Example 1: 1. Did Todd and Alan Reed use the marketing concept? Did Alan learn about customer needs? Which of the eras described in the evolution of marketing do you think Todd and Alan exemplify? Yes, Todd and Alan Reed used the marketing concept, which has three parts: customer orientation, service orientation, and profit orientation. Alan created the product, applying customer orientation by creating something that the customer desired and is suited for what they want. They then applied service orientation by making sure everyone in the business was dedicated to customer orientation by providing pamphlets about the product and informing their customers about what they are eating. They also offered discounts to please customers and raise profits, applying the profit orientation. Alan learned about customer needs because the product went over well, until customers found out the ingredients and that the ice cream was made of potatoes. Customers wanted a sugar-free ice cream, but made from typical and knowledgeable ice cream ingredients. I think they exemplified the selling era because they did everything in their power to make the potato ice cream appealable by offering discounts and information to make the product sell faster. 2. What steps in the marketing process did Todd and Alan Reed take? Todd and Alan Reed first developed a product, which was the sugarless ice cream made from potatoes. They then took the step of test marketing where Alan Reed gave a few of his friends who would be potential customers, samples of the new ice cream without telling them it was made from potatoes. Then then took the step of the brand name by talking about how the ice cream was not regular, but in fact made from potatoes, making it a healthier option. They also offered discounts, which helped with promotion and gave out flyers regarding the potato ice cream and how it was made. 3. What potential problem might they encounter with this product? How could Todd and Alan use the last step of the marketing process to overcome the problem? One potential problem that they might encounter is people would be wary of eating an ice cream that came from potatoes since it is unusual. Customers may be unsure of the health implications of eating this type of ice cream and whether it is a healthy alternative. They could also be hesitating to eat the ice cream based solely on the fact that it comes from potatoes. Todd and Alan could use the last step in the process, the brand name by showing how this unusual food is better for health and tastes better. They could use the brand name of potato ice cream to differentiate themselves and attract customers by advertising the benefits and tastes of the new ice cream. 4. Identify the product, promotion and place variables in this situation. What price do you think they should charge? Why? The product is the newly created potato ice cream. The promotion is the informational pamphlets that Todd left at grocery stores and the discounts he offered at the stores for buying the ice cream in bulk. The promotion was also allowing members of his business class to sample the ice cream, so they could spread the word. The place was the grocery stores that Todd was distributing the ice cream at. The price they should charge for a pint of ice cream should be $3.00 because it is a new type of ice cream and people will be unwilling to purchase it if it is too expensive. On the other hand, if the product is too cheap then it may give off the impression that it is made from cheap ingredients in not the best quality, so the price should be in the middle of average pint size ice creams to attract customers. Example: 2 1. Did Todd and Alan Reed use the marketing concept? Did Alan learn about customer needs? Which of the eras described in the evolution of marketing do you think Todd and Alan exemplify? I think Todd and Alan Reed used the marketing concept but did not execute it well. From the customer orientation, Alan did not learn about customer needs as much. He simply just created the ice cream and had his friends to test taste. He should had research whether using potatoes would be appealing to consumers. From the service orientation, there is not follow up on grocery stores that purchased the ice creams from Alan and Todd. They would not know whether the customers are happy with the ice cream or not. Lastly, Alan and Todd limits their source of revenues in the profit orientation aspect. They only have one product that is only sold in grocery stores. However, Alan and Todd offers discounted rates for bulk purchases which can help increasing profits and sales. I think Todd and Alan exemplify the customer relationship era. According to the textbook, a highlight of the customer relationship era is learning as much as possible about the consumers and trying to satisfy them. Todd and Alan offered discounts and informational pamphlets to the supermarkets. 2. What steps in the marketing process did Todd and Alan Reed take? I think the steps in the marketing process Todd and Alan took are creating the brand, Al & Reed's, did a little bit of product testing by giving free samples out to friends and classmates, and selecting a distribution system which is selling the ice cream through grocery stores. 3. What potential problem might they encounter with this product? How could Todd and Alan use the last step of the marketing process to overcome the problem? A potential problem Alan and Todd might encounter is not introducing the ice cream to the consumers. Grocery stores may be a stepping a stone to expose the product to consumers. However, consumers tend to purchase brands they are most familiar with. The lack of promotion to the consumers will hurt the sales. To overcome the problem, they are start extensively promote the product. They can set up free sample stands inside the supermarkets or participate in popular events where they can offer samples and sell their products. 4. Identify the product, promotion and place variables in this situation. What price do you think they should charge? Why? Product: Sugar free ice cream made out of potatoes Promotion: Friends and classmates taste testing Place: Selling the ice cream in supermarkets I think they should charge a little less than what their competitors are charging. First, the ice cream is a relatively new brand and has a one of a kind ingredient (potato) that is not often seen in ice cream. Second, consumers might want to try the ice cream if is cheaper than what they usually buy. If the targeted market has a high population of consumers who prefer sugar free ice cream, the cheaper price tag can be a incentive for the consumers to buy.
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