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 BE200 – Marketing Management

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تاريخ التسجيل : 23/01/2012

مُساهمةموضوع: BE200 – Marketing Management   الأربعاء أكتوبر 15, 2014 1:07 am

BE200 – Marketing Management
Tutor Marked Assessment
FALL 2014-2015

Read carefully the following instructions andboth cases study, and then answer each question in an essay format.To support your analysis use relevant material from BE200 covered so far and other resources such as AOU e-library articles.
INSCTRUCTIONS:
• Cut-off date: Submit this assignment no later than November 25th, 2014. All late submissions require approval from the branch course coordinator and will be subject to grade deductions.
• Word count:you should discuss the questions in no more or less than the number of words mentioned for each question (plus or minus 10%).
• Referencing: You must acknowledge all your sources of information using full Harvard Style Referencing (in-text referencing plus list of references at the end). Use E-library: to get journal articles on the topic (Emerald, EBSCO…). Use at least 2 articles.
• Plagiarism:Remember that you should work the information from references into your own original thoughts and INTO YOUR OWN WORDS. Plagiarism will lead to a significant loss of marks. Extensive plagiarism could mean that you failed your TMA. (Refer to AOU definitions of cheating and plagiarism at the end of this document)
• Essay guidance: Your response to each question should take the form of a full essay format. Avoid using subheadings and bullet points. Use BE200textbook,slides, case study and E-Library. Plan what you will write, and have a well-organized outline.
• Using PT3 form:When you have completed your TMA, you must fill in the assignment form (PT3) posted on your moodle account, taking care to fill all information correctly.
• Turnit-in upload:A soft copy of your TMA and PT3 form should be uploaded to Turnit-in via the link posted on your moodle account, within the cut-off date.
• This TMA is 20% of BE200 Grade.

For textbook: Principles of Marketing (Arab World Editions) with My Marketing Lab - refer to chapters 1, 2, 3 and 7
For textbook: Principles of marketing, 5th European edition by Philip Kotler, Gary Armstromg, Veronica Wong and John Saunders: refer to chapters 1, 3, 4 and 9




TMA 01
Case Study: ALDI
Creating value through the marketing mix
Since opening its first store in 1913, ALDI has established itself as one of the most reputable retailers in the global business market by providing great value and quality. ALDI’s goal is simple; ‘To provide our customers with the products they buy regularly and ensure that those products are of the highest possible quality at guaranteed low prices.’ ALDI’s main marketing objective is to grow its market share within the UK grocery market. With the economic crisis came an increased demand for value for money. Market research identified that 80% of ALDI’scustomer base also shopped at other supermarkets. These customers spent around £20 billion per year in the other stores.ALDI’smarketing strategies therefore focus on generating customer loyalty. ALDI focuses its marketing efforts on encouraging customers that are already familiar with the brand to shop at ALDI more often. Another key focus of ALDI’s marketing strategy is on demonstrating that ALDI brands are of equal quality to well-known brands such as Heinz and Fairy Liquid. To do this ALDI ran blind taste tests amongst a cross section of shoppers. These confirmed that the majority of consumers that liked the famous brands also liked ALDI’s brands. These findings formed the basis to ALDI’s‘Like Brands’ marketing campaign. This provided ALDI with a platform to communicate its quality and value messages effectively. ALDI’s immediate challenge for the ‘Like Brands’ campaign was to increase market share from 2.3% to 2.5%. Although this sounds very little, the retail grocery market is very large. A single 0.1% is worth extra £65 million revenue.
ALDI’smarketing mix therefore focuses on; high quality products ‘Like Brands’, it offers lower prices than its competitors without compromising on quality and its outlets are expanding globally. ALDI uses a variety of communication methods and channels to increase the impact of its promotional activity.
ALDI’sfocus is on offering the best possible quality products at the lowest possible prices. Every buyer for ALDI, from fresh fruit and vegetables to meats and electronics, is an expert in their field. They look for products from around the world. This enables them to get the finest quality products that ALDI then sells under its own brand labels.
Competitive pricing is a key strategy for ALDI. ALDI is able to offer quality products at low prices as it buys in great volume. The fact that ALDI buys such large quantities of these products allows great leverage for negotiating the best possible prices with its suppliers.
The place element of the marketing mix involves identifying where the product or service will be sold. ALDI keeps its store layouts simple to limit waste and keep costs down. This means ALDI can focus on offering its customers the lowest possible prices for its products. When considering new store locations, ALDI takes into account: the number of people visiting an area, the position of store, the accessibility of the store and its public transport links and the number of parking spaces available.
For ALDI to achieve its objective of increasing its market share, it had to ensure its promotional activity. For example, to increase customer loyalty it had to communicate its key quality and value messages. Promotion helps to increase awareness and improve brand recognition, increase demand for products, improve brand image and highlight the superiority of products and services.
ALDI uses a range of techniques to reach its customers. These include:
 Advertising on TV. The ‘Like Brands’ campaign features 20 second TV adverts which focus on a particular product
 Humor which helps to build trust and an emotional connection with target audiences.
 Printed flyers are distributed within stores and also to customers living in areas surrounding stores.
 Social media, targeted e-mails to customers, public relations and media relations.
 Facebook and Twitter pages encourage two-way communication with customers.
ALDI’smarketing mix enables it to provide high quality, own branded products at the lowest possible price.
Answer the following questions:
Question 1: (25Marks)
The first four steps in the marketing process involve building customer relationships. The final step involves capturing value in return.
a. Describe what is meant by customer relationship management(5 Marks)
b. What are the different relationship levels companies can build with customers? (10 Marks)
c. In respect to customer relationship management concept and referring to the case above, explain what did ALDI focus on in order to retain and gain its customers loyalty? (10 Marks)
Word count: 300 words

Question 2: (25 Marks)
Given the global nature of ALDI’soperations;
a. Describe the main micro-environmental forces that affect the company’s ability to serve its customers. Elaborate your answer by extracting examples from the case. (13 Marks)
b. What is the marketing strategy adopted by ALDI to compete with other brands offering similar products? Justify your answer by referring to the case above. (7 Marks)
c. ALDI’s immediate challenge is to increase its market share from 2.3% to 2.5%. Referring to the case, explain how this little increase can be a challenge and make a difference. (5 Marks)
Word count: 400 words
Question 3: (50 Marks)
The marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.
a. Explain how ALDI managed to balance its marketing mix strategy. How did it manage each of the marketing mix components? The students should begin by explaining the markeing mix component while referring to BE200 material and then apply it to the case. (20 Marks)
b. Discuss how ALDI succeeded in differentiating and positioning its products for maximum competitive advantage in the marketplace? (15 Marks)
c. Compare and contrast undifferentiated, differentiated and concentrated targeting strategies. Which strategy do you think is the best? (15 Marks)
Word count: 500 words

Grades deduction for:
TMA Presentation: (up to 5 marks)
Up to 5 marks should be deducted for poor presentation or poor organization of the TMA outline and discussion or TMA presented without PT3.
Proper referencing: (up to 5 marks)
Referencing should be both in-text referencing, plus a list of references at the end using Harvard style. Up to 5 marks should be deducted for poor referencing.

Use of E-Library: (up to 5 marks)
A minimum use of 2 articles from AOU e-library is required to support the discussions. Up to 5 marks should be deducted for no use or poor use ofe-library.

Word count: (up to 5 marks)
The answers should be within the specified word count. A deviation of 10% is acceptable; if more, a deduction up to 5 marks will be applied.

Arab Open University Definitions of cheating and plagiarism
Plagiarism means copying from internet, from unreferenced sources, from other students’ TMAs or any other source. Penalties for plagiarism range from failure in the TMA or the course, to expulsion from the university.
According to the Arab Open University By-laws, “the following acts represent cases of cheating and plagiarism:
• Verbatim copying of printed material and submitting them as part of TMAs without proper academic acknowledgement and documentation.
• Verbatim copying of material from the Internet, including tables and graphics.
• Copying other students’ notes or reports.
• Using paid or unpaid material prepared for the student by individuals or firms.
• Utilization of, or proceeding to utilize, contraband materials or devices in examinations.”

Penalty on plagiarism: The following is the standard plagiarism penalty applied across branches as per Article 11 of the university by-laws was revisited and modified to be more explicit with regard to plagiarism on TMAs. Penalties include the following:
1) Awarding of zero for a TMA wherein more than 20% of the content is plagiarized.
2) Documentation of warning in student record.
3) Failure in the course to dismissal from the University.
All University programs are required to apply penalties that are consistent with the University by laws.

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