BSAD 113

Lars Perner, Instructor

Marketing Institutions

Winter, 2002

INCREDIBLY BEAUTIFUL MIDTERM

Version 1b

Exam #: _____________

PLEASE DO NOT PUT YOUR NAME ON THIS EXAM, but indicate your exam number on the sheet which will be circulating.

Part I: Short Answers (Please answer ANY 6 of the following 8 questions. If you answer more than six, only the first six questions will count toward your grade. If you start on an answer and decide to abandon it, please make sure that your answer is crossed out). [20 points per question for a total of 6*20=120 points. Suggested time allocation: 7 minutes per question for a total of 42 minutes for Part I].

1. Distributors have to weigh the cost of a given distribution strategy against returns in distribution effectiveness. Please discuss the pros and cons of one cost tradeoff that you would expect Samsonite to face in its distribution of suitcases.

2. Grundig is a manufacturer of premium quality radios and other audio-equipment. Please discuss appropriate distribution objectives.

3. According to the text, what are some services that electronic retailers may be better able to offer than other retailers, and what is the significance of each?

4. Please discuss the significance of the extent of balance within the U.S. retail grocery market.

5. Direct marketing provides opportunities for segmentation much greater than is possible through most other marketing methods. Please discuss how these opportunities come about, illustrating with the example of Business Week magazine.

6. General Electric (GE) makes, among other things, DVD players. Please discuss how suitable direct marketing would be for GE in marketing this product, being sure to explain your reasoning clearly.

7. According to the text, how do the distribution channels and issues from the examples given of personal computers, books, and pharmaceutical products compare and contrast?

8. According to the text, what are some recent trends in Business-to-Business marketing, and what is the significance of each?

PLEASE BE SURE THAT YOU HAVE EITHER COMPLETELY SKIPPED OR CROSSED OUT ANSWERS TO YOUR TWO LEAST PREFERRED SHORT ANSWER QUESTIONS!

Part II. “Issue spotter” case (80 points=40%. Suggested time allocation: 32 minutes). Please apply course concepts to one of the two cases below. You must (1) identify which course issues are relevant and important to the firm and then (2) apply those concepts to the specific situation of the firm. Grading will be based on:

· the significance to the firm of the issues that you identify (you must decide which issues are applicable and are genuinely important for the specific firm);

· how well you relate the ideas to the specific situation of the firm in question (merely regurgitating class notes in the abstract will yield no credit);

· the extent to which in-depth knowledge of the ideas applied is expressed (note that your reasoning must be evident and explicit); and

· the extent to which the answer is well organized.

PLEASE BE SURE THAT YOU RELATE YOUR ANSWERS TO THE SPECIFICS OF THE FIRM—GENERAL ANSWERS ARE NOT OF INTEREST!

There will be no credit for:

· “No brainer” observations, such as the need for the firm to take culture into consideration (you must discuss likely cultural influences in context of the firm situation) or the need to do research (you must justify the issues and methods that you explicitly indicate);

· Outside knowledge (what you happen to know about this particular firm, beyond what was covered in class, readings, or in the case);

· Ideas which are too vague to be meaningful;

· Ideas not related to issues discussed in this course (e.g., issues that do not significantly relate to distribution);

· “Buzz” words whose meaning is not discussed; or

· General ideas not tailored to the needs of the specific firm.

A. 3M manufactures a wide variety of products in many different categories. Office products are heavily represented as 3M makes products ranging from floppy disks and recordable CDs to overhead projectors and transparencies. Most of these products are relatively standard, with interchangeable products offered by several manufacturers. However, 3M products are usually very highly regarded and in many categories such as projectors and transparencies, these sell for somewhat higher prices than those of most competing products. 3M office products are bought both by individual consumers and organizations, and quantities purchased by each customer vary a great deal.

B. In recent years, a very large market for bottled water has developed in the United States and much of the developed world. Arrowhead has a large share of this market. Although few people could taste the difference between most of the brands, Arrowhead plastic bottles sell for considerably more than store and bargain brands, but for less than some of the more premium brands. Although it would be a lot cheaper for consumers to buy a multi-pack in the supermarket, market research has shown that a very large proportion of the bottles are sold singly as unplanned purchases, in part because most consumers prefer the water to be cold at the time of consumption.