NRSG 121 Lecture Notes - Lecture 5: Rolex, Marketing Channel, Marketing Mix

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taupeyak346

28 Feb 2018

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Channel strategy refers to the broad principles by which the firm expects to achieve its distribution objectives for its target markets. It focuses on the place variable in the four. In terms of the design of marketing channels, channel strategy should guide the design process in an attempt to gain a differential advantage for the firm using superior channel design. Marketing channel strategy: the broad principles by which the firm expects to achieve its distribution objectives for its target markets. This definition focuses on the principles or guidelines for achieving the firm"s distribution objectives rather than on its general marketing objectives. Thus marketing channel strategy is concerned with the place aspect of marketing strategy. A sound approach to dealing with distribution decisions is to formulate marketing channel strategy to provide the guiding principles for dealing with distribution decisions on a proactive rather than a reactive basis. Marketing channel strategy and the role of distribution in corporate.

Related Questions

Budget constraints on marketing research are most likely to leadto:

		a wrong interpretation of the research results.
		an incorrectly formulated sample size and design.
		incorrect reasons regarding why the research is needed.
		pretest measurements of competitive brand sales.

2 points

QUESTION 2

Stacy, a marketing manager at a beverage manufacturing firm,conducts a customer survey to determine the reason for a dip in thesales of Zeal, a cola, in the last quarter. The survey reveals thatthere is an immediate customer demand requiring the use of organicingredients to Zeal. The firm decides to enhance Zeal with theintroduction of organic ingredients. This new product would fallinto the category of ________.

		new-to-the-world products
		new-to-the-firm products
		improvements and revisions of existing products
		additions to existing product lines

2 points

QUESTION 3

Lauren is a brand manager at a company that manufacturestoothpaste. She wants to increase the sales of an existing brand oftoothpaste. To do so, she calls for a meeting with a teamcomprising of members from the administrative department, the humanresource department, and the finance department. All of thesemembers work together to come up with ways to improve the company'stoothpaste brand positioning. Such a team is an example of a________.

		category-management system
		cross-functional team
		departmental team
		marketing-management system

2 points

QUESTION 4

________ are methods used to determine how resources should beallocated among the various strategic business units (SBUs) in anorganization.

		Vector models
		Matrix models
		Variable models
		Portfolio models

2 points

QUESTION 5

For high-involvement products that require extensive decisionmaking, marketers should provide consumers with:

		ready availability of the products in a variety of outlets andat competitive prices.
		factual information that highlights the competitive advantage ofthe products.
		minimum information to encourage a quick purchasing process.
		eye-catching advertisements and in-store displays to encouragethem to make a purchase.

2 points

QUESTION 6

The number of times, on average, that audience members areexposed to an advertisement within a given time period is knownas:

		frame rate.
		time to target market.
		reach intensity.
		average frequency.

2 points

QUESTION 7

Ariston Inc. manufactures a wide range of personal careproducts. Its method of sales forecasting involves conductingdetailed surveys of retailers who stock the company's productstoward the end of a fiscal year. The aim of this survey is toestimate the quantity of Ariston's products the retailers arelikely to order in the next fiscal year. Which of the followingapproaches of sales forecasting is Ariston using?

		Customer expectations method
		Time-series analysis
		Sales forecast composite method
		Jury of executive opinion method

2 points

QUESTION 8

________ carry broad product assortments and compete on thebasis of offering a good selection in different product categoriesand offering lower prices on products in their largeassortments.

		Specialty stores
		Mass merchandisers
		Category killers
		Convenience stores

2 points

QUESTION 9

Which of the following best describes personal selling?

		Personal selling is a paid form of communications about anorganization, its products, or its activities that is transmittedthrough a mass medium.
		Personal selling is an activity that offers customers orresellers a direct inducement for purchasing a product.
		Personal selling is a nonpaid form of communication that seeksto influence the attitudes, feelings, and opinions of stockholders,suppliers, employees, and political bodies about anorganization.
		Personal selling is face-to-face communication with potentialbuyers to inform them about and persuade them to buy anorganization's product.

2 points

QUESTION 10

Which of the following best explains why Delicia Co., amanufacturer of potato chips, prices each bag of potato chips at 99cents rather than $1.00?

		To encourage consumers to think the chips are less expensive
		To increase sales by offering the chips at a discountedprice
		To create a signal that these chips are exceptionally fine
		To attract those consumers who are not too sure about thequality of the chips

2 points

QUESTION 11

Which of the following is NOT a step in the marketing researchprocess?

		Performance of the research
		Plan of the research
		Preview of the research
		Preparation of the research report

2 points

QUESTION 12

In the context of product purchasing, the diffusion ofinnovation is:

		used to describe the ability of an organization to createentirely new products.
		applied to products at the introductory stage of the productlife cycle.
		used to describe an audit task.
		the spread of a product through the population.

2 points

QUESTION 13

Distribution allowances are typical examples of ________.

		push strategies
		profile strategies
		pull strategies
		mixed promotional strategies

2 points

QUESTION 14

Which of the following is a benefit of mathematical modeling asa marketing research method?

		It is ideal for investigating customer beliefs, attitudes,satisfaction, and other issues.
		It generates a substantial number of ideas when compared withother methods.
		It is involved in the analysis and interpretation of primarydata exclusively.
		It provides an efficient way to study problems with extremelylarge secondary data sets.

2 points

QUESTION 15

Identify the persuasion objective of the sales force in personalselling.

		To reassure consumers of product or service superiority throughdemonstrable actions
		To enable prompt delivery of the product or service that exceedscustomer expectations
		To ensure immediate follow-up calls and visits to addressunresolved or new concerns
		To clearly distinguish attributes of a firm's products orservices from those of competitors

2 points

QUESTION 16

Which of the following statements is true of the influences ofprice, product, and promotions on consumer behavior?

		Consistent bombarding of messages about a product will put offpotential consumers.
		Salespeople do not have a direct impact on consumer behavior andits patterns.
		Value-conscious consumers buy products on the basis of placerather than other attributes.
		Marketing communications play a critical role in informingconsumers about products and services.

2 points

QUESTION 17

According to the VALSâ¢ model, Experiencers are:

		driven to demonstrate success.
		driven by a desire for social or physical activity.
		driven by knowledge and principles.
		driven by the level of resources and innovation.

2 points

QUESTION 18

In which of the following stages of the new product developmentprocess is the new product proposal evaluated and responsibilityfor a project assigned to a project team?

		Product development
		Idea screening
		Test marketing
		Project planning

2 points

QUESTION 19

Which of the following is an advantage of secondary data overprimary data?

		Secondary data sources are limited, making the information morevaluable.
		Secondary data are cheaper to obtain and utilize.
		Secondary data are collected specifically for the researchproblem under investigation.
		Secondary data are always available for strategy-specificresearch questions.

2 points

QUESTION 20

An automobile manufacturing firm decides to meet all itssuppliers while planning to manufacture a new automobile that is aminor variant of an existing model in terms of design andperformance. The firm wants to provide its loyal customers withautomobiles at a low price without compromising on performance.According to authors Crawford and DiBenedetto, this new productfalls into the category of ________.

		price redemptions
		repositionings
		price exemptions
		cost reductions

skyweasel924

International Research Journal of Applied Finance ISSN 2229 â 6891

Vol. VI Issue â 8 August, 2015 Case Study Series

A Stock Valuation Case: An Application of the âMethod of Comparablesâ for Macyâs Shares

Halil D. Kaya* ,Julia S. Kwok

Abstract

The primary focus of this case is the application of the âMethod of Comparablesâ in the estimation of the value of a security. An investment decision will be made based on the comparison of the selling price and the estimated value. A security will be good for purchase if the estimated value is higher than the market price. This method utilizes basic financial ratios that are commonly provided by financial web sites. First, using Yahoo Finance website, the pricing, sales, book value of equity and shares outstanding data are collected for both the target firm and the competitor firms. Then, the pricing multiples (i.e. price earnings ratio, price to sales ratio and price to book ratio) of the competitors are calculated. After that, those multiples along with the target firmâs earnings, sales, book value and shares outstanding data are used to estimate target firmâs share value. The case also examines the impact of treating ânegativesâ in the data. Students will learn that replacing negative earnings with zeros tend to induce less bias in target firmâs value estimation than excluding the ânegativeâ data altogether.

Introduction

March 14, 2015 was a sunny day. Mary took advantage of the nice weather to have lunch at the Mall. On her way back to work, she walked by Susanâs investment office. Susan was Maryâs college roommate. They both liked shopping together to find new fashionable clothes. Looking at her watch, Mary realized she had half an hour to spend. She thought she would drop by and say hello to Susan.

The Performance of Macyâs

âHi, Susan, how are you?â How is your business?â said Mary. Susan was a recent finance graduate. Susan replied, âI am doing fine. Thank you. After so many years, the market is still recovering from the mortgage crisis; many investors have been buying back stocks that they have sold during the crisis. What are you up to?â âI want to start my investment in securities, too. I have a couple thousand dollars, would Macyâs be a good stock to invest in now? That was our favorite store to shop among all of the department stores,â Mary exclaimed. She added, âAlso, I read from Motleyâs Foolâs article on Macyâs today about its earnings per share growth for the last 16 quartersâ (Zahid Waheed, 2014).

In response to Maryâs questions, Susan checked the monthly adjusted returns of Macyâs in Yahoo Finance. She found that, since March 2010, Macyâs stock price had an average annual increase of 23.5% over the last 5 years. The stock rose from $19.98 to $57.38. Susan then told Mary that Macyâs was indeed a growing stock. She added that its success could be attributed to the omni-channel integration, e-commerce and magic selling strategies which allowed merging of sales channels, online shopping and better customer care. Since investment strategy 101 is to buy low, and sell high, given Macyâs stock price had been going up, Susan was not sure whether Macyâs was currently overvalued or undervalued by the market.

The Method of Comparables

Susan remembered her class lecture on the two types of valuation of stocks, namely absolute and relative evaluation. The absolute evaluation focuses on finding the intrinsic value of the security based on fundamentals. That involves more complicated models of discounting cash flows from dividends, operations and residual income.

On the other hand, relative evaluation is quick and easy to use. It assumes two similar securities should sell for one price in an efficient market, i.e. âLaw of One Price.â So an analyst can estimate its stock price by multiplying target companyâs specific earnings, sales and equity value data by the earning, sales and equity âper shareâ financial multiples of its competitors.

Since Mary was not familiarized with financial models, Susan decided to use the easy-toperform-and-analyze âComparables Methodâ to estimate the relative value of Macyâs stock.

The Financial Data

Dillards, JC Penney and Nordstrom were selected as competitors of Macyâs as they were all in retail department store business. Susan would need some financial data regarding these companies. She went to SECâs (i.e. Securities and Exchange Commission) website and downloaded these companiesâ most recent balance sheet and income statement data. Out of those statements, she knew that she would need the EPS (i.e. earnings per share), the sales number, the number of outstanding shares, and the book value of equity. She also knew that she would need the current share price for each company. After some work, she had found all the necessary information to run the analysis. Below were the data that she had gathered:

All data are in US$ except for the number of outstanding shares. The share price as of March 15, 2014 is shown in the first column. The âEarnings per shareâ is shown in the second column. The third column reports the book value of equity. The last column shows the number of outstanding shares.

Firm	P ($)	EPS ($)	Sales ($)	BV of equity ($)	# of shares
Macy's	58.58	3.93	27,931 mil.	6,249 mil.	378.3 mil.
Dillard's	90.61	7.10	6,532 mil.	1,992 mil.	45.6 mil.
JC Penney	8.71	-5.57	11,859 mil.	3,087 mil.	249.3 mil.
Nordstrom	61.33	3.77	12,166 mil.	2,080 mil.	194.5 mil.

The Decision

Susan thinks that the following steps would be necessary to perform the analysis:

1.Based on the data above, calculate Sales per share, BV of equity/share values of all firms. Note that EPS is directly given.

2.Calculate P/E, P/Sales, and P/B for all of Macyâs competitors based on the data obtained.

3.Find the average of the P/E, P/Sales, and P/B multiples for the three competitors.

4.Multiply those averages calculated in step 3 with Macyâs EPS, Sales per share, and BV of equity/share values, respectively to get three value estimates for Macyâs shares.

5.The average of the three estimates would then be Susanâs best estimate of Macyâs value per share.

answer # 1-5 please

pearotter934

Fraud case Studies Case 2 - Pleasant Pasta

Overview

Pleasant Pasta (the Company) was the largest dry pasta producer inNorth America. As a manufacturer and marketer of pasta
products, Pleasant competed for market share with many othercompanies in a low-growth industry. Despite the competitive
nature and maturity of the pasta market, Pleasantâs management teamwas determined to become a high-growth company.
After successfully executing an initial public offering (IPO),Pleasantâs management team developed a short-term strategywhich
would allow the Company to achieve the rapid growth promised to itsnew investors. Specifically, Pleasant decided to focus
on marketing its products under generic brand names owned byseveral leading grocery chains. While the strategy did allow
the Company to initially achieve the sales and earnings growthmanagement desired, it became clear that Pleasant could not
continue to rapidly grow its business solely through genericchannels of distribution. Aware of this, management devised along
term performance plan that outlined aggressive top and bottom linenumbers for fiscal years 2002, 2003, and 2004. The strategic
initiative referred to as âExtraordinary Performanceâ unambiguouslylaid out managementâs primary objective for the next three
years: grow revenue, grow earnings, and grow earnings per share(EPS) at all costs.

Achieve the âExtraordinaryâ targets
Shortly after the start of fiscal year 2002, it became obvious thatPleasant Pasta was having difficulty meeting the aggressive
âExtraordinaryâ targets set by management. Due primarily to theincreasing popularity of low-carbohydrate diets like theAtkins
diet, consumer demand for pasta had dropped, rather dramatically.Plummeting demand coupled with a historically low industry
growth rate created a difficult environment for the Company tooperate in. Dissatisfied with performance, the CEO assembled
a task force to focus on âclosing the gapâ between theâExtraordinaryâ targets and actual results. In these meetings,the
CEO boldly stressed that their task would only be accomplished whenreported results met analystsâ expectations. As a direct
consequence, task force members were committed to the fullexecution of strategic profit initiatives to enable theCompany
to meet its âExtraordinaryâ targets. Without a doubt, the tone atthe top set by the CEO in these meetings had an impact on
task force members because most considered the use of improperaccounting practices to be part of the plan to achieve the
âExtraordinaryâ initiatives.

Close the Gap
To start, the task force focused on the âtrade promotionâ expenseaccount to help close the gap between actual and targeted
profit. For example, the Company had recently acquired severalother large pasta brands. A routine aspect of promoting such
brands involved product discounts, promotions, advertising, andvolume rebates that together made up âtrade promotionâ
expenses. Based on a detailed financial analysis, it was clear thatthese types of expenses were consistently greater than the
amount âaccruedâ for in the budget, which reduced actual profits.To remedy this, the task force decided that Pleasant Pastawas
justified in including a portion of promotional expenses into thebrand acquisition costs, thereby capitalizing a portion of thecosts
that had previously been expensed. These unsupported journalentries reduced the trade promotion expenses by greater than
50%, boosting the Companyâs actual profits.
The second phase of the task forceâs strategic profit initiativefocused on reducing manufacturing expenses. Since its IPO,the
Company had grown at a tremendous rate and taken on a number ofsignificant capital projects to expand production lines.
Under GAAP, the Company should have separated out internal laborcosts from ordinary operating expenses, capitalizing only the
labor related to the capital projects. However, the task forcedetermined that it would be best to reduce operating expensesby
capitalizing all budgeted internal labor and manufacturingoverruns. To further contain rising expenses, the task forcerefused to
write off âobsoleteâ assets, which had the effect of reducingreported depreciation expense.
As the pasta market continued to shrink, the task force realizedthat its efforts to suppress the Companyâs expenses weresimply
not enough. Determined to meet the CEOâs objectives, the task forcebegan to concentrate on ways to increase Pastaâs reported
sales revenue. Reduced demand for pasta had driven many customerorders well below the contractually agreed upon minimum
purchase volume. As such, numerous customers were contractuallyrequired to pay the Company a higher price on purchases Â© 2014KPMGLLP, a Delaware limited liability partnership and the U.S. memberfirm of the KPMG network of
independent member firms affiliated with KPMG InternationalCooperative (âKPMG Internationalâ), a Swiss entity. All
rights reserved. Printed in the U.S.A. The KPMG name, logo andâcutting through complexityâ are registered trademarks
or trademarks of KPMG International. NDPPS 309511 Case 2 PleasantPasta until contractual volume numbers were met. Under GAAP, thepremiums paid on each order should have been recognized as
revenue immediately. However, at the direction of the task force,the Company not only recognized the revenue associated with
the actual price increases, but also their projected priceincreases in order to boost reported earnings. Further, the taskforce
authorized significant promotional discounts that resulted inseveral material sales in the final days of each period. Unwillingto fall
short of the âExtraordinaryâ targets, the task force evenimproperly recognized revenue before shipping the product in manyend
of year transactions.
Overall, the task forceâs efforts to improperly reduce costs andinflate revenues resulted in an overstatement of EPS by 23%in
2002, 41% in 2003, and 59% in 2004. Additionally, over thefraudulent years, Pleasant Pastaâs pretax income wasimproperly
inflated by greater than 66%, which helped to fuel a significantstock price increase for the company.

Fraud Discovery
In 2008, Pleasant Pasta publicly admitted that the Companyâs 2002,2003, and 2004 consolidated financial statements were
materially misstated due to fraud. In its admission and subsequentrestatement, the Company attributed the fraud to an
inadequate system of internal controls as well as managementâsfailure to maintain an appropriate tone at the top. Thediscovery
was made through a combination of an internal whistle-blower,significant management turnover, and ultimately an SEC
investigation.

i would like a summry for the case .

burgundytermite294

NRSG 121 Lecture Notes - Lecture 5: Rolex, Marketing Channel, Marketing Mix

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