT IDEAS FOR TEACHING MARKETING Ed 5 Comments The class period following the collection of the papers I utilize some of the turned-in advertising campaigns for class discussion. If print ads are used, I will put them on overheads or scan them into PowerPoint for easier visibility. There will generally be a variety of advertising campaigns submitted which provide current examples of the myriad of ways that messages can be created. I also often find several people will choose the same ads for their paper but have interpreted them very differently. The varying interpretations of the students often lead to engaging discussions and help to clarify how advertising messages are created based on specific objectives, and characteristics of the target market. Nancy J. Boykin Tarleton State University SALES PROMOTION SCENARIOS I’ve found that in my promotional strategy course I often spend too much time on the subject of advertising at the expense of discussing the virtues of using sales promotion. To correct this oversight, I have developed a series of sales promotional tasks for my students that are assigned throughout the course of the semester. Two of the exercises that I have used in the past, that the students seemed to enjoy, include the following: Task 1: Select a local retailer in the Stephenville area and develop a continuity program that will encourage repeat patronage and instill customer loyalty. Decisions to address: Duration of the offer--will it run for a short or long period of time and why? Proof or purchase required--what does the consumer need to save/collect to get the reward? Develop the saving device. Is there an alternative to the saving device? In other words, can the TOPIC II. PROMOTION, SALES, PRICING AND INTERNATIONAL 37 ED 5 consumer opt to pay a specified amount of money in lieu of collecting proofs of purchase? Premium--what will the consumer receive upon completing the continuity program? How does the consumer collect the reward? Advertising--Develop an ad for the newspaper announcing the continuity program. Provide enough information to let the consumer know what they have to do and how they will be rewarded. Task 2: As you know, Burger King has had their share of unsuccessful ad campaigns. McDonald's has better advertising, greater distribution, and stronger positioning. Mickey D's has been very successful with their Monopoly game sweepstakes. Burger King, in retaliation, has decided to launch either a sweepstakes or a contest that will bring more consumers into their stores. It is your mission to develop this sales promotion. Decisions to address: What does the consumer have to do to be eligible to win? In other words, give me a detailed description of your contest or sweepstakes idea. (Make sure you understand the difference between a contest and a sweepstakes). What prizes will be awarded? Will a prize pyramid be used? Why? What type of consumer in-store support needs to be developed (i.e., POP displays, posters, theme packaging, etc.)? Develop examples to show the class. What advertising support needs to be developed? Develop an advertisement announcing the launch of your sweepstakes/contest. Rosa T. Cherry Williamsburg Technical College PROMOTION ASSIGNMENTS: ADVERTISEMENTS To provide a basis for discussion of advertising purposes, have students select a variety of ads to share as follows. 38 GREAT IDEAS FOR TEACHING MARKETING Ed 5 Most advertisements fall into one of three categories: Inform - to tell about a product; early in the life cycle Persuade - growth stage; “buy my brand, not my competitor’s;” used often by nonprofits Remind - keep name in public eye; maturity stage; to trigger the consumer’s memory The assignment: clip and bring to class three of each type ad from a current newspaper or magazine. Be prepared to defend your choices. Students enjoy sharing their finds and have various opinions on the effectiveness of each one. Larry Brown, South Dakota State University Karen Fritz, East Tennessee State University DESIGNING ADS FOR “THE REAL YELLOW PAGES” A few years ago, a proprietor opened a new florist in an out-of-theway location near the college. Since her budget was limited, and there were dozens of florists in the city, she needed help creating a logo that would differentiate her business from all the other florists in the telephone book. She approached one of our advertising classes to assist her in designing a small quarter-page advertisement for the Yellow Pages. As a class assignment, we sponsored a contest for student teams to design a winning ad for the florist owner. Even though this was a probono project, the florist agreed to give every member of the winning team a free floral arrangement for their efforts. The instructor divided the class into teams consisting of both marketing and graphics students whose mission was to create possible ads. The class consulted with the client, and every team submitted entries for her to judge. Through this experience, they learned about the agency-client relationship. Because most Yellow Page ads for florists featured pictures of flowers, we needed something visually unique to distinguish our client’s ad from the others. By drawing an ad with a gentleman suitor presenting his beloved lady friend with a bouquet of posies, one team was able to TOPIC II. PROMOTION, SALES, PRICING AND INTERNATIONAL 39 ED 5 capitalize on the old-fashioned image inspired by the name of the business, which was Flower Me Fancy. Not only did the florist feature this design on her Yellow Page ad, but she also used it on her business cards and clip-on truck delivery sign. This new design gave her shop a perceptibly different image from other florists, whose advertisements looked "generic" by comparison. In case you are a marketing or advertising instructor who has not yet discovered the educational support services of the Yellow Pages Publishers Association (YPPA), I would encourage you to contact its Educational Programs Department at 820 Kirts Blvd. in Troy, Michigan to make some of the many services available to your classes, free of charge. They have several booklets and video tapes to supplement advertising textbooks, in addition to supplying guest speakers from the branch offices to talk to marketing classes. The YPPA also sponsors an annual student Creative Competition with several thousands of dollars in prize money, as well as an annual workshop for twenty pre-selected professors to learn more about the Yellow Pages at the U.S. West-Dex office in Denver, Colorado. Robert D. Montgomery University of Evansville TEACH PROMOTION THROUGH PROFESSIONAL SPORTS This project is a hands-on learning pedagogy that will increase the level of student excitement and motivation which, of course, leads to 40 GREAT IDEAS FOR TEACHING MARKETING Ed 5 increased levels of learning. Choose a professional sports franchise, the higher the profile the better. Professional sports are exciting to this age group (i.e., 18-22 year-olds). As the franchise profile increases so will the level of excitement. I recommend starting with “Major League” franchises and then trying “Minor League” franchises. It is my personal experience that these businesses are very open to having a university marketing class promote their team (In other words, they are smart enough to take free work and the publicity that comes with it). This Summer my Promotion Management class is going to promote The Indianapolis Colts in Evansville Indiana. Because of Evansville’s geographic proximity and the drawing of state boundaries, residents of this city are a well-defined target market of this franchise. Additionally, Evansville to this date is a relatively untapped target market for this franchise. My class is going to the headquarters of the Colts for two days of training from their Marketing Staff. During this session students will learn about the firm’s environment, goals, philosophies, and marketing strategies. Armed with this knowledge, my class will return to Evansville and begin promoting the Colts to the city of Evansville. My class will be limited to sixteen students. The class will be broken down into four teams based on functions: Advertising, Personal Selling, Public Relations, and Sales Promotions. The PR team will focus on generating publicity for this team. The fact that a local university class is promoting a NFL team is in itself “newsworthy” in Evansville. The Personal Selling team will focus on selling season tickets and single game bus trips to businesses and organizations. The Advertising team will investigate placing pre-made radio, TV, and print ads in the local media. The Sales Promotions team will focus on developing special promotions such as having famous football players appear at half-time of one of this University’s basketball games. All strategies are subject to the approval of me and the Director of Marketing for the Colts. Each group will report their progress to the class weekly. This will provide all students with an opportunity to learn, as well as provide input to the other teams. At the end of the semester, my class will make a TOPIC II. PROMOTION, SALES, PRICING AND INTERNATIONAL 41 ED 5 presentation to the Marketing Department of the Colts concerning results and recommendations. Benefits to the class include: increased excitement due to the profile and nature of the organization, increased motivation, hands-on professional experience, professional contacts, and increased knowledge of Promotion Management and professional sports. Benefits to the NFL team include: tapping a new target market, free publicity, and free personal selling, advertising and sales promotion consulting. It is four months prior to the start of my Promotion Management class and students have already been talking about it for three months. The level of excitement is tremendous: not only among students but among my colleagues and administrators as well. The biggest draw back is that I will only be able to accommodate sixteen students. Sheri Carder Lake City Community College MARKETING PORTFOLIO You will turn in a selection of the best examples from the following list. These do not have to be print materials. You may include a photograph or sketch of a billboard, a 3-D object, or a script from a radio or TV commercial. Your "portfolio" of advertising examples may be presented in a folder, a notebook, scrapbook, or a box (if containing large objects.) With each example, attach a brief (paragraph) explanation of what the material demonstrates and why you selected it as a "best example." Selection List: 1. 2. 3. 4. 5. Person marketing Place marketing Cause marketing Event marketing Organization marketing (Choose only one from these first 5). 42 GREAT IDEAS FOR TEACHING MARKETING Ed 5 6. Sales Promotion 7. Advertising directed towards Children 8. Misleading/false packaging or advertising 9. Direct Mail piece 10. Public relations/community relations effort 11. Product marketing 12. Service marketing 13. Comparative advertising 14. Marketing idea that was a complete waste of money in your opinion 15. Sales solicitation (letter?) 16. Specialty advertising 17. Advertising teaser campaign 18. Newspaper insert 19. Coupon 20. Market Research/Customer Satisfaction Survey CHOOSE 10 ITEMS ONLY! 50 pts. Possible Sheri Carder Lake City Community College LEMONADE FROM LEMONS MARKETING – CONSUMERISM EXERCISE As a consumer, you expect quality products and good service. But sometimes things go wrong. If you’re unhappy with your purchase or the service you received, do you know how to obtain satisfaction? Consider yourself an active consumer. Choose a company or service with which you’ve recently been disappointed. Write them a letter, using the following guidelines, to explain the problem and what you would like to see happen. Make two copies – one to mail to the company and one to put in our class file as we compare “responsiveness rates” among the various companies. When you receive a reply, share it with the class. We will make this a research project, measuring how responsive companies are to their customers. Are companies really concerned with TOPIC II. PROMOTION, SALES, PRICING AND INTERNATIONAL 43 ED 5 “Total Quality?” We will note the amount of time it took to respond and the companies’ efforts to satisfy their customers. Writing the initial letter is the assignment; bringing the reply in is for extra points. You may certainly write more than one letter if you wish. You might try writing a letter of praise for one product as well as a letter of disappointment for another. You’ll get better results if they believe you’re an adult consumer, so type the letter rather than writing in pencil on notebook paper. 1. Describe the problem and what (if anything) you’ve already done to resolve it. List facts: date and place of purchase, serial or model number, etc.) 2. Send sales receipts, repair orders, warranties, etc. (copies, not originals) to make your case. 3. Don’t be angry or sarcastic. In fact, begin your letter with a compliment to the company, e.g., “Colgate Palmolive products are central to any household. I have used your _____ for the five years and have been completely satisfied. That is why I was disappointed when the _____ didn’t live up to the Colgate Palmolive standards I expected.” 4. State what would be a fair resolution from your point of view. Do you want the product repaired or exchanged? Do you want your money back? Say exactly what you want done. 5. Include an inside return address and phone number in your letter so that they may contact you. (Many students forget and leave this important bit of information off.) 6. Have someone proofread your letter before you mail it. You’re less likely to be taken seriously if you appear illiterate. 7. Be sure to sign your letter. 8. Have the correct, full mailing address for the company. “Gillette Company, New York City, NY” won’t do it. 9. If you don’t receive resolution, decide if you want to pursue it. Keep a record of everyone to whom you talk or write, and when. You can appeal to the higher-ups. You can approach the Better business Bureau, a trade association related to the business, arbitration agencies (in some states), small claims court, or the attorney general’s office of consumer affairs. 44 GREAT IDEAS FOR TEACHING MARKETING Ed 5 Nancy M. Carr Community College of Philadelphia SCENARIOS IN SALES MANAGEMENT: ETHICAL ISSUES FOR CLASS DISCUSSION Scenario I. As sales manager, you have noticed changes in salesman Mike lately. Mike used to be your “bright-eyed and bushy-tailed inside salesmen” but now he seems tired all the time. You even caught him asleep at his desk twice in the last week. You ask Mike if he is okay and he says wearily “I’m adjusting to my wife leaving but Jeremy is only twelve and he was very close to his mother”. Monday the circles under Mike’s eyes are even darker and he’s drinking lots of coffee. You ask about Jeremy. Mike says Jeremy’s teachers called on Saturday and all said he had failed tests in subjects in which he had been getting an “A” or “B”. You ask if Jeremy has anyone else he is close to and Mike says, “Not since my mother died six months ago”. Meanwhile Mike has not brought in any new accounts and five of his major accounts have called you complaining that he is not returning phone calls. You are sorry now that you ever held the division “Bring your spouse or significant other” cocktail party and even sorrier that you casually introduced your thrice divorced brother to Mike’s wife. You never dreamt that they would run off together. You will never have another such party but right now you are concerned about what to do about Mike. Scenario II. You are very lucky to have two outstanding salespeople desiring the two straight commission sales positions in your new company. Both have impressive past sales records, want a new challenge, and have the confidence to desire straight commission pay. Their personal lives are quite different. Susan is from a wealthy family and married a very successful man. Susan volunteers that she is childless by choice and says she “wants to show herself and the world that she can make it professionally, not just live off her father and husband’s money”. David is also married. He and his homemaker wife have six children and the last four are adopted special-needs children. David was handling the medical expenses, saving for the children’s education, and re-modeling an older but larger home for his family when his wife was in an automobile TOPIC II. PROMOTION, SALES, PRICING AND INTERNATIONAL 45 ED 5 accident that left her permanently bedridden and in need of round-theclock care. They have no family to help care for the children so they also need household help. You would like to give David a higher commission rate because of his circumstances. Would you do it? Scenario III. A prospect calls the office and is looking for a property in the $300,000 price range. This is much higher than most of the company’s prospects can pay. This excellent prospect quickly states that she is only willing to work with a salesperson of her own race and religion. Foreign language is not an issue. The office uses a planned rotation of “floor time” which is the time when prospects are given to assigned salespeople. Granting the request would seriously upset the office plan and personnel. What would you do? Scenario IV. You have never had a sales trainee like Joe. When you arrive early in the morning, he is already there working. He is thoughtful, courteous, and a real self-starter. The only problem is that Joe smells. Since you work with the trainees individually, no one else is affected but you feel ill from Joe’s body odor. Much as you would like to say something to him, Joe has told you “that I have been criticized all my life-first by my father who deserted me, then by my aunt who got stuck with me and then by teachers when they were not ignoring me”. Joe promises to work hard and never give you reason to criticize him because he cannot take it anymore and any criticism will drive him “over the brink”. You fear that Joe will truly go “over the brink” if you say anything to him. Scenario V. You have been taking phone applications for counter positions in your doughnut shop. One applicant, Cindy, is very wellspoken and polite. You tell Cindy to come in after lunch when you will be in the shop. At 1:30 p.m., a car pulls up and a gigantic young woman gets out. She comes in and introduces herself as Cindy. She is so nice, so qualified, but so fat. Cindy volunteers that she will have her seamstress make her uniforms because she knows they do not come in sizes to fit a 260 pound, five foot-three inch woman. She tells you that she has no medical problem-she is just fat. Meanwhile, you have vowed never to eat another doughnut and to drink your coffee black and sugarless. You do not want to not hire such a nice person solely because of her weight. There are no space problems with hiring Cindy, as your work area is large. You wonder if this fear of lost business is personal or if Cindy’s size will 46 GREAT IDEAS FOR TEACHING MARKETING Ed 5 really affect business. How do you find out? What do you tell nice, but morbidly obese Cindy, if you decide not to hire her? Rosa T. Cherry Williamsburg Technical College PERSONAL SELLING/RESEARCH CONDUCT A TELEPHONE SURVEY To teach techniques of personal selling along with research methods, join with a local business to conduct a survey for them. Invite the business contact person to speak to the class and to elicit feedback from the class regarding the possible survey questions. If possible, test the questions during class period using the college telephone system before finalizing the survey format. If the group agrees to participate, assign each student a required number of surveys to complete and give them a deadline. If the project is to be a month long, divide up the total into weekly goals and have the students turn in the completed surveys each week. (Go light on the homework assignments during this period!) Grades can be assigned according to the number of completed surveys. As each batch is handed in, award small prizes. Students gain a new appreciation for telemarketing, for handling refusals, and for persistence in meeting goals and deadlines. An additional benefit can be gained by following up with a visit to a local telemarketing center or to a “real” sales meeting. Also, the local newspaper should be informed and asked to provide publicity for the students to assist in their receiving a positive response from their calls. TOPIC II. PROMOTION, SALES, PRICING AND INTERNATIONAL 47 ED 5 John Ronchetto University of San Diego LEARNING SELLING & SALES MANAGEMENT PRINCIPLES VIA STUDENT DEVELOPED CASES Instructors frequently use marketing cases to achieve several interrelated teaching objectives. These cases are typically developed by one or more of the following: business managers, professors, and/or graduate students. Similarly, students can be taught selling and sales management practices partly through their researching, designing, and writing cases. As well, students can develop useful work- related skills while performing tasks associated with a case assignment. For example, students develop cases within self-selected or instructor-assigned groups. In this manner, students learn communicating within teams, dividing tasks among team members, choosing effective methods to resolve conflict, and integrating separate sections into one coherent case report. Students are introduced to the case assignment during the first week of the term. They are told that they are to work in teams consisting of 2-4 members. Since this is a relatively challenging course requirement, students are provided detailed written and oral instructions. Actual cases developed by students previously enrolled in the course are available as reserve reading in the library. Also, information on local industries and firms is disseminated to students. Written materials include articles by reporters and industry experts. These articles have been published in a local newspaper, e.g., San Diego Business Journal, and newsletters for trade or professional associations, e.g., BIOCOM (biotechnology organization) and SDSIC (San Diego Software Industry Council). In addition to secondary data, students can also generate primary data by interviewing sales representatives and managers or purchasing agents within locallybased firms. This case exercise requires that students show understanding of selected personal selling or sales management concepts. They research local firms from the perspective that the selected firm is either a customer or seller of goods or services. For example, one group drafted a case that 48 GREAT IDEAS FOR TEACHING MARKETING Ed 5 dealt with an advertising agency that designed a customized sales presentation for a new target segment, i.e., the Travel & Tourism (T & T) industry. Students provided T &T industry background as well as information concerning the marketing research, media consulting, public relations, and creative capabilities of an advertising agency. Other sections of their case included current clientele, key competitors, possible new customers, and a description of key agency personnel. Students incorporated elements of a possible dialogue between agency principals and individuals within a prospective new customer. They offered several questions or issues that needed to be addressed in order to ‘solve’ the case. Last, printed, online, and interview sources were referenced. Other student teams have addressed broader sales management issues. For example, a national telecommunications firm wanted to expand its product sales into a new set of customers within the biotechnology industry. Students needed to determine realistic sales objectives and strategies to achieve initial market penetration. Within their case, points were made that supported the hiring additional sales representatives who were already experienced in this industry. Additional sections of the case dealt with possible changes to the selling firm’s recruiting and selection procedures as well as evaluating sales performance for new sales reps. This case assignment is worth 35% of each student’s final course grade. Cases are evaluated on the following criteria: (1) relevance and extensiveness of included selling and sales management concepts, (2) clear organization of the paper, suitable use of tables and figures, (3) appropriateness and completeness of references, and (4) correct grammar and logical flow within and between sections. Alicia Sheppard Lupinacci Tarrant County College “THE PRICE IS RIGHT” A key to learning is to make it fun! Games are fun, challenging, and motivating to most everyone. When beginning the discussion on pricing in my classes, I group the students into teams, and we play “The Price is TOPIC II. PROMOTION, SALES, PRICING AND INTERNATIONAL 49 ED 5 Right.” Several pictures of different products and/or services are shown to them, and the teams are asked to estimate the retail price. You could try variations of this game, for example, bring in small products or have the students bring in their own products or empty packages. An edible item, for example, a package of cookies, could be shared with the class. Awards are given to the members of the team who are closer to the actual price of the items. The awards could be items from the college bookstore. We then begin to discuss pricing concepts, what one is willing to pay, levels of pricing, markups/markdowns and others. Everyone is involved, and pricing becomes more meaningful to marketing students. Vaughan C. Judd Auburn University Montgomery ANALYZING THE PRICE-QUALITY RELATIONSHIP The relationship between product price and quality is more relevant to students when they analyze it using "third party data." Food product ratings in Cook's Illustrated magazine provide the data for the analyses. Consumer Reports, however, can be used as a data source if Cook's Illustrated is not readily available. The Spearman rank correlation coefficient, an easy statistic to calculate in class with a hand-held calculator, is used to measure the relationship. An Example of the Process Step 1: Students are grouped in teams of two or three. Each team is given a reprint of a different food review from Cook's Illustrated magazine, and a worksheet which is equivalent in form to Table 1, but with only the column headings. Step 2: The example, Table 1, is based on ratings of six brands of canned red kidney beans. Students list the brands in column 1, and the rank order of quality in column 2--the best quality being ranked number one. Although there are no ties in quality ranks in this example, brands are sometimes tied. 50 GREAT IDEAS FOR TEACHING MARKETING Ed 5 Step 3: Students then list the price and volume of each brand in column 3. Since the cans contain different volumes, the prices from column 3 are converted to per ounce equivalents in column 4. The prices shown in column 4 are ranked from highest to lowest (1 = highest) in column 5. Note that there are two brands with identical prices--at $.030/ounce. Using the midrank method for handling ties, these brands are each ranked 5.5. Step 4: Students next calculate the coefficient of correlation between the quality and price rankings. First, they complete the d (difference) column by subtracting the x rank from the y rank for each brand, then the d2 column by squaring the values in the d column and summing them up. Finally, the coefficient of correlation is calculated. Step 5: Each group is asked to draw conclusions regarding the relationship between price and quality for the brands analyzed, and to report the conclusions to the class. The conclusions, based on the coefficients, are noted on the chalkboard. Also they are asked how successful a consumer would be in obtaining quality by picking the highest or lowest priced brands. With regard to canned red kidney beans, there is a strong association between quality and price. Unfortunately for consumers, the relationship is in the wrong direction as expressed by the -.90 coefficient. Also, out of the six brands evaluated, the highest priced brand ranked last in quality. Table 1 Canned Red Kidney Beans (1) Brand Green Giant Goya S&W Progresso Wesbrae Eden TOTAL (2) Quality Rank (y) 1 2 3 4 5 6 (3) Price/Wt. $.59/15.5 oz. $.59/15.5 oz. $1.09/15 oz. $.89/19 oz. $1.59/15 oz. $1.99/15 oz. Price (4) *Price per Unit $.038 $.038 $.073 $.047 $.106 $.133 (5) Price Rank (x) 5.5 5.5 3 4 2 1 (6) d (y-x) -4.5 -3.5 0 0 3.0 5.0 (7) d2 20.25 12.25 0 0 9.00 25.0 66.5 TOPIC II. PROMOTION, SALES, PRICING AND INTERNATIONAL 51 ED 5 Source: Cook's Illustrated (September/October 1997) *Converted to a per/ounce basis The formula for calculating Spearman's rho is: rs = 1 - 6 d i2 ( n 3 - n) Where: rs = Spearman rank order correlation, di = difference in rank in the paired rankings, n = number of items ranked, and 6 = a constant in the formula. Calculation: rs = 1 - 6(66.5)/(63 - 6) rs = 1 -(1.90) rs = -.90 Conclusion Discovering on one's own is an important element of learning. This exercise provides that opportunity. Students sharing their discoveries with their fellow classmates further complements the learning process. Finally, from the shared findings there is an opportunity to generalize about the price-quality relationship. Obviously the results will vary depending on the product categories assigned. With regard to food products, however, experience has shown that there tends to be low levels of correlation between price and quality. Gregory B. Turner College of Charleston THE “REFERENCE” PRICE IS RIGHT This is a useful exercise I employ to illustrate the Reference Price concept in my basic Marketing class. The students find it quite enjoyable and it helps promote student participation in the classroom. It is of course a take off of the popular game show "The Price is Right." I bring some new, fairly inexpensive items to class. For example: CD, paperback book, 52 GREAT IDEAS FOR TEACHING MARKETING Ed 5 greeting card, pen, notebook, etc. I then form a panel of students as contestants. This is done randomly. Following the format of the game show each student tries to name the retail price of the item I display before them. The student that comes closest to guessing the retail price paid for the item wins that item. That contestant is replaced by another student from the class and the game continues until all of the items have been won. After the game we discuss reference prices and their impact on price setting. Janis Petronis Tarleton State University INTERNATIONAL DINNER The last class day each semester for the International Business classes always leaves the students filled full, and hopefully fulfilled. Each semester the International Business classes are divided into groups, with each group selecting a country to research throughout the term. During the semester each team of 4-6 students searches for details of their respective country's culture, business and negotiation practices, financial structure, major imports and exports, and human resource practices. The culmination of the research, and the semester, is preparation of a dish typically served in the team's country. The search for a recipe often takes students to friends (or friends of friends), relatives, international students or faculty, and if all else fails the internet or library. Then the hunt begins for what are frequently unusual ingredients, or different ways of using familiar foods. The student with the largest kitchen on the team normally hosts the cooking event, which invariably yields a delectable dish, as well as some exciting stories about its preparation. With fine plastic and paperware provided by the professor, the room fills with a variety of interesting and different aromas and culinary sights. Teams prepare dishes large enough, or enough slices or pieces, so everyone may have a good taste of each dish. One member introduces the TOPIC II. PROMOTION, SALES, PRICING AND INTERNATIONAL 53 ED 5 team's dish by describing its contents, how it was prepared, and any interesting cultural details. Furnishing a copy of the team's recipe, along with the names of all team members, is also part of the assignment. The recipes from each semester are being accumulated to eventually become an "International Business Recipe Book." Janis Petronis Tarleton State University INTERNATIONAL MENUS PROVIDE PRACTICE IN CURRENCY EXCHANGE "When you go to Madrid, will you please bring back a menu or grocery advertisement for my class?" This is my request of all colleagues, friends, family, or mere acquaintances when I know they are going abroad. Likewise, I have become very adept at begging for menus at every place outside the United States that serves food, from fast-food to elegant restaurant, and scavenging local newspapers for grocery ads. The currency exchange segment of my International Business course has become one of the most fun and insightful for my students. The class is divided into as many groups as menus are available, with the groups becoming smaller as my menu collection grows larger. Each student is "given" $20 in U.S. currency to spend dining out, and another $20 to shop for food at a grocery. On a form provided, students detail their expenditures in both the domestic and foreign currencies, and must show how much change they have left in both currencies. The exercise gives the students experience in currency exchange, as well as exposing them to foods from that foreign country, and demonstrating a variety of advertising and promotional techniques used by different countries. Students are always amazed at how much, or how little, their $20 will buy from the foreign menu or ad in comparison to what they are used to spending for similar items in the U.S. 54 GREAT IDEAS FOR TEACHING MARKETING Ed 5 Kathy Meyer Western New England College HATS OFF TO INTERNATIONAL MARKETING Use: This exercise can be used in an Intro Marketing course as an introduction to the International Marketing chapter or at the beginning of an International Marketing course. Objectives: (1) raise awareness of our dependence on international marketing in our everyday lives; (2) raise awareness of geography (a weak point for most U.S. students). Description: At the beginning of class, I ask each student to look at the label on one piece of clothing they are wearing (such as their baseball caps, sweatshirts, or jackets) to find the country of origin. Then I list each continent on the board and ask each student to identify the country and continent where their clothing came from. Of course, many students have never heard of the country, so I put up a map and together we find the country. When this exercise is complete, we have a distribution by continent of where our clothing imports come from. Usually less than 20% of clothing is from the U.S. and this leads into the first point of my lecture, which is our heavy dependence on international trade. This makes it clear to students that imports are a real and important part of their lives. Students are often surprised that Calvin Klein or other designer brands they think are “American” are made overseas. I use the fact many students never heard of some of the countries to lead into my second point, which is that international business is a relatively recent phenomenon for the U.S. I then go on to explain a little about the history of U.S. international business. Time: This total exercise takes about 10 minutes. TOPIC II. PROMOTION, SALES, PRICING AND INTERNATIONAL 55 ED 5 Mark A. Mitchell University of South Carolina Spartanburg THE HOLIDAY CELEBRATIONS GUIDE Introduction The importance of cultural understanding cannot be over-stated, especially in today's global marketplace. Americans tend to be rather ethnocentric; that is, quick to pre-judge other cultural norms as wrong (or of lesser significance) simply because they differ from American practices. Universities have a responsibility to develop the student's appreciation of other cultures and their understanding of coupled global markets. Additionally, the American Assembly of Collegiate Schools of Business (now known as “AACSB – The International Association for Management Education”) is in the forefront of efforts to make Business School curricula responsive to the global marketplace. Participation in the creation of the Holiday Celebration Guides for (insert your town or region here) will contribute greater to your students’ understanding of the diverse world community. Purpose of the Project The purpose of this project is to expose students to other cultures by examining holiday celebrations throughout the world. Specifically, students will conduct research and prepare written summaries of cultural celebrations throughout the world. These written summaries will be combined to create the Holiday Celebrations Guide for distribution in your region. This project is consistent with current University efforts to "internationalize" programs, personnel, and curriculum. Further, the students have the distinction of publishing their work. Finally, the distribution of the completed guide allows the University to assume a leadership role in increasing attention to global diversity within your community. This project can be administered in a Principles of Marketing, International Marketing, or Consumer Behavior course. 56 GREAT IDEAS FOR TEACHING MARKETING Ed 5 Identifying Cultural Celebrations Ideally, your selected list of holiday celebrations will represent the cultural diversity of your operating region. The Upstate of South Carolina is a center for international business and commerce. As such, we included the following holidays in our Holiday Celebrations Guide: Australia Day (Australia) Carnival in Rio de Janeiro (Brazil) Remembrance Day (Canada) Chinese New Year (China) May Day or Vappu (Finland) Bastille Day (France) Fasching (Germany) Oktoberfest (Germany) Boxing Day (Australia and Great Britain) Guy Fawkes Day (Great Britain) Dussehra, Durga Puja, and Diwali (India) Holi: A Festival of Colors (India) Orangeman’s Day (Ireland) St. Patrick’s Day (Ireland) Ramadan (An Islamic Celebration) Viareggio Carnival (Italy) Children’s Day (Japan) New Year’s Day (Japan) Yom Kippur (A Jewish Celebration) Rosh Hashanah (A Jewish Celebration) Cinco de Mayo (Mexico) Los Dias de Muertos (Mexico) St. George’s Day (Poland) Midsommer (Sweden) Running of the Bulls (Spain) Easter in Ukraine Orthodox Christmas in Ukraine Navrus (Uzbekistan) Tet (Vietnam) Creating Common Profiles To ensure the quality of the finished guide, each student must commit to produce a common profile of all holiday celebrations included in the guide. The following list is suggested to guide the student’s work: Name of Celebration Country of Origin and/or Celebration Timing of Event (Season, Days) Translation of Name Historical Significance of Event TOPIC II. PROMOTION, SALES, PRICING AND INTERNATIONAL 57 ED 5 Cultural Significance of Event Special Foods Served (and descriptions) Special Beverages Served (and descriptions) Special Clothing worn (and descriptions) Special songs or dances Level of Governmental Involvement (such as designation of National Holiday) Celebration of Event in United States or elsewhere in world Additional information identified by the student that further illustrates the uniqueness of the celebration should be included in each description. By developing a Holiday Celebrations Guide for your region, your students are exposed to new cultures and cultural norms. As a faculty member, you are provided an experiential learning exercise to fulfill your course learning objectives. The University is provided an opportunity for cultural leadership. Finally, student participants are encouraged to include participation in this project on their resumes as an example of experiential learning throughout their degree programs. Joe F. Hair, Jr. Louisiana State University INTERNET PROJECTS IN SALES AND SALES MANAGEMENT For many years I have required a project in my sales management class. The project involved selecting a particular company and interviewing individuals in that company with regard to a specific topic such as selling techniques, training approaches, motivational methods, and evaluation policies and procedures. Students then would prepare a report and in some cases make an in-class presentation. About two years ago I decided to experiment with an Internet project as an option. The project overview is shown below: The project is an evaluation and comparison of several companies and their sales techniques/approaches based on Internet technology or other 58 GREAT IDEAS FOR TEACHING MARKETING electronic approaches. Select several companies that have a website that utilizes a method of online sales. The companies should be in similar areas of marketing to provide for consistency. Evaluate each of the companies, their website, and the effectiveness of their online sales techniques. After you have selected the industry and companies, you must develop a set of criteria to evaluate their online sales approach. These criteria should be based upon research conducted on the Internet. Develop a list of 6-8 criteria and use them to compare the companies based upon how well they execute. The report should be about 20-30 pages long. It should be an evaluation of the companies and their approach, effectiveness, etc., not simply a description of what their website looks like or what they do. The report should follow a professional format (table of contents, page numbers, introduction, conclusion, references, etc.). Be sure to include all web addresses and an example of the company’s website. In terms of the distribution of your efforts in completing the report, you should devote at least half of your report to topics 4 – 6 on the outline. Topics to cover in your report include, but are not limited to: 1. Introduction and Purpose 2. Description of Evaluation Criteria 3. Overview of Websites Reviewed 4. Evaluation of Websites 5. Discussion of Impact of WWW on Sales & Sales Management 6. Conclusions 7. References Cited I learned almost immediately that most of the students preferred this type of project. In fact, after one year I dropped the traditional approach option entirely. The benefit of the project is that it exposes students to the Internet, requires them to demonstrate their writing skills, and makes them use their creative skills, particularly in writing on topics 5 & 6 above.