Question: What is consumer-generated advertising and why

> Carla was the owner of vacant land that she was holding for investment. She paid $2 million for the land in 2013. Raymond was an investor in vacant land. He thought Carla’s land might be the site of an exit ramp from a new freeway. Raymond gave Carla $83

> Benny purchased $400,000 of Peach Corporation face value bonds for $320,000 on November 13, 2014. The bonds had been issued with $80,000 of original issue discount because Peach was in financial difficulty in 2014. On December 3, 2015, Benny sold the bon

> Eagle Partners meets all of the requirements of § 1237 (subdivided realty). In 2015, Eagle Partners begins selling lots and sells four separate lots to four dif- ferent purchasers. Eagle Partners also sells two contiguous lots to another purchaser. The s

> Hyacinth, Inc., is a dealer in securities. The firm has spotted a fast-rising company and would like to buy and hold its stock for investment. The stock is currently selling for $2 per share, and Hyacinth thinks it will climb to $40 a share within two ye

> George is the owner of numerous classic automobiles. His intention is to hold the automobiles until they increase in value and then sell them. He rents the automobiles for use in various events (e.g., antique automobile shows) while he is holding them. I

> Rennie owns a video game arcade. He buys vintage video games from estates, often at much less than the retail value of the property. He usually installs the vintage video games in a special section of his video game arcade that appeals to players of “cla

> During the year, Eugene had the four property transactions summarized below. Eugene is a collector of antique glassware and occasionally sells a piece to get funds to buy another. What are the amount and nature of the gain or loss from each of these tran

> Alison owns a painting that she received as a gift from her aunt 10 years ago. The aunt created the painting. Alison has displayed the painting in her home and has never attempted to sell it. Recently, a visitor noticed the painting and offered Alison $5

> An individual taxpayer sells some used assets at a garage sale. Why are none of the proceeds taxable in most situations?

> Roy decides to buy a personal residence, and he goes to the bank for a $150,000 loan. The bank tells Roy that he can borrow the funds at 4% if his father will guarantee the debt. Roy’s father, Hal, owns a $150,000 CD currently yielding 3.5%. The Federal

> Nicholas owns business equipment with a $155,000 adjusted basis; he paid $200,000 for the equipment, and it is currently worth $173,000. Nicholas dies suddenly, and his son Alvin inherits the property. What is Alvin’s basis for the property? What happens

> Gaston Corporation distributes § 1245 property as a dividend to its share- holders. The property’s fair market value is $580,000, and the adjusted basis is $560,000. In addition, the amount of the recapture potential is $55,000. What is the amount and ch

> An apartment building was acquired in 2006. The depreciation taken on the building was $123,000, and the building was sold for a $34,000 gain. What is the maximum amount of 25% gain?

> Jacob purchased business equipment for $56,000 in 2012 and has taken $35,000 of regular MACRS depreciation. Jacob sells the equipment in 2015 for $26,000. What is the amount and character of Jacob’s gain or loss?

> Olivia wants to buy some vacant land for investment purposes. She currently cannot afford the full purchase price. Instead, Olivia pays the landowner $8,000 to obtain an option to buy the land for $175,000 anytime in the next four years. Fourteen months

> Shelia purchases $50,000 of newly issued Gingo Corporation bonds for $45,000. The bonds have original issue discount (OID) of $5,000. After Sheila amortized $2,300 of OID and held the bonds for four years, she sold the bonds for $48,000. What is the amou

> Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the tax year sells the first eight lots to eight different buyers for $22,000 each. Dexter’s basis in each lot sold is $15

> Camilo’s property, with an adjusted basis of $155,000, is condemned by the state. Camilo receives property with a fair market value of $180,000 as compensation for the property taken. a. What is Camilo’s realized and recognized gain? b. What is the

> Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan’s land (adjusted basis of $85,000) is worth $100,000 and Johnathan’s land has a fair market value of $80,000, Johnathan also gives Logan cash of $20,00

> Peyton sells an office building and the associated land on May 1, 2015. Under the terms of the sales contract, Peyton is to receive $1,600,000 in cash. The purchaser is to assume Peyton’s mortgage of $950,000 on the property. To enable the purchaser to o

> Alva received dividends on her stocks as follows. Amur Corporation (a French corporation whose stock is traded on an established U.S. securities market) $60,000 Blaze, Inc., a Delaware corporation 40,000 Grape, Inc., a Virginia corporation 22,000 a. Al

> Lefty completes the following capital asset transactions. Compute Lefty’s recognized capital gain or loss from these transactions. Long-term gain……….$10,000 Short-term gain……….4,000 Short-term loss……….25,000

> What is guerrilla marketing? What is ambient advertising?

> What is the purpose of public relations? What is a crisis management plan? Describe some of the activities that are part of PR.

> Why is follow-up after the sale so important in relationship selling?

> What is the objective of the sales presentation? How might you overcome buyer objections?

> What are some ways you might approach a customer? Explain how some types of approaches work better in one situation than another.

> What is prospecting? What does it mean to qualify the prospect? What is the preapproach? Why are these steps in the creative selling process that occur before you ever contact the buyer so important to the sale?

> What is relationship selling? How does it differ from transactional selling?

> Describe the various types of sales jobs.

> Define retailing. What is the role of retailing in today’s world?

> What role does personal selling play within the marketing function?

> What is m-commerce?

> What is direct marketing? Describe the more popular types of direct marketing.

> What is social media? What are social networks? Describe Facebook, Twitter, virtual worlds, product review sites, mobile apps, and location-based social networks.

> What is viral marketing? How do marketers use brand ambassador or brand evangelists?

> What are some ethical problems in buzz marketing?

> What is buzz? How do marketers practice buzz building?

> A woman sued Taco Bell for deceptive advertising, claiming its tacos had far less beef than advertised. Taco Bell, understanding the potential damage to its brand, immediately went on the defense and filed a countersuit. In addition, Taco Bell’s CEO post

> In this chapter, we learned that marketers are increasing their use of social media in their marketing communication strategies. Why is this happening? What are some ways a university can use social media in their marketing communication programs? How do

> You learned that media planners use a variety of metrics to help in making decisions on what TV show or which magazines to include in their media plans. Two of these are gross rating points (GRPs) and cost per thousand (CPM). Assume you are developing a

> When you're already big it can be hard to get bigger. That’s why Alibaba is working hard 10 continued to expand its e-tailing empire. In 1999, Jack Ma, inspired by a trip to the U.S. where he first encountered the Internet, led a group of 17 friends to f

> What is sales promotion? Explain some of the different types of consumer sales promotions marketers frequently use.

> What is media planning? How do media planners use reach, frequency, gross rating points, and cost per thousand in developing effective media schedules?

> How do marketers pretest their ads? How do they post-test ads?

> What are different types of branded content? How do marketers use branded entertainment and support media, such as directories, out-of-home media, and place-based media, to communicate with consumers?

> What is digital media? What are owned, paid, and earned media? What are the different advertising activities or techniques included in website advertising, mobile advertising, and video sharing?

> Describe the steps in developing an advertising campaign. What is a creative brief? What is meant by the appeal, execution format, tonality, and creative tactics used in an ad campaign?

> What are some of the major criticisms of advertising? What is corrective advertising? What is puffery?

> Firms may seek the help of full-service or limited-service advertising agencies for their advertising. Describe each.

> Describe push versus pull strategies. What is advertising, and what types of advertising do marketers use most often? What is an advertising campaign?

> Explain some of the different types of trade sales promotions marketers frequently use.

> Describe the major ways in which firms develop marketing communication budgets.

> Explain the hierarchy of effects and how it is used in communication objectives.

> List and explain the steps in promotion planning.

> List the elements of the promotion mix and describe how they are used to deliver personal and mass appeals.

> Describe the traditional communication model.

> What is promotion? What is integrated marketing communication? What are multichannel promotional strategies?

> You learned that media planners use a variety of metrics to help in making decisions on what TV show or which magazines to include in their media plans. Two of these are gross rating points (GRPs) and cost per thousand (CPM). Assume you are developing a

> As a soon-to-be college graduate, you be will be looking for a full-time job in your field. As part of this process, you will need to learn to successfully market yourself. Prepare an outline for your marketing plan. First, list the special problems and

> Because of increased competition in its community, you have been hired as a marketing consultant by a local restaurant. You know that the characteristics of services (intangibility, perishability, variability, and inseparability) create unique marketing

> What do we mean by marketing people? Marketing places? Marketing ideas?

> Address the same issues in item 12-22 for a marketing plan for the town or city where your college is located. How would you market this town or city and the surrounding area as part of the overall college experience to potential students?

> Companies track a wide range of metrics within the supply chain area. Some of the most common ones are the following: • On-time delivery • Accuracy of forecasted inventory needs • Returns processing cost as a percentage of product revenue • Customer orde

> The supply chain concept looks at both the inputs of a firm and the firms that facilitate the movement of the product from the manufacturer to the consumer. Do you think marketers should be concerned with the total supply chain concept? Why or why not?

> RFID tags are extremely useful for retailers, but many consumers have responded negatively to them, even calling them “spy chips.” What are the ethical issues that retailers must be aware of when they use these chips? What responsibility do retailers hav

> Can a company’s reverse logistics system have a significant influence on how a consumer views the organization and its brand? Are there specific types of products for which a company’s reverse logistics system could play a more important role in contribu

> As colleges and universities are looking for better ways to satisfy their customers, an area of increasing interest is the distribution of their product (which of course is a student’s education). Describe the characteristics of your school’s channel(s)

> Pizza is big business. Americans spend over $40 billion on pizza every year. With more than 59,000 U.S. stores that sell and deliver pizza, customers have lots of options from which to choose. Dominos wants more and more of them to make Domino's their on

> As the one-person marketing department for a candy manufacturer (your firm makes high-quality, hand-dipped chocolates using only natural ingredients), you are considering making changes in your distribution strategy. Your products have previously been so

> To bring cost-effective products to your door, retailers like Walmart use suppliers, some of which may contract work out to other suppliers and so on. And while the initial suppliers that Walmart contracts with may be socially responsible, not all suppli

> When can offering too many choices become too much to handle? Target has gone through a period of bad press as a result of an unacceptable level of stock-outs that upset customers and decreased sales. The discount retailer believes that it can solve the

> What are the advantages and disadvantages of shipping by rail? By air? By ship? By truck?

> What is logistics? Explain the functions of logistics. What is reverse logistics?

> Explain the steps in distribution planning.

> Explain intensive, exclusive, and selective forms of distribution.

> What are conventional, vertical, and horizontal marketing systems?

> What factors are important in determining whether a manufacturer should choose a direct or indirect channel? Why do some firms use hybrid marketing systems?

> List and explain the types of independent and manufacturer-owned wholesaling Intermediaries.

> Assume that you are the head of PR for a regional fast-food chain that specializes in fried chicken and fish. A customer has claimed that he became sick when he ate a fried roach that was in his chicken dinner at one of your restaurants. As the director

> Explain the functions of distribution channels.

> What is a channel of distribution? What are channel intermediaries?

> What is inventory control, and why is it important?

> What is a supply chain, and how is it different from a channel of distribution?

> Given this particular example, what are some things the manufacturer might work on to bring the overall perfect order measurement higher? What would be the advantages to the firm of investing in making this already good number even better for customers?

> Is a zero error rate realistic? How close should a firm be expected to come to zero errors? How do you suggest motivating employees toward reducing these errors?

> Do you think the firm should be satisfied with this level of performance? Why or why not? What particular areas need attention, if any?

> As a soon-to-be college graduate, you be will be looking for a full-time job in your field. As part of this process, you will need to learn to successfully market yourself. Prepare an outline for your marketing plan. First, list the special problems and

> Because of increased competition in its community, you have been hired as a marketing consultant by a local restaurant. You know that the characteristics of services (intangibility, perishability, variability, and inseparability) create unique marketing

> Address the same issues in item 12-22 for a marketing plan for the town or city where your college is located. How would you market this town or city and the surrounding area as part of the overall college experience to potential students?

> Think of the last time you interacted with a salesperson, whether it was for a new tablet computer or a trendy pair of jeans. Identify the type of salesperson you were interacting with and explain what this person did to fulfill that particular role. Als

> Music, video, or textbook downloading (even when done clandestinely) is just a way to create a more efficient supply chain because it “cuts out the middleman” (e.g., stores that sell music, video, and books). Do you agree? Why or why not?

> Many not-for-profit and religious organizations have found that they can be more successful by marketing their ideas. What are some ways that these organizations market themselves that are similar to and different from the marketing by for-profit busines

> There has been a lot of criticism about the way politicians have been marketed in recent years. What are some of the ways marketing has helped our political process? What are some ways the marketing of politicians might have an adverse effect on our gove

> Disintermediation is becoming more commonplace in the service industry, often eliminating a customer’s interaction with, for example, bank tellers or supermarket clerks. How does this lack of interaction affect the customer’s experience? How does this la

> What are some possible effects of B2C e-commerce on traditional retailing?

> Your company has developed a new high-end hand cream, designed to noticeably soften hands and reduce the appearance of age spots and scars when used daily. Using the hierarchy of effects, develop communications objectives for your product for consumers w

> Assume that you are a member of the marketing department for a firm that produces several brands of snack foods. Your assignment is to develop recommendations for consumer and trade sales promotion activities for a new low-fat, low calorie, high protein

> What dimensions do consumers and business customers use to evaluate service quality? How should marketers respond to failures in service quality?

> Recently, Twitter has joined other Internet sites in selling preferred positions on the site to generate revenue. Do you feel that such revenue-generating activities make sites such as Twitter less attractive? If you know that the top comments on a site