28 Jun Marketing – Auto Industry Use of MSRP; Various Promotion
Question
Marketing: Auto Industry Use of MSRP; Various Promotion Methods
1. Provide examples of companies who conduct business using the direct and indirect channels of distribution? What is the relationship between these two types?
2. Noise in marketing is everywhere. Regardless of which promotion method is used to influence attitudes and behavior, whether it be personal selling, mass selling, or sales promotion, there will be noise.
Explain the nature of the three promotion methods? Also, what are the strengths and limitations of each method?
3T. Do you believe that planned obsolescence is sometimes part of a company’s strategy to help sundown older products and help launch new products? If so, can you provide any examples?
4s. In the automotive industry, the Manufacturer’s Suggested Retail Price (MSRP) is the price we recommend our dealers sell our vehicles. By law, the MSRP must be shown on the Monroney Label (window sticker) which gives the customers a point of reference.
Our dealers, who are independent business enterprises or franchises, purchase the vehicles from us at price much lower than the MSRP. The price the dealers sell the vehicles to the retail customer will vary based upon the demand. Although the dealers may sell a vehicle below the MSRP, they always make a profit.
Do you find the MSRP helpful when purchasing a vehicle?
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