Culminating Activity

IB Culminating Activity

Part A – Answer 3 of the following 4 questions.                           (2 marks each)

1. Distinguish between “social marketing” and “asset-led market orientation”.

1. What is positioning and why do businesses care about it?

1. Distinguish between the four quadrants of the BCG matrix.

1. How might the calculation of advertising elasticity of demand be of use to marketers?

Part B – Answer 3 of the following 4 case questions.                (5 marks each)

1. Sony Corporation, the Japanese electronics giant, had built up a reputation of being a leader in innovation since its beginnings in 1946.  However, its complacency during the late 1990’s meant that the company had to play catch up.  In 2003, Sony launched a luxury line of gadgets under the brand name Qualia.  This included a $26,000 digital camera and a $110,000 audio system.

The big problem, however, was that Sony seemed to be more obsessed about the pricey technology than what their customers wanted. The Qualia line of products was not well received by customers, especially with the growing competition from the likes of Samsung and Apple.  For example, in 2006, Apple iPods were outselling Sony’s digital music players by a ration of 5:1. Critics argued that Sony was losing touch with its customers.

1. Outline why Sony might be described as a “product-orientated business”.

1. Explain two disadvantages of product-oriented marketing to a business such as Sony.

1. Pink Ladies is a unique women-only, private car hire service, driven by women for women.  The firm was founded in 2006 by Tina Dutton and Andrea Winders who had concerns for lone women travellers and the dangers of the many unlicensed taxi drivers in the UK. The firm’s vehicles, which of course were pink, are equipped with satellite navigation devises and are driven by women trained in self defence.  To bolster security even more, the firm has a no cash policy.

Market research from their pilot of the service showed that women generally feel happier with a female driver.

1. Outline what is meant by a “niche market” in the context of this case study?

1. Explain two advantages of operating in a niche market.

1. Explain two other sources of market research Pink Ladies may have used.

1. YouTube, the Internet video sharing website, was launched in 2006 by Steve Chen and Chad Hurley, both in their late 20’s at the time. By late 2006, YouTube had grown so immensely throughout the world due to viral marketing, that Google bought the business for $1.65 Billion.  In the same year, TIME magazine named YouTube the “Invention of the Year”.  According to YouTube, there are over 100 million video clips accessed every single day on its website. Google’s goal is to use YouTube to earn money, mainly through advertising.  It also strives to convince television, movie and music executives that YouTube is a huge revenue opportunity.

1. Define viral marketing.

1. Examine the benefits to businesses that choose to advertise on Internet video sharing websites, such as YouTube.

1. Colgate-Palmolive is an American multinational that produces personal hygiene products and cleaning products.  The company has a global marketing presence across the globe, with operations in countries as varied as the US and Vietnam.  The company’s growth has been driven by strong sales of its internationally recognized brands of toothpaste and other household products.

1. What does it mean if a firm has a global marketing presence?

1. Explain, in marketing terms, what type of product Colgate toothpaste might be described as?

1. To what extent do you feel that a name of the product, such as Colgate, is important for successful international marketing?

Part C – Answer two of the following 3 case questions.                (7 marks each)

1. BAD Publishing is a large-scale producer of magazines, both for specialist subjects and for the general market.  However their recent financial performance has not been very satisfactory and their share price has fallen substantially over the past year.  Their most successful titles are “TV World”, a weekly look at TV programming that has over 3.0 million subscribers (28% market share); and “Boot”, a magazine aimed at older soccer fans, with an emphasis on analysis and player profiles.  “Boot” has about 28,000 monthly subscribers (on the low end for this specialty service) but generates substantial profits for the company.

There is a proposal to introduce another a new magazine, “Drone” aimed at the rapidly growing number of users of mobile video games.  The CEO has asked the Marketing Director for a strategic review of BAD’s position.

1. What is market segmentation?  Analyse the advantages and disadvantages to BAD of publishing magazines for specialty markets.

1. How could the firm use the Ansoff Matrix to help decide if launching “Drone” is a good idea?

1. Analyse two possible marketing strategies that could be adopted by BAD in the future.

1. Polar Pops make soft fizzy drinks for the national market and have a strategy of avoiding competition with the major international producers such as Coca Cola and Pepsi.  They are thinking of offering a new product range of sport health drinks, aimed at the same youth segment as their existing range.

1. What is the purpose of branding? What benefits do Coca Cola gain from their branding activities, and what are the possible problems?

1. In a marketing sense, how do Polar Pops ‘avoid’ the top branded products?  

1. Using the BCG matrix, explain how Polar Pops can use their soft drink range to help launch their health sports drinks.

1. Oktopus Air (OA) is an airline targeting both business and economy class passengers.  Customers have praised OA for its ethical objectives, its commitment to below market prices for both market segments and its mission statement: “In the air we care for everyone”.

Employees have also praised OA’s CEO, Eythor Karlsson, for his situational leadership style.  OA’s flights are usually full and customer feedback is excellent.