Page 330 - Introduction to Business

304 PART 3 Marketing

Chapter Questions Interpreting Business News

1. What aspects of marketing are included in the Miele is a German manufacturer of dishwashers,
marketing mix? Can you think of anything else that washers, dryers, and vacuum cleaners. The
might be included? company’s sales are concentrated chiefly in Western
2. Can you think of any other problems, besides the Europe. Its products are high quality and carry
lower share of profits, that Starbucks might correspondingly high prices. Annual sales are about
encounter as it expands into international $2 billion.
markets? Since the 1980s, Miele has been expanding outside
3. Besides the kinds of goods and services purchased Western Europe, with particular emphasis on Australia
by older people, are there any other aspects of the and the United States.
older-person market that marketers should know California recently elected to outlaw the use of
about? perchloroethylene (“Perc”) in the 3,500 professional dry
4. What are the major differences between cleaners in the Los Angeles area. Chicago and other
sociological and psychological dimensions of the cities are expected to follow soon with the same
consumer market? restriction. “Perc” is used by 85% of all dry cleaning
5. What are the differences and similarities between establishments in the United States.
consumer and business-to-business markets? How Miele estimates that there are 33,000 dry cleaners in
might these affect strategies used to market to the United States. Using that figure, the company
them? believes that there is a $1.5 billion market for their
6. Describe the major differences between domestic washers and dryers, which do not require the use of
and international markets. Why do you think “perc,” but instead use water. This estimate is buoyed by
companies that have marketed their products or a six percent increase in the United States for home
services solely to the domestic market would improvement products in the previous year.
decide to introduce them into international 1. Do you think that this market presents a good
markets? opportunity for Miele? Why or why not?
7. Suppose the only way you could get secret 2. What should Miele’s objectives be in this market?
and valuable information about a major 3. How should Miele try to achieve these objectives?
competitor was to lure away one of its high-
level executives with top dollars and pump him An article in the April 19, 2004, issue of Business
for that information. Would you do it? Why or Week (Andrew Park, “Dude You’re Getting a Printer”)
why not? discusses Dell, Inc.’s move into the printer market. It
8. Carefully distinguish between marketing contains a number of references to Dell’s objectives and
information systems (MIS) and marketing research strategies–two important concepts discussed in this
as ways to collect information about markets and chapter–as Dell implements this decision.
the marketing environment. These include:
9. Some marketers believe that share of wallet is a • Dell views unit sales as one of its objectives. Dell’s
better measure of how well a company is doing sales in 2004 were expected to reach around 3.5
than market share. Do you agree or disagree? Why million units, with revenues of about $1 billion
or why not? (another objective of Dell).
10. Do you believe that Michelin’s technology strategy • Dell’s domestic market share for all-in-one inkjet
will be successful? Why or why not? printers, which scan, copy, and fax, is 14.5 percent,
11. Do you think it is okay for firms to give higher compared to Hewlett-Packard’s leading figure of
levels of service to their most profitable customers 55 percent.
and lower levels of service to their least profitable • Dell has a worldwide market share of 10 percent
and unprofitable customers? Why or why not? on ink jet and monochrome laser printers;
12. How does the postpurchase experience of Hewlett-Packard’s is around 45 percent.
dissonance compare to the postpurchase • Dell does not sell printers through retail stores.
experience of dissatisfaction? Customers have to order them online or over the
13. Do you think it is ethical for McDonald’s to use phone; software lets them know when the
mystery shoppers to find out how good or bad its cartridges need to be replaced and Dell offers free
service is? How else might it have obtained this shipping and handling.
information? • Dell projects that its direct sales approach will
14. Give five specific examples of marketing that you result in low costs and low prices, forcing
noticed yesterday. competitor prices down. However, midway

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