1º) Juani and Laura want to open a beauty salon in a neighborhood in their town.

They
have been coworkers at another center and now feel ready to make the leap. When they
get together to design the business plan, they do not agree. Juani believes in hiring
young, recently graduated girls who can be paid very little and who will be able to
undercut the competition in the neighborhood. Laura thinks not. That the right thing to
do is to provide very good service and hire very competent personnel, even if they have
to be paid more. They are at a dead end, so they decide to ask their cousin, who has
studied some marketing, to see if she can help them.

a) On what aspect of marketing do you have a difference of opinion?

In the quality/price aspect because they talk about the experience of the personnel hired
to provide a better service and the cost that this entails.

b) What positioning is each taking?

Juani is taking the price positioning because he is trying to make the company cheaper
than the competition.

Laura is taking the quality positioning because she wants her service to be of quality so
that it is perceived by consumers as different from others.

c) What can your cousin tell you about the positioning map of the beauty salons in your
neighborhood?

You should find out how customers perceive your beauty service in terms of
quality/price and how they view your competitors'. In this way they will be able to see
where they are located on the positioning map.

d) If they decide to position themselves in terms of quality, what operational marketing

tools are available to them?

The tools at their disposal are the 4Ps: Product, Price, Promotion and Place.

2º) For the following products, what do you think is their basic product? Then write at
least 3 characteristics of what your formal product would look like. Finally, look for an
expanded product feature that you could offer.

a) A laptop computer.

Basic product: To do students' work or homework when they are at school and not at
home, to continue working despite moving from one place to another or it could also be
communicating by video calls.

Formal product: The capacity of the hard disk and RAM memory, the brand of the
computer and the size of the screen.

Enhanced product: That comes with additional mouse, new Office license, warranty and
insurance against crashes or theft of the computer.

b) A can of any soft drink.

Basic product: Satisfy the need to quench thirst, help stay awake at the wheel and share a
moment with friends or family.

Formal product: Quantity inside the can (e.g. whether it is 200ml or 330ml), brand
(Coke, Pepsi or Fanta) and the quality of the product (e.g. that there has been a change in
taste and it is not what it used to be).

Expanded product: A recyclable container.

c) The food service of a bar-restaurant in an industrial park.

Basic product: To satisfy hunger at lunchtime and to be a place to hang out and have a
drink with co-workers.

Formal product: The attitude of the employees, the prices and the conditions of the
premises.

Extended product: Payment can be in cash or by credit card, a drink of liquor at the end
of the meal and the availability of home delivery or delivery to the customer's place of
work.

3º) Choose a technological product that has been changing over time, so that when
introducing changes, the new product has been replacing the previous one (such as TV
screens, cell phones or any other).

a) Indicates which particular product is in the introduction phase, which is in the

growth phase, which is in the maturity phase and which is in the decline phase.

Introduction phase: Bluetooth headsets, because it is a new product.

Growth phase: Play Station 5 console, because these consoles have been released
recently and, even closer to December, they are selling a lot.

Maturity stage: Tablets, because many people already have them and others continue to
buy them.

Decline phase: Webcams, because they are now built into laptops or new models have
better definition.

b) How could you relate those products to the BCG matrix?

The BCG matrix classifies products according to sales, whether they are high or low, and
sales growth. Thus, the product in the introduction phase would be an unknown product,
the star product would be in the growth phase, the cow product is the one in the maturity
phase and the dog product is the one in decline.

4º) Andres has to come up with a name for his new electrical installation services
company that he is going to open next year. A friend has told him to think not only about
the name, but also about the logo, the brand, a drawing, a phrase, etc. But Andres doesn't
see the difference between all this and it seems almost the same to him.
a) How would you explain to Andrés what he has to put in the mark?

The brand is the name and design that identifies the company from the others and for this
purpose it must use a name and a logo.

b) Do I also need to include any additional drawings or phrases?

It may help to add a drawing to distinguish your company from the competition and a
phrase describing a characteristic of your company.

5º) Beatriz has a great imagination for inventing pricing strategies for her clothing and
shoe outlet store. Indicate the type of the following strategies as seen in the theory:

a) When the store opened, the price was dirt cheap, which caused it to fill up in the first
week.

Penetration price, because when the company entered the market it set prices cheaper
than the competition in order to attract the first customers.

b) All prices end at 95 or 45.

Psychological price, because it wants to give a feeling that the price is lower.

c) For the purchase of the second garment, it is discounted by 50%.

Discounted price, because it is a discount based on the volume of purchases.

d) For each model, try to have several brands with 3 different prices that can guide the
customer in the quality-price ratio.

Prestige prices, because many people think that if it is more expensive is that it is better
and very cheap is not so good the product; therefore, if you have the same model but
from 3 different brands at different prices, customers can make a valuation between
them.

e) Some garments are linked together, so that if purchased together they are cheaper
than separately.

Package price, because it is cheaper to buy both garments at the same time than to buy
one and later the other.

f) In the shop window are always the most discounted prices, even some at cost price.

Hook price, because that way you get customers to enter the store and end up buying
other products that are not very cheap.

6º) Javier Perales has opened a bicycle store in a town of 10,000 inhabitants where there
is none. He has bought several bicycles and left them inside a shop that used to be a
bank, so customers can hardly see anything inside. Months go by and hardly anyone
comes in, so he wonders what marketing could do to help him get his store better known.
a) What advertising activities could you carry out for your store?

You could make a business account on Facebook or Twitter where you can show
pictures of the inside of the shop and the bikes you have.

You could also make flyers advertising your store, publish it on the radio or in a local
newspaper.

b) Advise you on which merchandising activities would be suitable for the premises at
your disposal.

Put a sign in the shop window so that people can see what the business is about as they
pass by, since in its current situation people can hardly see what is inside.

You could also put product information signs inside the store.

The layout of the bicycles, whether it has bicycles for children and adults, city and
mountain bikes, etc.

Pens and bags with the company name.

c) Finally, it points out some possible promotional and customer loyalty activities.

Promotional activity: With the purchase of a bicycle you can have a discount on the
purchase of a helmet, promotion valid during the first month.

Loyalty activity: A 10% discount on your next purchase over 30 euros (it is not
necessary that it is another bike or another helmet, but of the rest of products such as
spare tires, inflation pumps, lights, etc.).

7º) Think of two TV commercials, one that you think is very good and one that you think
is very bad. Evaluate for each of them the following requirements that advertising must
have: 1) capture attention; 2) be an understandable message; 3) be credible and not
misleading; 4) be able to convince the customer; 5) be easy to remember.

Good Ad: DAZN's ad starts off attention grabbing by showing goals scored by great
teams, overtaking in F1 and MotoGP, etc. With that it gives me a message that I can
watch those sports in some form. At the end of the ad it shows me which competitions
they broadcast so as not to mislead people into thinking they can watch La Liga or the
Champions League when it is only La Copa del Rey and the Premier League. They
convince the customer that they can watch these sports for only €9.99/month or for
€99.99/year with no commitment of permanence and can unsubscribe whenever the
customer wants. The slogan is remembered over time, because at the beginning the name
was not well remembered, but you remembered what you could see.

Bad ad: The O2 companyat the beginning shows me fish in the sea that later sprout wings.
I didn't know what the company was about until you mention fiber and mobile. They
show that it only costs 50€ VAT included and that it is the final price; they all say the
same until you hire them and after 2 or 3 months come the invoices of 70 or 80€ so I do
not find their advertisement credible. I am not convinced because, in addition to fiber, I
also need a landline and they do not offer that. It is not as popular as Movistar, Vodafone
or Jazztel, so the name was not well remembered at first.

8º) For the following products, explain which distribution strategy is the most
appropriate:

a) Sale of household appliances.

Selective distribution, because distribution is through a small number of retailers (such

as shopping malls) to which the customer can go.

b) The sale of milk.

Intensive distribution, because it is distributed to a large number of retailers due to the

fact that the product is intended to reach a larger number of customers and that they can
purchase it without difficulty.

c) The sale of brand watches.

Exclusive distribution, because they have a single intermediary in an exclusive territory,

such as Rolex, these watches are not found everywhere but in certain luxury locations.

d) Sale of filing cabinets and office supplies.

Intensive distribution, because these products are delivered to a large number of

stationery stores so that people can have easy access to them.

9º) A customer goes shopping at a store that closes at 8:30 p.m. according to the sign on
the door. When you go there at 8.15 p.m. it is already closed, so you return the next day
and ask the owner what the closing time is. The owner replies that he left at 8:20 pm
because no one was there and he had things to do, and that at 8:15 pm he was still there.
Indicates which of the 10 keys to customer service have not been met.

Deliver on all promises, because the sign on the door states a schedule and that is in the
buyer's mind.

In addition, the factor of maintaining a professional role has been breached due to the
fact that the owner was still in the store at 8:15 p.m., the time the customer arrived, and
left 5 minutes later. I would have kept the store open until 8:20 p.m., at which time he
left, or held out for the last 10 minutes because you never know what time a customer
might come in.