Chapter 2
As an assistant to Jane Melody, Sonic’s chief marketing officer, you’ve been assigned to draft a
mission statement for top management’s review. This should cover the competitive spheres within
which the firm will operate and your recommendation of an appropriate generic competitive
strategy. Using your knowledge of marketing, the information you have about Sonic, and library or
Internet resources, answer the following questions.
• What should Sonic’s mission be?
• In what competitive spheres (industry, products and applications, competence, market-
segment, vertical, and geographic) should Sonic operate?
• Which of Porter’s generic competitive strategies would you recommend Sonic follow in
formulating its overall strategy?
As your instructor directs, enter your answers and supporting information in a written marketing
plan to document your ideas.
Answer
Students may offer differing definitions of Sonic’s mission. One possibility: “Sonic is dedicated to
producing and marketing high-quality products that provide a range of valued communication,
entertainment, information storage, and organization functions for the convenience of consumers
and business users on the go.”
Among the major competitive scopes in which Sonic might operate are:
• Product: Multifunction, multimedia personal digital assistant products. According to the
marketing plan, Sonic’s products include features (such as hands-free cell/Wi-Fi
telecommunications capabilities) that are unique to this category plus other features found
only in higher-priced models.
• Industry: The Smartphone market covers both consumers (including professionals who buy
for their own use and students) and businesses.
• Competence: Producing quality electronics with innovative, value-added features.
,• Market segments: Among consumers, middle- to upper-income professionals who need one
portable device to coordinate their busy schedules and communicate with family and
colleagues. Also students who want a multimedia, dual-mode device. Among businesses,
mid- to large-size corporations that want to help their workforce stay in touch and input or
access critical data on the go. Also entrepreneurs, small-business owners, and medical
users.
• Vertical scope: Manufactures its own products for distribution through a network of select
retailers in top U.S. markets plus particular online retailers.
• Geographic scope: Nationwide across the United States.
Students may suggest that Sonic pursue differentiation as a generic competitive strategy, because
the firm is playing to strengths in important benefits valued by key customer segments. Sonic is not
pursuing cost leadership. Some students may argue that Sonic is pursuing focus because it is
targeting specific segments; however, since those segments are broad rather than narrow, Sonic’s
competitive strategy is more accurately described as differentiation.
Chapter 3
Jane Melody asks you to scan Sonic’s external environment for early warning signals of new
opportunities and emerging threats that could affect the success of the Sonic 1000 Smartphone.
Using Internet or library sources (or both), locate information to answer three questions about key
areas of the macroenvironment.
• What demographic changes are likely to affect Sonic’s targeted segments?
• What economic trends might influence buyer behavior in Sonic’s targeted segments?
• How might the rapid pace of technological change alter Sonic’s competitive situation?
Enter your answers about Sonic’s environment in the appropriate sections of a written marketing
plan to record your comments.
Answer
Students may consider a variety of demographic changes, such as growth in the student population
and geographical shifts that could cause Sonic to rethink its distribution strategy. Ask students to
discuss Sonic’s possible responses to these shifts. Among the economic trends that could influence
buyer behavior are: lower credit availability and recessionary conditions that affect job and
business stability. What should Sonic do if these trends actually occur?
,Technological changes will clearly affect Sonic’s competitive situation if competitors start to market
Smartphones with features and functions that equal or surpass the 1000 model before Sonic
launches its first product. Also, the Sonic 1000 may become obsolete quickly if technological
advances allow competitors to develop newer/faster/cheaper/more convenient products. Again,
ask students what Sonic can do to anticipate such changes and be ready for them?
Chapter 4
Your next task is to consider how marketing research can help Sonic support its marketing strategy.
Jane Melody also asks you how Sonic can measure results after the marketing plan is implemented.
She wants you to answer the following three questions.
• What surveys, focus groups, observation, behavioral data, or experiments will Sonic need to
support its marketing strategy? Be specific about the questions or issues that Sonic needs to
resolve using marketing research.
• Where can you find suitable secondary data about total demand for Smartphones over the
next two years? Identify at least two sources (online or off-line), describe what you plan to
draw from each source, and indicate how the data would be useful for Sonic’s marketing
planning.
• Recommend three specific marketing metrics for Sonic to apply in determining marketing
effectiveness and efficiency.
Enter this information in the marketing plan you’ve been writing to document your responses.
Answer
Students will offer a variety of ideas about surveys, focus groups, observation, behavioral data, or
experiments that Sonic can use to support its marketing decisions. Evaluate their responses on the
basis of how well the research they suggest will help Sonic answer specific questions and resolve
specific issues important to the company’s planning and implementation. As one example, the
research should help Sonic better describe attractive, profitable market segments to be targeted or
better understand how certain customer segments make buying decisions about Smartphone
products.
, Students will offer various ideas for sources of secondary data about Smartphone demand in the
coming years. For instance, they might recommend searching business publications for quotes from
analysts (such as Gartner Group) that cover Smartphone technology and companies competing in
this market.
A few of the many marketing metrics that Sonic can apply in determining marketing effectiveness
and efficiency are: sales by market, channel, and segment; market share; brand awareness; product
profitability; and customer satisfaction. Students should be able to add to this list.
Chapter 5
Sonic has decided to focus on total customer satisfaction as a way of encouraging brand loyalty in a
highly competitive marketplace. With this in mind, you’ve been assigned to analyze three specific
issues as you continue working on Sonic’s marketing plan.
• How (and how often) should Sonic monitor customer satisfaction?
• Would you recommend that Sonic use the Net Promoter method? Explain your reasoning.
• Which customer touch points should Sonic pay particularly close attention to, and why?
Consider your answers in the context of Sonic’s current situation and the objectives it has set. Then
enter your latest decisions in the written marketing plan.
As an assistant to Jane Melody, Sonic’s chief marketing officer, you’ve been assigned to draft a
mission statement for top management’s review. This should cover the competitive spheres within
which the firm will operate and your recommendation of an appropriate generic competitive
strategy. Using your knowledge of marketing, the information you have about Sonic, and library or
Internet resources, answer the following questions.
• What should Sonic’s mission be?
• In what competitive spheres (industry, products and applications, competence, market-
segment, vertical, and geographic) should Sonic operate?
• Which of Porter’s generic competitive strategies would you recommend Sonic follow in
formulating its overall strategy?
As your instructor directs, enter your answers and supporting information in a written marketing
plan to document your ideas.
Answer
Students may offer differing definitions of Sonic’s mission. One possibility: “Sonic is dedicated to
producing and marketing high-quality products that provide a range of valued communication,
entertainment, information storage, and organization functions for the convenience of consumers
and business users on the go.”
Among the major competitive scopes in which Sonic might operate are:
• Product: Multifunction, multimedia personal digital assistant products. According to the
marketing plan, Sonic’s products include features (such as hands-free cell/Wi-Fi
telecommunications capabilities) that are unique to this category plus other features found
only in higher-priced models.
• Industry: The Smartphone market covers both consumers (including professionals who buy
for their own use and students) and businesses.
• Competence: Producing quality electronics with innovative, value-added features.
,• Market segments: Among consumers, middle- to upper-income professionals who need one
portable device to coordinate their busy schedules and communicate with family and
colleagues. Also students who want a multimedia, dual-mode device. Among businesses,
mid- to large-size corporations that want to help their workforce stay in touch and input or
access critical data on the go. Also entrepreneurs, small-business owners, and medical
users.
• Vertical scope: Manufactures its own products for distribution through a network of select
retailers in top U.S. markets plus particular online retailers.
• Geographic scope: Nationwide across the United States.
Students may suggest that Sonic pursue differentiation as a generic competitive strategy, because
the firm is playing to strengths in important benefits valued by key customer segments. Sonic is not
pursuing cost leadership. Some students may argue that Sonic is pursuing focus because it is
targeting specific segments; however, since those segments are broad rather than narrow, Sonic’s
competitive strategy is more accurately described as differentiation.
Chapter 3
Jane Melody asks you to scan Sonic’s external environment for early warning signals of new
opportunities and emerging threats that could affect the success of the Sonic 1000 Smartphone.
Using Internet or library sources (or both), locate information to answer three questions about key
areas of the macroenvironment.
• What demographic changes are likely to affect Sonic’s targeted segments?
• What economic trends might influence buyer behavior in Sonic’s targeted segments?
• How might the rapid pace of technological change alter Sonic’s competitive situation?
Enter your answers about Sonic’s environment in the appropriate sections of a written marketing
plan to record your comments.
Answer
Students may consider a variety of demographic changes, such as growth in the student population
and geographical shifts that could cause Sonic to rethink its distribution strategy. Ask students to
discuss Sonic’s possible responses to these shifts. Among the economic trends that could influence
buyer behavior are: lower credit availability and recessionary conditions that affect job and
business stability. What should Sonic do if these trends actually occur?
,Technological changes will clearly affect Sonic’s competitive situation if competitors start to market
Smartphones with features and functions that equal or surpass the 1000 model before Sonic
launches its first product. Also, the Sonic 1000 may become obsolete quickly if technological
advances allow competitors to develop newer/faster/cheaper/more convenient products. Again,
ask students what Sonic can do to anticipate such changes and be ready for them?
Chapter 4
Your next task is to consider how marketing research can help Sonic support its marketing strategy.
Jane Melody also asks you how Sonic can measure results after the marketing plan is implemented.
She wants you to answer the following three questions.
• What surveys, focus groups, observation, behavioral data, or experiments will Sonic need to
support its marketing strategy? Be specific about the questions or issues that Sonic needs to
resolve using marketing research.
• Where can you find suitable secondary data about total demand for Smartphones over the
next two years? Identify at least two sources (online or off-line), describe what you plan to
draw from each source, and indicate how the data would be useful for Sonic’s marketing
planning.
• Recommend three specific marketing metrics for Sonic to apply in determining marketing
effectiveness and efficiency.
Enter this information in the marketing plan you’ve been writing to document your responses.
Answer
Students will offer a variety of ideas about surveys, focus groups, observation, behavioral data, or
experiments that Sonic can use to support its marketing decisions. Evaluate their responses on the
basis of how well the research they suggest will help Sonic answer specific questions and resolve
specific issues important to the company’s planning and implementation. As one example, the
research should help Sonic better describe attractive, profitable market segments to be targeted or
better understand how certain customer segments make buying decisions about Smartphone
products.
, Students will offer various ideas for sources of secondary data about Smartphone demand in the
coming years. For instance, they might recommend searching business publications for quotes from
analysts (such as Gartner Group) that cover Smartphone technology and companies competing in
this market.
A few of the many marketing metrics that Sonic can apply in determining marketing effectiveness
and efficiency are: sales by market, channel, and segment; market share; brand awareness; product
profitability; and customer satisfaction. Students should be able to add to this list.
Chapter 5
Sonic has decided to focus on total customer satisfaction as a way of encouraging brand loyalty in a
highly competitive marketplace. With this in mind, you’ve been assigned to analyze three specific
issues as you continue working on Sonic’s marketing plan.
• How (and how often) should Sonic monitor customer satisfaction?
• Would you recommend that Sonic use the Net Promoter method? Explain your reasoning.
• Which customer touch points should Sonic pay particularly close attention to, and why?
Consider your answers in the context of Sonic’s current situation and the objectives it has set. Then
enter your latest decisions in the written marketing plan.
