Scenario 10-5
In 2007, the Michigan-based Ford Motor Company fell from second to third in the U.S.
annual vehicle sales for the first time in 56 years. Facing stiff competition from foreign
auto-makers and brand indifference amongst U.S. consumers, Ford appeared to be
headed towards turbulent times. However, when marketing and advertising guru Jim
Farley joined Ford in November 2007, he brought with him a number of fresh ideas that
helped turn the company toward the right direction. Farley quickly found that
Americans had become indifferent to the Ford brand, which in his opinion, was worse
than disliking the brand. So, Farley, along with the rest of the marketing team at Ford,
created a campaign that used catchy songs and cheerful images to accompany its line of
automobiles. The marketing team at Ford is now heavily utilizing the Internet to
promote the new Ford Fiesta, which is the focus of a campaign that has greatly
increased the awareness of the Ford brand. The company has also been stressing the
value of buying environment-friendly cars, a move it hopes will improve the brand’s
image throughout the world. So far, these moves appear to be workingin late 2010, Ford
was once again named the second leading automotive company in the United States, as
well as the fourth largest in the world.
(“Ford Can Fiesta Again.” TheEconomist, October 28, 2010)
If the objective of Ford is to demonstrate that its newest line of cars is superior to that
of a strong competitor, which of the following methods should Ford use?
a. Demonstration ads
b. Comparison ads
c. Reason-why ads
d. Point-of-purchase ads
Scenario8-4
American Express is dissatisfied with the degree of penetration of its Gold Rewards
Plus card in the U.S. market. Marketing managers at American Express feel that the
firm needs to increase advertising to small entrepreneurial businesses to encourage