MCS 3040 Chapter 24: Chapter 24.docx

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silverwater-buffalo156

10 Apr 2012

School

University of Guelph

Department

Marketing and Consumer Studies

Course

MCS 3040

Professor

Joseph Radocchia

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Document Summary

Chapter 24: sales and marketing: price, distribution, and risk. Generally freely negotiated when forming a contract, although a few prices are regulated by government (utilities, agricultural marketing boards) Criminal offence: more serious, referred to the attorney general for prosecution and more difficult to prove because of higher burden of proof needed. Reviewable matters: civil in nature, if not voluntarily resolved may result in remedial order from judge or competition tribunal. Federal competition act prohibits unfair pricing practices , wants to create level playing field. The act seeks to ensure that commercial customers are not subject to unfair differential treatment that could seriously reduce competition in the marketplace. Includes criminal offences of price fixing and bid rigging. Pricing conspiracies: working with competitor(s) to control and manipulate prices. Penalties: max 14 yrs and/or fine of 25 mil. To be proven, must be established that there was an agreement or a conspiracies to set prices but also that the agreement lessened competition.

Related Questions

few years, British Sky Broadcasting has transformed the way people in Britain watch and use their television. Before Sky, people could never have imagined ordering a pizza or sending an email from their set. Today it's an accepted thing.

Part of Sky's success has been in its brand - in defining what makes Sky special and in expressing that difference visually, in products and in the actions of people in the company. And that brand has become one of the company's greatest assets. Brands help companies build a relationship with a customer. A good brand not only helps differentiate a company, it also helps the customer feel something as a result. A pair of Nike trainers might make a person feel more fashionable. A Sony minidisc player might make a person feel they are at the cutting edge of miniature technology. A Rolls Royce might make a person feel that they have reached the top.

Some brands even go beyond that and become so well known that they become generic. This means they're used as a general term for that type of product, even if it's a competitor's product. Walkmans, and Hoovers are a good example. People Hoover the carpet, even if they're really using an Electrolux.

A brand helps customer recognition and enables recognition to be spread by word of mouth as well as by advertising. A brand also adds value. It can allow a company to offer its products at a premium, without reducing the customers' perception of value for money. It also allows a company to extend what they offer to the customer - if a customer trusts one product from that company, they are more likely to trust (and buy) another product from the same company.

That is why Sky has invested so much in its brand. As the first entrant 16 years ago in the field of multichannel television, it had the opportunity to build strong recognition and to even establish itself as the generic brand for multichannel television.

Source: (viewed 10 February 2019)

QUESTIONS

1. In the above article, "if a customer trusts one product from that company, they are more likely to trust (and buy) another product from the same company". Discuss different ways that companies can use to increase brand loyalty. Justify your answers with relevant examples. (5 marks) (500 words)

2. In the above article "brand has become one of the company's greatest assets". Do you agree? Justify your answers with arguments and examples. (5 marks) (500 words)

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MCS 3040 Chapter 24: Chapter 24.docx

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