CONSUMPTION, INVESTMENT and GOVERNMENT STIMULUS (Data Set #2)
In Billions of Current Dollars unless otherwise noted
Source: Economic Report of the President to Congress, 2011; Appendix B, Department of Commerce [1]
DateNominal PersonalGross PrivateNet Private
GDPConsumptionDomesticDomestic
InvestmentInvestment
2007 14,601.8 9,806.3 2,266.1 984.2
2008 14,369.1 10,104.5 2,137.8 743.0
2009 14,119.0 10,001.3 1,716.4 231.5
2010 14,660.2 10,351.9 1,752.8 464.2
DateGovernmentGovernmentGovernmentGovernment Government
ExpenditureExpenditureSavingsSavings Debt (Federal)
(Federal)(State & Local)(Federal)(State & Local)
2006 $ 8,451.4
2007 2,674.2 1,697.9 -245.2 12.2 $ 8,950.7
2008 2,878.3 1,798.5 -616.2 -47.4 $ 9,986.1
2009 2,914.9 1,775.3 -1251.7 -20.1 $11,875.9
2010 3,002.3 1,788.0 -2,080.0 [2] not available $13,528.8
NET PRIVATE SAVINGS CONSUMER DEBT
Date DisposablePersonalPersonalRetainedOutstandingChange from
IncomeConsumptionSavingsEarningsDebtPrevious Year
2007 10,423.6 9,806.3 214.7 270.7 2,522.19 137.35
2008 10,952.9 10,104.5 447.9 156.7 2,561.12 38.92
2009 11,034.9 10,001.3 655.3 284.2 2,449.38 -111.73
2010 11,378.3 10,351.9 655.1 474.2 [3] 2,403.00 -46.40
DateNominalTotal GrossPopulation
GDPSavings & (in millions of people)
Investment
2007 14,601.8 2,013.6 302.00
2008 14,369.1 1,785.2 304.80
2009 14,119.0 1,533.8 307.44
2010 14,660.2 1,728.3 [3] 308.75
[1] Note that these data reported by the Department of Congress differ by ± 1% from the data reported by the Bureau of Economic Analysis and provided to you in Data Set #1
[2] US Treasury 4th quarter report; not included in the Economic Report of the President to Congress.
[3] Based on third quarter estimates
Apple Product Launch Plan
Timothy W.C. Burke, Firas Faraj, and Geidy Lopez
MKT/571
October 15, 2014
Dr. Nancy Mac Isaac
Running head: APPLE PRODUCT LAUNCH PLAN
1
APPLE PRODUCT LAUNCH PLAN
8
Apple Product Launch Plan
Apples product launch for the new iCar will show off the more customizable features of this product for the Consumer. This product launch will discuss the target market profiles, key buying behaviors and decision motivators to the customer. The product launch will also discuss the iCar product life cycle as well as including the tactical plan for the product including price, place and promotion. In addition the planed product launch will provide more information on the benefits of iCar features mix. These benefits include branding, differentiating characteristic from competition, packaging, labeling and information on warranties and guarantees.
Target market profiles
Conducting market requires intensive research and knowledge of your customer. Knowing the likes and dislikes or their wants and needs will help focus marketing efforts towards that particular person. The chance for success will be greater if you have a detailed picture of what that customer looks like (Shupe, 2014).
· Demographic: T.
CONSUMPTION, INVESTMENT and GOVERNMENT STIMULUS (Data Set #2)I.docx
1. CONSUMPTION, INVESTMENT and GOVERNMENT
STIMULUS (Data Set #2)
In Billions of Current Dollars unless otherwise noted
Source: Economic Report of the President to Congress, 2011;
Appendix B, Department of Commerce [1]
DateNominal PersonalGross PrivateNet Private
GDPConsumptionDomesticDomestic
InvestmentInvestment
2007 14,601.8 9,806.3 2,266.1 984.2
2008 14,369.1 10,104.5 2,137.8 743.0
2009 14,119.0 10,001.3 1,716.4 231.5
2010 14,660.2 10,351.9 1,752.8 464.2
DateGovernmentGovernmentGovernmentGovernment
Government
ExpenditureExpenditureSavingsSavings Debt (Federal)
(Federal)(State & Local)(Federal)(State & Local)
2006 $ 8,451.4
2007 2,674.2 1,697.9 -245.2 12.2 $
8,950.7
2008 2,878.3 1,798.5 -616.2 -47.4 $
9,986.1
2009 2,914.9 1,775.3 -1251.7 -20.1
$11,875.9
2010 3,002.3 1,788.0 -2,080.0 [2] not available
$13,528.8
NET PRIVATE SAVINGS CONSUMER
DEBT
2. Date DisposablePersonalPersonalRetainedOutstandingChange
from
IncomeConsumptionSavingsEarningsDebtPrevious Year
2007 10,423.6 9,806.3 214.7 270.7 2,522.19
137.35
2008 10,952.9 10,104.5 447.9 156.7 2,561.12
38.92
2009 11,034.9 10,001.3 655.3 284.2 2,449.38 -
111.73
2010 11,378.3 10,351.9 655.1 474.2 [3] 2,403.00 -
46.40
DateNominalTotal GrossPopulation
GDPSavings & (in millions of people)
Investment
2007 14,601.8 2,013.6 302.00
2008 14,369.1 1,785.2 304.80
2009 14,119.0 1,533.8 307.44
2010 14,660.2 1,728.3 [3] 308.75
[1] Note that these data reported by the Department of Congress
differ by ± 1% from the data reported by the Bureau of
Economic Analysis and provided to you in Data Set #1
[2] US Treasury 4th quarter report; not included in the
Economic Report of the President to Congress.
[3] Based on third quarter estimates
3. Apple Product Launch Plan
Timothy W.C. Burke, Firas Faraj, and Geidy Lopez
MKT/571
October 15, 2014
Dr. Nancy Mac Isaac
Running head: APPLE PRODUCT LAUNCH PLAN
1
APPLE PRODUCT LAUNCH PLAN
8
Apple Product Launch Plan
Apples product launch for the new iCar will show off the more
customizable features of this product for the Consumer. This
product launch will discuss the target market profiles, key
buying behaviors and decision motivators to the customer. The
product launch will also discuss the iCar product life cycle as
well as including the tactical plan for the product including
price, place and promotion. In addition the planed product
launch will provide more information on the benefits of iCar
features mix. These benefits include branding, differentiating
characteristic from competition, packaging, labeling and
information on warranties and guarantees.
Target market profiles
Conducting market requires intensive research and knowledge
of your customer. Knowing the likes and dislikes or their wants
and needs will help focus marketing efforts towards that
particular person. The chance for success will be greater if you
4. have a detailed picture of what that customer looks like (Shupe,
2014).
· Demographic: The demographic make-up of potential iCar
customers fits a wide demographic, however the iCar does
require users to be tech savvy below 60 years of age and are of
legal driving age are the demographic most targeted. However
the iCar will have wide appeal to any geographic area in the
United States.
· Lifestyle: The typical lifestyle of an iCar customer is a
customer who uses technology to make their life easier. These
are people who own and are comfortable with a computer, iPad
or iPhone. Of particular interest are those customers who have
learned to incorporate the use of mobile computing into their
everyday life.
· Morals and Values: These customers typically believe in a
paperless world. They like things that are “green” and energy
efficient.
· Pain Points: Customers are looking for way to control their
car that increase the comfort, usability of information, safety,
convenience and drivability. People want to customize the
controls of their car and add unique informational interfaces..
Today, customers like the sleekness of tablets and the ease of
using them in everyday applications.
· Shopping Habits: The potential iCar customer’s shopping
habits include looking for the” latest and the greatest
technology. “
Key buying behaviors
· Cultural: Based on ease of customization the iCar can appeal
to a multicultural audience. There are not many cultural
boundaries that would limit. Older users might like the larger
text and graphics and the potential of an audio interface to
reduce eyestrain or health related issues. It is possible that
“baby-boomers” may be opposed to things that are changed a
generational mantra of “weren’t broke in the first place.” might
provide additional marketing strategies to engage this
demographic.
5. · Social: The iCar adds a connectivity layer to social
networking or media in the current market. This next “layer” in
social media is the ability to connect anytime safely with the
world. As customers incorporate the iCar into their driving
experience it will create a demand for those who do not. Thais
demand will be a increase the emotional experience and
incorporate a desire of belonging to this group.
· Personal: The iCar will connect with the personal behavior of
customers simply because it can adapt and adjust to each
person’s level of comfort.
· Psychological: Customers have shown a proclivity to be on
the cutting edge of technology and want to psychologically feel
that they are market leaders. The iCar technology is
incrementally upgradeable and will continue to give the
customer this feeling.
Decision motivators: Maslow’s hierarchy of needs provides a
reliable understanding of what will motivate a customer’s
decision. Apple can convince their customers that iCar will
increase their safety while operating a car. By doing so, will
satisfy a person’s second most important basic need: safety.
[Your paper shows definite improvement in focus, clarity and
demonstrates a growing understanding of marketing.]
PLC/Four Ps
To effectively manage the product life cycle, You have not
discussed the phases of the life cycle Apple needs to greatly
focus these key business areas:
Development: iCar’s continued development is therefore one of
the first and the most crucial phases of the manufacturing
process that Apple need to spend both and money on ensure that
iCar is a success.
Financing: Apple needs to earmark comprehensive funds in
order to launch iCar and sustain it throughout the introduction
stages, but later investment through the stages of growth and
maturity needs to be financed by profits from sales. Throughout
the life cycle of iCar, Apple needs to take in to account the
most accurate path to finance their costs in order to raise profit
6. potential.
Marketing: As the market steps on to maturity, the consumer’s
attitude towards iCar will change. So the promotional and
marketing activity that launches iCar in the introduction Stage
will be very different as compared to the campaigns that will be
developed to protect market share during the maturity stages.
Manufacturing: The cost of manufacturing of iCar will decline
during its life cycle. As the market production and development
increases, costs will start falling; and when more effective and
cheaper methods of production get released cost will continue to
fall.
Information: Because ICar is directly connected to customers,
concerns with data linked to the potential for iCar will rely on
feedback related to different marketing campaigns to view
which are most efficient, or monitoring the market cycles to
decide on the most accurate response, this information has been
deemed critical to the success of iCar. Apple needs to
efficiently manage iCar along the product life cycle by
developing the most efficient information systems. (Catherine
Capozzi, 2008).
Concentrating on the 4Ps we have:
Product: iCar will be provided for sale to the target market.
When developing iCar Apple should considers design, quality,
features and cost when considering packaging along with
customer service and comprehensive after-sales service.
Place: This comprises of the location of the business,
distributors, brick and mortar vs e retailers, logistics as well as
the actual use of the internet to sell iCar directly to its
consumers.
Price: Price will definitely be a factor. Apple has a history of
premium pricing that comes with its quality and brand and ICar
may benefit from this perennial Apple strategy. [Your essay is
well-developed, at this point include the price you’ve decided
upon .]
Promotion: Apple needs to invest in product promotion so that
the product can become an international market success.
7. (Thomas Barta, 2013). You need to state what the basic
promotional strategy is, not merely that there needs to be
promotion. What integrated marketing communication plan
would you put in place.
New Features and Benefits
The new features of the iCar will include the division of the
screen into two panels. The top panel will be always used for
navigation. This will allow the costumer to know their location
at all times. On the right corner of the top panel will be a
button to access voice activated directions. iCar navigation
system will allow the costumer to select the settings to avoid
tolls, and areas with recent reported accidents. The bottom
screen will be shared between entertainment on the left side and
phone services on the right side. Having these panels permits
the customer to have more control and accessibility to phone,
navigation and entertainment.
Branding: Since the Apple brand have been firmly established
and preferred by many consumers our work is going to focus on
marketing the iCar and analyzing the response of the public to
our product. Marketing campaigns will depict an easier,
upscale and connected lifestyle with the iCar. Before iCar
launch we will interpret the data from our survey to capture the
needs and wants of our intended target market (Keller & Kotler
2012).
Differentiating characteristics from competition: The user
friendly setup and versatility of the ICar is the main
differentiation of our product from the competitors: Ford,
Microsoft and Samsung. The iCar, targets technology oriented
consumers, will be easy to navigate as it is based on the iPhone.
The iCar will only require the initial purchase of the product for
between 3-3.5 thousand dollars and will require no further
subscriptions, unlike Ford who requires yearly subscription in
addition to the initial purchase of sync MyTouch (Muller,
2012). The iCar will offer the customers better visibility and
control of their vehicle.
Packaging and Labeling: The iCar will be carefully packaged in
8. individual white boxes measuring 15 inches long, 15 inches
wide and 10 inches deep. The boxes will be labeled fragile on
the sides to prevent damage. The label of the boxes will display
the tablet on the face label showing its design and our slogan
“has all the information you want, as you want, when you
want.”
Warranties and guaranties: The iCar will have a warranty for
the first three years. An additional 2 years warranty could be
purchased by customers. The warranty will cover hardware and
software malfunctions for the first three years. Apple
guarantees fixing the product or replacing with in warranty
guidelines.
Positioning statement
Apple will revolutionize the auto industry with the new iCar.
Apple’s iCar offers excellent visual quality, ease of operation,
and all controls while driving a car safely. Other competitors
cannot compare to Apple’s iCar on any level and the iCar is the
only tablet that will be compatible with any car.
Conclusion
iCar will give the consumer a myriad of opportunities to
personalize their own car. iCar will be marketed and supported
through Apple. Apple has the consumers trust and this makes
their customers some of the most loyal across the globe. Apples
key to success comes from their ability to continue to
understand and anticipate their customers' needs. When Apple
releases the iCar it will target these loyal consumers as well as
customers of related automobile manufacturing and suppliers.
[This paper meets the requirements of the assignment and shows
a growing understanding of marketing.]
Reference
Shupe, R. (2014). Your perfect customer: creating your target
market profile. Redhead business solutions. Retrieved from
http://redheadbusinesssolutions.com
Catherine Capozzi, (2008). The Business Product Life Cycle of
a Vehicle in Marketing. Retrieved from:
http://smallbusiness.chron.com/business-product-life-cycle-
9. vehicle-marketing-21158.html
Thomas Barta, (2013). The 4Ps of Marketing Leadership.
Retrieved from: https://www.cmocouncil.org/article-4Ps-of-
marketing-leadership.php
Ford. (n.d.). Sync Services Overview. Retrieved from
http://support.ford.com/sync-technology/sync-services-
overview-sync-myford-touch
Keller, K. L. & Kotler, P. (2012). Marketing management (14th
ed.). Upper Saddle
River, NJ: Pearson Prentice Hall. (Keller & Kotler 2012)
Muller, J. (2012, May). OnStar Mirror: When Only a Human
Will Do. Retrieved from
http://www.forbes.com/sites/joannmuller/2012/05/03/onstar-
mirror-when-only-a-human-will-do/
W4 Team Project Paper Grading- 6 points possible
Content
[ 4 points possible]
Met
Partially Met
Not Met
Comments:
Details the target market profiles, key buying behaviors, and
decision motivators for your consumer and organizational target
markets
1 point possible
1
The key concepts are well supported, detailed discussion
provided.
How to manage each stage of the PLC and include tactical plans
for the Four Ps at each stage 1 point possible
10. 0.5
The four stages, intro, growth, maturity and decline were not
covered individually but were addressed generally.
Expands on the product offering from Week 2, provides the
product mix for the new offering including features and
benefits, branding, any other products in its line; its
differentiating characteristics from competitive or substitute
products, packaging and labeling; and warranties and guarantees
1 point possible
0.75
The product mix discussion is robust and demonstrative of a
growing understanding. Not All of the itemized contents were
addressed but a significant portion was covered.
Creates a new positioning statement for the product, and
provides justification for the new positioning strategy 1
point possible
1
The positioning strategy was justified and communicated
thoroughly.
Writing Guidelines
[2 points possible]
Met
Partially Met
Not Met
Comments:
The 1400 word paper—including tables and graphs, headings,
title page, and reference page—is consistent with APA
formatting guidelines and meets course-level requirements.
[0.50 points possible]
0.5
11. The paper meets all APA guidelines
Intellectual property is recognized with in-text or parenthetical
references to full citations on a properly formatted reference
page. New Product Launch Marketing Plan, Part I
Sample Marketing Plan in Ch. 2 of Marketing Management- the
2 required references.
[0.50 points possible]
0.5
The attribution of all borrowed materials was consistent with
graduate level expectations and all references were properly
formatted.
Paragraph construction, length and sentence transitions are
present, logical, and maintain the flow throughout the paper.
[0.50 points possible]
0.5
Some paragraphs are too short; add either more detail or join to
another paragraph that deals with the same topic.
Sentences are complete, clear, and concise and the rules of
grammar and usage are followed including spelling and
punctuation.
[0.50 points possible]
0.5
You write directly and succinctly, with a good balance of long
and short sentences, and in general, your grammar, spelling, and
punctuation are academically appropriate.
Totals:
4
1.25
12. Assignment Total 5.25
Additional comments: The Learning Team’s second installment
of their New Product Launch Marketing Plan concentrates on
the segmentation, targeting, and positioning (STP); product
mix; and managing the product’s brand through its lifecycle. As
with the Week 2 assignment, the Learning Team’s information
will be used in the final marketing plan. Students are able to
reflect and build on their projects and refine their projects based
on the faculty feedback from this assignment to the final
assignment.
Apple Product Launch Plan
Timothy W.C. Burke, Firas Faraj, and Geidy Lopez
MKT/571
October 2, 2014
Dr. Nancy Mac Isaac
Running head: PRODUCT LAUNCH PLAN
1
PRODUCT LAUNCH PLAN
6
13. Product Launch Plan
Apple Inc., ticker symbol (AAPL), is developing new ideas to
reach out to more consumers. Team D recommends that the next
market segment Apple should plan to penetrate is the auto
industry. Many Apple product users would likely enjoy the
same friendly experience while operating their car. Apple
Corporation’s new product, “the iCar”, will increase consumer
driving experience and needs. Team D hypothesizes that the
new iCar will engage drivers and enhance the driving
experience resulting in creating demand for the Apple interface.
Product Offering and Product Definition
The iCar is a 12 inch tablet based integrated automotive control
system. The iCar is an Apple product that runs a modified
operating system (IOS). The iCar will provide consumers with
easily upgradable and adaptable new technology for the auto
industry. The iCar will replace standard dashboard features as
an option when purchasing a vehicle. It will include voice
activation, navigation, touch control stereo, and climate control.
A consumer can control remote door locks, ignition starting
system, and climate control from their iPhone. The new product
“iCar” will relay information from the car’s computer to the
occupant. Information includes monitoring mechanical
functions, tire pressure, lubrication schedules, engine
temperature, and interpreting engine fail codes resulting from
the check engine light. It will provide the consumer with the
nearest suitable auto repair shop including searchable lists of
other locations. If the owner misplaces their car in a parking
lot or garage, GPS on the iPhone will provide the car’s location.
The iCar will revolutionize the auto industry and the consumer
experience. [Your product description is well-written. It is clear
and concise.]
Market needs
Apple is fulfilling the demand for a more superior driving
experience by car drivers worldwide. The corporate goal is to
complete the needs of customers with the following:
· Touch controls. Consumers are looking for a technological
14. friendly way to control their car functions without sacrificing
safety.
· Personalized driving experience. The Apple’s iCar provides
the need for a more simplified and personalized driving
experience. Most, if not all, cardrivers throughout the world
need a car that fits them. Controls can be customized to each
consumer’s needs.
· More information. Consumers are looking for more
information safely while on the road. Our target market is tech
savvy car drivers. The value proposition is “have all the
information you want, as you want, when you want.”
Market growth. The demand for high-tech gadgets rises as more
companies find better ways to apply technology. Apple’s line
of “i” products have been extremely successful in the market.
The growth of new Apple products has created loyal customers.
The Apple Company created a strong market growth with their
personalized service and attention to detail for every aspect of
customer service (Greenwald, 2014). [You draw strongly on
research in your paper; however, research is there to support
your own thoughts and opinions. This means that quotations
should be integrated with your own ideas.]
SWOTT Analysis. The SWOTT analysis below describes the
main strengths and weaknesses of the company and the possible
opportunities and threats with the iCar (Kotler & Keller, 2012).
· Strengths of the iCar
· An established following of Apple products consumers
· User-friendly in any application
· High reliability with minimal operational malfunctions
· Weaknesses
· Not all consumers like Apple or the operating system
· Opportunities
· Entry into a new market segment: the auto industry
· Introduction of an Apple product in a car could lead to other
sales of different Apple products
· The company will be first-to-market and have the advantage
· Threats
15. · Consumers find that the product is obtrusive
· Product technical failure could lead to other car problems
· The competition produces a better product
· Trends
· Most consumers are computer savvy and prefer to have
computerized controls over traditional mechanisms. [You draw
strongly on research in your paper; however, research is there to
support your own thoughts and opinions. This means that
quotations should be integrated with your own ideas.]
· Today’s market trend is iPhone and iPad. If there is another
application to use the same technology then consumers will
follow
Potential Competition. The competition for this new
application could be any number of tablet manufacturers. Who?
All the other competitors would use PC technology. The
consumers who are Apple adverse would be lost to the
competition. Since Apple is an easier? product than a PC,
operation of a vehicle safely can give Apple a competitor’s edge
over the competition. [You understand what you want to say,
but your ideas are not always clear to the reader. Avoid making
assumptions. Explain your ideas carefully.]
Conclusion
Consumers are ready for the next new Apple product: the
iCar. Apple is poised to fulfill the needs of auto consumers by
providing as increased driving experience. The experience will
provide a personalized feel with a command of any information
or control at your fingertips. Apple will double its market share
by expanding to the auto industry and be first-to-market. Do
you plan to sell this to auto manufacturers or in the apple store
to individuals who own cars?
Learning Team Feedback
W2 Team Launch Plan Part 1-Grading Rubric
16. Content 4 out of 5 possible
80 Percent
Met
Partially Met
Not
Met
Comments
Product launch plan for domestic market 1.0
0.75
You have not addressed the issue thoroughly and need more
information to support your assertions.
Market needs 0.5
0.25
The key concepts are not well supported- you give opinion but
little facts upon which you base your opinion. .
Market growth 0.25
0.15
This discussion of growth potential was not made in the present
tense. Future research is not the answer, do the research and
then describe what the future market growth potential is.
A brief SWOTT Analysis 0.5
0.4
17. Your SWOTT analysis was confusing; are you swotting the icar,
or Apple?
Potential competition 0.25
0.15
Insightful analysis is missing
Product offering and product definition 0.50
0.40
This product choice meets the requirements of the assignment.
Product identification 0.25
0.25
Your description is well-written. It is clear and concise.
Justification for the choice of product 0.25
0.10
Good use of source(s) but the rational for why another
A 10-question survey for the final marketing plan, that collects
additional primary data about the buyers 0.25
0.25
Your survey is lucid and well-written.
The paper is no more than 1,050 words in length. And two
Letters to Shareholders were supplied 0.25
0.25
18. You put a good deal of effort into this paper and it is the proper
length.
Writing Guidelines 1 out of 5 possible20 Percent
Met
Partially Met
Not Met
Comments
The paper—including tables and graphs, headings, title page,
and reference page—is consistent with APA formatting
guidelines and meets course-level requirements. 0.25
0.25
APA formatting conforms with requirements and the paper is
written at the master-level.
Intellectual property is recognized with in-text references to full
citations on a reference page. 0.25
0.25
Parenthetical and in-text attribution is present; full citations
provided appropriately
Paragraph and sentence transitions are present, logical, and
maintain the flow throughout the paper. 0.25
0.20
Thesis statements are evident. Paragraphs are of sufficient
length; 3-5 sentences each.
Sentences are complete, clear, and concise
Rules of grammar and usage are followed including spelling and
punctuation. 0.25
19. 0.20
Written directly and succinctly, with a good balance of long and
short sentences, and in general, your grammar, spelling, and
punctuation are excellent. The conclusion was not sufficient.
Assignment Subtotals &
Assignment Total
1.5
2.25
Grand total: 3.5 out of 5
Additional comments: Learning Team Assignment: New Product
Launch Marketing Plan, Part The purpose of the first part of
the assignment is to identify their team’s product, provide an
environmental and competitive analysis, create a marketing
research instrument, and explain the marketing rationale for the
product. This information provides the foundation for the rest of
the Learning Team assignments and for the final marketing
plan. Since students apply faculty feedback on their projects in
the final marketing plan, this assignment also provides an
opportunity for learning reflection and refinement throughout
the course.
The Learning Team will simulate a new product launch from the
inception stage through market launch. There are three parts to
the assignment; two preliminary assignments due in Weeks 2
and 4, and the final assignment due in Week 6, where the
Learning Team creates a marketing plan for their product
launch. The purpose of the first part of the assignment is to
identify their team’s product, provide an environmental and
competitive analysis, create a marketing research instrument,
and explain the marketing rationale for the product. This
information provides the foundation for the rest of the Learning
20. Team assignments and for the final marketing plan. Since
students apply faculty feedback on their projects in the final
marketing plan, this assignment also provides an opportunity for
learning reflection and refinement throughout the course.
Team Grade earned: 3.75 points out of a possible 5 points.
Appendix A
Survey
1. How many types of electronics do you presently own?
1 2 3 4 5 6+
2. On a scale of 1 to 10 with ten the lowest, how would you
rate your computer literacy?
1 2 3 4 5 6 7 8 9 10
3. Which of these factors influence your choice? (Circle one
or more selections)
•Product Quality •Style/Design • Reliability
4. Do you own an IOS Device? (Circle One) Yes No
5. Do you maintain your own vehicle? (Circle One) Yes
No
6. How many people are in your household that has driver’s
licenses?
1 2 3 4 5 6 7 8 9+
7. On a scale of 1 to 10 with ten the lowest, what is your
tolerance for new technology.
1 2 3 4 5 6 7 8 9 10
8. On a scale of 1 to 10 with ten the lowest, rate the
likelihood of your purchasing a car with minimal
instrumentation.
1 2 3 4 5 6 7 8 9 10
9. On a scale of 1 to 10 with ten the lowest, rate your
experience with keyless operating systems:
1 2 3 4 5 6 7 8 9 10
21. 10. Would you drive a fully autonomous car? (Circle One)
Yes No
Appendix B
Letters to Shareholders
The attached are website links to the latest annual reports
(Apple, 2014).
Fiscal Year 09/2013:
http://investor.apple.com/secfiling.cfm?filingID=1193125-13-
416534&CIK=320193#D590790D10K_HTM_TOC590790_1
Fiscal Year 09/2012:
http://files.shareholder.com/downloads/AAPL/3505368899x0x7
56594/71AB3488-9710-44D4-B161-197F330FC39A/SEC-
AAPL-1193125-12-444068.pdf
References
Apple, Inc. (2014). Form 10-K. Investor relations. Retrieved
from http://investor.apple.com
Greenwald, M. (2014). 20 ways Apple masters customer touch-
points and why it's great for business. Forbes. Retrieved from
22. http://www.forbes.com
Kotler, P., & Keller, K.L. (2012). Marketing management (14th
ed.). Upper Saddle River, NJ: Pearson Prentice Hall
CONSUMPTION, INVESTMENT and GOVERNMENT
STIMULUS (Graph Set #2)
Different Perspectives on the Composition of US Government
Debt:
Decomposed According to Categories Used by the Treasury
Department: 3rd Quarter 2010
Decomposed with All Pensions (SSA, State and Local
Government, Corporate, Union and Private) Shown Separately:
3rd Quarter 2010
Decomposed to Show Foreign Owners by Country
“To Whom Does the U.S. Government Owe Money?” Business
Insider Magazine, January 14, 2011.
http://articles.businessinsider.com/2011-01-
14/markets/29973919_1_national-debt-public-debt-oil-exporters
The foreign-owned debt in the pie chart above sums to 31.8% of
all public debt. This is a fairly significant upward manipulation
of actual Treasury Department Data. Here are the proportions
23. provided by Treasury to Commerce and reported in the
Economic Report of the President to Congress, 2011, Appendix
B.
2007 25.5%
2008 28.8%
2009 29.9%
2010 (as of 3rd Quarter) 21.9%
Fed & SSA
Banks
State/Local Govt
Other Private
Foreign
Fed
Banks
All Pensions
State/Local Govt
Other Private
Foreign
QUESTION SET #2: Use the Data Set #2 and Graph Set #2
provided to answer these questions. Answer them on your own
and upload them to your team's file exchange by Monday,
October 27. Read the uploads of your team members. On Team
Day in class (Wednesday, October 29) you will discuss your
answers and send a final, agreed upon set of answers to me by
email. It is not necessary for all members of the team to agree
24. on a single answer, but if team members hold different opinions
you should be able to state those opinions with their supporting
rationale.
All of these questions should be answerable in one or a few
sentences, or by a single calculation. They will require some
thought on your part.
Question 1: First, some practice with simple calculations:
(a) According to Paul Krugman, the complex multiplier for the
United States is about equal to 2. The American Recovery and
Reinvestment Act of 2009 earmarked $787B in deficit spending,
of which $330.4B was spent in 2009. (Total government
deficits for 2009 were $1251.7B.) What was the increase in
nominal GDP from 2009 to 2010, in billions of dollars? What is
the implied multiplier for the deficit spending, by ARRA and in
total?
(b) Look at disposable income, personal consumption and
personal savings. What was the personal savings rate in the
United States in 2011? (Use savings/disposable income, i.e.
Average Propensity to Save.)
(c) What proportion of GDP was our federal government sector
in 2010? (Divide federal government spending by GDP.) Per
dollar of government spending, how much government spending
was financed by government debt (negative savings) in 2010 at
the federal level? (Divide negative federal government savings
by federal government expenditure.)
(d) One popularly reported statistic for national economies is
the Debt/GDP ratio. Total US Federal Debt in 2010 was $13.562
Trillion. What was our Debt/GDP ratio in 2010?
(e) Refer to Graph Set #2, the first picture entitled “Eurostat
News Release.” How does the EU compare in the size of its
public sector? Are its government deficits larger or smaller as a
percentage of GDP in 2009?
Question 2: Tax reductions versus Deficit Spending. Between
these two scenarios, can you answer each the following
questions in one easy sentence?
25. · The government increases spending without increasing taxes,
and a deficit is generated:
· Where does the money to finance the deficit come from?
· How does this affect affordable credit for Investment and
Consumption?
· How does it affect National Incomes? Who is the government
paying money to?
· The government decreases taxes without decreasing spending,
and a deficit is generated:
· Where does the money to finance the deficit come from?
· How does this affect affordable credit for Investment and
Consumption?
· How does it affect personal savings rates (if personal taxes are
lower)? Business savings rates, i.e. retained earnings, if profits
taxes are lowered?
Question 3: In Graph Set #2, on page two, look at the two pie
charts showing the composition of US Debt. A third to a half of
our debt is typically held by our Federal Reserve Bank and used
to modulate our domestic money supply, as we’ll learn in the
next Unit. That percentage fluctuates over the business cycle
and it is at the low end of its spectrum in the pie chart shown
for the third quarter of 2010. The Social Security
Administration also buys Treasury bills because they are
considered zero-risk, and low risk investment is appropriate for
pension funds. Those buyers, plus miscellaneous intra-
government reserve funds, pensions, banks, and individual or
portfolio demand account for the rest of our domestically-owned
debt.
Foreign countries own 20-30% % of our public debt. That
proportion also fluctuates over the business cycle. The People’s
Republic of China owns ~26% of our foreign-owned debt, or
~5-7% of our total public debt. We have a soft deal with China
26. to refrain from insisting upon appreciation of the Yuan in
exchange for their consistent demand for our Treasury bills.
In two or three sentences, what are the pros and cons of
allowing a fairly large portion of our public debt to be owned
by foreign governments? Would it ever be in China’s interest,
for example, to suddenly dump US Treasury Bills, or are we so
interdependent that this is not a risk? What do you think? When
you prepare the common answers for submission to me, have the
Recorder paste in here one comment from each member of the
team.