Marketing Promotion & Pricing

1. A company has developed some advanced new animation software for use in making professional quality animated television shows and movies. This company’s customers will be small in number overall – the major movie and television studios, a few independent studios, and some of the larger animation schools.
a. Which one or two of the five main promotional strategies should the company emphasize?
b. Which one or two types of media should the company emphasize in their promotions?

2. A new toy has come out shortly before Christmas which is based on a popular TV show for kids. The producer of the toy is hoping for big sales during the holiday season, as Christmas is when they make most of their profits for the year. But due to licensing issues they had faced delays in releasing the product and only have a short time before Christmas to get the word out about their new toy.
a. Which one or two of the five main promotional strategies should the company emphasize?
b. Which one or two types of media should the company emphasize in their promotions?

3. A major food manufacturer is planning to come out with a brand new fiber drink designed to promote colon and intestinal health. The target market is senior citizens.
a. Which one or two of the five main promotional strategies should the company emphasize?
b. Which one or two types of media should the company emphasize in their promotions?

4. You are running a small airline that connects a few regional cities. Your sales are generally high which indicates that there is a strong market for flights that connect these cities. However, your research department has found that you have a low rate of repeat customers compared to similar airlines.
a. Which one or two of the five main promotional strategies should the company emphasize?
b. Which one or two types of media should the company emphasize in their promotions?

5. What kind of advertising campaigns is Amazon currently engaged in? What kind of media do they advertise in, for example television, the internet, etc.?

6. What kind of public relations efforts does Amazon engage in?

7. Does Amazon ever use sales promotions such as coupons, giving away free samples, etc.?

8. Does Amazon use personal selling at all? If so, did you ever deal with one of Amazon’s salespersons when you purchased their product?

9. Does Amazon use direct marketing? For example, do they send out emails to customers? Or use telemarketing?

10. A company has developed a new 3D television with outstanding displays. The company has a patent on a new technology that doesn’t require glasses to see the 3D effect and has a display far better than those of any competitor’s 3D televisions. The company still has to compete with other television manufacturers, but because of the patent and superior technology it is likely to have a large advantage in the 3D television market for at least a year or two.

11. A brand new company has developed a new dishwater detergent which is comparable to other major brands in quality, but the company has developed a new manufacturing technology that over a period of time should be able to produce detergent at a cheaper cost than any competitor. The cost of the new manufacturing equipment was high, but once the equipment is paid off it should be very cheap to produce each bottle of detergent.

12. You have just opened up a new electronics shop and Apple will be releasing their latest Iphone in a few days. You are confident that once customers come into your shop they will be impressed with your large selection and knowledgeable and friendly sales staff and will become loyal customers. However, given the nearby location of Best Buy and other popular electronics shops it will be a challenge to get customers into your shop. So the first big pricing decision you have to make is what to charge for iPhone’s.

13. You have started a new fashion company, and your partner in this business is one of the top designers in Italy. You and your business partners plan is to become known as one of the premier manufacturers and designers of blue jeans in the world, and hope to have a very high end brand well known among the wealthy and fashion conscience.

14. How does Amazon’s prices compare to competitors who sell the same or similar products? Overall, do your company’s prices seem high or low?

15. Do you think Amazon is basing their pricing mostly on cost (such as a cost-plus approach) or are other factors at play?

16. Discuss at least three other pricing strategies from D’Antonio (2012), Paley (2006), or the Pearson tutorial and explain whether or not you think Amazon is using these strategies.

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