Chapter 13
Introducing a new product entails a variety of decisions about product strategy, including
differentiation, ingredient branding, packaging, labeling, warranty, and guarantee. Your next task
is to answer the following questions about Sonic’s product strategy.
Which aspect of product differentiation would be most valuable in setting Sonic apart
from its competitors, and why?
Should Sonic use ingredient branding to tout the Linux-based operating system that it
says makes its Smartphone more secure than Smartphones based on some other operating
systems?
How can Sonic use packaging and labeling to support its brand image and help its
channel partners sell the Smartphone product more effectively?
Once you’ve answered these questions, incorporate your ideas into the marketing plan you’ve
been writing.
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
suggest for Sonic are: features (especially the dual mode and multimedia features); quality (to
Chapter 14
You’re planning customer support services for Sonic’s new Smartphone product. Review what
you know about your target market and its needs; also think about what Sonic’s competitors are
offering. Then respond to these three questions about designing and managing services.
What support services are buyers of Smartphone products likely to want and need?
How can Sonic manage gaps between perceived service and expected service to satisfy
customers?
What post-sale service arrangements must Sonic make and how would you expect these
to affect customer satisfaction?
Consider how your service strategy will support Sonic’s overall marketing efforts. Summarize
your recommendations in a written marketing plan to document your ideas.
Answer
In general, Smartphone buyers would want convenient access to technical support for setup and
trouble-shooting; repair services if needed; a good warranty offer; and information about
upgrades and updates. Students may offer ideas about additional support services, as well.
Chapter 15
Sonic is a new entrant in an established industry characterized by competitors with relatively
high brand identity and strong market positions. Use research and your knowledge of how to deal
with competitors to consider three issues that will affect the company’s ability to successfully
introduce its first product:
What factors will you use to determine Sonic’s strategic group?
Should Sonic select a class of competitor to attack on the basis of strength versus
weakness, closeness versus distance, or good versus bad? Why is this appropriate in the
Smartphone market?
As a start-up company, what competitive strategy would be most effective as Sonic
introduces its first product?
Take time to analyze how Sonic’s competitive strategy will affect its marketing strategy and
tactics. Now summarize your ideas in a written marketing plan or use Marketing Plan Pro
software.
Answer
Sonic’s strategic group would include the firms following the same or a very similar strategy in
the same target market. The Smartphone market is changing rapidly, however, which means
students should be able to explain their choice of factors and competitors using the most
up-to-date data.
Chapter 16
You’re in charge of pricing Sonic’s product for its launch early next year. Review the SWOT
analysis you previously prepared as well as Sonic’s competitive environment, targeting strategy,
and product positioning. Now continue working on your marketing plan by responding to the
following questions.
What should Sonic’s primary pricing objective be? Explain your reasoning.
Are Smartphone customers likely to be price sensitive? What are the implications for
your pricing decisions?
What price adaptations (such as discounts, allowances, and promotional pricing) should
Sonic include in its marketing plan?
Make notes about your answers to these questions and then document the information in a
written marketing plan.
Answer
Sonic’s primary pricing objective should be market penetration, because it is operating in a
difficult and highly competitive market. If the firm fails to achieve a decent market share, it will
be unable to effectively compete and will not be able to lower unit costs through higher volume.
Students may argue that survival is an appropriate pricing objective, but this is probably not the
Chapter 17
At Sonic, you have been asked to develop a marketing channel system for the new Sonic 1000
Smartphone. Based on what you know about designing and managing integrated marketing
channels, answer the three questions that follow.
Do you agree with Jane Melody’s decision to use a push strategy for the new product?
Explain your reasoning.
How many channel levels are appropriate for Sonic’s targeted consumer and business
segments?
In determining the number of channel members, should you use exclusive, selective, or
intensive distribution? Why?
Be sure your marketing channel ideas support the product positioning and are consistent with the
goals that have been set. Record your recommendations in a written marketing plan.
Answer
Students who agree with the push strategy may argue that Sonic needs to get its new product into
stores and dealers where consumers and business customers will see it alongside competing
products. These students may also argue that without good distribution, any consumer-directed
Chapter 18
At this point, you need to make more specific decisions about managing the marketing
intermediaries for Sonic’s first product. Formulate your ideas by answering the following
questions.
What types of retailers would be most appropriate for distributing Sonic’s Smartphone?
What are the advantages and disadvantages of selling through these types of retailers?
What role should wholesalers play in Sonic’s distribution strategy? Why?
What market-logistics issues must Sonic consider for the launch of its first Smartphone?
Summarize your decisions about retailing, wholesaling, and logistics in the marketing plan
you’ve been writing.
Answer
Sonic should approach specialty retailers that serve the segments being targeted for the new
Smartphone and that carry complementary products, have an appropriate price level in line with
Sonic’s pricing, and have the services to demonstrate and sell the Smartphone. For example,
Chapter 19
Jane Melody has assigned you to plan integrated marketing communications for Sonic’s new
product introduction. Review the data, decisions, and strategies you previously documented in
your marketing plan before you answer the next three questions.
What communications objectives are appropriate for Sonic’s initial campaign?
How can Sonic use personal communications channels to influence its target audience?
Which communication tools would you recommend using after Sonic’s initial product has
been in the market for six months? Why?
Confirm that your marketing communications plans make sense in light of Sonic’s overall
marketing efforts. Now, as your instructor directs, summarize your thoughts in a written
marketing plan.
Answer
For the initial campaign, Sonic should set objectives for awareness among the targeted segments.
It may also want to set objectives for knowledge, liking, preference, conviction, and purchase as
time goes on. Initially, however, it must make the market aware of the brand and product.
Students should use their imaginations in discussing personal communications channels such as
Chapter 20
Mass communications will play a key role in Sonic’s product introduction. After reviewing your
earlier decisions and thinking about the current situation (especially your competitive
circumstances), respond to the following questions to continue planning Sonic’s marketing
communications strategy.
Once Sonic begins to use consumer advertising, what goals would be appropriate?
Should Sonic continue consumer and trade sales promotion after the new product has
been in the market for six months? Explain your reasoning.
Jane Melody wants you to recommend an event sponsorship possibility that would be
appropriate for the new product campaign. What type of event would you suggest and
what objectives would you set for the sponsorship?
Record your ideas about mass communications in the marketing plan you’ve been writing.
Answer
Students may suggest advertising objectives related to (1) informing consumers about the new
product’s features and benefits, (2) making them aware of the brand and building positive
attitudes and preferences, and (3) stimulating trial. To measure results, Sonic would compare
actual consumer sales during and after the ad campaign with the sales projections that were set
Chapter 21
Digital communications strategies will be essential to Sonic’s marketing plan as brand
awareness can be generated quickly through online channels, social media, and work of
mouth. Jane Melody is especially interested in your answers to the following questions.
How should Sonic use word of mouth to generate brand awareness and encourage
potential buyers to visit retailers to see the new smart phone in person?
Which social media platforms and networks should Sonic pursue based on their
target audiences? Explain your reasoning.
Is mobile marketing a viable strategy for Sonic’s smart phone? Why or why not?
Consider your overall marketing objectives as you compile your answers. Document your
ideas in you marketing plan.
Answer
Word of mouth may be a low cost way to gain highly credible communication about the brand,
which should help generate brand awareness. An incentivized referral program may encourage
customers to tell friends or family members to visit retailers to see the new smart phone. Social
badging, which would appear in social media, is another way to get customers to help the firm
Chapter 22
Sonic needs a strategy for managing personal communications during its new product launch.
This is the time to look at interactive marketing, word-of-mouth, and personal selling. Answer
these three questions as you consider Sonic’s personal communications strategy.
Which forms of direct marketing are appropriate for Sonic, given its objectives, mass
communications arrangements, and channel decisions?
Should Sonic use database marketing to identify and cultivate prospects? What are the
opportunities and potential downsides of this approach?
Does Sonic need a direct sales force or can it sell through agents and other outside
representatives?
Look back at earlier decisions and ideas before you document your comments about personal
communications in your written marketing plan.
Answer
Given the technological nature of the Smartphone market, Sonic should have a substantial
interactive marketing presence. For example, it needs a Web site with detailed product
specifications, various product demonstrations, additional brand information, and possibly
exclusive, downloadable extras. It would also benefit from staying in touch with prospects and
customers through an e-mail newsletter; to do this, it would invite people who visit the Web site
to sign up to receive issues (and be able to unsubscribe whenever they wish). Students may
Chapter 23
With the rest of the marketing plan in place, you’re ready to make recommendations about how
to manage Sonic’s marketing activities. Here are some specific questions Jane Melody wants you
to consider.
How can Sonic drive customer-focused marketing and strategic innovation throughout
the organization?
What role should social responsibility play in Sonic’s marketing?
How can Sonic evaluate its marketing? Suggest several specific steps the company
should take.
To complete your marketing plan, enter your answers to these questions in the written marketing
plan. Finally, draft the executive summary of the plan’s highlights.
Answer
Student answers will vary. Ask them to think about informing, educating, motivating, and
controlling non-marketing employees to ensure a tight customer focus. Also ask them how Sonic
can encourage and reward innovation in marketing and in all functional areas. In general, Sonic
can create a more customer-focused organization through top-management emphasis on
earlier ideas and then explain exactly how Sonic might take measurements, when to check
metrics, and under what circumstances to make marketing changes.