1. Who Pays for Your Coffee?Introducing the concepts of scarcity and
Introduction to Economics 2016/17
PROBLEM SET 5
Prof. Natalia Nollenberger
Exercise 1. Indicate whether the statement is true or false:
a. The production of an apple contributes more to GDP than the production of a gold
ring because food is necessary for
9% Template for Writing a Music Business Plan
Start with extensive market research about the music industry.
You will want to explain its current state of by taking account of
the industry participants, gate keepers, skeptics, pot
-For songs to be played in bars and clubs
-Fashion stores: Journeys, Zumies, H&M
-Commercial (i.e. Trident, Adidas, Sprit, Vans
-YouTube background music f
-Daily updates nn prumntinnal events.
-Pnst links tn all interviews and articles.
-Dn three mereh bundle giveaways thrnugh June
-K]im and Sweeney Sundays
-Pust euuntdnwn until the album drnp starting July 18th
- Recerd Steres
*- Band Website
Digital dewnleads will be given the eptien ef pre-erder.
Will else be given a disceunted price fer deluxe album update when
Deluxe album will ceme eu
Seeial Media Ads
In stare Advertising With J nurney's
-One minute premn that will play at least twice a day
4. What are the five major decisions, known as "the five M's" that marketing managers must make in
developing an advertising campaign?
The organizations handle their advertising in different ways. In small companies, advertising is
handled by someone in t
3. List and discuss three elements that explain how many exposures, E, will produce a level of
audience awareness, A.
Media selection is finding the most cost-effective media to deliver the desired number and type
of exposures to the target audience. What
2. Name four common criticisms of direct marketing.
Direct marketing is the use of consumer-direct channels to reach and deliver goods and services
to customers without using marketing middlemen. Direct marketers can use a number of channels to
1. Describe the eight major modes of communication in the communications mix.
The marketing communication mix consists of eight major modes of communication.
1. Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or
1. What is one of the hottest marketing strategies for ensuring success in the highly competitive
2. What does San Antonio-based H.E.B. call its approach to lifestyle marketing in the grocery
One of the hottest marketing strate
2. After a retailer has defined the store's product assortment how might he develop a productdifferentiation strategy?
The product differentiation definition states that it is the process by which a product is
distinguished from others, so that it appeals
1. Explain the difference between a push and a pull strategy in marketing. Under which conditions
would each be appropriate?
Most producers do not sell their goods directly to the final users; between them stands a set of
intermediaries performing a varie
1. What percentage of U.S. toys is produced by foreign manufacturers? Why might this be a
2. What two consumer concerns drove several massive toy recalls?
Over 80 percent of all toys sold in the United States come from foreign manufacturers and f
5. What is the six-step procedure most firms use to set their pricing policy?
As an entrepreneur, setting a pricing strategy and policy for your products/services for the first
time when you develop it or when you introduce your product / service into a n
4. What are the five determinants of service quality in order of importance?
The service quality of a firm is tested at each service encounter. If service personnel are bored,
cannot answer simple questions, or are visiting with each other while customers
3. What are the five categories of offerings in the product-service mix?
A service is any act or performance one party can offer to another that is essentially intangible
and does result in the ownership of anything. Its production may or may not be tied
2. Identify and explain the six levels of the product hierarchy.
The product hierarchy stretches from basic needs to particular items that satisfy those needs. We
can identify six levels of the product hierarchy, using life insurance as an example:
1. Name and describe the three groups products can be classified into according to durability and
Products can be classified into three groups according to their durability or tangibility:
1. Nondurable goods are tangible goods that are norma
1. James Dyson's innovative ideas come from two sources. What are those sources?
2. James Dyson has begun experimenting with robotics and microchips to accomplish what
British industrial designer, Sir James Dyson is best known as the inventor o
4. What are the four stages in the Product Life Cycle? Describe what happens at each stage.
A new product progresses through a sequence of stages from introduction to growth, maturity, and
decline. This sequence is known as the product life cycle and is a
3. What are the three key consumer desirability criteria for POD's (points-of-difference)?
Points-of-difference (PODs) are attributes or benefits consumers strongly associate with a
brand, positively evaluate, and believe they could not find to the same e
2. What are the two basic approaches to measuring brand equity?
Brand equity is the added value endowed on products and services. It may be reflected in the
way consumers think, feel, and act with respect to the brand, as well as in the prices, market sha
1. Describe the functions a brand provides for the firm.
A brand is a name, term, sign, symbol or a combination of them intended to identify the goods
and services of one seller or group of sellers and to differentiate them from those of competitors. A
5. What are the seven design elements that effective Web sites feature? Define each of these.
Companies must design Web sites that embody or express their purpose, history, products, and
vision. A key challenge is designing a site thats attractive on firs
1. Why is the senior market becoming more attractive?
2. What generational group is powering the growth of seniors?
Although older Americans are often overlooked in the rush to target hipper, younger groups as
customers, in reality, seniors are a huge mar