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,
entertainment, information storage, and organization functions for the convenience of consumers
and business users on the go.”
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
Students may consider a variety of demographic changes, such as growth in the student
population and geographical shifts that could cause Sonic to rethink its distribution strategy. Ask
students to discuss Sonic’s possible responses to these shifts. Among the economic trends that
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
occur. Otherwise, the company’s reputation could suffer if product quality is perceived to be
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
The information that students gather about business-to-business prospects and influences will
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
benefit of helping organize their lives and stay in touch while away from home and office; and
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
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
conveniently communicate and exchange information while on the road. Sonic can reinforce
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 idea
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
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.
Sonic Appendix Solutions
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.
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.
Sonic Appendix Solutions
• 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
Sonic Appendix Solutions
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
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?
Sonic Appendix Solutions
• 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
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