Note: While representative of possible situations faced by the Brookly Nets, all scenarios in this assignment are fictional. REAL BUSINESS For a large discount retail store like Target and Walmart, it can be difficult to get the marketing mix just right for a given product. There are so many products in the store fighting for the attention of customers. There is also the challenge of helping the suppliers of each product maximize their profits while making sure the store is making money. With so many things to consider, working in marketing for such a large business can be a challenge. YOUR ROLE This week, you’ll be acting as a Marketing Manager in the sporting goods section. WHAT IS A MARKETING MANAGER? Marketing Managers are responsible for developing, implementing and executing marketing plans, either for an entire organization or for particular categories or products within the organization, in order to attract potential customers and keep existing ones. Their day-to-day tasks include managing and coordinating marketing and creative staff, leading market research to improve existing products and services, working with advertising agencies, and determining the best way to get products in front of customers. As a marketing manager for a discount retail store in Brooklyn, you have been asked to evaluate a marketing plan for basketballs to ensure that the 4 P’s of marketing are being applied well. Using your knowledge of the 4 P’s and the best approach to generating sales, you’ll take a look at a number of marketing recommendations and choose the approach that you believe will sell the most products. 1 BUS508: CONTEMPORARY BUSINESS INSTRUCTIONS STEP 1: PRODUCT LIFE CYCLE In the Marketing Analysis Presentation provided by your marketing team, you’ll see three different basketballs that need to be included in the product display on Slide 2. Each product has unique features. • Based on the information provided about the customers that shop at the store location on Slide 3, choose the basketball that you think will sell the most. Underline your selection: • Basketball 1 • Basketball 2 • Basketball 3 Explain the rationale for your decision. 2 BUS508: CONTEMPORARY BUSINESS STEP 2: PLACE On Slide 4 of the Marketing Analysis Presentation, you’ll see the results of a survey that asked potential buyers about where they are most likely to purchase these products. • On Slide 4 of the Marketing Analysis Presentation, you’ll see the results of a survey that asked potential buyers about where they are most likely to purchase these products. Underline your selection: • Traditional Stores • Online Explain the rationale for your decision. 3 BUS508: CONTEMPORARY BUSINESS STEP 3: PROMOTION Slide 5 of the Marketing Analysis Presentation shows three recommended advertisements, including a special deal promotion, for the product that is expected to sell the best. • Based on the information provided about the customers that shop at this store location on Slide 3, determine which promotional activity will sell the most product at this particular store. Underline your selection: • Promotion 1 • Promotion 2 • Promotion 3 Explain the rationale for your decision. 4 BUS508: CONTEMPORARY BUSINESS STEP 4: PRICE Look at the pricing options available for each of the three products together on Slide 6. • Based on your knowledge of the Pricing Strategies discussed on pages 186-187 in the textbook, choose the option that has the best pricing mix for all three products. Refer to the customer information on Slide 3, if needed. Underline your selection: • Pricing Mix 1 • Pricing Mix 2 • Pricing Mix 3 Explain the rationale for your decision. Note: You should complete Steps 5 & 6 after reading the material in Week 7. 5 BUS508: CONTEMPORARY BUSINESS STEP 5: BRAND & SALES PITCH The company that makes one of the basketballs is looking to rebrand the product. They have asked for your input on possible brands ideas. • First, read the Brand Vision statement which summarizes the goal for the new brand. Then, look at the logo, name, and tagline recommendations. Which of the two brand directions do you think best meets the goals of the brand vision? Underline your selection: • Brand Direction 1 • Brand Direction 2 Please support your decisions. • Second, write a 2-3 sentence sales pitch that you would use to try to convince someone to purchase this product. 6 BUS508: CONTEMPORARY BUSINESS STEP 6: MARKET SEGMENTATION The marketing plan for the basketballs at the Brooklyn store has been in place now for four months, and the marketing team has assembled a report reviewing sales data and customer feedback for the last quarter’s basketball sales. Overall, the results are lower than you expected and you are concerned that your marketing and creative staff have not properly segmented your target customers. Remember, like many products in the marketplace, the basketball’s marketing campaigns must target two different groups of customers: (1) adults who purchase the item as a gift and, therefore, do not actually use the product; and (2) adults and teenagers who purchase the item for their own use and enjoyment. Both groups have different reasons and expectations surrounding the item in question, and those reasons and expectations will have significant impacts on the buyers’ purchasing decisions. • Review the five customer segments detailed on pages 194-195 of your textbook: Behavioral, Sociographic, Psychographic, Geographic and Demographic. Select one focus area of each segment that you feel is most relevant to the sale of basketballs at this store location. • Keeping in mind the 4 P’s, write 1-2 questions for each focus area that will guide your staff as they investigate these aspects of your campaign. Example: • Segment: Geographic • Focus Area: Neighborhood • Questions: What combination of marketing and media channels did we use to reach current and potential customers? How are we gathering information on where current customers live who purchased a basketball? 7 BUS508: CONTEMPORARY BUSINESS Marketing Analysis BASKETBALLS AT BROOKLYN RETAIL STORE PRODUCT DESCRIPTIONS Basketball 1 Basketball 2 Basketball 3 WILSON COURTSIDE BROOKLYN NETS OUTDOOR RUBBER BASKETBALL SPALDING INDOOR/OUTDOOR BASKETBALL SPALDING OFFICIAL NBA BASKETBALL Built using a composite leather cover, the Spalding official-size NBA basketball looks and feels like an official NBA ball. The ball also includes a foam-backed design with full ball pebbling, helping it stand up to the challenge of competitive play while maintaining a soft, tacky feel. Best of all, the ball is designed for use both indoor and outdoor use, so you can bring it to the YMCA or the playground. Look and feel like a pro with this NBA official game ball. This is the exact same ball used in NBA games night after night, complete with the NBA log and twitter handle. It has a full grain horween leather cover, for superior texture and feel. Designed for indoor use only. If you’re looking for the real deal, look no further – this is it! Wholesale Cost: $25.00 Wholesale Cost: $89.99 Show off your love for the Brooklyn Nets with this official Nets branded basketball. This ball is constructed from rubber for maximum bounce, making it ideal for street ball. It has an exclusive dual-density cover for a soft, cushioned feel with wrap-around channels designed for outdoor use. The ball measures 29.5 inches and is slightly lighter than an official NBA ball. Wholesale Cost: $12.00 STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D. 2 CUSTOMER PROFILE • Target customer age: 15-35 years • 70% male • Median household income of $55,000 • 90% of customers live within a 5 mile radius • 80% of customers actively participate in sports; of those, 50% play basketball at least once a week • There is a YMCA one block away with an indoor basketball court; many customers are members • There are 14 outdoor basketball courts within a 10 mile radius of the store; many customers play in pickup games regularly • 40% of customers consider themselves “strong supporters” of the Brooklyn Nets STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D. 3 POTENTIAL BUYER SURVEY Target Customers (%) STRONGLY DISAGREE DISAGREE NEITHER AGREE NOR DISAGREE AGREE STRONGLY AGREE 18 36 21 17 8 8 28 38 14 12 12 16 23 32 17 12 14 18 21 35 16 14 18 21 31 32 22 14 18 14 I value convenience over being able to touch and feel products before purchasing When I shop, I usually know exactly the product I want I don’t like to wait for a product when I decide I need it I like to investigate numerous options prior to purchasing I prefer to see, touch and test a product prior to purchasing I typically remain attached to one product versus shopping for alternatives STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D. 4 POTENTIAL PROMOTIONAL OFFERS Promotion 1 Promotion 2 Promotion 3 Designed by Bedneyimages - Freepik.com Designed by Harryarts - Freepik.com STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D. 5 PRICING OPTIONS Pricing Mix 1 WILSON COURTSIDE BROOKLYN NETS OUTDOOR RUBBER BASKETBALL $29.99 SPALDING INDOOR/OUTDOOR BASKETBALL SPALDING OFFICIAL NBA BASKETBALL $29.99 $89.99 Pricing Mix 2 WILSON COURTSIDE BROOKLYN NETS OUTDOOR RUBBER BASKETBALL $19.99 SPALDING INDOOR/OUTDOOR BASKETBALL SPALDING OFFICIAL NBA BASKETBALL $39.99 $129.99 SPALDING INDOOR/OUTDOOR BASKETBALL SPALDING OFFICIAL NBA BASKETBALL $44.99 $179.99 Pricing Mix 3 WILSON COURTSIDE BROOKLYN NETS OUTDOOR RUBBER BASKETBALL $9.99 STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D. 6 BRAND VISION: WILSON STREET Description Brand Component Our vision is to be the leading brand for outdoor, street ball enthusiasts by providing basketballs specifically PURPOSE designed to meet their needs. DEMOGRAPHIC 14-25, male CHARACTER Passion, authenticity, grittiness, spontaneity ESSENCE By players, for players Most brands design basketballs for indoor and light outdoor use. Few brands have designed basketballs around the REASON TO BELIEVE outdoor, street ball culture embodied in many American cities and emulated across the country. Brand Direction 1 Brand Direction 2 RUCKER PARK WE GOT NEXT. REC LEAGUE LET’S BALL. Rec League represents the wide array of informal basketball cultures and Inspired by the famous court in Harlem, Rucker Park embodies the iconic captures the essence of impromptu basketball games all across America. culture of pick-up games and their influence on basketball culture. Designed by Patrickss - Freepik.com Designed by Freepik STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D. 7
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