978-0134058498 Appendix Appendix Part 1

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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