Marketing Short Answers/Essays

Question 1

Describe the components of the marketing mix.

Answer 1

Explanation should include the traditional elements (product, price, place, promotion) of the marketing mix and how the functions are interrelated to get products from producer to consumer.

Question 2

Identify three elements of a positioning strategy.

Answer 2

There are three essential types of value: operational excellence, product leadership and customer intimacy. Now with this information, identify three elements of position strategy and give an example of each such as Era laundry detergent is able to get rid of hard ground in stains using an enzyme lifting formula. This positions Era with a stain fighting excellence factor assuming they can deliver.

Question 3

Select an advertisement. Identify the positioning strategy for the ad. Explain why this strategy was selected.

Answer 3

Watch TV, read magazine/newspaper ads and come up with your answer.

Question 4

Provide an example of a business that has sustainable advantage and why it is sustainable.

Answer 4

Here is an example…you need to find your own.
If you are able to adopt a 10+ year view and select companies with sustainable competitive advantages, you have a recipe for sweet returns. Picking companies that will still be around after 10+ years or preferably longer is not easy. However some of them are hiding in plain view, like the world’s largest nonalcoholic beverage company The Coca-Cola Company. Insiders know this as they have increased their stakes by 24% over the past year.

Coca-Cola sells a variety of sparkling and still beverages. It generates 60% of its revenue and about 80% of its operating profit from outside the United States. So it also helps to diversify your portfolio. Coke’s core brands include Coca-Cola, Sprite, Dasani, Powerade, and Minute Maid.

Distribution Network

Coca-Cola’s owns a unrivalled distribution network that spans over 200 countries. An infrastructure that is extremely difficult and costly for new entrants to acquire. If it were just costly it wouldn’t be a sustainable competitive advantage but this distribution network is the basis for an economy of scale advantage that makes it very hard to get your foot in between the door.

Question 5

Scenario:
You are considering opening a coffee house in a fast growing urban area. Identify three sources you could use to find out about nearby competitors.

Answer 5

You shouldn’t need help with this one.

Question 6

Scenario:
Latinos are the fastest growing group in the USA. You are studying the potential of a sports equipment and clothing store. The store will be located in a suburban Texas community. When studying Latinos as potential customers for your store, identity three questions you would ask to better understand the potential Latino buyers actions:

Answer 6

You shouldn’t need help with this one either.