Low Cost Carriers (LCC) Tiger Airways’ Marketing Strategy

Low Cost Carriers (LCC) Tiger Airways’ Marketing Strategy Executive Summary Since the late of last century, the business model of low cost airline represented by Southwest Airlines has been spreading all over the world, has influence and changed the framework and development of the world airline industry. This report is the analysis of the youngest airlines companies of Low Cost Carriers (LCC) Tiger Airways’s marketng strategy. Firstly, it is focused on the macro environmental factors affecting Tiger Airways. Next, it analyzes the competitors including direct and indirect competitors to point out the competitive advantage of Tiger Airways. Finally, this report is focused on the core competence analysis of Tiger Airways. 1. Introduction The low cost carrier is an airline that offers generally low fares in exchange for eliminating many traditional passenger services. The concept originated in the United States and subsequently spread to much of the rest of the world. The term originated within the airline industry referring to airlines with a lower operating cost structure than their competitors. The first successful low cost carrier was Pacific Southwest Airlines in the United States, which pioneered the concept in 1949, then this concept has been incorrectly given to Southwest Airlines which began service in 1971 and has been profitable every year since 1973.[1] Today, the low cost carrier model is applicable worldwide. One of the famous and successful airlines is Tiger Airways. Tiger Airways Private Limited is a low-cost airline which set up their headquarters in Singapores Changi International Airport. It is operated by one of the premium airlines in the world (Singapore Airline). The parent company is Tiger Aviation Private Limited that consists of The Tiger Singapore and Tiger Australia, Incheon Tiger Airways with slogan â€Å"Get The Real Deal†. The company was established from December 2003 to September 15, the 2004 maiden voyage.[2] It is currently the largest low cost airline operating in Singapore in terms of the amount passengers. Tiger Airways is Asia Pacifics true low fare airline. It offers the lowest fares of passenger safety and convenience of air travel. Tiger Airways from Singapore in September 2004 brought in two aircrafts in its fleet, the network of three routes. In the four years of operation, the operation of Tiger Airways from Singapore and Melbourne bases, base and third-party action in Adelaide in early 2009. Tiger Airways currently fly to over 25 destinations in nine countries in Asia. In only one year (2006), the airline served 1.2 million passengers; it is a growth of seventy five percent compared to the previous year. [3] Through the internet (the public and agents), it accounts for seventy five percent of Tiger Airways seats sold. In other words, passenger book from call centers and airport outlets accounts for twenty five percent. This indicates that the low cost carrier (LCC) model uses online marketing and technology to reduce operating costs is working. [4] 2. Macro-Environmental analysis 2.1 Technology Singapore is a technology driven country. From wireless internet to escalators, advanced technology is found everywhere in the country. People use technology here for the better quality of their lives. Under the Infocomm Development Authority of Singapore (IDA), [emailprotected] is a government initiative to build Singapores infocomm infrastructure. Working through IDAs call-for-collaboration, SingTel, QMax and iCell deploy a municipal wireless network throughout Singapore. Internet based booking adopted by Tiger Airways is one of the technological benefits. E-ticketing is the fastest way of booking tickets in the 21st century. Tiger Airways attracts most of its customers online. In addition, Tiger Airways operations are based on high-technology, and the company is constantly striving to bring customers the best services available in the industry in terms of operational efficiency, reliability and safety.According to industry standards, the on-time departure is the one that departs from the designated bay less than 15 minutes from the scheduled departure time.[5] That means they are not only doing their every effort to ensure that their planes leave on time (and get customers there on time), but also remain in tiptop condition as well, thus, customers will always get the same great experience that have come to expect, every time. 2.2 Demographic and economic The population in Singapore has increased and the visitors coming into Singapore has also increased. According to government statistics, the population of Singapore was 4.84 million in 2008, of whom 3.64 million were Singaporean citizens and permanent residents.[6] Singapore has one of the world largest GDP growths, which means that the people in Singapore are growing richer with higher rate of success. Singapore has a highly developed market which has historically revolved around extensive exports trade, in other words an export driven economy hugely dependant on export of goods to other countries. Along with Hong Kong, Taiwan and South Korea, Singapore is one of the Four Asian Tigers countries. The economy depends heavily on exports and refining imported goods, especially in manufacturing. Moreover, Singapore is also a popular travel destination making tourism one of its largest industries. There were about 7.8 million tourists visited Singapore in 2006.[7] It has also indirectly resulted in booming development of aviation industry. Singapore gets its revenue mainly through tourism and most of people coming from different nearby countries prefer these types of airline for their short travel. 2.3 Governmental Political forces are one of the most important factors for budget or low cost airlines. Forty nine percent of the shares of Tiger Airways are owned by Singapore Airlines (SIA). The chairman of the Singapore airlines belongs to the advisory council of the president which gives an added advantage to expand their network relationships with other airlines and countries. Singapore has a successful and transparent market economy. Government linked companies are dominant in various sectors of the local economy, such as utilities, media, and public transport. Singapore has consistently been rated as the least corrupt country in Asia and among the worlds 10 most free from corruption by Transparency International.[8] Apart from that, the Economic Development Board (EDB) together with the Information Development Authority of Singapore (IDA) aim to make Singapore the region’s major center. Their purpose is to promote Singapore as a compelling location for companies across the entire industry value chain; creating a self-reinforcing, inter-dependent ecosystem that will continuously attract talent, capital, ideas, and enterprises to create international products and services from Singapore. [9] 2.4 Cultural Singapore is a mixture of an ethnic Malay population with a Chinese majority, as well as Indian and Arab immigrants. There also exist significant Eurasian and Peranakan who are known also as Straits Chinese communities. Around 78,000 people work in the media in Singapore, including publishing, music, broadcasting, print, film, digital and IT media sectors. The industry contributed 1.56% to Singapores gross domestic product (GDP) in 2001 with an annual turnover of S$10 billion. The industry grew at an average rate of 7.7% annually from 1990 to 2000, and the government seeks to increase its GDP contribution to three percent by 2012.[10] Singaporean cuisine is an example of diversity and cultural diffusion, with influences from Chinese, Indian, Malay and Tamil cuisine. In Singapores hawker centres, traditionally Malay hawker stalls selling halal food may serve halal versions of traditionally Tamil food. Chinese food stalls may introduce indigenous Malay ingredients or cooking techniques. This continues to make the cuisine of Singapore a significant cultural attraction. That is one of reasons why Singapore is a popular tourist country. 3. Competitive analysis The cost of competition in airline industry is high. Tiger Airways, due to its low cost nature, has cut throat competition with the rival airlines like Virgin Blue and Jetstar. The industry growth is average for switching between airline companies which brings more convenience to the customers. The fixed cost is high for the Tiger Airlines and there is opportunity for it to sell unsold seats cheaply which results in pricing wars between the rivals. Tiger Airways competes in terms of price technology, customer services, in-flight entertainments and many more areas. 3.1 Comparison of Tiger Airways with Direct Competitors Air Asia: Air Asia is a low cost airline based in Kuala Lumpur, Malaysia. This is the first airline in the region providing ticketless travel and implementing comprehensive unassigned seats. With the domestic and international flight reservation Air Asia operates 656 flights daily, 102 routes to 57 destinations in 12 countries.[11] Destinations Covered: Air Asia covers fifty seven destinations as Tiger Airways which covers only nineteen destinations. It covers three times more than Tiger Airways’. Cost Analysis: Air Asia is approximately thirty percent more expensive as compared to Tiger Airways. For example, Tiger Airways ticket to Phuket is seventy two SGD whereas Air Asia charges one hundred and ten SGD. Air Asia charges one hundred and seventy SGD to Bangkok whereas Tiger Airways charges one hundred and thirty SGD. Baggage Allowance: Tiger Airways allows a maximum of fifteen Kg check in luggage and charges 25 SGD whereas Air Asia charges 7.50 SGD. Air India Express: Air India express is India’s first international airline that offers great value for money and provides convenient connectivity in the short range routes. Air India Express and Tiger Airways both connect India to Singapore and vice versa through Chennai.[12] Destinations Covered: Air India covers ten international destinations whereas Tiger Airways covers nineteen destinations. Cost Analysis: Air India Express is more expensive than Tiger Airways, for example, Air India charges 306 SGD to Chennai whereas Tiger Airways charges 269 SGD to Chennai. Baggage Allowance: Air India allows a certain limit of free of charge baggage whereas Tiger Airways only allows seven Kg of free hand baggage. Lion Air: Lion Air is Indonesia’s largest private carrier and Asia’s first hybrid carrier which offers both economy and business class seating. It operates scheduled passenger services on an extensive domestic network from Jakarta to forty destinations with 210 daily flights as of May 2008.[13] Destinations Covered: Lion Air covers 7 international destinations whereas Tiger Airways covers 19 destinations. Cost Analysis: Lion Airways is a little cheaper as compared to Tiger Airways. For example, Lion Airways charges 89 SGD for a ticket to Ho Chi Minh City whereas tiger airways charges 102 SGD. Baggage allowance: Free baggage allowance by Lion airs is 20kilos for economy class and 30kilos for business class whereas tiger allows only 7 kilos. 3.2 Tiger airways facing Indirect Competitors: Indirect competition includes trains and buses as other means of transport to reach a destination. Land transport that includes trains and buses are the indirect competition to air travel because they permit far greater capacity and frequency of service which is not possible by aircraft and their schedules are less interrupted by bad weather than airlines. Tiger Airways covers destinations such as Kuala Lumpur, Bangkok, Phuket and other destinations where are also accessible through other means of transportations such as trains and buses. Trains and buses hence are an indirect competition because of various reasons, such as time, price, and luggage allowed to carry, etc,. For example: 1. Tiger Airways has daily flights to Kuala Lumpur and Bangkok from Singapore but the frequency of buses from Singapore to Kuala Lumpur are ten times more. 2. Tiger Airways charges 59 SGD for a one way ticket from Singapore to Kuala Lumpur whereas the bus charges 33 SGD. However there are few buses such as Transnational Express which costs 15 SGD. Therefore, the ticket price varies depending on the type of bus passengers choose and the place from where passengers board the bus. A slower, costlier, but more comfortable way to travel to Kuala Lumpur, Malaysia, would be by rail. To Kuala Lumpur there are two day time trains and one over night sleeper train daily. The charges vary depending on the seat passengers choose. For instance, if passengers choose a first class seat it will cost approximately 28 SGD whereas a second class seat would cost around 14 SGD. 3. Tiger Airways charges 131 SGD for a one way ticket from Singapore to Bangkok and the train charges approximately 82 SGD for second class sleeper. However there is no direct train from Singapore to Bangkok. Therefore, passengers have to change minimum two to three trains further down to Bangkok. Obviously, convenience of travel is a known fact as traveling by air is the fastest means of transportation as compared to any other means. Basically for an airlines industry the main substitutes are travelling by train, bus or car to any desired destination. The various factors affecting these substitutes are money, convenience and time. However Tiger Airlines being price sensitive lures many travelers away from these substitutes. Thus, the cost is the key consideration for many travelers. The competitive possession of tiger airlines is affected by the bargaining power of the buyers. The potential buyers can put a lot of pressure on airline business which further affects its price, volume and profit margin. Tiger Airlines flying from the Gold Coast airport is competing for the same customer, which in turn is strengthening the buying power. A lot of buyers are attracted to tiger airlines as it main strength is its price. The threaten route for Tiger Airlines in the future is determined by the existing barriers to entry. Cost of entry is the biggest barrier. The cost of buying and leasing aircrafts, safety and security measures, customer services and man power is high. Tiger Airways itself a new entrant in the Airline industry has added a lot to the competition. This means a major constraint on the profit margin for the Airline industry. 4. Core Competences Analysis In order to satisfy the visitors on the Asia-Pacific region, Tiger Airways relies on low fares and the reliable regional air services. That is a true low fare airline which operates on three customer-focused core strategies: First of all, market stimulation. Tiger Airlines creates opportunities for new travelers and empowering budget conscious people to fly more often by making travel affordable with its consistent low fares. Tiger Airlines facilitates its processes of providing effective consumer service by online sales services, they provide hotel accommodation for the passengers, car rental and travel insurance benefits to passengers online. Huge response is generated by the consumers through the process of online sales as the number of seats booked online is increasing year after year. Services provided to travelers with benefits like offering them more options in terms of increased capacity in routes. Tiger Airlines is still under process of opening more travel options for the employees. Secondly, Tiger realized the importance of stringent cost control through their operations, so that they can keep our fares consistently low for travelers. Tiger Airways empowers budget conscious people to fly more often by making travel affordable with its consistent low fares. The market share of the airlines has increased due to the low price. Tiger airways offered 100,000 seats at 9.95 for Australian destinations. To book return flights from Melbourne at Mackay at 49.95 per flight and there were no server problems as in the case of Jet star. They charge $30 for exit row seats and $8 for all other seats. Thirdly, capacity utilization maximizes the number of sectors served by their aircraft per day with efficient air traffic planning. Tiger Airways has effective workforces, who work diligently to make the airlines a success. With the increase in the number of phone customers, due to good salesmanship done by the employees working in the call centers, the airline has decided to increase the number of staff in call centers. Generally the tickets are sold online or in airports. After sale services like delivering the purchased ticket at the house of customers adds to its marketing strategy. Moreover, Tiger Airways seeks to act as a good corporate citizen at all times and undertakes contributions and sponsorship programs as part of its partnership with the community. For example, it is currently making conscious efforts to conserve wildlife and sponsors the upkeep of Winnie, a white Tiger at the Singapore Zoological Gardens for the purpose of conservation, education and recreation Tiger Airways business model is based on the success of Ryanair, which uses a very low cost competitive basis, the basis of low fares. It also involves examining every aspect of the business, in an effort to eliminate non-essential costs, but it will not cut any corner of the passenger safety and on time. However, Tiger Airways should be constantly looking for good business opportunities available to the market. For example, one glaring advantage of using YouTube is that it serves 100 million videos per day. No matter what YouTube content (unlicensed, kids falling of skateboards, etc), thats a huge number and there are tremendous opportunities for Tiger Airways to benefit in order to reach such a huge audience for any business opportunities. Changes in technology and markets on both a broad and narrow scale are opportunities that Tiger Airways can also utilize. According to Forrester Research, online consumer auction sales will reach US$65 billion by 2010. This is almost one-fifth of all online retail sales. The growth of high speed broadband, and the number of online users, has opened new windows of opportunity for reaching viewers. The aims is to find the most effective internet advertising techniques for making full use of the internets, rapidly expanding, global marketplace. 5. Conclusion Based on above analysis, it can be seen clearly that Tiger’s success is no accident. It is based on their effective correct marketing strategies and operation performance. Although Tiger Airway is a successful company and has achieved good brand recognition widely, it still has much to improve in order to maintain the momentum it has generated over five years in operation. From the research point of view, with the marketing mix audit, I m able to identify and provide suggestions based on the aspects which we feel have to be improved, reinforced, developed to be the most effective. Besides that, I get an obvious view of the marketing strategies employed by Tiger Airways through the macro, competitive and core analysis. Reference [1] The History of PSA, http://www.jetpsa.com/index/history.html [2] Company Overview, http://www.tigerairways.com/sg/en/about_us.php [3] Tiger Airways sees 75% jump in number of passengers. Channel NewsAsia, Janauary 2007 [4] Tiger Airways new Advertising Campaign sees sales up more than 60%, 26 October 2005, http://www.asiatraveltips.com/news05/2610-Advertising.shtml [5] On-Time Performance, http://www.tigerairways.com/id/en/on_time_performance.php [6] Singapore Statistic, http://www.singstat.gov.sg/stats/keyind.html#popnarea. [7] Record Year As Tourism Exceeds 2006 Targets With S$12.4 Billion Tourism Receipts And 9.7 Million Visitor Arrivals, http://app.stb.gov.sg/asp/new/new03a.asp?id=6243 [8] Transparency International Corruption Perceptions Index 2006. http://www.transparency.org/policy_research/surveys_indices/cpi. Retrieved on 2007-02-03. [9] Singapore Paves the Way as Trusted Global E-Commerce Hub http://www.ida.gov.sg/News%20and%20Events/20060926094702.aspx?getPagetype=20 [10] Media 21: Transforming Singapore into a Global Media City. Media Development Authority Singapore (PDF). Retrieved on 17/09/06 [11] AirAsia, http://www.budgetairlineguide.com/airasia [12] Air India Express, http://www.airindiaexpress.in/airindiaexpress/Home.asp [13] Lion Air, http://w3.lionair.co.id/ [14] Tiger Airways, http://www.tigerairways.com/sg/ [15] Cheap Airline Tickets! http://www.kipaddotta.com/travel/cheap-airline-tickets.html [16] Gross, S./Schroeder, A. (Eds.): Handbook of Low Cost Airlines Strategies, Business Processes and Market Environment, Berlin 2007

Designing and Managing Integrated Marketing Channels Essay

Designing and Managing Integrated Marketing Channels GENERAL CONCEPT QUESTIONS Multiple Choice 1. Intermediaries who buy, take title to, and resell the merchandise are called ________. 2. Companies that search for customers and may negotiate on the producer’s behalf but do not take title to the goods are called ________. 3. Transportation companies, independent warehouses, banks, and advertising agencies that assist in the distribution process but neither take title to goods nor negotiate purchases or sales are called ________. 4. One of the chief roles of marketing channels is to convert potential buyers into profitable ________. 5. A marketing channel system is the particular set of ________ employed by a firm. Decisions about the marketing channel system are among the most critical facing a firm. 6. A ________ strategy involves the manufacturer using its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to end users. 7. A ________ strategy creates consumer demand through promotions and advertising as a way to induce intermediaries to carry the product. 8. Today customers expect channel integration to work smoothly. Which of the following is NOT one of the characteristics of channel integration? a. The ability to order the product online and pick it up at a retail location b. The ability to return an online purchase at the retail location c. The right to receive discounts based on total online and off-line purchases d. Offering gift certificates that can be redeemed online and off-line e. None of the above are characteristics of channel integration 9. Generally speaking, buyers fall into four categories. Which of the following is NOT one of these categories? a. Habitual shoppers b. High-value deal seekers c. Low-involvement shoppers d. Variety-loving shoppers e. High-involvement shoppers 10. Shoppers who primarily seek stores that suit people like themselves or members of groups they aspire to join are known as ________. 11. A supply chain view of a firm sees markets as destination points and amounts to a linear view of the flow. The company should first think of the target market and then design the supply chain backward from that point. This view is called ________. 12. A value network includes a firm’s suppliers and its suppliers’ suppliers, and its immediate customers and their end ________. 13. Through their contacts, experience, specialization, and scale of operation, intermediaries help firms _______ in making goods widely available. 14. A marketing channel overcomes the time, place, and ________ gaps that separate goods and services from those who need or want them. 15. Physical functions, title functions, and promotional functions are example of ________ flow of activity from the company to the customer. 16. The question regarding the various channel functions is not whether or not they need to be performed but who is to perform them. All channel functions have three things in common. Which of the following is NOT one of these channel functions? a. They use up scarce resources. b. They can often be performed better through specialization. c. They can be shifted among channel members. d. They require substantial investments by the producer. e. None of the above 17. A ________ channel consists of a manufacturer selling directly to the final customer. 18. Designing a marketing channel system involves analyzing customer needs, ________, identifying major channel alternatives, and evaluating major channel alternatives. 19. In designing the marketing channel, the marketer must understand the service output levels desired by the target customers. Channels produce five service outputs. Which of the following is NOT one of these outputs? a. Product variety b. â€Å"Entertainment shopping experience† c. Spatial convenience d. Waiting and delivery time e. Lot size 20. Channel objectives should be stated in terms of ________ service output levels. 21. A channel alternative is described by three elements: the types of available business intermediaries, the number of intermediaries needed, and the ________. 22. Companies deciding on the number of intermediaries to use at each channel level have three strategies available to them. They can use exclusive distribution, ________ distribution, and intensive distribution. 23. When the producer wants to maintain control over the service level and outputs offered by the resellers, it most likely will use ________ distribution. 24. By granting ________, the producer hopes to obtain more dedicated and knowledgeable selling. 25. With ________, the company does not need to worry about too many outlets; it can gain adequate market coverage with more control and less cost that intensive distribution. 26. Manufacturers are constantly tempted to move from exclusive or selective distribution to more intensive distribution in order to ________. 27. ________ distribution consists of the manufacturer placing his goods and services in as many outlets as possible. 28. The main elements in the â€Å"trade-relations mix† are price policies, conditions of sale, ________, and specific services to be performed by each party. 29. Each channel alternative needs to be evaluated against ________, control, and adaptive criteria. 30. One of the control issues of using a sales agency as a channel partner is that the sales agency is an independent firm seeking to ________. 31. After a company has chosen a channel alternative, individual intermediaries must be ________, trained, motivated, and evaluated. 32. It is important for the company to select its channel members carefully because to the customers, the channels _________ the company. 33. ________ can be defined as the ability to alter channel members’ behavior so that they take actions they would not have taken otherwise. 34. The five types of power available to the producer to elicit cooperation from channel members includes all of the following EXCEPT ________ power. 35. In competitive markets with low entry barriers, the optimal channel structure will inevitably ________ over time. 36. Regarding distribution systems, one of the most difficult decision that a firm must make at some time involves ________ the channel strategy. 37. A conventional marketing channel comprises a(n) ________, wholesaler(s), and retailer(s), each acting in his own self-interest. 38. A(n) ________ comprises the producer, wholesaler(s), and retailers(s) acting as a unified system. 39. A(n) ________ consists of independent firms at different levels of production and distribution integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone. 40. Which of the following is a type of contractual VMS? a. Specialty stores b. Franchise organizations c. Kiosks stores d. Catalog stores e. None of the above 41. When two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity, it is called a ________. 42. ________ occurs when a single firm uses two or more marketing channels to reach one or more customer segments. 43. By adding more channels, companies can gain three important benefits. First, they can increase their market coverage; second, they can lower channel costs; and third, they can provide ________. 44. ________ is generated when one channel member’s actions prevent another channel from achieving its goal. 45. ________ involves conflict between members at the same level within the channel. 46. ________ means conflict between different levels within the same channel. 47. ________ exists when the manufacturer has established two or more channels that sell to the same market. 48. ________ occurs when channel members are brought together to advance the goals of the channel, as opposed to their own potentially incompatible goals. 49. Causes of channel conflict include all of the following, EXCEPT________. a. goal incompatibility b. differences in perception c. dependency d. unclear goals and rights e. channel power usage 50. There are several mechanisms for effective channel conflict management. These include the following, EXCEPT ________. a. frequent vendor switching b. superordinate goals c. co-optation d. diplomacy e. mediation 51. ________ is an effort by one organization to win the support of the leaders of another organization by including them in advisory councils, board of directors, and the like. 52. ________ means resorting to a neutral third party who is skilled in conciliating the two parties’ interests. 53. Producers of strong brands sometimes sell them to dealers only if the dealers will take some or all of the rest of the line. This practice is called full-line forcing or ________. 54. ________ describes the use of electronic means and platforms to conduct a company’s business. 55. ________ means that the company or site offers to transact or facilitate the selling of products or services online. 56. ________ means companies decide to purchase goods, services, and information from various online suppliers. 57. ________ describes company efforts to inform buyers, communicate, promote, and sell its products and services over the Internet. 58. ________ are companies that have launched a Web site without any previous existence as a firm. 59. ________ are existing companies that have added an online site for information and/or e-commerce. 60. For the brick-and-click companies, adding an e-commerce channel creates the threat of ________ from retailers, brokers, agents, and other intermediaries. Essay 101. Explain why the marketing channel system is so important to a firm. 102. Explain the concept of a hybrid channel distribution system. 103. Different consumers have different needs during the purchase process. Researchers Nunes and Cespedes argue that, in many markets, buyers fall into four categories. List and briefly define these four categories. 104. Demand chain planning yields several insights for manufacturers who follow this view of the supply chain. Explain what these insights are and how companies can use them to their best advantage. 105. What are some of the advantages available to producers using intermediaries? 106. In designing a marketing channel system, the marketer must understand the service output levels desired by target customers. Channels provide five service outputs. List and briefly describe each of these outputs. 107. Manufacturers are constantly tempted to move from exclusive distribution or selective distribution to more intensive distribution. Give a reason why this might not be a good long-term strategy for a manufacturer. 108. Explain the differences between a vertical marketing system (VMS) and a conventional marketing system? 109. The most advanced supply-distributor arrangements for administering VMSs involve distribution programming. Explain the components of distribution programming. 110. For a brick-and-click company to add e-commerce to its marketing mix, the firm must be aware that it creates the threat of a backlash from its channel partners. The question remains: How to sell both through intermediaries and online? Three strategies for successfully answering this question were postulated in the chapter. List and briefly define these three strategies. APPLICATION QUESTIONS Multiple Choice 111. Your product enjoys high brand loyalty and high involvement in the category. It has perceived differences that consumers recognize between brands and is one of the few that its consumers choose before selecting the retail store/Web site to purchase the product. Which promotion strategy would hold the greatest opportunity for incremental sales for your product? 112. Your product has low brand loyalty in its category; brand choice is often made by the consumer in the store, often at the very moment of purchase. Which promotion strategy would hold the greatest opportunity for incremental sales for your product? 113. When managing a hybrid channel, the channel manager must ensure that these different channels work seamlessly in the consumer’s opinion. When the consumer can order a product  online and pick it up at the nearby retail store or be able to return the Internet-ordered product to the retail store, we state that the channel has ________. 114. Jenny gathers information from a variety of channels, conducting extensive research on the advantages/disadvantages of the products available. She visits a number of high-priced retailers, asks numerous questions, and tries many of the products. When the time comes to purchase, she always purchases through the lowest-cost channel. Jenny is best described as a ________. 115. Palm, the leading manufacturer of handheld devices, consists of a whole community of suppliers and assemblers of semiconductor components, plastic cases, LCD displays, and accessories; of off-line and online resellers; of 275,000 developers in the Palm Developer Network who have created over 21,000 software programs and 100 hardware add-ons for the Palm operating system for handheld computers and smartphones. Combined, these make up Palm’s ________. 116. A company selling exercise equipment may need to establish three channels of distribution—a sales channel, a delivery channel, and a ________. 117. Tupperware manufactures kitchen goods and has its representatives sell them through home parties. This is an example of a ________. 118. ________ deals between suppliers and retailers, such as Disney’s Consumer Products deal with Wal-Mart, are becoming a mainstay for specialists looking for an edge in a business world that is increasingly driven by price. 119. In rolling out your company’s newest product, you decided to use manufacturers’ representatives as your sales agents. Part of your ________ was to establish territories based upon counties per state. 120. The sales of your product are low compared to your competition. The decision facing you is whether to use a sales agency (brokers, manufacturers’ representatives) or hire a field sales force. The fixed costs of engaging a sales agency are lower than those of establishing a company sales force, but costs rise faster through an agency. When figuring out sales and costs, the intersection of the costs between sales agencies and sales force (SB) means that ________. 121. Rolex is very selective when choosing the retailers that will sell its watches. The company needs to view its retailer in the same way as it views its end users. The firm needs to determine intermediaries’ needs and construct a channel positioning such that its channel offering is tailored to provide ________ to these retailers. 122. As more women entered the workforce and were unavailable to Avon’s traditional door-to-door system for selling cosmetics, Avon ventured into selling its cosmetics in JCPenney. Avon revised its channel strategy due to ________. 123. When Kodak coordinates successive stages of production and distribution and receives cooperation from major retailers in connection with displays, shelf space, promotions, and pricing policies due exclusively to Kodak’s size and power , we call this a(n) ________. 124. The emergence of rental car counters, hair salons, banks, and dry cleaners found in such stores as Wal-Mart, Target, grocery retailers, and others is an example of ________ marketing systems. 125. As a recent college graduate, you dream of opening up your own business. You have explored franchising. In fact, one of the companies that you are strongly interested in is a service organization (fast food) that has a whole system designed to bring its service efficiently to consumers. This is an example of a ________. 126. A soft-drink concentrate producer makes a 20% margin on its regular soda and 25% on its diet version of the same drink. The soft-drink bottlers, however, are required to sell both the regular and diet versions to the retailers at the same price. This is a classic example of ________. 127. In deciding to take your product to market, one of the first considerations must be your channel or channels of distribution. If you decide to sell your product (a) in exclusive franchisee operations and (b) to mass distributors/retailers concurrently, to the same target market, this may lead to a ________. 128. As a marketing manager for a national company that uses brokers as your field sales agents, you suggest to your senior management the creation of an â€Å"advisory team† composed of retailers, food brokers, sales managers, and inside marketing and management personnel. Your objective is to win support of the leaders of another organization by including them in planning discussions. You are advocating what type of conflict management resolution? 129. The text would define eBay, a third party that creates markets by linking buyers and sellers, as a ________. 130. Harley-Davidson’s entry into the Web for their parts and accessory business called for them to â€Å"protect† their retailers by referring customers to the local Harley-Davidson dealer. One additional strategy available to firms wishing to protect their channels of distribution yet capitalize on Internet sales is ________. Short Answer 131. Define the term â€Å"marketing channels.† 132. Why is a marketing channel system so important to the manufacturer? 133. The ability by the consumer to access information via the Internet, conduct business transactions either by phone, Internet, or in person is an example of a company using what type of marketing channels? 134. When you deliver the products to the customer, exchange title of the goods, or even conduct a sales promotion, you are conducting a forward flow of activity through the channel. Explain the elements for a backward flow from customers to the company. 135. In setting up your distribution channel, you note that you must account for the physical transfer of the product from your location to the consumer and must receive payment for the goods sold. These are part of the channel functions. All channel functions must be performed and have three things in common. List the three things that all functions have in common. 136. Your company has decided to use a distribution channel that consists of a wholesaler, a jobber, and a retailer to reach your final consumer or user of your product. How many channel levels are involved in the distribution of your product to the final user? 137. When we talk about manufacturers’ redemption centers, community groups, trash-collection specialists, recycling centers, and central processing warehouses, we are talking about what kind of distribution channels? 138. The ability of a shopper of laundry detergents to visit a grocery retailer and see a wide variety of brands, sizes, and units for purchase is an example of what elements of the channel service output? 139. As the â€Å"channel manager† for your firm, you have been asked by senior managers to identify new distribution channels for the launch of a new product. Your presentation describes a channel alternative as having three sets of elements. What are the three elements that would be contained in your presentation? 140. A leading manufacturer of watches maintains a set of very exclusive networks of retailers (exclusive distribution) that are authorized to sell its watches. This exclusivity ensures that the company can control the service level, distribution, and outputs offered by the retail stores doing business with them. Recently, however, there has been pressure on the company (by Wall Street investors) to expand its products to more and more retailers (intensive distribution) in order to increase sales. What are some of the dangers that the company might encounter when moving from one form of distribution to another? 141. List the main elements in the â€Å"trade-relations mix† between producers and channel members. 142. As the channel manager at a consumer products firm, you develop a channel incentive program in which channel members receive an extra 2% discount on all purchases when the channel members agree to pass half of this discount along to their customers in terms of a price decline. This is an example of what type of channel power? 143. When you purchase a Subway franchise, the corporate office delivers to you an entire system designed to bring the services efficiently to the consumer. This is an example of what type of contractual VMS? 144. When independent operators such as optometrists or nail and hair salons locate in the front part of selected retail superstores, this is an example of what type of marketing system? 145. A textbook manufacturer uses a direct sales force to reach the college market, a telemarketing division to reach small independent bookstore owners, and rack jobbers to reach retail outlets. This is an example of what type of marketing systems? 146. What three important benefits can companies gain by adding more channels? 147. Identify four things that marketers can do to better integrate their online and off-line channels. 148. You own a franchise of a national chain of quick luncheon meals. The corporate office is conducting a nationwide marketing campaign introducing a $5.00 value meal option. This $5.00 value meal option severely cuts into you operating margins. Numerous complaints to the corporate office have resulted in the corporate office taking the position that â€Å"the franchisees need to be competitive and this $5.00 meal is competitive.† You disagree, noting that  even with an increase in store traffic, the reduction in revenue and margin produced by this value menu will result in a net loss for your store. What type of channel conflict is evident here? 149. When one Pizza Hut franchisee noticed that his counterpart in the south part of town was using â€Å"nonapproved† ingredients in its Pizza Hut pizzas, he complained to the franchise office. This is an example of what type of channel conflict? 150. In setting up your company’s channel of distribution, you arranged for the company’s products to be carried by a select set of outlets and required that these outlets not carry competitive products. What are the benefits to the company and to the distributor in entering into such an exclusive distribution and exclusive dealing arrangement?

Book Keeping Essay

Book keeping it also referred as the keeping of book. Book keeping is the process of keeping full, accurate, up-to-date business records. Proper methods can help businesses effectively manage cash flow, stay abreast of profit and losses, and develop plans for the future based on financial trends. Furthermore, keeping accurate book is required by both federal and local tax agencies. The book keeping process involves making a record of the monies received by a business as well as the monies paid out. It encompasses money a company owes to vendors, employees, tax agencies, contractors, and any other individual or entity. Likewise, accurate records of amounts owed to a company by outside individuals and organizations are also recorded in a company’s books. Though necessary and beneficial to business owners, the task can be very time consuming. With no exceptions, every monetary amount that is paid or received must be recorded. Additionally, accuracy is of the utmost importance, making keeping the books in a rushed manner a very bad idea. As business owners are often lacking in time, many choose to hire professional bookkeepers to keep company records well maintained. Of the many reasons for keeping accurate records, business and income taxes are among the most important. In the United States, for example, the Internal Revenue Service requires business owners to keep financial records that are complete and up-to-date. State and city tax agencies may require businesses to maintain accurate records as well. In fact, a business owner who fails to keep acceptable financial records may be liable for significant monetary fines or other penalties. A company’s books are used to determine the amount of taxes the company must pay, and they are also used in preparing tax returns. Sometimes, a tax agency may decide to investigate the information reported on a return or other type of tax-related document. In such cases, business owners are required to present accurate records for the tax agency’s inspection. Failure to do so could lead to hefty fines, penalties, or in severe cases, imprisonment. Although hiring bookkeeping professionals may be a good idea for many companies, not all business owners can afford to do so. This is particularity true of smaller, home-based, or start-up businesses. Fortunately, there are many computer programs designed to make the task of keeping the books manageable and less time consuming. Many programs handle all of the calculations for the user, taking the worry out of keeping accurate figures. Available even to those on tight budgets, this software makes record keeping easy. (N. Madison, 2013, Wise Geek.)[online] ACCOUNTING CYCLE The accounting cycle is often described as a process that includes the following steps: identifying, collecting and analyzing documents and transactions, recording the transactions in journals, posting the journalized amounts to accounts in the general and subsidiary ledgers, preparing an unadjusted trial balance, perhaps preparing a worksheet, determining and recording adjusting entries, preparing an adjusted trial balance, preparing the financial statements, recording and posting closing entries, preparing a post-closing trial balance, and perhaps recording reversing entries. Cycle and steps seem to be a carryover from the days of manual bookkeeping and accounting when transactions were first written into journals. In a separate step the amounts in the journal were posted to accounts. At the end of each month, the remaining steps had to take place in order to get the monthly, manually-prepared financial statements. Today, most companies use accounting software that processes many of these steps simultaneously. The speed and accuracy of the software reduces the accountant’s need for a worksheet containing the unadjusted trial balance, adjusting entries, and the adjusted trial balance. The accountant can enter the adjusting entries into the software and can obtain the complete financial statements by simply selecting the reports from a menu. After reviewing the financial statements, the accountant can make additional adjustments and almost immediately obtain the revised reports. The software will also prepare, record, and post the closing entries. (Harold,A.2013,Accounting Coach.)[online]. SOURCE DOCUMENTS Source documents are documents, such as cash slips, invoices, etc. that form the source of (and serve as proof for) a transaction. In other words, they are the first documents that exist relating to a transaction. Invoices, cash slips, receipts, check counterfoils, bank deposit slips ,credit notes ,debit notes ,voucher , purchase orders and even internet payment confirmations are all source documents. For example: Invoices Credit Notes Receipts Voucher Purchase orders BOOK OF PRIME ENTRY Book of prime entry is book used in recording transaction. Books of prime entry are also known as books of original entry or subsidiary books. Types of books of prime entry: Books of prime entry are also known as either ‘journals’ or ‘daybooks’. The term ‘day book’ is, perhaps, more commonly used, as it more clearly indicates the nature of these books of prime entry – entries are made to them every day. The commonly used books of prime entry are: Sale Day Book /Sale Journals –Sale journals is to record credit sales. Purchases Day Book/Purchases Journals –Purchases journals is to record credit purchases. Sales Return Day Book/Return In Journals –Return in journals is to record returns from customers. Purchases Return Day Book/Return Out Journals –Return out journals is to record returns to suppliers. General journal/The journal –The journal is to record other transactions. The cashbook is a combined account of the cash account and the bank account. It is the only one of the six daybooks that is both an account and a daybook at the same time. Apart from the cashbook, all the other double-entry accounts are kept in one of the three ledgers. Example for 3 Column Cash Book LEDGER (T-ACCOUNT) The ledger is a collective term for the accounts of a business. (A ledger of accounts is like a school of fish). The accounts are in the shape of a ‘T’ and thus are often referred to as ‘T-accounts’. In this step we take all the debits and credits (journals) relating to one account – let’s say ‘bank’ – and draw up an account for bank that shows all the transactions relating to it. The different types of ledgers most businesses use are: Sale Ledgers –Sale ledgers is to record customers account balance. Purchases Ledgers –Purchases ledgers is to record suppliers account balance. General Ledgers –General ledgers is to record miscellaneous account. Example: PETTY CASH BOOK The petty cash book is used to record the changes to the petty cash fund – both money put into the fund and money taken out. The fund is commenced with a petty cash advance cheque and topped up with a reimbursement cheque at the end of each petty cash period.The petty cash book is prepared from the petty cash vouchers, as well as the details from the advance and reimbursement cheque butts. The petty cash book is prepared from: –advance (and/or reimbursement) cheque butt/s –completed and authorised petty cash vouchers. The totals can be checked by cross-adding related column totals.The total of the vouchers (Cash Payments column total) added to the balance left in the petty cash fund (Balance column) should always equal the imprest amount. TRIAL BALANCE A sheet displaying all the accounts of a business, drawn up as a trial (test) of whether the total of all the debit balances equal the total of all the credit balances (A balance is the amount of an item at a point in time. For example, The balance in the bank account on the 1st of January was $5,000.). The trial balance is prepared as a final check just before the financial statements are drawn up. The trial balance is our penultimate step in the accounting cycle. Example for Trial Balance: FINAL ACCOUNT Final accounts are all of the financial statement for a business or company at the end of the fiscal or calendar year, on whichever the business calendar the company operates. The statements for the final accounts show the gross profit and net income of the company. A number of accounts are included, such as the profit and loss statement for the business, the balance sheet, and the trading account. The profit and loss statement tracks all of the income that comes into the company, as well as the expenses that the company pays out. The profit and loss statement covers a specific period — typically the fiscal year, but it can also cover the calendar year. It shows how revenue becomes net income, and whether or not the company made money for the year. While the company tracks these figures throughout the year, the final accounts include the statement for the cumulative fiscal or calendar year. The balance sheet is another one of the business financial statements that are prepared as part of the final accounts process when the year closes out. The balance sheet provides a quick look at how the company is doing at that specific moment in time, at the end of the year. In addition to assets and liabilities, a balance sheet also includes information on shareholder equity. Trading accounts cover profits and losses incurred from trading securities. Many companies invest in stocks, bonds, mutual funds and other types of investment funds. The final accounts for the trading account show the amount of gain or loss from these investments at the end of the year that the company runs on. Final accounts and the statements that make up these accounts typically help companies to prepare their various tax returns. If the company accountant prepares the tax statements, then the accountant prepares these statements for his or her own use. If the company hires an outside accountant or accounting firm, then the statements for the final accounts are handed over to the third party, so they have the information they need to prepare the company’s tax returns and any of tax paperwork that is required. (Kristie,L and Wilborn,C.2013,Wise Geek)[online] INCOME STATEMENT A financial statement that measures a company’s financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year. Also known as the â€Å"profit and loss statement† or â€Å"statement of revenue and expense.† Example for Income Statements: STATEMENT OF FINANCIAL POSITION A statement of financial position, also known as a balance sheet, is a financial document that provides an overview of an entity’s finances at a given point in time. These statements are commonly used by companies large and small, but they can also be applied to personal finances, for people who want to generate a document that they can use to review their financial situation for the purpose of making budgeting decisions or financial plans. Many accounting software programs have mechanisms to automatically create one. There are two main areas on a statement of financial position. One covers the assets, everything owned by the person or company, including real estate, cash in hand, contents of bank accounts, and so forth. The other side includes the liabilities, funds owed. A statement usually breaks these sections up into several categories for ease of reference, so that people can quickly look up a topic of particular interest, such as accounts payable or overdue loans. The liabilities also include the ownership equity or the shareholder equity in the business. The assets should equal the liabilities once the ownership or shareholder equity has been factored in, and if they do not, it is a sign that the financial statement is out of balance. This is in accordance with the accounting equation, which states that assets = liabilities + ownership or shareholder equity. Incidentally, this explains the term â€Å"balance sheet,† which reflects the idea that the two sections of the sheet should be equal or balanced. Commonly, a statement of financial position will be generated at the end of every month. Looking up past months can provide information about how a company’s finances are progressing, and these documents can also be compared with statements from the same month in prior years. Using this document, decisions can be made about the next steps to take. If, for example, a company has a lot of assets, it may be a sign that it can comfortably expand because it has the available capital to do so. Companies that are publicly traded must provide public disclosures about their financial health, including statements of financial position. These are provided to shareholders by request and are also commonly published to make them readily accessible to prospective investors. If a company has a website, they might be found on a section of the website that includes documents that the company is required to disclose by law. (Smitch,S. and Wallace,O.2013,Wise Geek)[online] Example for Statement of Financial Position: CONCLUSION Book keeping is important to proper accounting records because proper methods can help businesses effectively manage cash flow, stay abreast of profit and losses, and develop plans for the future based on financial trends. Furthermore to complete the financial account, accounting cycle are used. The accounting cycle included source of document, books of prime entry, ledgers, trial balance and the final accounts. REFERENCE 1. Anon.2013,Book of Prime Entry and Ledgers.[online].Available from World Wide Web: http://principlesofaccounting2.com/topics/books-of-prime-entry-and-ledgers/ [Accessed 05/07/2013] 2. Anon.2013,The Accounting Cycle.[online].Available from World Wide Web: http://www.accounting-basics-for-students.com/accounting-cycle.html [Accessed 05/07/2013] 3. Anon.2013,Income Statement.[online].Available from World Wide Web: http://www.investopedia.com/terms/i/incomestatement.asp [Accessed 05/07/2013] 4. Beanne,O.2013,The Complete Accounting Cycle.[online].Available from World Wide Web: http://youraccountingcoach.blogspot.com/2013/01/the-complete-accounting-cycle.html. [Accessed 25/01/2013]

A Problem Of TV Violence - Free Essay Example

Sample details Pages: 1 Words: 364 Downloads: 3 Date added: 2019/08/08 Category Society Essay Level High school Tags: Television Violence Essay Did you like this example?   Ã‚  Ã‚  Ã‚   I think attitudes are caught not taught, what I mean by this is kids are pushed towards that violent tendency. As professor Steven pinker said we live in the most peaceful time in our existences; violent crimes have definitely gone down over the decades. I do not believe television violence has negative effect on our society, I dont believe it promotes it.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   As I stated professor Steven pinker said we live in the most peaceful time in our existences; homicide levels have gone down drastically since our TVs have had upgrades over the years. If comparing homicide levels from back then, to now its a big difference it cannot be compared. If anything has taught us how to be violent is our leaders; only 8% of our history has been peaceful. Don’t waste time! Our writers will create an original "A Problem Of TV Violence" essay for you Create order   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   There has been a big violence decline after we improved or technology and literacy, so it could be keeping us distracted other than making us violent. Studies show that homicide rates dropped since the first TV came out in the 1920s. Either way people have gotten smarter over the decades so they should be able to defer whats real from acting on TV. A child could probably not be rational enough but we shouldnt be showing our kids violent TV showings either way.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What could be worse seeing the action from your couch at the house or being in the action first hand with the problem and the solution in your hand. Have you seen the games kids these days play mostly being violent franchises and they somehow still get it? So could it be the TV influencing violence, or the parents to that child that acts a bit too violent? TV has massive regulations about what can be on the air so that violence isnt a big come out on live TV.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   I do not believe television violence has negative effect on our society, I dont believe it promotes it. We are currently in the most peaceful time in our history of being on this earth; So no I dont believe that TV could be causing people to act out of the ordinary and become a bit too violent when violence isnt needed.