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Chapter 2
As an assistant to Jane Melody, Sonic’s chief marketing officer, you’ve been assigned to draft a
mission statement for top management’s review. This should cover the competitive spheres
within which the firm will operate and your recommendation of an appropriate generic
competitive strategy. Using your knowledge of marketing, the information you have about Sonic,
and library or Internet resources, answer the following questions.
What should Sonic’s mission be?
In what competitive spheres (industry, products and applications, competence,
market-segment, vertical, and geographic) should Sonic operate?
Which of Porter’s generic competitive strategies would you recommend Sonic follow in
formulating its overall strategy?
As your instructor directs, enter your answers and supporting information in a written marketing
plan to document your ideas.
Answer
Students may offer differing definitions of Sonic’s mission. One possibility: “Sonic is dedicated
to producing and marketing high-quality products that provide a range of valued communication,
Among the major competitive scopes in which Sonic might operate are:
Sonic Appendix Solutions
Chapter 3
Jane Melody asks you to scan Sonic’s external environment for early warning signals of new
opportunities and emerging threats that could affect the success of the Sonic 1000 Smartphone.
Using Internet or library sources (or both), locate information to answer three questions about
key areas of the macroenvironment.
What demographic changes are likely to affect Sonic’s targeted segments?
What economic trends might influence buyer behavior in Sonic’s targeted segments?
How might the rapid pace of technological change alter Sonic’s competitive situation?
Enter your answers about Sonic’s environment in the appropriate sections of a written marketing
plan to record your comments.
Answer
Chapter 4
Your next task is to consider how marketing research can help Sonic support its marketing
strategy. Jane Melody also asks you how Sonic can measure results after the marketing plan is
implemented. She wants you to answer the following three questions.
What surveys, focus groups, observation, behavioral data, or experiments will Sonic need
to support its marketing strategy? Be specific about the questions or issues that Sonic
needs to resolve using marketing research.
Where can you find suitable secondary data about total demand for Smartphones over the
next two years? Identify at least two sources (online or off-line), describe what you plan
to draw from each source, and indicate how the data would be useful for Sonic’s
marketing planning.
Recommend three specific marketing metrics for Sonic to apply in determining
marketing effectiveness and efficiency.
Enter this information in the marketing plan you’ve been writing to document your responses.
Answer
Students will offer a variety of ideas about surveys, focus groups, observation, behavioral data,
or experiments that Sonic can use to support its marketing decisions. Evaluate their responses on
the basis of how well the research they suggest will help Sonic answer specific questions and
Chapter 5
Sonic has decided to focus on total customer satisfaction as a way of encouraging brand loyalty
in a highly competitive marketplace. With this in mind, you’ve been assigned to analyze three
specific issues as you continue working on Sonic’s marketing plan.
How (and how often) should Sonic monitor customer satisfaction?
Would you recommend that Sonic use the Net Promoter method? Explain your reasoning.
Which customer touch points should Sonic pay particularly close attention to, and why?
Consider your answers in the context of Sonic’s current situation and the objectives it has set.
Then enter your latest decisions in the written marketing plan.
Sonic Appendix Solutions
Answer
Students will recognize that Sonic needs to monitor customer satisfaction more often in the early
months following the first product’s launch so it can identify and fix any quality problems that
Chapter 6
You’re responsible for researching and analyzing the consumer market Sonic’s Smartphone
product. Look again at the data you’ve already entered about the company’s current situation and
macroenvironment, especially the market being targeted. Now answer these questions about the
market and buyer behavior.
What cultural, social, and personal factors are likely to most influence consumer
purchasing of Smartphones? What research tools would help you better understand the
effect on buyer attitudes and behavior?
Which aspects of consumer behavior should Sonic’s marketing plan emphasize and why?
What marketing activities should Sonic plan to coincide with each stage of the consumer
buying process?
After you’ve analyzed these aspects of consumer behavior, consider the implications for Sonic’s
marketing efforts to support the launch of its Smartphone. Finally, document your findings and
conclusions in a written marketing plan.
Answer
Students may say that the values of material comfort, individuality, and efficiency and
practicality—part of the shared U.S. culture—could affect Smartphone buyers. They may also
indicate that reference groups, roles, and statuses play a part by, for instance, influencing who
Chapter 7
You’ve been learning more about the business market for Sonic’s Smartphone. Jane Melody has
defined this market as mid- to large-sized corporations that want their employees to stay in touch
and be able to input or access data from any location. Respond to the following three questions
based on your knowledge of Sonic’s current situation and business-to-business marketing.
What types of businesses appear to fit Melody’s market definition? How can you research
the number of employees and find other data about these types of businesses?
What type of purchase would a Sonic Smartphone represent for these businesses? Who
would participate in and influence this type of purchase?
Would demand for Smartphones among corporate buyers tend to be inelastic? What are
the implications for Sonic’s marketing plan?
Your answers to these questions will affect how Sonic plans marketing activities for the business
segments to be targeted. Take a few minutes to note your ideas in a written marketing plan.
Answer
Sonic Appendix Solutions
Chapter 8
As Jane Melody’s assistant, you’re researching how to market the Sonic 1000 Smartphone
product outside the United States within a year. You’ve been asked to answer the following
questions about Sonic’s use of global marketing.
As a start-up company, should Sonic use indirect or direct exporting, licensing, joint
ventures, or direct investment to enter the Canadian market next year? To enter other
markets? Explain your answers.
If Sonic starts marketing its Smartphone in other countries, which of the international
product strategies is most appropriate? Why?
Although some components are made in Asia, Sonic’s Smartphones will be assembled in
Mexico through a contractual arrangement with a local factory. How are
country-of-origin perceptions likely to affect your marketing recommendations?
Think about how these global marketing issues fit into Sonic’s overall marketing strategy. Now
document your ideas in the marketing plan you’ve been writing.
Answer
Sonic may want to begin using indirect exporting to get its products to Canada, minimizing the
risk, investment, and commitment. This also allows the company to evaluate response and, if
warranted, change its approach and use direct exporting or other methods. As students offer
Chapter 9
Identifying suitable market segments and selecting targets are critical to the success of any
marketing plan. As Jane Melody’s assistant, you’re responsible for market segmentation and
targeting. Look back at the market information, buyer behavior data, and competitive details you
previously gathered as you answer the following questions.
Which variables should Sonic use to segment its consumer and business markets?
How can Sonic evaluate the attractiveness of each identified segment? Should Sonic
market to one consumer segment and one business segment or target more than one in
each market? Why?
Should Sonic pursue full market coverage, market specialization, product specialization,
selective specialization, or single-segment concentration? Why?
Next, consider how your decisions about segmentation and targeting will affect Sonic’s
marketing efforts. Depending on your instructor’s directions, summarize your conclusions in a
written marketing plan.
Answer
In general, Sonic would benefit by targeting specific consumer segments based on their busy
work and home lifestyles; their needs for a versatile, multipurpose product that delivers the
For business markets, Sonic can use demographics (such as industry and company size) and
situational factors (need for specific applications such as on-the-go access to e-mail or ability to
Sonic can evaluate the attractiveness of each identified segment by determining whether it is
measurable, substantial, accessible, differentiable, and actionable. The company will probably
Sonic Appendix Solutions
Chapter 10
As before, you’re working with Jane Melody on Sonic’s marketing plan for launching a new
Smartphone. Now you’re focusing on Sonic’s brand positioning by answering three specific
questions.
In a sentence or two, what is an appropriate positioning statement for the Sonic 1000
Smartphone?
Create a perceptual map to diagram points-of-parity and points-of-difference between
Sonic and its competitors. Are there any opportunities based on your findings?
How can Sonic create differentiation from competitors using emotional branding?
Document your ideas in a written marketing plan. Note any additional research you may need to
determine how to proceed after the Sonic 1000 has been launched.
Answer
Students’ answers may vary, depending on their answers and decisions related to marketing plan
exercises in earlier chapters. In general, some of the key differentiation variables they may
consider as they develop a positioning statement are value-added features (such as multimedia,
dual-mode capabilities) and high-tech image, linked to the benefits of one versatile device for
Chapter 11
Sonic is a new brand with no prior brand associations, which presents a number of marketing
opportunities and challenges. Jane Melody has given you responsibility for making
recommendations about three brand equity issues that are important to Sonic’s marketing plan.
What brand elements would be most useful for differentiating the Sonic brand from
competing brands?
How can Sonic sum up its brand promise for the new Smartphone?
Should Sonic add a brand for its second product or retain the Sonic name?
Be sure your brand ideas are appropriate in light of what you’ve learned about your targeted
segments and the competition. Then add this information to your written marketing plan.
Answer
The Sonic brand name lends itself to associations with sophisticated electronics technology, a
desirable attribute for a brand that wants to deliver the benefit of allowing users to easily and
Chapter 12
Knowing that the smart-phone market is likely to remain highly competitive, Jane Melody wants
you to look ahead at how Sonic can develop new products outside the smart-phone market.
Review the competitive situation and the market situation before you continue working on the
Sonic Marketing plan.
List three new-product ideas that build on Sonic’s strengths and the needs of its various
target segments. What criteria should Sonic use to screen these ideas?
Develop the most promising idea into a product concept, and explain how Sonic can test
this concept. What particular dimensions must be tested?
Assume that the most promising idea tests well. Now develop a marketing strategy for
introducing it, including a description of the target market; the product positioning; the
estimated sales, profit, and market share goals for the first year; your channel strategy;
and the marketing budget you will recommend for this new-product introduction. If
possible, estimate Sonic’s costs and conduct a break-even analysis.
Document all the details of your new-product development ideas in the written marketing plan.
Answer
Sonic Appendix Solutions
Students will certainly have a wide variety of imaginative new-product ideas for Sonic to
consider, such as a model that wirelessly connects to movie Web sites to buy and download
full-length films in a matter of seconds (this builds on Sonic’s technological strength and its
brand promise of versatility and convenience). New product ideas can be screened through an
