Create the Value
Introduction
3.1: Diffusion of Innovation and Product Concepts (25 marks)
3.2: Product Management Concepts (50 marks)
3.3: Pricing Strategy (20 Marks)
3.4: Report Structure and Presentation (5 Marks)
Assignment 3: Create the Value
Introduction
This assignment has been designed to help you integrate and apply the marketing concepts, terms, and information you have learned up to this point. These concepts provide a foundation on which other course concepts are built. Assessing your comprehension will help ensure that you are on track to successfully complete the course. This assignment is worth 10% of your final grade in the course.
3.1: Diffusion of Innovation and Product Concepts (25 marks)
Suggested time: 1 to 2 hours
Length: Please write your response in point form and limit your response to 2 to 3 pages using 1.5 line-spacing.
Assessment: This part of the assignment will be assessed using the following criteria:
• Understanding of the factors that influence the adoption and diffusion of innovation.
• Identification and description of the marketing mix implications of each factor in this context.
As a member of Microsoft’s a new product team you participated in the development and marketing of “Surface” the company’s entry into the tablet world.
Go to Microsoft’s website at http://www.microsoft.com/Surface/en-CA. Review the product information about their tablet, the Surface.
1. Consider the product factors that influence the rate of adoption and diffusion of innovation. For each of the five factors, explain how that factor might affect the speed of the adoption of the new tablet, the Surface. Will each factor increase or decrease the rate of adoption? (10 points)
2. Identify five other non-product-related factors that might influence the rate of diffusion of innovation. Draw from your own experience on what influenced you to buy or not to buy a new product. (5 points)
3. Then make five marketing recommendations to the Microsoft’s team manager that will speed the adoption of the new product now that it has been introduced. These might relate to personal factors, sociocultural factors, organizational factors, or other factors outside of the control of marketers. (10 points)
3.2: Product Management Concepts (50 marks)
Suggested time: 2 to 4 hours
Length: Please write your response in essay format and/or point form as appropriate and limit your response to 4 pages using 1.5 line-spacing.
Assessment: This part of the assignment will be assessed using the following criteria:
• Comprehensiveness
• Depth of insight and analysis
• Rationale/support for the conclusions drawn
Go to the Internet and log onto Starbucks’ website at http://www.starbucks.ca. At the bottom of the home page under “About Us” read about the company’s heritage, company, and investor relations (overview). Go back to the top of the home page and review the products, menu offerings, and the responsibilities of the company. If you have an opportunity visit a Starbucks store. (This is not necessary to successfully complete this part of the assignment.)
Now answer the following five questions:
1. In spite of heavy competition from other coffee retailers in the marketplace, Starbucks secured the largest market share. What five factors do you think accounted for Starbucks’ success in securing its market share? (10 points)
2. Using marketing concepts, terms, and information from this module, describe Starbucks’ product strategy of in terms of:
• Product concept: core, actual, augmented, and potential product. (8 points)
• Product line: width, length, depth, and product line strategy. (12 points)
3. Describe and evaluate the branding strategy for Starbucks. What are the main advantages and disadvantages of this strategy? (5 points)
4. Given Starbucks’ growth all over the world, how would you recommend they organize their marketing effort (the structure of the people) for managing existing products and developing new products? (5 points)
5. In your opinion, what stage of the product life cycle are Starbucks’ products? What makes you think so? What are the marketing mix implications of being in this stage? Discuss product strategy, pricing strategy, distribution strategy, and communication strategy implications. (10 points)
3.3: Pricing Strategy (20 Marks)
Length: Please write your response in point form and limit your response to one to 2 pages using 1.5 line-spacing.
Assessment: This part of the assignment will be assessed using the following criteria:
• Comprehensiveness
• Depth of insight and analysis
• Rationale/support for the conclusions drawn
When pricing a new product, a marketer will select a strategy from several different price strategy options. The most common strategies used are skimming price and penetration price.
1. What are the advantages and disadvantages of each of these two price strategies for the organization? (10 points)
2. What are the advantages and disadvantages of each of these two price strategies for the customer? (10 points)
3.4: Report Structure and Presentation (5 Marks)
Remember, you will be judged by the structure, clarity, presentation, and quality of your work. Prepare and present your assignment in a formal manner suitable for business.
To ensure the quality of your written work, refer to the Assignment and Final Project Structure under the Assignments Section on the course navigation bar.
Assessment Criteria
The assignment will be evaluated using the following performance criteria:
Content—Address all points of information as outlined in the criteria and content for the assignments and Final Project. Incorporate specific references to readings, theories, ideas, and feedback that assisted you in rethinking your experiences and increasing your awareness of your marketing skills.
Knowledge—Demonstrate your knowledge, understanding, skills and perspectives on the course’s learning materials by applying them in the assignments and Final Project. Link theory and practice by applying what you learned from the readings, reflections, and practical application of your new marketing skills and from discussions with your fellow students.
Theory & Practice—Demonstrate the connections between the work of others (course materials, readings, activities, and discussions) and actual organizational principles, practices, and processes. Go beyond general descriptions. Be thoughtful and critical in your analyses, conclusions, and recommendations.
Critical Thinking—Use reflective, logical, and rational thinking to gather, combine, process, interpret, and analyze the information to develop a reasonable conclusion. Provide examples to support your comments and observations. Be specific and concrete. Tell a complete story. Avoid generalizations. Support a statement with a specific example that demonstrates your understanding and skill.
Note
Reference all quotations appropriately using the APA style (author, date, title, publisher, page number) and when needed provide website URLs or references. Visit the TRU Library at http://www.tru.ca/library/distance.html and access “How do I…?” for further information about how to cite resources.
Describe and evaluate the branding strategy for Starbucks. What are the main advantages and disadvantages of this strategy? (5 points)
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