Promotion and Sales

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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).
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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
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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).
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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
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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.
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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
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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
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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
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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).
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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
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“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.
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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
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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
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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.
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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
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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
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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.
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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
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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,
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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
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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.
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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.
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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
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






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.
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