Practise Exams Flashcards
Across Europe and the USA, during the next 10–12 years, more than half the popula- tion will become 50 or older. Many of these over-50s will have high levels of disposable income. Yet many companies still avoid the ‘grey’ market, due to its negative associa- tions with frailty. Indeed, much mass-media advertising features mid-30s people, with few positive images of older people.
A major entrepreneur wishes to launch a specialist publication for this market of over-50s in Europe and the USA. There is concern that over-50s do not think of themselves as being old, and therefore the selection of design, contents and even terminology will be crucial for the success of the publication.
You are asked to design a targeting and positioning strategy for the new publication and to outline what kind of information will be required to implement the strategy. (30 marks)
Despite wholly optimistic predictions about the worldwide tourist industry, travel agents are under threat. The role of the travel agent is to sell the services of a ‘tour operator’. There are three levels to the travel agent business. The first level contains the big ‘chains’ that dominate the market, such as Thomson Holidays, American Express or Thomas Cook. The second level is made up of independent travel agents who offer a wide range of travel services. The third level includes the specialist travel agents who concentrate on discount travel, travel to one country and so on.
One of the threats to the travel agents’ business is the increasing vertical integration between tour operators and travel agents, which pressurises commission on the various travel services sold. For example, in the US, most airlines pay no commission at all and travel agents simply add a service fee to the net price. In addition, the tendency for tourists to want to plan and customise their own holiday means that the traditional ‘package holiday’ is less attractive and that would-be tourists will increasingly by-pass travel agents.
How would you advise a chain of travel agents to defend itself against trends such as those listed in the case? (30 marks)
Discuss the contention that it is often too time-consuming and costly to identify the benefits sought by purchasers and that marketers can more usefully focus on product characteristics.
Illustrate your answer with reference to two of the following products:
- carbonated soft drinks
- personal computers
- alarm clocks
- camcorders (40 marks)
Go-Green is a small company established in Australia five years ago to promote and sell ecologically sensitive holidays in the Antipodes. Until now its operation has targeted Australian tourists, but the target segment of tourists remains relatively small at 5 per cent of the overall tourist market of 6m. Go-Green is one of around 50 Australian companies providing tailor-made holidays for the eco-sensitive tourist and is estimated to have a market share of 8 per cent. The average price of a 7-day eco-holiday is around $A2400. Go-Green seeks to expand its operation to attract tourists from outside Australia to its eco-destinations and has initially specified Europe and the USA as the major markets of interest.
How can Go-Green assess the attractiveness of the various segments within the region it has initially identified? How would you advise Go-Green’s management to select its new target markets? (30 marks)
The European speciality vegetable market is expected to grow from $US20 billion turnover in 2010 to $US24 billion by the year 2015. Brazil is the fifth-largest exporter of speciality vegetables to the European Union (EU), providing over 9000 tonnes of fine beans, baby corn, mange-tout and snow peas per annum.
However, the Brazilian producers are facing increasing competition from producers in other countries, including Kenya, Tanzania, Israel and Argentina. Furthermore, while fine beans are the most typical Brazilian vegetable, other countries are also supplying them in increasing volumes, forcing down prices.
Outline a marketing strategy for a speciality vegetable producer in Brazil to ensure long-term success in the European market. (30 marks)
Discuss the main strategic pricing objectives a company may specify and give examples of the types of markets where each type of objective is most appropriate. What are the implications for relative price levels of pursuing each of the types of objective? (40 marks)
