Chapter 3 question 1: Distinguish between a generic market and a product market. Illustrate your answer. A generic market is a market that offers a diverse product as a way of satisfying the consumer. An example is shown on page 62 of the text as the Flam and the Panini sandwich. The products are different but serve the same need to the customer. A product market is a market that offers close substitutes to satisfy the customer need. I think of this as Coke and Pepsi. Chapter 3 Internet Exercise # 2-1 For many years, Michelin’s marketing mix emphasized the safety of Michelin tires.
To highlight that positioning, scores of ads showed the “Michelin baby” surrounded by a tire with the tagline “because so much is riding on your tires. ” Ads still use this tagline, but the baby is no longer used. Now, most promotion highlights another icon, the “Michelin Man. ” Go to the Michelin website (www. michelin. com), select the country where you live, and review the site. What positioning is Michelin now using? The Michelin man, the living tire, no uses the position of “a better way forward”.
They are focusing on better mobility and as such they have adopted five strategic orientations: 1. Focus on passion to improve mobility 2. Offer each customer the best quality products and services at the best price 3. Provide growth and fulfillment for our people as they carry out their responsibilities, especially by making full use of the Company’s diversity and by developing our people’s talents 4. Durably grow the value of our Company by maximizing the profitability of our operations and our return on investment. . Recognize and fulfill our Company’s role as a responsible member of society, by practicing our values. Since Michelin has a variety of products such as Tires, Tourism and Navigation equipment as well as Lifestyle products it is necessary for management to take the portfolio management approach when strategically planning for the company (text page 114). In reviewing their approach to the international market they fall in the middle on the continuum of environmental sensitivity scale (text page 4).
Their web site is definitely geared towards the international market as well as the North American market. In conclusion, Michelin’s new position is geared towards meeting the needs of today’s consumers in keeping them mobile in a safe and economic manner. Chapter 4 question 2: Explain how a firm’s objectives may affect its search for opportunities. A firm must line up their objectives with available resources in order to have realistic opportunities.
For example if a popular salon wants to remodel their facility and put in a coffee and smoothie bar to attract new potential business with the anticipation of tripling their profits in 6 months, they have to be realistic about the resources they have in order to achieve the objective (text page 92-93). Chapter 4 Internet Exercise # 2-2 The Consumer Product Safety Commission sometimes requires auto makers to issue recalls. However, not all consumers learn about the recalls. Go to the Motor Trend website (www. motortrend. om) and select either “New Cars” or “Used Cars, which is at the top left-hand side of the page, then select the link for “Recalls”, which is near the top of that page under Road Tests. Check to see if there has been a recall on a year and model car or truck that is of interest to you (say, one owned by your family). If there isn’t one listed for you or your family, find one that does have a recall and describe what the problem is and what the recommended fix is. Were you aware of the recall? Would the fact that there had been a recall on this vehicle influence your decision to purchase the same or similar vehicle in the future?
I have a 1994 Ford Econoline 350 and there is in fact a recall on my van. It is related to the braking system. The consequences of this problem can be that my vehicle will roll and crash. I am not actually shocked that there are so many recalls on vehicles. Working for a manufacturing facility I know that not everything is always perfect and sometimes quality can suffer in order to meet the sales dollars. Would I purchase a vehicle from Ford again, yes, and I actually have. Ford prides itself on their quality of vehicles and how the public perceives Ford as a company and the vehicles they purchase. http://www. ford. com/about-ford/company-information/public-policy/vehicle-safety/auto-safety-policies-811). I would without reservation purchase the same model I currently have as I have had almost no problems with my vehicle. I received letters in the mail for the problems I have had and I was immediately advised of the recall. Ford made certain I received free repairs and the representative was always very courteous and seemed genuinely interested in getting my vehicle repaired. I have always trusted Ford for their reliability, quality and honesty every time I purchase a vehicle from them.