CHAPTER 14 Engaging Consumers and Communicating Customer Value 423 Marketing Eth
ID: 371818 • Letter: C
Question
CHAPTER 14 Engaging Consumers and Communicating Customer Value 423 Marketing Ethics An Ethical Promotion? A Unilever brand in Thaland ran into some problems with one of not stop a related scholarshp its competition. The competition of- for the college student best 00,000 baht ($3,200) prize demonstrating "product efficacy -that is, the whitest skin. The many Asian countries company claims its products help people feel good about them- Citra Pearly White UV Body Lotion is marketed as a skin-whiten d ng product. Skin whitening is popular in skin color is economic solves and enhance their self-esteem. status. However, this bellef is not created by marketers. Anthro- and Thaland in particular, have long histories of associating darker skin tones with outdoor peasants and field workers and lighter skin tones with higher so- cioeconomic status. Citra's advertising was criticized because t showed two female students-one lighter-skinned than the 14-11 Because lighter skin and skin whitening are popular in Thaland, is it wrong for marketers to offer and promote products that encourage this belief and behavior? why or why not. (AACSB: Communication pologists point out that Asian cultures, Refective Thinking: Ethical Reasoning) other-and asked them what would make them "outstanding in 14-12 Find other examples of marketers creating controversy by promoting culture-based products that could be uniform.* The darker girl seemed confused and didn't answer, while the lighter girl answered with Citra's product slogan After considerable social media outcry, Citra puled the ad, but it did viewed as inappropriate by others outside of that cul- ture. (AACSB: Communication; Reflective Thinking) Marketing by the Numbers Advertising-to-Sales Ratios ratios than others? (AACSB: Communication; Use of IT Refective Thinking) Using the percent of sales mathod, an advertiser sets its budget sales. However determining what percentage to use is not always clear. Many marketers look at industry averages and competitor spending or comparisons. Websitos and trade publications publish data regarding industry averages to guide marketers in setting the per- at a certain percentage of current or forecasted 14-14 Determine the advertising-to-sales ratios for two com- above. Why do you peting companies and compare them to the industry think there is a difference between competitors and the ndustry average? (AACSB: Communication; Use of IT: Analytical Reasoning: Reflective Thinkingl 14-13 Find industry advertising-to-sales ratio data. Why do some industries have higher advertising-to-sales Video Case oxo You might know OXD for its well designed, ergonomic kitchen using strategic planning t gadgets. But OXD's expertine at creating handheld tools t great and work well has led it to expand into products for bath customers. rooms, garages, offices, babies' rooms, and even medicine cabi- nets. In the past, this award-winning manufacturer has managed questions to move its products into almost every home in the United States 14-15 What is CXO's mission? by relying on a consistent and in some cases nontraditional mar keting stratogy to ensure that its marketing strategy that lookresults in the best marketing mbk for the best and most profitable After viewing the video featuring ONO, answer the tollowing But in a highly competive and tubulent market, OXD has fooused on evaluating and moditying its marketing strategy in order to grow the brand. This video demonstrates how OXD is 14-16 What are some of the markat conditions that have led 14-17 How has OXD modified its marketing mix? Ave these Oxo to reevaluate its marketing strategy? changes in line with its mission? Company Case Volvo Trucks: Integrated Marketing Communications of Epic Proportions When you think of Volvo, you probably think of the boxy and sethe same with Volho cars the Volvo Group is now a separate date, practical and safe automobles made in Sweden-the onescompany and one of the largest producers of commercial trucks professors and young, married couples with children use to cart in the workd under various brands including Renault Trucks, Mack their groceries home. This story is about anothar Vovo-the Volvo Trucks, UD Trucks, and ts largest, Volvo Trucks Group, maker of trucks. And not just SUNs or plckups, mind you We're talking about full-sized, heavy-duty semi-trucks and trai preparing for its first major product launch in 20 years-ive new ors, mining and construction vehicles, and buses. Once one and truck modeis in one year. Wieh that launch, Vovo Trucks needed A tew years ago, Vovo Trucks faced a big challenge. It wasExplanation / Answer
1. Does your selected business have differentiated products or services? If so, what is the basis for this differentiation from the competition?
Yes, they have unique product, it is differentiated through processing of meats and quicker delivery services . This is realized due to its
.Processing plants
.Volume of supply capability
.Great supply chain network
It produces several different products, like Buffalo wings, boneless Buffalo wings and is an innovator in the industry.
2. Does your firm have a cost-leadership position in this business? If so, can you identify which cost drivers it uses effectively to hold this position?
They do not have acost-leadership position, but are differentiated due to their range of products, service and volume of operations.
And it has its own chicke and meat producers, to facilitate the volume business, without being a cost leader.
3. What is your firm’s approach to the market? If it segments the market, identify the scope of competition it is using.
It does not segment its market. It works on B2B business, and approaches the blanket way.It supplies products to each type of food outlets, and generally depends on the large contracts and partnerships.
They supply to all type of restaurants.
They sell at supermarkets.
It supplies to Prisons as well.
So by ditributing to multiple channels they target a large spectru of markets, though there is partnerships based on segments its mostly to most frequented restaurant chains.