13.1
 Ans:
YES, Walt Disney Company practices
marketing concept.
The marketing concept is a management philosophy
stating that an organization should strive to satisfy
the needs of consumers through a coordinated set of
activities that also allows the organization to achieve
its objectives.
Michael D. Eisner, the chairman and executive
officer of Disney, focus on customer
satisfaction. That’s why, he developed a
marketing strategy to take Disney to the
forefront of modern entertainment. Those
steps by which Walt Disney follows marketing
concept are given below:
Disney reissued classics such as ‘snow white
and the seven dwarfs’ for the children.
 It started producing films for new
audiences-teens and adults.

Disney moved into international
broadcasting, too.
 The company raised admission prices and
added new attractions like ‘Star Tours’.
 They launched big advertising campaigns.

Above all, they try to provide high quality family
entertainment by being available to cable
subscriber.
 Ans:
Disney targeted not only children but
also adults on the basis of some market
segmentation. They try to entertain all family
members.
 Market
segmentation is the process that
companies use to divide large heterogeneous
markets into small markets.
Some market segments Disney wants to reach
are given below:
Demographic segmentation
Personal characteristics such as age, income,
education, gender, social class, or family size
is the main factor of demographic
segmentation used to select their store
place, distribute their movies even what kind
of movie they should create.
Psychographic segmentation
It bases are a person’s attitudes, personality,
opinions, lifestyle and motives. Disney knew
who its customers are.so, they tried to exceed
their expectation.
Geographic segmentation
This is used for the location of Disney’s
theme park such as Disney land and Disney
world. The Disney broadcast their program
over seven European countries. It sell its
videocassette highly in Britain, Spain and
Israel.
 Ans:
some factors like cultural, economical,
technological factors have an influence on
Disney’s marketing decisions. About those
factors are given below:
Technological factors
Technological factors have deeply
affected on Disney marketing decisions.
Disney moved into international
broadcasting by technology. Disney’s
outstanding service and technology help
it became available to cable subscribers.
Economical factors
Economical factors is influence on any
marketing decision. Economical trends can
be local or global. Disney executives are
looking to Europe for growth in the 1990’s.
Their largest venture is the $26 billion Euro
for Disney land and $1 billion for studio.
Cultural factors
Cultural complexity in large market influence
on marketing decision. Tokyo Disneyland is a
big hit with the Japanese who seem to love
American culture. On the other hand Disney
may face problems in Europe for its diverse
languages and tastes.
13.2
 Ans:
R.J. Reynolds Tobacco Company
followed basic marketing strategy. Uptown
was a mentholated cigarette brand
designed and targeted specifically to
black(African American) smokers in the
U.S.A. by the R.J. Reynolds’ Tobacco.
 Blacks
smoke in greater numbers than other
population segments.

According to the U.S. office of Smoking and
Health,34% of the Blacks smoke, compared
to 28.8% of Whites and 29.1% of the total
U.S. population.
 while
the number of U.S. smokers is
dropping 2% every year, the number of
black smokers is on the rise.
 Black
smokers show a strong preference for
menthol brands.
For all this trends, Reynolds followed
marketing strategy for Uptown cigarettes.
 Ans:
YES, Reynolds’ marketing strategy for
Uptown was flawed in some way. Those flaws
are given below:
1. They were unconscious about the
antismoking community of Philadelphia.
2. They didn’t research their market properly.
3. Negative publicity of their product.
4. They targeted only blacks where whites
make up 60 percent of the population.
All those are main flaws of their strategy.
 Ans:
Cancelation of market test of Uptown
was influenced by social factors.
After REYNOLDS announced plans for the
Philadelphia market test, the American Cancer
society there started making plans to block it.
Within a week, nearly 30 religious, health and
black community groups joined the coalition
against UPTOWN. The president of
Philadelphia-based committee said to prevent
cancer among blacks.
He said, “we do not need another instrument of
destruction to come into the African-American
community”.
Besides, the uproar caused U.S. HEALTH AND
HUMAN SERVICES secretary LOUIS W. SULLIVAN
asked REYNOLDS to halt the campaign of “slick
and sinister advertising”.
 Ans:
YES, Reynolds demonstrated social
responsibility in this incident.
After the direction of U.S. HEALTH AND HUMAN
SERVICES secretary LOUIS W. SULLIVAN to halt
the campaign of “slick and sinister advertising”,
Reynolds did stop the market test.
Philadelphia is a country where many people
mainly the black community is already
overburdened with smoking-related diseases.
For reducing the percentage of death,
antismoking community works. By stopping
market test, Reynolds show social
responsibility for the country...