Reference no: EM132265839
1. Identify a true statement about a horizontal alliance.
1) It occurs only between firms that are positioned at different stages along the value chain.
2) It occurs between firms that have a supplier-buyer relationship.
3) It can occur between companies who do not do the same activities but do complementary ones.
4) It occurs when the output of one of the firms in the relationship is the input of the other.
2. The New York Times marketing department faced major pricing challenges in its October 2013 launch of the online International New York Times, previously called the International Herald Tribune. To get the best short-term and long-term results, the marketing department decided to divide its efforts into two phases: an initial introduction to identify the entire pool of potential customers, and a maintenance phase to continue to encourage positive subscription decisions by interested customers with a wait-and-see attitude.
How would you design an initial introduction to identify the entire pool of potential customers?
a. Offer a bundled price to current New York Times subscribers
b. Offer free viewing of ten articles to everyone for a month
c. Offer free unlimited access to website content to everyone for a week
3. You have a colleague who swears by using breakeven analyses. She has not been on the job long enough to be able to understand the tool’s disadvantages.
Which of the following shortcomings is important to share with her?
a. Not everyone in the company believes in or uses breakeven analyses.
b. Breakeven analysis is hard to calculate; and it is difficult to explain how the results are derived.
c. The tool might need to be updated if output is sold at a different price than originally forecast, such as during end-of-season sales.
d. Breakeven analysis has been replaced by many other tools supported by leading-edge software.
4. In January 2013, the database marketing company MeritDirect, headquartered in New York, formed an international division. Its function centered on a database of overseas sales contacts. MeritDirect opened a London office to support the new division.
If MeritDirect were to ask you to predict the most difficult-to-achieve pricing objective for work in its new location, how would you phrase your reply?
a. Profitability is a concern that will have to be worked on to establish international prices.
b. Volume objectives are always important on the global stage.
c. Meeting increased competition in Europe with the recent recession leading to the weakening of the euro is going to be a challenge.
d. Prestige is a valid pricing objective in international marketing.
e. Price stability, in the face of wars, terrorism, and other disasters, can alter prices.