Reference no: EM13993224

The company I chose at the beginning of the quarter was JNJ (Johnson & Johnson) and the product I focused on was its innovation of baby body wash-called Johnson's Baby Milk & Rice Bath.

1. On Pricing

a. Define and discuss the difference between value-based pricing and cost-based pricing. What arestrengths and weaknesses of each method? Explain in detail.

b. Describe how your project company currently prices its main products or services. Is this the bestmethod? Why or why not?

i. Comment on the traditional approaches of skimming and penetrating in your discussion,as they would apply to your product/brand /company.

Market-Skimming pricing (more commonly used)

Initial prices are set high relative to "Economic Value to the Customer (EVC)"

Objective is to skim the "cream" of high value customers

Prices then fall slowly over time

Market-Penetration pricing

Initial prices are set low relative to EVC

Objective is to penetrate the market by attracting a wider range of customers early in the product life cycle

• We recognize that you are marketing an existing product, but at one point theproduct was new and your current product will certainly experience a revival.

2. On Distribution -

a. How does a vertical marketing system differ from a horizontal marketing system? Explain indetail.

Vertical marketing system:

A channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate.

Provides channel leadership

Horizontal (conventional) marketing system:

A channel arrangement in which two or more companies at the same level join together to exploit a new marketing opportunity.

Wal-Mart & McDonalds

i. What system best describes your project company's distribution approach?

b. Identify your company's primary marketing channel's strengths and weaknesses?

i. Include an analysis on where you think your company can cut costs while also providingmore value from manufacturing to final retail.

• Recall that the many channels along the way are most often separate businesseseach trying to maximize value for its own customer while also maximizingprofit for itself. Think of this important phenomenon as you shape yourdiscussion on distribution management.

Channel Levels:

Level-one channel (direct marketing) channel: includes telemarketing, direct mail, door-to-door, TV selling (infomercials), and home parties

Level-two channel: contains one selling intermediary, such as a retailer

Level-three channel: contains two intermediaries

In consumer markets, these are typically a wholesaler and a retailer.

Exclusive distribution: typical of luxury goods retailers

Selective distribution: for more specialized goods that are carried through specialist dealers

Intensive distribution: common for basic supplies, snack foods, magazines, and soft drink beverages

3. On Promotion -

a. Provide a concise and precise overview of the five elements of the promotion mix as they apply toyour project company.

Advertising
Sales promotion
Personal selling
Public relations
Direct marketing
Sales promotion: Short-term incentives to encourage the purchase or sale of a product or service.
Personal selling: Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships.

i. Additionally, how might the leveraged sales approach strengthen youcurrent salesstrategy? Be specific to your project company.

A sales force redesigned for optimal use in a multichannel selling environment - is one that is oriented towards:

Focus participation in the marketplace

Greater emphasis on acquiring and building key account relationships

Integration with other channels to increase productivity

Direct marketing:Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

Less public: message is normally directed to a specific person

Immediate and customized

Interactive, it allows dialogue between marketing team and consumer
Well suited to highly targeted marketing efforts and building one-to-one customer relationships

b. Recalling our earlier theme of brand's driving business and marketing, clarify your projectcompany's brand vision, brand personality and brand positioning - be specific as you describe thisimportant brand management model.

Vision:
One emotion, destination

Personality:

Qualities of a being

Position:

Features, benefits, solutions

c. When launching a new brand, we discussed in lecture that it is best to build the brand first with PR,and then sustain it with advertising if necessary. Explain this reasoning by providing support fromthe readings.

Definition:

Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

Examples: press releases, sponsorships, events, and Web pages

i. Pull from Berger's Contagious to further support your discussion.

4. On the Global Marketplace -

a. Defend or reject or modify Levitt's bold assertions on the nature of the global firm. Consider yourmarketing plan company as a reference point to help build your discussion.

i. The world's needs and desires have been irrevocably homogenized. This makes themultinational corporation obsolete and the global corporation absolute.

ii. Technology drives consumers relentlessly toward the same common goals - alleviation oflife's burdens and expansion of discretionary time and spending power.

iii. Cultural preferences follow one of two paths: they eventually lose relevance to economicdecision making, or they diffuse to other groups and become the substance of global trends.

b. Lastly, identify and discuss the main globalization opportunity or challenge impacting your projectcompany. What must be done to strengthen the global position of your company's brand?

i. Pull from Holt, et al's How Global Brands Compete to further support your discussion.