Foundations of Marketing 6th Edition by William Pride,Ferrell

Exercise 19

The SMART car was launched in the United States in 2008, thereby establishing the American "microcar" category. Sales of SMART cars to date have not met expectations, but the introduction of the iQ from Scion and plans for small vehicles at Toyota, Hyundai, and other car manufacturers suggest that the micro-car category is not going away. An ongoing challenge for the manufacturers of micro-cars, however, is overcoming the rumors that circulate about the miniscule machines, notably the idea that micro- cars are unsafe and useless without a back seat. Develop a very simple questionnaire of four to five items and survey 10 to 15 friends or family members about their beliefs on micro-cars. Based on this information, develop a budget in terms of percentage of sales revenue to be spent for advertising, personal selling, sales promotion, and public relations.