Assignment:
Part 1
Goods and Services Marketing
The success of a product or a company in the marketplace is highly dependent on the target markets ability to distinguish a given product from another. One way this is accomplished is through branding. When it comes to branding, companies must make complex decisions that will have a prolonged effect on the perception of the product and company in the marketplace. In this discussion, you will discuss product placements based on brand name marketing in the film industry.
Scenario:
Product placement deals have been a common practice in the film industry for quite some time, but the focus on placing popular brands in movies and television shows was never as important as it is today. To execute this Discussion, watch one of your favorite television shows or a recent popular movie and discover a brand of a product that is featured in the plot of the story. Pay close attention, sometimes it can be tricky to identify a popular brand being featured if your mind is not consciously looking for it.
Directions to complete this Assignment:
? Read Chapter to understand how companies make branding\decisions.
? View marketing uses of branding.
? Watch the video segment concerning Brand, Design, and Differentiation as discussed by Tom Peters (Tom Peters Company ©1999-2014) to supplement your understanding of product branding by Tom Peters-Filmed by BVO 2009 and now available via YouTubeTM at:
Checklist: In 250 words or more, answer the following questions:
1. Identify the television show or recent movie you watched, and introduce the brand of a consumer product that you found was featured in the plot of the story.
2. Discuss the type of consumer product (convenience, shopping, specialty, unsought) you identified in the plot of the story. Explain your answer.
3. Discuss how the television show or movie increases or decreases the brand equity of the product.
4. Describe the brand strategy of the product you identified within the plot of the story.
Part 2
1) This section deals with increase money supply given two scenarios (see "a" and "b" below).
In Westlandia, the public holds 50% of money one (M1) in the form of currency, and the required reserve ratio is 20%.
a) Estimate how much the money supply will increase in response to a new cash deposit of $500 by completing the accompanying table.
(Hint: The first row shows that the bank must hold $100 in minimum reserves - 20% of the $500 deposit - against this deposit, leaving $400 in excess reserves that can be loaned out. However, since the public wants to hold 50% of the loan in currency, only $400 × 0.5 = $200 of the loan will be deposited in round 2 from the loan granted in Round 1.)
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Round
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Deposits
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Required reserves
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Excess reserves
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Loans
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Loan proceeds held as currency
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Loan proceeds deposited
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1
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$500.00
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$100.00
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$400.00
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$400.00
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$200.00
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$200.00
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2
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$200.00
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3
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4
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5
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6
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7
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8
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9
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10
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Totals
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b) How does your answer compare to an economy in which the total amount of the loan is deposited in the banking system and the public does not hold any of the loans in currency? (Hint: Complete the table below when none of the loan proceeds held in currency following the example for row 1.)
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Round
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Deposits
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Required reserves
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Excess reserves
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Loans
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Loan proceeds held as currency
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Loan proceeds deposited
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1
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$500.00
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$100.00
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$400.00
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$400.00
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0.00
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$400.00
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2
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$400.00
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3
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4
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5
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6
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7
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8
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9
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10
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Totals
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c) What does this imply about the relationship between the public's desire for holding currency and the money multiplier? Which scenario will contribute more to increase in money supply?
2) Explain how each of the following changes quantity of money (money supply) in the economy.
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a.
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the Fed buys bonds
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b.
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the Fed auctions credit
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c.
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the Fed raises the discount rate
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d.
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the Fed raises the reserve requirement
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3) Assume that in a country the total holdings of banks were as follows:
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Amount in million dollars
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Required Reserve
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$45
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Excess Reserve
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$15
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Deposits
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$750
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Loans
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$600
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Treasury Bonds
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$90
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Show that the balance sheet balances if these are the only assets and liabilities.
Assuming that people hold no currency, what happens to each of these values if the central bank changes the reserve requirement ratio to 2%, banks still want to hold the same percentage of excess reserves, and banks do not change their holdings of Treasury bonds? How much does the money supply change by?