Marketing PlanBy Tara SeitlerThe Gap Company 1.docxinfantsuk
Marketing Plan
By: Tara Seitler
The Gap Company
1
1
Agenda
Current Marketing Situation
Market Description
Product Review
Competitive Review
Distribution Review
SWOT Analysis
Micro-environments
Macro-environments
2
Current Marketing Situation
Market Description
Target Market
Market Targeting strategy
Value proposition – The Gap Company
Consumer behavior
Buyer decision principles
3
Target Market
GAP is a brand-builder.
We create emotional connections with customers around the world through inspiring product design, unique store experiences and compelling marketing.
It’s goal is to simply make it easy for customers to express their personal style throughout their life.
GAP hoped that effective Web initiative could let company to solidify its brand, improve customer relationships, serve markets that could not support a store and cut costs.
Company also believed that going online would attract new customers and steal market share from competitors.
4
Target Market- Segmentation
Target Section of Market
Residential,
Non-residential,
Mobility and
Personal
Buyers Category
Upper middle and upper class individuals
5
Marketing Strategy
Marketing objective is to create a perception in the mind of the customer about the product.
Build image of product as a different product through adopting the strategy of differentiation of porter
Restructure the business
6
Restructure Business
Transform business management focusing on from quantity to profitability
Reduce fixed cost and downsize business structure to fair size
TV set business
Product
Create competitive products on its strength
Cost structure
Thoroughly improve cost structure
Restructuring
Completion of domestic sites integration and acceleration of overseas sites restructuring
7
Pricing Decision and Strategy
Keep Retailer and Customer pricing strategies different
Captive Product Pricing
The company makes its pricing strategies by having the knowledge of its competitor`s pricing
We can include USB connectivity devices
We can include Home Theatre along with
The prices of these accessories are kept relatively than other brands.
8
Sale Strategy
Sale Strategy - Sale Through
Manufacturer whole seller/dealer consumer
Sale Out (Sales To the retailer)
Manufacturer (company) Authorized Dealers
9
Sale Through
Whole seller/retailers are the customers of manufacturers, manufacturers sell their products to the Whole seller and indirectly (through retailer) to the end consumers.
This process of selling is called “Sale Through”
Sale Out :
The company will sell the products to the retailers which are actually the customers of the Company.
There will be no medium used between the company and the retailer.
This procedure of selling is called “Sale Out”
9
Value Proposition
They are predicated value proposition from the mindset of your custome ...
Marketing PlanBy Tara SeitlerThe Gap Company 1.docxinfantsuk
Marketing Plan
By: Tara Seitler
The Gap Company
1
1
Agenda
Current Marketing Situation
Market Description
Product Review
Competitive Review
Distribution Review
SWOT Analysis
Micro-environments
Macro-environments
2
Current Marketing Situation
Market Description
Target Market
Market Targeting strategy
Value proposition – The Gap Company
Consumer behavior
Buyer decision principles
3
Target Market
GAP is a brand-builder.
We create emotional connections with customers around the world through inspiring product design, unique store experiences and compelling marketing.
It’s goal is to simply make it easy for customers to express their personal style throughout their life.
GAP hoped that effective Web initiative could let company to solidify its brand, improve customer relationships, serve markets that could not support a store and cut costs.
Company also believed that going online would attract new customers and steal market share from competitors.
4
Target Market- Segmentation
Target Section of Market
Residential,
Non-residential,
Mobility and
Personal
Buyers Category
Upper middle and upper class individuals
5
Marketing Strategy
Marketing objective is to create a perception in the mind of the customer about the product.
Build image of product as a different product through adopting the strategy of differentiation of porter
Restructure the business
6
Restructure Business
Transform business management focusing on from quantity to profitability
Reduce fixed cost and downsize business structure to fair size
TV set business
Product
Create competitive products on its strength
Cost structure
Thoroughly improve cost structure
Restructuring
Completion of domestic sites integration and acceleration of overseas sites restructuring
7
Pricing Decision and Strategy
Keep Retailer and Customer pricing strategies different
Captive Product Pricing
The company makes its pricing strategies by having the knowledge of its competitor`s pricing
We can include USB connectivity devices
We can include Home Theatre along with
The prices of these accessories are kept relatively than other brands.
8
Sale Strategy
Sale Strategy - Sale Through
Manufacturer whole seller/dealer consumer
Sale Out (Sales To the retailer)
Manufacturer (company) Authorized Dealers
9
Sale Through
Whole seller/retailers are the customers of manufacturers, manufacturers sell their products to the Whole seller and indirectly (through retailer) to the end consumers.
This process of selling is called “Sale Through”
Sale Out :
The company will sell the products to the retailers which are actually the customers of the Company.
There will be no medium used between the company and the retailer.
This procedure of selling is called “Sale Out”
9
Value Proposition
They are predicated value proposition from the mindset of your custome ...
Create the Public Relations and Promotions portion of the Marketing .docxstarkeykellye
Create the Public Relations and Promotions portion of the Marketing Communications Plan using the business and information presented in the Case Study. Meet the following requirements:
In 200 words, explain the Public Relations plan for the organization.
Create two sales promotions for the restaurant. Identify the challenge and solution for each promotion. Include budgetary considerations.
Using feedback, update and make changes to the previous section of the plan.
Please adhere to the Publication Manual of the American Psychological Association, (6th ed., 2nd printing) when writing and assignment
Text:
Ethics, Regulation, and Assessment
The American Marketing Association (AMA) defines
sales promotion
as "media and non media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product quality" (AMA, 2013, p.1).
However, according to Manuere, Gwangwa, & Gutu (2012), an addition needs to be made to the definition,
"One should add that effective sales promotion increases the basic value of a product for a limited time and directly stimulates consumer purchasing, selling effectiveness, or the effort of the sales force" (p. 1157).
A
promotion
can be an incentive from manufactures or retailers to encourage trade (wholesalers or retailers) or consumers to buy the product or service.
They can include coupons, rebates, contests, displays, samples, and others.
Sales
promotions
can accomplish many objectives including introducing a new brand, introducing a repositioned brand, attracting new buyers, and increasing repeat purchases from current customers.
Sales promotions offer the opportunity of free trials, cents off coupons, and other chances for the consumer to try the product.
Marketing and advertising work to create brand awareness while promotions are created to have the consumer buy now, buy more frequently, and buy over the competition.
Both manufacturers and providers of services and the consumer benefit from sales promotions.
Obviously, companies gain sales by customers purchasing the product for the first time or as a repeat customer.
The promotion might reward consumers for multiple purchases and encourage brand loyalty.
Promotions can also help the firm
liquidate
excess
inventory
,
increase motivation
for purchase of a product that is a luxury item when economic conditions lower discretionary incomes, and boost brand awareness when faced with increased competition.
The
consumers are rewarded
by receiving a free sample or item, money off the purchase price, or even a larger prize as part of a sweepstakes.
Let's not forget about the sense of satisfaction of using a coupon or redeeming a rebate!
We will look at two of the most common sales promotions:
samples and coupons.
Sampling
is another sales promotion that delivers the product to the consumer (either a trial size or full version) usually at no cost to the consumer.
The samples are deliv.
* In an increasingly copy-cat economy, the new basis of competition is business model innovation.
* Unfortunately, the work of business model innovation is too often left undone, at great cost to the organization's longer term growth opportunities and its profitability. This gap is the outcome of marketing's role increasingly being defined around demand generation and brand communications in increasingly fragmented channels, roles that have required many new marketing subspecialties.
* The CMO is ideally suited to facilitate business model strategy decisions, decisions that must be made by the leadership team as a whole.
* Deploying the CMO to facilitate business model innovation will align brand and business strategy, benefiting the success of both.
Strategic Marketing Decisions and Considerations - Madmarketingpro.comBobby Bruno
Here you will learn about what factors to pay attention to when developing a Marketing Mix. Marketers should have a strong understanding of various strategies and possible responses from the market, competitors, and consumers. You can see more like this on madmarketingpro.com
51 Types of Marketing Strategies in Use TodayPeter vinosh
An organization's strategy combines all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the product mix in order to achieve the maximum profit and sustain the business. The marketing strategy is the foundation of a marketing plan.
Summarize the key ideas of each of these texts and explain how they .docxrafbolet0
Summarize the key ideas of each of these texts and explain how they shed light on our study of American religious diversity. Point out some key citations and explain the most important thing you learned from these readings and how these readings helped you achieve the educational goals of our course
US Bill of Rights, UN DECLARATION OF HUMAN RIGHTS, and UNESCO on Diversity and Tolerance; Dignitatis Humanae, and Nostra Aetate
Clash of civilizations, Civil Religion (Reader, pp288-289), and Dominus Iesus
Dynamics of Prejudice (Reader, pp.32-39; 111-114; 295-309)
“Die Judenfrage” (Reader, pp.178-209)
The Irish case (Reader, pp.169-177)
Idolatry (Cantwell Smith, Reader, pp.259-266) and Tolerant Gods ( by Wole Soyinka, text on moodle)
Sacred Texts, Christian and Islamic vision of Religious Tolerance (Reader, p.44, and moodle)
The Real Kant, Multiculturalism, Eurocentrism and the Columbus paradigm (Reader, pp.93-103; 352-358; and pp.282-289)
“Calore-Colore” Paradigm (Reader, pp. 323-346) and scholarship on ATR, and scientific theories or mythologies of otherness (pp, 111-128; 295-346)
AAR article on Egyptology and “Egypt and Israel”
Choose 3 questions from the list above :
the papers should be clear and professonal, answer questions and explain the points that you wants to explain with examples from SACRED TEXTS (BIBLE AND KORAN). I want the writer to do the papers professionally, and to be neutral and non-racist, I want him explain that the examples of the Koran show the positive side, which is commensurate with the topic you will write, And, if possible, that there is a positive similarity between the Koran and the Bible. I already provide additional file can help the writer and you can looking for Koran and Bible to use it
.
Submit, individually, different kinds of data breaches, the threats .docxrafbolet0
Submit, individually, different kinds of data breaches, the threats and vulnerabilities that lead to the breaches, and the severity of each.
APA
formatted paper: Some of the basic expectations include 1-inch margins, consistent font for Titles and body of paper, and double spacing.
Title Page (1 page)
Body (2 - 3 pages)
Reference Page (1 page)
.
Submit your personal crimes analysis using Microsoft® PowerPoi.docxrafbolet0
Submit
your personal crimes analysis using Microsoft
®
PowerPoint
®
or another pre-approved presentation tool.
Create
a 10- to 15-slide presentation that includes a reference slide with at least four references cited throughout the presentation. Include the following:
·
Differentiate between assault, battery, and mayhem.
·
Identify and explain kidnapping and false imprisonment.
·
Compare and contrast between rape and statutory rape.
·
Choose two states and compare the definitions and punishment for these crimes.
Include
appropriate photos, short videos, or headlines, as needed, to represent your analysis.
Format
your presentation consistent with APA guidelines.
.
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Create the Public Relations and Promotions portion of the Marketing .docxstarkeykellye
Create the Public Relations and Promotions portion of the Marketing Communications Plan using the business and information presented in the Case Study. Meet the following requirements:
In 200 words, explain the Public Relations plan for the organization.
Create two sales promotions for the restaurant. Identify the challenge and solution for each promotion. Include budgetary considerations.
Using feedback, update and make changes to the previous section of the plan.
Please adhere to the Publication Manual of the American Psychological Association, (6th ed., 2nd printing) when writing and assignment
Text:
Ethics, Regulation, and Assessment
The American Marketing Association (AMA) defines
sales promotion
as "media and non media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product quality" (AMA, 2013, p.1).
However, according to Manuere, Gwangwa, & Gutu (2012), an addition needs to be made to the definition,
"One should add that effective sales promotion increases the basic value of a product for a limited time and directly stimulates consumer purchasing, selling effectiveness, or the effort of the sales force" (p. 1157).
A
promotion
can be an incentive from manufactures or retailers to encourage trade (wholesalers or retailers) or consumers to buy the product or service.
They can include coupons, rebates, contests, displays, samples, and others.
Sales
promotions
can accomplish many objectives including introducing a new brand, introducing a repositioned brand, attracting new buyers, and increasing repeat purchases from current customers.
Sales promotions offer the opportunity of free trials, cents off coupons, and other chances for the consumer to try the product.
Marketing and advertising work to create brand awareness while promotions are created to have the consumer buy now, buy more frequently, and buy over the competition.
Both manufacturers and providers of services and the consumer benefit from sales promotions.
Obviously, companies gain sales by customers purchasing the product for the first time or as a repeat customer.
The promotion might reward consumers for multiple purchases and encourage brand loyalty.
Promotions can also help the firm
liquidate
excess
inventory
,
increase motivation
for purchase of a product that is a luxury item when economic conditions lower discretionary incomes, and boost brand awareness when faced with increased competition.
The
consumers are rewarded
by receiving a free sample or item, money off the purchase price, or even a larger prize as part of a sweepstakes.
Let's not forget about the sense of satisfaction of using a coupon or redeeming a rebate!
We will look at two of the most common sales promotions:
samples and coupons.
Sampling
is another sales promotion that delivers the product to the consumer (either a trial size or full version) usually at no cost to the consumer.
The samples are deliv.
* In an increasingly copy-cat economy, the new basis of competition is business model innovation.
* Unfortunately, the work of business model innovation is too often left undone, at great cost to the organization's longer term growth opportunities and its profitability. This gap is the outcome of marketing's role increasingly being defined around demand generation and brand communications in increasingly fragmented channels, roles that have required many new marketing subspecialties.
* The CMO is ideally suited to facilitate business model strategy decisions, decisions that must be made by the leadership team as a whole.
* Deploying the CMO to facilitate business model innovation will align brand and business strategy, benefiting the success of both.
Strategic Marketing Decisions and Considerations - Madmarketingpro.comBobby Bruno
Here you will learn about what factors to pay attention to when developing a Marketing Mix. Marketers should have a strong understanding of various strategies and possible responses from the market, competitors, and consumers. You can see more like this on madmarketingpro.com
51 Types of Marketing Strategies in Use TodayPeter vinosh
An organization's strategy combines all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the product mix in order to achieve the maximum profit and sustain the business. The marketing strategy is the foundation of a marketing plan.
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Summarize the key ideas of each of these texts and explain how they shed light on our study of American religious diversity. Point out some key citations and explain the most important thing you learned from these readings and how these readings helped you achieve the educational goals of our course
US Bill of Rights, UN DECLARATION OF HUMAN RIGHTS, and UNESCO on Diversity and Tolerance; Dignitatis Humanae, and Nostra Aetate
Clash of civilizations, Civil Religion (Reader, pp288-289), and Dominus Iesus
Dynamics of Prejudice (Reader, pp.32-39; 111-114; 295-309)
“Die Judenfrage” (Reader, pp.178-209)
The Irish case (Reader, pp.169-177)
Idolatry (Cantwell Smith, Reader, pp.259-266) and Tolerant Gods ( by Wole Soyinka, text on moodle)
Sacred Texts, Christian and Islamic vision of Religious Tolerance (Reader, p.44, and moodle)
The Real Kant, Multiculturalism, Eurocentrism and the Columbus paradigm (Reader, pp.93-103; 352-358; and pp.282-289)
“Calore-Colore” Paradigm (Reader, pp. 323-346) and scholarship on ATR, and scientific theories or mythologies of otherness (pp, 111-128; 295-346)
AAR article on Egyptology and “Egypt and Israel”
Choose 3 questions from the list above :
the papers should be clear and professonal, answer questions and explain the points that you wants to explain with examples from SACRED TEXTS (BIBLE AND KORAN). I want the writer to do the papers professionally, and to be neutral and non-racist, I want him explain that the examples of the Koran show the positive side, which is commensurate with the topic you will write, And, if possible, that there is a positive similarity between the Koran and the Bible. I already provide additional file can help the writer and you can looking for Koran and Bible to use it
.
Submit, individually, different kinds of data breaches, the threats .docxrafbolet0
Submit, individually, different kinds of data breaches, the threats and vulnerabilities that lead to the breaches, and the severity of each.
APA
formatted paper: Some of the basic expectations include 1-inch margins, consistent font for Titles and body of paper, and double spacing.
Title Page (1 page)
Body (2 - 3 pages)
Reference Page (1 page)
.
Submit your personal crimes analysis using Microsoft® PowerPoi.docxrafbolet0
Submit
your personal crimes analysis using Microsoft
®
PowerPoint
®
or another pre-approved presentation tool.
Create
a 10- to 15-slide presentation that includes a reference slide with at least four references cited throughout the presentation. Include the following:
·
Differentiate between assault, battery, and mayhem.
·
Identify and explain kidnapping and false imprisonment.
·
Compare and contrast between rape and statutory rape.
·
Choose two states and compare the definitions and punishment for these crimes.
Include
appropriate photos, short videos, or headlines, as needed, to represent your analysis.
Format
your presentation consistent with APA guidelines.
.
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Submit two pages (double spaced, 12 point font) describing a musical concert of your choosing, suggested in the syllabus or approved by instructor. Describe as many factors as possible: who/what/where/ when, how many musicians performed, what instruments did they play, name several of the musical pieces, how did they sound (use some of the terms we learned in the course), what did the musicians wear, describe the audience, describe the music (how did it make you feel, etc.), what did you enjoy most about the event? Share your reflections.
.
Submit the rough draft of your geology project. Included in your rou.docxrafbolet0
Submit the rough draft of your geology project. Included in your rough draft should be the text as close as possible to the way you intend on submitting it as well as data tables and rough sketches of figures.
Proofread everything and check your work according to the
Evaluation
guidelines in the original assignment in Week 02.
Geology Project Requirements
**Please review your paper for all of the below before submitting your Week 8 Rough Draft or Week 10 Final Paper.**
-
Length
·
Paper is to be 7 pages, at a minimum, in length:
o
One Cover Page
o
One Reference page
o
5 pages of written text (which does not include space taken up by photos, illustrations or charts).
-
Formatting
·
All paragraphs need to be indented.
·
Font should be Times New Roman and size 12.
·
The line spacing should be double spaced.
·
Make sure there is an introduction paragraph, thebody paragraphs are well organized and a conclusion paragraph.
·
Stay away from many short sentences in a paragraph, as the paragraph needs to flow. (These can be fragment sentences and can make the paper confusing when reading.)
·
Also stay away from many short paragraphs in the body of the paper, if organized well, then there will be medium length paragraphs.
·
Paper should be aligned to the left margin – not center or wide across.
-
Writing
·
This is a science research paper about a geology topic and must be in third person, therefore words such as we, me, I you, our, or us are not allowed to be used. Make sure these are not in your paper.
o
This also pertains to let’s. (Let’s short for let us.)
·
Make sure that all of your sentences are strong and independent.
·
Paper needs to be written using proper mechanics (clear, concise, complete sentences and paragraphs), proper spelling, grammar and punctuation.
·
Do not start your introduction or paper off with ‘This paper will look at…’ or ‘This paper will cover…’ Your thesis should not contain these words and should be a stand alone sentence with a passive lead in.
·
Spell Check Spell Check Spell Check.
·
Any introduction of a new word or scientific word that your reader may not know the definition of, be sure to include the definition for better understanding.
·
Acronyms. The first time an acronym is used, be sure to define what it stands for – such as USGS (United States Geological Survey). Then each subsequent time this acronym is used in the paper, you can just write USGS since it has already been defined to the reader.
·
Make sure to capitalize proper nouns such as Earth.
·
Make sure paragraphs transition and flow well between each other. Read the paper out loud to yourself before final submission to make sure these transitions are in place.
·
Please do not be a casual writer in this paper. What I mean by that is do not write how you would talk in a casual conversation, text on your phone or email a friend. This is a research paper and therefore the presentation and writing style needs to be.
Submit your paper of Sections III and IV of the final project. Spe.docxrafbolet0
Submit your paper of Sections III and IV of the final project. Specifically, the following critical elements must be addressed:
III. Billing and Reimbursement
A. Analyze the collection of data by patient access personnel and its importance to the billing and collection process. Be sure to address the importance of exceptional customer service.
B. Analyze how third-party policies would be used when developing billing guidelines for patient financial services (PFS) personnel and administration when determining the payer mix for maximum reimbursement.
C. Organize the key areas of review in order of importance for timeliness and maximization of reimbursement from third-party payers. Explain your rationale on the order.
D. Describe a way to structure your follow-up staff in terms of effectiveness. How can you ensure that this structure will be effective?
E. Develop a plan for periodic review of procedures to ensure compliance. Include explicit steps for this plan and the feasibility of enacting this plan within this organization.
IV. Marketing and Reimbursement
A. Analyze the strategies used to negotiate new managed care contracts. Support your analysis with research.
B. Communicate the important role that each individual within this healthcare organization plays with regard to managed care contracts. Be sure to include the different individuals within the healthcare organization.
C. Explain how new managed care contracts impact reimbursement for the healthcare organization. Support your explanation with concrete evidence or research.
D. Discuss the resources needed to ensure billing and coding compliance with regulations and ethical standards. What would happen if these resources were not obtained? Describe the consequences of noncompliance with regulations and ethical standards.
.
Submit the finished product for your Geology Project. Please include.docxrafbolet0
Submit the finished product for your Geology Project. Please include all figures, data tables, and text in the same document.
Before you submit, please proofread once more as you check the
Evaluation
guidelines from the original assignment in Week 02.
I need the sources in-text citations please and sources throughout the paper with quotation marks!!! THIS IS NECESSARY. I have the rough draft I can send it.
Geology Project Requirements
**Please review your paper for all of the below before submitting your Week 10 Final Paper.**
-
Length
·
Paper is to be 7 pages, at a minimum, in length:
o
One Cover Page
o
One Reference page
o
5 pages of written text (which does not include space taken up by photos, illustrations or charts).
-
Formatting
·
All paragraphs need to be indented.
·
Font should be Times New Roman and size 12.
·
The line spacing should be double spaced.
·
Make sure there is an introduction paragraph, the body paragraphs are well organized and a conclusion paragraph.
·
Stay away from many short sentences in a paragraph, as the paragraph needs to flow. (These can be fragment sentences and can make the paper confusing when reading.)
·
Also stay away from many short paragraphs in the body of the paper, if organized well, then there will be medium length paragraphs.
·
Paper should be aligned to the left margin – not center or wide across.
-
Writing
·
This is a science research paper about a geology topic and must be in third person, therefore words such as we, me, I you, our, or us are not allowed to be used. Make sure these are not in your paper.
o
This also pertains to let’s. (Let’s short for let us.)
·
Make sure that all of your sentences are strong and independent.
·
Paper needs to be written using proper mechanics (clear, concise, complete sentences and paragraphs), proper spelling, grammar and punctuation.
·
Do not start your introduction or paper off with ‘This paper will look at…’ or ‘This paper will cover…’ Your thesis should not contain these words and should be a stand alone sentence with a passive lead in.
·
Spell Check Spell Check Spell Check.
·
Any introduction of a new word or scientific word that your reader may not know the definition of, be sure to include the definition for better understanding.
·
Acronyms. The first time an acronym is used, be sure to define what it stands for – such as USGS (United States Geological Survey). Then each subsequent time this acronym is used in the paper, you can just write USGS since it has already been defined to the reader.
·
Make sure to capitalize proper nouns such as Earth.
·
Make sure paragraphs transition and flow well between each other. Read the paper out loud to yourself before final submission to make sure these transitions are in place.
·
Please do not be a casual writer in this paper. What I mean by that is do not write how you would talk in a casual conversation, text on your phone or email a friend. This is a research paper.
Submit the Background Information portion of the final project, desc.docxrafbolet0
Submit the Background Information portion of the final project, describing the company and business product, service, or other idea from the business pla. In the description, make sure that you include the target stakeholders and their relationship to the mission, vision, and values of the company. Concisely describe the company and business product or service. Be sure to include the company’s publicly traded name and stock symbol if these exist.
2-3 pages. APA
.
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Submit Files - Assignment 1 Role of Manager and Impact of Organizational Theories on Managers
Assignment 1 Role of Manager and Impact of Organizational Theories on Managers (Week 3)
Purpose:
In the first assignment, students are given a scenario in which the shipping manager who has worked for Galaxy Toys, Inc. since 1969. The scenario serves to set the stage for students to demonstrate how management theories have changed over time. For example, managing 30 years ago is different than managing in the 21
st
century.
Outcome Met by Completing This Assignment:
integrate management theories and principles into management practices
Instructions:
In Part One of this case study analysis, students are to use the facts from the case study to determine two different organization theories that are demonstrated. For Part Two, students will compare the 21
st
century manager to that of the main character in the case study and the implications of change in being a 21
st
century manager.
In selecting a school of thought and an organizational theory that best describes the current shipping manager, students will use the timeline to select a school of thought and a theory or theories of that time frame. Students will to use the course material to respond to most of the assignment requirements but will also need to research the theorist(s) and theories to complete the assignment. Students are expected to be thorough in responding.
In Part Two, students are going to take what they have learned and compare the management skills of the 21st century shipping manager to the skills of the current shipping manager.
Step 1:
Review “How to Analyze a Case Study” under Week 3 Content.
Step 2:
Create a Word or Rich Text Format (RTF) document that is double-spaced, 12-point font. The final product will be between 4-6 pages in length excluding the title page and reference page.
Step 3:
Review the grading rubric for the assignment.
Step 4:
In addition to providing an introduction, students will use headings following this format:
Title page with title, your name, the course, the instructor’s name;
Background;
Part One;
Part Two.
Step 5
: In writing a case study, the writing is in the third person. What this means is that there are no words such as “I, me, my, we, or us” (first person writing), nor is there use of “you or your” (second person writing). If uncertain how to write in the third person, view this link:
http://www.quickanddirtytips.com/education/grammar/first-second-and-third-person
. Also note that students are not to provide personal commentary.
Step 6:
In writing this assignment, students are expected to support the reasoning using in-text citations and a reference list. If any material is used from a source document, it must be cited and referenced. A reference within a reference list cannot exist without an associated in-text citation and vice versa. View the sample APA paper under Week 1 content.
Step 7:
In writing thi.
SS
C
ha
Simple RegressionSimple Regression
pter
Chapter ContentsChapter Contents
12
12.1 Visual Displays and Correlation Analysis12.1 Visual Displays and Correlation Analysisp y yp y y
12.2 Simple Regression12.2 Simple Regression
12 3 Regression Terminology12 3 Regression Terminology12.3 Regression Terminology12.3 Regression Terminology
12.4 Ordinary Least Squares Formulas12.4 Ordinary Least Squares Formulas
12 T f Si ifi12 T f Si ifi12.5 Tests for Significance12.5 Tests for Significance
12.6 Analysis of Variance: Overall Fit12.6 Analysis of Variance: Overall Fit
12.7 Confidence and Prediction Intervals for 12.7 Confidence and Prediction Intervals for YY
12-1
SS
C
ha
Simple RegressionSimple Regression
pter
Chapter ContentsChapter Contents
12
12 8 Residual Tests12 8 Residual Tests12.8 Residual Tests12.8 Residual Tests
12.9 Unusual Observations12.9 Unusual Observations
12 10 Oth R i P bl12 10 Oth R i P bl12.10 Other Regression Problems12.10 Other Regression Problems
12-2
C
ha
SS
pter 1
Simple RegressionSimple Regression
Chapter Learning Objectives (LO’s)Chapter Learning Objectives (LO’s)
12
Chapter Learning Objectives (LO s)Chapter Learning Objectives (LO s)
LO12LO12--1: 1: Calculate and test a correlation Calculate and test a correlation coefficient coefficient for for significancesignificance..
LO12LO12--2: 2: Interpret Interpret the slope and intercept of a regression equation.the slope and intercept of a regression equation.
LO12LO12--3: 3: Make Make a prediction for a given a prediction for a given x value using a x value using a regressionregression
equationequation..qq
LO12LO12--4: 4: Fit a simple regression on an Excel scatter plot.Fit a simple regression on an Excel scatter plot.
LO12LO12--5:5: Calculate and interpretCalculate and interpret confidenceconfidence intervals forintervals for regressionregressionLO12LO12 5: 5: Calculate and interpret Calculate and interpret confidence confidence intervals for intervals for regressionregression
coefficientscoefficients..
LO12LO12 6:6: Test hypotheses about the slope and intercept by usingTest hypotheses about the slope and intercept by using t testst tests
12-3
LO12LO12--6: 6: Test hypotheses about the slope and intercept by using Test hypotheses about the slope and intercept by using t tests.t tests.
C
ha
ff
pter
Analysis of VarianceAnalysis of Variance
Ch t L i Obj ti (LO’ )Ch t L i Obj ti (LO’ )
12
Chapter Learning Objectives (LO’s)Chapter Learning Objectives (LO’s)
LO12LO12--7:7: Perform regression with Excel or other software.Perform regression with Excel or other software.
LO12LO12--8:8: Interpret the standard errorInterpret the standard error RR22 ANOVA table and F testANOVA table and F testLO12LO12 8: 8: Interpret the standard error, Interpret the standard error, RR , ANOVA table, and F test., ANOVA table, and F test.
LO12LO12--9:9: Distinguish between confidence and prediction intervals.Distinguish between conf.
SRF Journal EntriesreferenceAccount TitlesDebitsCredits3-CType journal entries in the space provided. Link these to the T-accounts and link the T-account balancesto the financial statements provided on the tabs at the bottom of the page.4-C
&L&"Arial,Bold"&14City of Monroe- Street and Highway Fund Journal Entries
SRF T-accountsDUE FROMCASHINVESTMENTSSTATE GOV'Tbb6,500bb55,000bb200,0006,50055,000200,000BUDGETARY FUND BALANCEFUND BALANCEACCOUNTS PAYABLERESERVE FOR ENCUMBRANCESRESERVE FOR ENCUMBRANCES(beginning of year)6,300bb-bb255,200bb6,300-255,200REVENUESREVENUESEXPENDITURES - STREETINTERGOVERNMENTALINVESTMENT INTEREST& HIGHWAY MAINTENANCEENCUMBRANCES----BUDGETARY ACCOUNTSBUDGETARYESTIMATED REVENUESAPPROPRIATIONSFUND BALANCE---
&L&16City of Monroe&C&16
Street and Highway Fund - General Ledger
Closing EntriesBUDGETARYAccount TitleDebitsCreditsFUND BALANCE-Preclosingclosing entry-FUND BALANCE255,200Preclosingclosing entry255,200ending balanceComplete the following tableNon-spendableRestrictedCommittedAssignedUnassignedTotalFund Balance-Budgetary Fund Balance - Reserve for Encumbrances-Totals------
&L&14City of Monroe&C&14
STREET & HIGHWAY MAINTENANCE FUND - Closing Entries
Stmt of revenues & expendituresRevenuesIntergovernmental RevenuesInterest on InvestmentsTotal Revenues$ -ExpendituresCurrent:Street & Highway MaintenanceTotal Expenditures-Excess (Deficiency) of Revenues Over Expenditures-Fund Balance, January 1Fund Balance, December 31$ -
&L&"Times New Roman,Regular"&14City of Monroe
Statement of Revenues, Expenditures and Changes in Fund Balance
Street and Highway Maintenance Fund
For the year ended December 31, 2014
Balance SheetAssetsCashInvestmentsDue from State GovernmentTotal Assets$ -Liabilities and Fund EquityLiabilitiesAccounts PayableFund EquityFund Balance - Restricted forStreet and Highway MaintenanceTotal Liabilities and Fund Equity$ -
&L&"Times New Roman,Regular"&14City of Monroe
Street & Highway Maintenance Fund
Balance Sheet
As of December 31, 2014
Problem 1Problem 1Required: Identify the financial statement on which each of the following items appears by making an X in the appropriate column. The first one is done for you!(15 points total, 1 point each)IncomeBalanceStatement ofItemStatementSheetCash FlowsAccounts PayableXAccounts ReceivableAdvertising ExpenseCommon StockDividendsEquipmentFinancing ActivitiesInvesting ActivitiesLandOperating ActivitiesRent ExpenseRetained EarningsRevenueSalaries PayableUtility Expense
Problem 2Problem 2Required: Show the effects on the financial statements using a horizontal statement model as outlined below. The first one is done for you!(35 points total, 5 points each)1Sold $30,000 in merchandise for cash2Paid $5,000 for rent with cash3Paid $10,000 in salaries to employees with cash4Sold $25,000 in merchandise and customer paid on credit5Collected $10,000 cash for transaction #46Purchased a building for $100,000 and took out a loan for the money7Paid $1,200 for insuranceBala.
src/CommissionCalculation.javasrc/CommissionCalculation.javaimport java.util.Scanner;
import java.text.NumberFormat;
publicclassCommissionCalculation
{
publicstaticvoid main(String args[])
{
finaldouble salesTarget=600000;
//create an object of Scanner class to get the keyboard input
Scanner keyInput =newScanner(System.in);
//for currency format
NumberFormat numberFormat =NumberFormat.getCurrencyInstance();
//creating an object of SalesPerson class
SalesPerson salesPerson =newSalesPerson();
//prompt the user to enter the annual sales
System.out.print("Enter the annual sales : ");
double sale = keyInput.nextDouble();
//Calculate normal commission until sales target is reached
if(sale<=salesTarget)
{
//set the value of annual sale of sales person object
salesPerson.setAnnualSales(sale);
//displaying the report
System.out.println("The total annual compensation : "+numberFormat.format(salesPerson.getAnnualCompensation()));
}
//show compensation table with Accelerated factor when sales target exceeds
else
{
//method to show a compensation table if sales exceed 600000
salesPerson.getCompensationTable(sale);
}
}
}
src/SalesPerson.javasrc/SalesPerson.java
publicclassSalesPerson{
privatefinaldouble fixedSalary =120000.00;
privatefinaldouble commissionRate =1.2;
privatefinaldouble salesTarget=600000;
privatefinaldouble accelerationfactor=1.20;
privatedouble annualSales;
//default constructor
publicSalesPerson(){
annualSales =0.0;
}
//parameterized constructor
publicSalesPerson(double aSale){
annualSales = aSale;
}
//getter method for the annual sales
publicdouble getAnnualSales(){
return annualSales;
}
//method to set the value of annual sale
publicvoid setAnnualSales(double aSale){
annualSales = aSale;
}
//method to calculate and get commission
publicdouble getCommission()
{
if(annualSales<(0.80*salesTarget))
{
return0;
}
else
{
return annualSales *(commissionRate/100.0);
}
}
//method to calculate and calculate Compensation with Accelerated commission and display table
void getCompensationTable(double annualSales)
{
int count=0;
System.out.println("Annual Sales\t Total Compensation");
for(annualSales=salesTarget;annualSales<=((salesTarget)+(0.5*salesTarget));annualSales+=5000)
{
count=count+1;
double comm= annualSales *(commissionRate*Math.pow(1.2,count)/100.0);
System.out.println(annualSales+"\t"+(fixedSalary+comm));
}
}
//method to calculate and get annual compensation
publicdouble getAnnualCompensation(){
return fixedSalary + getCommission();
}
}
The development of any marketing mix depends on positioning, a process that influences potential customers' overall perception of a brand, product line, or organization in general. Position is the place a product, brand, or group of products occupies in consumers' minds relative to competing offering. Review positioning in your text. There are many examples to illustrate this concept. Then:
1. Describe the position .
SQLServerFiles/Cars.mdf
__MACOSX/SQLServerFiles/._Cars.mdf
SQLServerFiles/Contacts.mdf
__MACOSX/SQLServerFiles/._Contacts.mdf
SQLServerFiles/Cottages.mdf
__MACOSX/SQLServerFiles/._Cottages.mdf
SQLServerFiles/KataliClub.mdf
__MACOSX/SQLServerFiles/._KataliClub.mdf
SQLServerFiles/Northwind.mdf
__MACOSX/SQLServerFiles/._Northwind.mdf
SQLServerFiles/Northwind.sdf
__MACOSX/SQLServerFiles/._Northwind.sdf
SQLServerFiles/Pubs.mdf
__MACOSX/SQLServerFiles/._Pubs.mdf
SQLServerFiles/ReadMe.doc
SQL Server Files
Make sure to copy the SQL Server files to a read/write medium before attempting to use them in a program. The act of selecting a file for a connection creates an .ldf file, which fails on a read-only CD.
__MACOSX/SQLServerFiles/._ReadMe.doc
SQLServerFiles/RnrBooks.mdf
__MACOSX/SQLServerFiles/._RnrBooks.mdf
__MACOSX/._SQLServerFiles
“Subsea pipelines connectors”
Subsea pipeline are very popular around the world. Almost every water body has a pipeline, whether it is to transport distilled or spring water, or for gas, or for crude oil. Pipeline with great lengths are broken into segments, and has a connector between each segment; such a methodology are used to control damage and makes it easier for manufacturing and maintenance. However, theses devices are not perfect, and have different aspects that need to be considered when choosing one. Aspects are such as: pressure drop, installment, repair, and material used.
Different types of subsea pipeline connectors are being developed and used everyday in different parts of the world. Manufacturers are racing to be ahead of the technological advancement and rule the market. Starting with a fundamental article about the advancement and the market availability of subsea pipeline connectors back in 1976 to the current technology, this paper will review the literature materials of the present solutions of subsea pipeline connectors. Connectors technology in 1976
This fundamental article written by H. Mohr discusses the available subsea pipe connectors back in 1976[1]. The article offers solution that is applicable for a specific period of time, but when the technology of its time period is expired and new solutions are offered the article would hardly be discussed anymore, which actually made it impossible to find online or in nearby library. However, in general, the solutions offered and the way there were discussed are actually very relatable to this paper.
The paper lays on the three major methods of connections, then goes on to examine the current commercial product at that time. Three methods mentioned are the basic welding, elastomeric connectors, and advanced engineered horizontal systems. H. Mohr then moves to the market demand of the three methods, and two methods only were discussed, welding and mechanical connectors.
“Much emphasis had been placed on welded subsea connections in recent years, but properly designed and installed mechanical connections will always have an ap.
Square, Inc. is a financial services, merchant services aggregat.docxrafbolet0
Square, Inc. is a financial services, merchant services aggregator and mobile payment company based in San Francisco, California. The company markets several software and hardware payments products, including Square Register and Square Reader, and has expanded into small business services such as Square Capital, a financing program, and Square Payroll. The company was founded in 2009 by Jack Dorsey and Jim McKelvey and launched its first app and service in 2010.
• Square Register allows individuals and merchants in the United States, Canada, and Japan to accept offline debit and credit cards on their iOS or Android smartphone or tablet computer. The application software("app") supports manually entering the card details or swiping the card through the Square Reader, a small plastic device that plugs into the audio jack of a supported smartphone or tablet and reads the magnetic stripe. On the iPad version of the Square Register app, the interface resembles a traditional cash register.
Download and read the documents in Edgar.
– http://www.sec.gov/edgar.shtml
– And find the all files that are filed (especially S1)
• Find the information relevant to future sales.
• Construct the Pro‐forma income statement.
• Estimate future free cash flows for the next five years (account for investments, change in working capital, depreciation and taxes)
• Make a reasonable assumption about the growth rate of cash flows until infinity.
2013-10-22 22.19.51.jpg
2013-10-22 22.20.19.jpg
2013-10-22 22.21.54.jpg
Information and society
Since the advent of easy access to the internet and the World Wide Web, society has a different attitude towards information and access to information. The technology changes – from slow desk-tops with dial-up access to smartphones – have also changed our interaction with information.
This is also an area in which generational differences show up. Those of us born before the mid1980s or 1990s have followed all of these changes and have had to adapt to it. For those born in the 1990s (the millennials or digital natives), these methods of getting information have always existed. The millenials have seen some of the technology changes but don’t remember the “old” way. Keep this in mind as you read these notes.
An information society
At the beginning of the semester we talked about the many different ways we get information and the definitions of information. Now we’re going to look more at how information and information technologies have changed society.
Lester and Koehler talk about defining an information society in economic sense. While this is important, I don’t think we need to look at the percentage of our GNP to see that we do live in an information society. Think of all the companies that are based on information – computer technologies, web based businesses, cell phone and technologies, GPS, etc. There are also jobs that rely on information – customer service, stock markets, etc.
Our relationship with information .
SPSS Input
Stephanie Crookston, Dominique Garrett-Smith, Latesha Simpson, Jannie Tollvier,
PSYCH/625
November 25, 2013
Mary Farmer
SPSS Input
After looking at the data and putting it through the ANOVA test; the conclusions are as follows:
There is a huge difference between the groups regarding degrees of freedom. And the use of ANOVA is essential because it is samples taken at different points and times of the same people. Probability is at zero percent because that means its directly at the mean and the f score is used to see if the null hypothesis can be rejected or fail to be rejected of its less than the critical value.
ANOVA
Score
Sum of Squares
df
Mean Square
F
Sig.
Between Groups
609265.938
1
609265.938
2495.987
.000
Within Groups
53213.402
218
244.098
Total
662479.340
219
In a 1000-1250 word essay, explain the meaning of one visual symbol in American Beauty and the relation of that symbol to the message of the film as a whole. Since context forms meaning, you should analyze several instances in which the symbol appears in the film, explaining the meaning of the symbol in each appearance and showing how each instance contributes to the meaning of the symbol in the film as a whole. Since film is a visual medium, I have intentionally asked you to analyze a visual element for this assignment. Therefore, while you certainly should utilize dialogue or other elements of the film’s narrative, please do not neglect to interpret the specifically filmic aspects of this text, such as (but not limited to) camera work (framing, shot length, etc.), editing (“cutting” or “splicing”), sound effects, wardrobe, and lighting.
Here are some visual symbols from which you may choose, but please don’t feel limited to these:
· Plastic bags
· Roses
· Cameras
· Windows or Mirrors
· Guns
· Extreme darkness or bright light
· Specific colors or color combinations
Please note that the task here is twofold: you should present an interpretation of the particular symbol you choose and show how that symbol helps construct the overall message of the film as you see it. A successful thesis statement will present a clear articulation of the meaning of your chosen symbol, a succinct statement as to the overall message of the film, and an explanation of the relationship between these two. As with the other essays for this class, please avoid rendering value judgments. You should not present an evaluation of whether or not you like the film (or whether it’s “good” or “bad”).
Since a successful analysis will require more viewing of the film than what we have time for in class, you may find it advantageous to rent/purchase/download a copy for yourself. For those who would rather not attain their own copy, I have also put a copy of the film on reserve in the library.
Due Dates:
Four copies of your rough draft due: Tuesday 3 December
Workshop: Thursday 5 December
Final draft due: Thursday 12/12 (the day of th.
Spring
2015
–
MAT
137
–Luedeker
Name:
________________________________
Quiz
#1
–
Introduction
to
Sigma
Notation
Directions:
Please
print
out
this
assignment
or
rewrite
the
problems
on
another
sheet
of
paper.
Write
the
final
answer
as
an
integer
or
an
improper
fraction.
You
must
show
all
work
to
receive
credit.
This
assignment
is
due
Wednesday
January
14
at
the
start
of
class.
The
notation
𝑓(𝑛)
!
!!!
is
called
Sigma
Notation.
The
symbol
Σ
means
sum
a
sequence
of
numbers.
The
first
number
in
the
sequence
is
𝑓 𝑎 ,
the
second
number
in
the
sequence
is
𝑓 𝑎 + 1 ,
the
third
number
in
the
sequence
is 𝑓 𝑎 + 2
etc.
,
and
the
last
number
in
the
sequence
is
𝑓(𝑚).
Here
are
two
examples:
𝑛 = 2 + 3 + 4 + 5 + 6 + 7 = 27
!
!!!
𝑛! + 1 =
!
!!!
3! + 1 + 4! + 1 + 5! + 1 + 6! + 1 = 10 + 17 + 26 + 37 = 90
Problems:
Simplify.
Write
your
answer
as
an
integer
or
improper
fraction.
Show
all
work.
1. 𝑛
!"
!!!
2.
1
2!
!
!!!
3.
1
𝑛
!
!!!
4. (−1)!
!
!!!
1
𝑛
5.
1
𝑛!
!
!!!
Spring
2015
–
MAT
137
–Luedeker
Name:
________________________________
Quiz
#2
–
Numerical
Integration
Directions:
Please
print
out
this
assignment
or
rewrite
the
problems
on
another
sheet
of
paper.
Write
the
final
answer
as
a
decimal
rounded
to
three
decimal
places.
You
must
show
all
work
to
receive
credit.
This
assignment
is
due
Friday
January
16
at
the
start
of
class.
Consider
the
definite
integral
𝑒!
!
𝑑𝑥!! .
Use
n
=
4
and
the
following
methods
to
estimate
the
value
of
the
definite
integral.
1. Left
Rule
2. Right
Rule
3. Midpoint
Rule
4. Trapezoid
Rule
5. Simpson’s
Rule
Spring
2015
–
MAT
137
–Luedeker
Name:
________________________________
Quiz
#3
Directions:
Please
print
out
this
assignment
or
rewrite
the
problems
on
another
sheet
of
paper.
You
must
show
all
work
to
receive
credit.
This
assignment
Springdale Shopping SurveyThe major shopping areas in the com.docxrafbolet0
Springdale Shopping Survey*
The major shopping areas in the community of Springdale include Springdale Mall, West Mall, and the downtown area on Main Street. A telephone survey has been conducted to identify strengths and weaknesses of these areas and to find out how they fit into the shopping activities of local residents. The 150 respondents were also asked to provide information about themselves and their shopping habits. The data are provided in the file SHOPPING. The variables in the survey were as follows:
A. How Often Respondent Shops at Each Area (Variables 1–3)
1. Springdale Mall
2. Downtown
3. West Mall
6 or more times/wk.
(1)
(1)
(1)
4–5 times/wk.
(2)
(2)
(2)
2–3 times/wk.
(3)
(3)
(3)
1 time/wk.
(4)
(4)
(4)
2–4 times/mo.
(5)
(5)
(5)
0–1 times/mo.
(6)
(6)
(6)
B. How Much the Respondent Spends during a Trip to Each Area (Variables 4–6)
4. Springdale Mall
5. Downtown
6. West Mall
$200 or more
(1)
(1)
(1)
$150–under $200
(2)
(2)
(2)
$100–under $150
(3)
(3)
(3)
$ 50–under $100
(4)
(4)
(4)
$ 25–under $50
(5)
(5)
(5)
$ 15–under $25
(6)
(6)
(6)
less than $15
(7)
(7)
(7)
C. General Attitude toward Each Shopping Area (Variables 7–9)
7. Springdale Mall
8. Downtown
9. West Mall
Like very much
(5)
(5)
(5)
Like
(4)
(4)
(4)
Neutral
(3)
(3)
(3)
Dislike
(2)
(2)
(2)
Dislike very much
(1)
(1)
(1)
D. Which Shopping Area Best Fits Each Description (Variables 10–17)
Springdale
Mall
Downtown
West
Mall
No
Opinion
10. Easy to return/exchange goods
(1)
(2)
(3)
(4)
11. High quality of goods
(1)
(2)
(3)
(4)
12. Low prices
(1)
(2)
(3)
(4)
13. Good variety of sizes/styles
(1)
(2)
(3)
(4)
14. Sales staff helpful/friendly
(1)
(2)
(3)
(4)
15. Convenient shopping hours
(1)
(2)
(3)
(4)
16. Clean stores and surroundings
(1)
(2)
(3)
(4)
17. A lot of bargain sales
(1)
(2)
(3)
(4)
E. Importance of Each Item in Respondent’s Choice of a Shopping Area (Variables 18–25)
Not Very
Important Important
F. Information about the Respondent (Variables 26–30)
(
18.
Easy
to
return/exchange
goods
(1)
(2)
(3)
(4)
(5)
(6)
(7)
19.
High
quality
of
goods
(1)
(2)
(3)
(4)
(5)
(6)
(7)
20.
Low
prices
(1)
(2)
(3)
(4)
(5)
(6)
(7)
21.
Good
variety
of
sizes/styles
(1)
(2)
(3)
(4)
(5)
(6)
(7)
22.
Sales
staff
helpful/friendly
(1)
(2)
(3)
(4)
(5)
(6)
(7)
23.
Convenient
shopping
hours
(1)
(2)
(3)
(4)
(5)
(6)
(7)
24.
Clean
stores
and
surroundings
(1)
(2)
(3)
(4)
(5)
(6)
(7)
25.
A
lot
of
bargain
sales
(1)
(2)
(3)
(4)
(5)
(6)
(7)
t
)26. Gender: (1) = Male (2) = Female
27. Number of years of school completed:
(1) = less than 8 years (3) = 12–under 16 years
(2) = 8–under 12 years (4) = 16 years or more
28. Marital status: (1) = Married (2) = Single or other
29. Number of people in household: pe.
Springfield assignment InstructionFrom the given information, yo.docxrafbolet0
Springfield assignment Instruction
From the given information, you are required to make a functional network. In Springfield we have a router and four switches connected as daisy chain topology. Then we have output of show commands. It is obvious that it is a non-functional network and you have to implement a solution to make functional.
Task in Springfield assignment
· From the show output commands, you can identify the problems and then provide solution.
· Configure all the tasks as in Springfield assignment as per instructions
· Create Server VLAN, Instructional VLAN, and Administrative VLAN
· Configure Access method of VLANs
· Configure Switch 1 as root bridge
· Configure trunking on all switches
· Configure default gateway
· Create and configure interface VLAN1
First of all, allow me to thank you for your email of offer dated September 2, 2015. I am writing to inform you of my acceptance to your kind offer and in my class CMIT 350/6380. This class has one technical writing assignment broken into three parts: Draft1, Draft2, and Draft3. I do not have any sample assignment, however I am reviewing student’s draft version and providing feedback. To help you in this regard I am submitting you below outline pf paper.
In the beginning please give brief descriptions of the project, such as why are you doing, what are the problems, and possible solutions.
Background information:
Springfield site network is assigned to me to investigate the problems and find the solutions to fix the problem. From the site topology and sh output commands I determined that spanning-tree protocol is misconfigured and it is blocking few ports. And these are the reasons that network is a non-functional.
Implementing
Solution
:
The following are required information for configuring the network
IP address range 10.30.x.x/16
Device to be configured
Configuring commands
Device Names
Configuration Required
Configuring command
Switch#1
All devices
Host name
Hostname Switch_Springfield1
Switch#2
Host name
Hostname Switch_Springfield2
Switch1
All devices
Create console password
Create vty password
Only on Switch1
Create VLANs
Access vlan
Interface fa0/0
Switchport mode adccess
Switchport access vlan 11
Switch1
All Switches
Create trunk connections between switches
Int gi0/0
Switchport mode trunk
Switchport trunk encapsulation dot1q
Switchport trunk allowed native vlan 1
Router
Configure ip address
Int fa0/0
Ip address 10.30.1.1 255.255.255.0
Switch1
Configure default gateway
Ip default-gateway 10.30.1.1 255.255.255.0
Switches
Configure spanning-tree protocol
Spanning-tree RPVST
Switch1
Make Swich 1 as root bridge of network
Configurations
Rough Draft
This paper will focus on the four main theoretical perspectives within sociology which include conflict, functionalism, utilitarianism and symbolic interactionism with the attempt to explain why groups of people choose to perform certain actions and how societies function or change in a certain way.
Socio.
SPRING CLEAN PRODUCTSMARKET RESEARCH 1Abou.docxrafbolet0
SPRING CLEAN PRODUCTS
MARKET RESEARCH
1
About the Researcher
The researcher has undertaken massive market research in the Asian countries for the last ten years. He has been able to gain vital exposure on how to critically analyze these markets before venturing. The following research report was compiled for Spring Clean Products that wants to open a detergent manufacturing plant in Asia.
The following are the countries I have keenly analysed as potential hosts for the manufacturing site of Spring Clean Products. These are China and Singapore.
Fundamental information on China
China is among the worlds top leading exporters of a wide array of commodities . it therefore receives significant amounts of foreign investment.
It has a per capita per person of $9844. This is relatively high given the high population in the country.
It is a member of WTO (World Trade Organization) hence the country enjoys enormous benefits due to access to foreign markets. However, its relations with other trading partners is a matter of concern given the high surplus trade and piracy levels.
China has devalued its currency which result in goods being extremely cheap for foreign buyers therefore encouraging export.
The country enjoys a stable political environment.
China and India have a combined population of 2.3 billion people, about 37 percent of world's total. A 100 dollar increase in the per capita income of these two countries would translate into about 230 billion dollars in additional demand for commodities.
3
Fundamental information on India
Located in South Asia.
Has a population of 1.2 billion people and is the fourth largest economy in the world.
It has a sizeable middle class. The country has a GDP per capita income of US dollars 4000.
India receives high foreign direct investments and its now home to globally recognized companies especially I n the pharmaceutical and steel sector.
The country is the largest democracy in the world and has enjoyed political stability
India in its sixty five years of independence, it has witnessed a landmark agricultural revolution which has changed the nation from a high dependant on grain import to an agricultural powerhouse across the globe becoming a net food exporter. Moreover, life expectancy has doubled since independence, the literacy levels have multiplied way much above times four and health facilities have improved significantly.
4
Factor ChinaIndia1. Availability of raw materialsThe country is heavily endowed with sodium chloride, phosphate and chlorine. Cheaper than IndiaIndia has reliable sources of sodium chloride, phosphate and chlorine which are key essential in manufacture of detergents.2. Availability of skilled workers and managersThe country enjoys highly skilled labor which is relatively cheap due to the high populationIndia has highly skilled labor though slightly expensive compared to that of China3. Potential size of the market including neighboring countries
Chi.
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
2. incredibly inefficient way to do business.
Fortunately, companies partner with one another, alleviating
you of this burden. So, for example,
instead of Procter & Gamble selling individual toothbrushes to
consumers, it sells many of them
to stores, which then sell them to everyone.
The specific avenue a seller uses to make a finished good or
service available for purchase—for
example, whether you are able to buy it directly from the seller,
at a store, online, or from a
salesperson—is referred to as the product's marketing channel
(or distribution channel). All of
the people and organizations that buy, resell, and promote the
product "downstream" as it makes
its way to you are part of the marketing channel.
Likewise, price creates value for customers and is the way the
company makes its revenue and
profit by exchanging value with the customer. When Chick-fil-
A opens new locations, the
company offers the first 100 customers a free meal every week
for a year. Customers camp out
3. overnight to get in line for the free meals. When KFC
introduced its grilled chicken, the company
put coupons good for a free piece of chicken in many Sunday
newspapers.
So how do sellers make any money if they always offer goods
and services on sale or for a special
deal? Many sellers give customers something for free, hoping
they'll buy other products, but a
careful balance is needed to ensure profit.
Price is the only marketing mix variable or part of the offering
that generates revenue. Buyers
relate the price to value. They must feel they are getting value
for the price paid. Pricing decisions
are extremely important. So how do organizations decide how to
price their goods and services?
This week, we explore both distribution and price as a means to
add value for customers.
http://www.saylor.org/site/textbooks/Principles%20of%20Marke
ting.pdf
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ting.pdf
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4. 2
6.1 Marketing Channels and Channel Partners
L E A R N I N G O B J E C T I V E S
1. Explain why marketing channel decisions can result in the
success or failure of products.
2. Describe the types of organizations that work together as
channel partners and what each does.
Today, marketing channel decisions are as important as the
decisions companies make about the
features and prices of products (Littleson, 2007). Consumers
have become more demanding.
They are used to getting what they want. If you can't get your
product to them when, where, and
how they want it, they will simply buy a competing product. In
other words, how companies sell
has become as important as what they sell (CBSNews.com,
2007).
The firms a company partners with to actively promote and sell
a product as it travels through its
5. marketing channel to users are referred to by the firm as its
channel members (or partners).
Companies strive to choose not only the best marketing
channels but also the best channel
partners. A strong channel partner like Walmart can
successfully promote and sell a product that
might not otherwise turn a profit for its producer. In turn,
Walmart wants to work with strong
channel partners it can depend on to continuously provide it
with great products. By contrast, a
weak channel partner, like a bad spouse, can be a liability.
The simplest marketing channel consists of just two parties—a
producer and a consumer. Your
haircut is a good example. When you get a haircut, it travels
straight from your hairdresser to you.
No one else owns, handles, or remarkets the haircut before you
get it. However, many other
products and services pass through multiple organizations
before they get to you. These
organizations are called intermediaries (or middlemen or
resellers).
Companies partner with intermediaries not because they
6. necessarily want to (ideally they could
sell their products straight to users) but because the
intermediaries can help them sell the
products better than they could working alone. In other words,
they have some sort of capabilities
the producer needs: contact with many customers or the right
customers, marketing expertise,
shipping and handling capabilities, and the ability to lend the
producer credit are among the types
of help a firm can get by using a channel partner.
Intermediaries also create efficiencies by streamlining the
number of transactions an organization
must make, each of which takes time and costs money to
conduct. As Figure 6.1, "Using
3
Intermediaries to Streamline the Number of Transactions"
shows, by selling the tractors it makes
through local farm machinery dealers, manufacturer John Deere
can streamline the number of
transactions it makes from eight to just two.
7. Figure 6.1 Using Intermediaries to Streamline the Number of
Transactions
The marketing environment is always changing, so what was a
great channel or channel partner
yesterday might not be a great channel partner today. Changes
in technology, production
techniques, and your customer's needs mean you have to
continually reevaluate your marketing
channels and channel partners. Moreover, when you create a
new product, you can't assume the
channels that were used in the past are the best ones (Lancaster
& Withey, 2007). A different
channel or channel partner might be better.
Consider Microsoft's digital encyclopedia, Encarta, which was
first sold on CD and via online
subscription in the early 1990s. Encarta nearly destroyed
Encyclopedia Britannica, a firm that had
dominated the print encyclopedia business for literally
centuries. Ironically, Microsoft had
actually tried to partner with Encyclopedia Britannica to use its
encyclopedia information to make
Encarta but was turned down.
8. But today, Encarta no longer exists. It's been put out of business
by the free online encyclopedia
Wikipedia. The point is that products and their marketing
channels are constantly evolving.
Consequently, you and your company have to be ready to
evolve, too.
4
Types of Channel Partners
Let's now look at the basic types of channel partners. To help
you understand the types of channel
partners, we will go over the most common types of
intermediaries. The two types you hear about
most frequently are wholesalers and retailers. Keep in mind,
however, that the categories we
discuss in this section are just that—categories. The lines
between wholesalers, retailers, and
producers have begun to blur. Microsoft is a producer of goods,
but it has opened its own retail
stores to sell products to consumers, much as Apple has done
(Lyons, 2009). Walmart and other
9. large retailers now produce their own brands and sell them to
other retailers. Similarly, many
producers have outsourced their manufacturing, and although
they still call themselves
manufacturers, they act more like wholesalers. Wherever
organizations see an opportunity, they
are beginning to take it, regardless of their positions in
marketing channels.
Wholesalers
Wholesalers obtain large quantities of products from producers,
store them, and break them
down into cases and other smaller units more convenient for
retailers to buy, a process called
"breaking bulk." Wholesalers get their name from the fact that
they resell goods "whole" to other
companies without transforming the goods. If you are trying to
stock a small electronics store, you
probably don't want to purchase a truckload of iPads. Instead,
you probably want to buy a smaller
assortment of iPads as well as other merchandise. Via
wholesalers, you can get the assortment of
products you want in the quantities you want. Some wholesalers
carry a wide range of different
10. products; others carry narrow ranges of products.
Most wholesalers "take title" to goods—or own them until
purchased by other sellers. Wholesalers
such as these assume a great deal of risk on the part of
companies farther down the marketing
channel. For example, if the iPad you plan to purchase is stolen
during shipment, damaged, or
becomes outdated because a new model has been released, the
wholesaler suffers the loss—not
you. Electronic products, in particular, become obsolete very
quickly. Think about the cell phone
you owned just a couple of years ago. Would you want it today?
Retailers
Retailers buy products from wholesalers, agents, or distributors
and then sell them to
consumers. Retailers vary by the types of products they sell,
their sizes, the prices they charge, the
level of service they provide consumers, and the convenience or
speed they offer. You are familiar
with many of these types of retailers because you have
purchased products from them.
11. 5
Supermarkets, or grocery stores, are self-service retailers that
provide a full range of food
products to consumers, as well as some household products.
Supermarkets can be high, medium,
or low range in terms of the prices they charge and the service
and variety of products they offer.
Whole Foods and Central Market are grocers that offer a wide
variety of products, generally at
higher prices. Midrange supermarkets include stores such as
Albertsons and Kroger. Aldi and
Sack 'n Save are examples of supermarkets with a limited
selection of products and service but
low prices. Drugstores specialize in selling over-the-counter
medications, prescriptions, and
health and beauty products, and offer services such as photo
developing.
Convenience stores are miniature supermarkets. Many of them
sell gasoline and are open 24
hours. Often they are located on corners, making it easy and fast
12. for consumers to get in and out.
Some of these stores contain fast-food franchises such as
Subway. Consumers pay for the
convenience in the form of higher markups on products.
Specialty stores sell a certain type of product, but they usually
carry a deep line of it. Zales,
which sells jewelry, and Williams-Sonoma, which sells an array
of kitchen and cooking-related
products, are examples of specialty stores. The personnel who
work in specialty stores are usually
knowledgeable and often provide customers with a high level of
service. Specialty stores vary by
size. Many are small. However, giant specialty stores called
category killers have emerged.
A category killer sells a high volume of a particular type of
product and, in doing so, dominates
the competition, or "category." Petco and PetSmart are category
killers in the retail pet-products
market. Best Buy is a category killer in the electronics-product
market.
Department stores, by contrast, carry a variety of household and
personal types of
13. merchandise such as clothing and jewelry. Many are chain
stores. The prices department stores
charge range widely, as does the level of service shoppers
receive. Neiman Marcus, Saks Fifth
Avenue, and Nordstrom sell expensive products and offer
extensive personal service. Department
stores such as JCPenney, Sears, and Macy's charge midrange
prices, and offer a midrange level of
service. Walmart, Kmart, and Target are discount department
stores with cheaper goods and a
limited amount of service.
Superstores are oversized department stores that carry a broad
array of general merchandise as
well as groceries. Banks, hair and nail salons, and restaurants
such as Starbucks are often located
within these stores for the convenience of shoppers. You have
probably shopped at a SuperTarget
or a huge Walmart with offerings such as these.
Warehouse clubs are supercenters that sell products at a
discount. They require people to
become members by paying an annual fee. Costco and Sam's
Club are examples. Off-
14. 6
price retailers are stores that sell a variety of discount
merchandise that consists of seconds,
overruns, and the previous season's stock other stores have
liquidated. Big Lots, Ross Dress for
Less, and dollar stores are off-price retailers.
A new type of retail store that turned up in the last few years is
the pop-up store. Pop-up stores
are small, temporary stores. They can be kiosks that temporarily
occupy unused retail space. The
goal is to create excitement and "buzz" for a retailer that then
drives customers to their regular
stores. In 2006, JCPenney created a pop-up store in Times
Square for a month. Kate Coultas, a
spokesperson for JCPenney, said the store got the attention of
Manhattan's residents. Many
hadn't been to a JCPenney in a long time. "It was a real
dramatic statement," Coultas said. "It
kind of had a halo effect" on the company's stores in the
surrounding boroughs of New York City
(Austin, 2009).
15. Not all retailing goes on in stores, however. Nonstore
retailing—retailing not conducted in
stores—is a growing trend. Door-to-door sales; party selling;
selling to consumers via television,
catalogs, the Internet, and vending machines; and telemarketing
are examples of nonstore
retailing. So is direct marketing. Companies that engage in
direct marketing develop and send
promotional materials such as catalogs, letters, leaflets, e-mails,
and online ads straight to
consumers urging them to contact their firms directly to buy
products.
6 . 1 K E Y T A K E A W A Y
The specific way in which you are able to buy a product is
referred to as its marketing channel. Marketing
channel decisions are as important as the decisions companies
make about the features and prices of
products. Channel partners are firms that actively promote and
sell a product as it travels through its
channel to its user. Companies try to choose the best channels
and channel partners to help them sell
products because doing so can give them a competitive
advantage.
6.2 Typical Marketing Channels
16. L E A R N I N G O B J E C T I V E S
1. Describe the basic types of channels in business-to-consumer
(B2C) and business-to-business (B2B)
markets.
2. Explain the advantages and challenges companies face when
using multiple channels and alternate
channels.
3. Explain the pros and cons of disintermediation.
4. List the channels firms can use to enter foreign markets.
7
Figure 6.2, "Typical Channels in Business-to-Consumer (B2C)
Markets," shows the typical
channels in business-to-consumer (B2C) markets. As we
explained, the shortest marketing
channel consists of just two parties—a producer and a
consumer. A channel such as this is
a direct channel. By contrast, a channel that includes one or
more intermediaries—say, a
wholesaler, distributor, or broker or agent—is an indirect
17. channel. In an indirect channel, the
product passes through one or more intermediaries. That doesn't
mean the producer will do no
marketing directly to consumers. Levi's runs ads on TV
designed to appeal directly to consumers.
The makers of food products run coupon ads. However, the
seller also has to focus its selling
efforts on these intermediaries because the intermediary can
help with the selling effort. Not
everyone wants to buy Levi's online.
Figure 6.2 Typical Channels in Business-to-Consumer (B2C)
Markets
Disintermediation
You might be tempted to think middlemen, or intermediaries,
are bad. If you can cut them out of
the deal—a process marketing professionals call
disintermediation—products can be sold more
8
cheaply, can't they? Large retailers, including Target and
Walmart, sometimes bypass middlemen.
18. Instead, they buy their products directly from manufacturers and
then store and distribute them
to their own retail outlets. Walmart is increasingly doing so and
even purchasing produce directly
from farmers around the world (Birchall, 2010).
However, cutting out the middleman is not always desirable. A
wholesaler with buying power and
excellent warehousing capabilities might be able to purchase,
store, and deliver a product to a
seller more cheaply than its producer could alone. Likewise,
hiring a distributor will cost a
producer money. But if the distributor can help the producer sell
greater quantities of a product,
it can increase the producer's profits.
Moreover, when you cut out the middlemen, you have to
perform the functions they once did.
Those functions could include storing the product or dealing
with hundreds of retailers. More
than one producer has ditched its intermediaries only to rehire
them later.
The trend today is toward disintermediation. The Internet has
19. facilitated a certain amount of
disintermediation by making it easier for consumers to contact
one another without going
through any middlemen. The Internet has also made it easier for
buyers to shop for the lowest
prices. Today, most people book trips online without going
through travel agents. People also
shop for homes online rather than using real estate agents. To
remain in business, resellers need
to find new ways to add value to products.
However, for some products, disintermediation via the Internet
doesn't work so well. Insurance is
an example. You can buy it online directly from companies, but
many people want to buy through
an agent they can talk to for advice. Most large insurance
companies offer consumers both
options, and each method of selling insurance products has a
different pricing structure based on
the level of service.
Sometimes it's simply impossible to cut out middlemen. Would
the Coca-Cola Company want to
take the time and trouble to personally sell you an individual
20. can of Coke? No. Coke is no more
capable of selling individual Cokes to people than Santa is
capable of delivering toys to children
around the globe.
Even Dell, which initially made its mark by selling computers
straight to users, now sells its
products through retailers such as Best Buy as well. Dell found
that to compete effectively, its
products needed to be placed in stores alongside Hewlett-
Packard, Acer, and other computer
brands (Kraemer & Dedrick, 2002).
9
Multiple Channels and Alternate Channels
Marketing channels can get a lot more complex than the
channels shown in Figure 6.2, "Typical
Channels in Business-to-Consumer (B2C) Markets," though.
Look at the channels in Figure 6.3,
"Alternate Channel Arrangements." Notice how in some
situations, a wholesaler will sell to
21. brokers, who then sell to retailers and consumers. In other
situations, a wholesaler will sell
straight to retailers or straight to consumers. Manufacturers also
sell straight to consumers, and,
as we explained, sell straight to large retailers like Target.
Figure 6.3 Alternate Channel Arrangements
The point is that firms can and do use multiple channels. Take
Levi's, for example. You can buy a
pair of Levi's jeans from a retailer such as Kohl's, or you can
buy a pair directly from Levi's at one
of the outlet stores it owns around the country. You can also
buy a pair from the Levi's website.
The key is understanding the different target markets for the
product and designing the best
channel to meet the needs of customers in each. Is there a group
of buyers who would purchase
your product if they could shop online from their homes?
Perhaps there is a group of customers
interested in your product, but they do not want to pay full
price. The ideal way to reach these
people might be with an outlet store and low prices. Each group
then needs to be marketed to
22. accordingly. Many people regularly interact with companies via
numerous channels before
making buying decisions.
Using multiple channels can be effective. At least one study has
shown that the more marketing
channels your customers use, the more loyal they are likely to
be to your products (Fitzpatrick,
2005). Companies work hard to integrate their selling channels
so users get a consistent
10
experience. For example, QVC's TV channel, website, and
mobile service—which sends alerts to
customers and allows them to buy products via their cell
phones—all have the same look and feel.
Would you like to purchase gold from a vending machine? You
can in Germany. Germans like to
purchase gold because it's considered a safe alternative to paper
money, which can become
devalued during a period of hyperinflation. So, in addition to
selling gold the usual way, TG-Gold-
23. Super-Market company has installed "gold to go" machines in
German-speaking countries. The
gold is dispensed in metal boxes, and cameras on the machine
monitor the transactions to
prevent money laundering (Wilson & Blas, 2009).
6 . 2 K E Y T A K E A W A Y
A direct marketing channel consists of just two parties—a
producer and a consumer. By contrast, a
channel that includes one or more intermediaries (wholesaler,
distributor, or broker or agent) is an
indirect channel. Firms often use multiple channels to reach
more customers and increase their
effectiveness. Some companies find ways to increase their sales
by forming strategic channel alliances
with one another. Other companies look for ways to cut the
middlemen from the channel, a process
known as disintermediation.
6.3 Functions Performed by Channel Partners
L E A R N I N G O B J E C T I V E S
1. Describe the activities performed in channels.
2. Explain which organizations perform which functions.
Different organizations in a marketing channel are responsible
for different value-adding
24. activities. The following are some of the most common
functions channel members perform.
However, keep in mind that "who does what" can vary,
depending on what the channel members
actually agree to in their contracts with one another.
Disseminate Marketing Communications and Promote Brands
Somehow, wholesalers, distributors, retailers, and consumers
need to be informed—via marketing
communications—that an offering exists and that there's a good
reason to buy it. Sometimes, a
push strategy is used to help marketing channels accomplish
this. A push strategy (discussed in
greater detail in Week 7, "Public Relations and Sales
Promotions") is one in which a manufacturer
convinces wholesalers, distributors, or retailers to sell its
products. Consumers are informed via
advertising and other promotions that the product is available
for sale, but the main focus is to
sell to intermediaries.
11
25. By contrast, a pull strategy focuses on creating demand for a
product among consumers so that
businesses agree to sell the product. A good example of an
industry that uses both pull and push
strategies is the pharmaceutical industry. Pharmaceutical
companies promote their drugs to
pharmacies and doctors, but they now also run ads designed to
persuade individual consumers to
ask their physicians about drugs that might benefit them.
In many cases, two or more organizations in a channel jointly
promote a product to retailers,
purchasing agents, and consumers and work out which
organization is responsible for what type
of communication to whom. The actual forms and styles of
communication will be discussed more
in the promotions and sales section of the book.
Sorting and Regrouping Products
As we explained, many businesses don't want to receive huge
quantities of a product. One of the
functions of wholesalers and distributors is to break down large
quantities of products into
smaller units and provide an assortment of different products.
26. Storing and Managing Inventory
If a channel member has run out of a product when a customer
wants to buy it, the result is often
a lost sale. That's why most channel members stock, or "carry,"
reserve inventory. However,
storing products is not free. Warehouses cost money to build or
rent and heat and cool;
employees have to be paid to stock shelves, pick products, and
ship them. Some companies,
including Walmart, put their suppliers in charge of their
inventory. The suppliers have access to
Walmart's inventory levels and ship products when and where
the retailer's stores need them.
Distributing Products
Physical goods that travel within a channel need to be moved
from one member to another and
sometimes back again. Some large wholesalers, distributors, and
retailers own their own fleets of
trucks for this purpose. In other cases, they hire third-party
transportation providers—trucking
companies, railroads—to move their products.
Being able to track merchandise like you can track a FedEx
27. package is important to channel
partners. They want to know where their products are and what
shape they are in. Losing
inventory or having it damaged or spoiled can wreak havoc on
profits. Other problems include not
getting products on time or being able to get them at all when
your competitors can.
12
Assume Ownership Risk and Extend Credit
If products are damaged during transit, one of the first
questions asked is who owned the product
at the time. In other words, who suffers the loss? Generally, no
one channel member assumes all
of the ownership risk in a channel. Instead, it is distributed
among channel members depending
on the contracts they have with one another and their free on
board provisions. A provision
designates who is responsible for what shipping costs and who
owns the
free on board (FOB) title to the goods and when.
28. Share Marketing and Other Information
Each of the channel members has information about the demand
for products, trends, inventory
levels, and what the competition is doing. The information is
valuable and can be doubly valuable
if channel partners trust one another and share it. More
information can help each firm in the
marketing channel perform its functions better and overcome
competitive obstacles (Frazier,
Maltz, Antia, & Rindfleisch, 2009).
6 . 3 K E Y T A K E A W A Y
Different organizations in a marketing channel are responsible
for different value-adding activities. These
activities include disseminating marketing communications and
promoting brands, sorting and regrouping
products, storing and managing inventory, distributing products,
assuming the risk of products, and
sharing information.
6.4 Marketing Channel Strategies
L E A R N I N G O B J E C T I V E S
1. Describe the factors that affect a firm's channel decisions.
2. Explain how intensive, exclusive, and selective distribution
29. differ from one another.
3. Explain why some products are better suited to some
distribution strategies than others.
Channel Selection Factors
Selecting the best marketing channel is critical because it can
mean the success or failure of your
product. One of the reasons the Internet has been so successful
as a marketing channel is because
customers get to make some of the channel decisions
themselves. They can shop virtually for any
13
product in the world when and where they want to, as long as
they can connect to the web. They
can also choose how the product is shipped.
Type of Customer
The Internet isn't necessarily the best channel for every product,
though. For example, do you
want to closely examine the fruits and vegetables you buy to
make sure they are ripe enough or
30. not overripe? Then online grocery shopping might not be for
you. Clearly, how your customers
want to buy products will have an impact on the channel you
select. In fact, it should be your
prime consideration.
First of all, are you selling to a consumer or a business
customer? Generally, these two groups
want to be sold to differently. Most consumers are willing to go
to a grocery or convenience store
to purchase toilet paper. The manager of a hospital trying to
replenish its supplies would not. The
hospital manager would also be buying a lot more toilet paper
than an individual consumer and
would expect to be called upon by a distributor, but perhaps
only semiregularly. Thereafter, the
manager might want the toilet paper delivered on a regular basis
and billed to the hospital via
automatic systems. Likewise, when businesses buy expensive
products such as machinery and
computers or products that have to be customized, they
generally expect to be sold to personally
via salespeople. And often they expect special payment terms.
31. Type of Product
The type of product you're selling will also affect your
marketing channel choices. Perishable
products often have to be sold through shorter marketing
channels than products with longer
shelf lives. For example, a yellowfin tuna bound for the sushi
market will likely be flown overnight
to its destination and handled by few intermediaries. By
contrast, canned tuna can be shipped by
"slow boat" and handled by more intermediaries. Valuable and
fragile products also tend to have
shorter marketing channels. Automakers generally sell their cars
straight to car dealers (retailers)
rather than through wholesalers. The makers of corporate jets
often sell them straight to
corporations, which demand they be customized to certain
specifications.
Channel Partner Capabilities
Your ability vs. the ability of other types of organizations that
operate in marketing channels can
affect your channel choices. If you are a massage therapist, you
are quite capable of delivering
your product straight to your client. If you produce
32. downloadable products like digital books or
14
recordings, you can sell your products straight to customers on
the Internet. Hypnotic World, a
United Kingdom producer of self-hypnosis recordings, is a
company such as this.
But suppose you've created a great personal gadget—something
that's tangible, or physical. You've
managed to sell it via two channels—say, on TV (via the Home
Shopping Network, perhaps) and
on the web. Now you want to get the product into retail stores
like Target, Walgreens, and Bed
Bath & Beyond. If you can get the product into these stores, you
can increase your sales
exponentially. In this case, you might want to contract with an
intermediary—perhaps an agent or
a distributor who will convince the corporate buyers of those
stores to carry your product.
The Business Environment and Technology
The general business environment, such as the economy, can
33. also affect the marketing channels
chosen for products. For example, think about what happens
when the value of the dollar declines
relative to the currencies of other countries. When the dollar
falls, products imported from other
countries cost more to buy relative to products produced and
sold in the United States. Products
"made in China" become less attractive because they have
gotten more expensive. As a result,
some companies then look closer to home for their products and
channel partners.
Technological changes affect marketing channels, too. We
explained how the Internet has
changed how products are bought and sold. Many companies
like selling products on the Internet
as much as consumers like buying them. An Internet sales
channel gives companies more control
over how their products are sold and at what prices than if they
leave the job to another channel
partner such as a retailer. Plus, a company selling on the
Internet has a digital footprint, or
record, of what shoppers look at, or click on. As a result, it can
recommend products they appear
34. to be interested in and target them with special offers and prices
(Food Channel, 2008).
Some sites let customers tailor products to their liking. On the
Domino's website, you can pick
your pizza ingredients and then watch them as they fall onto
your virtual pizza. The site then lets
you know who is baking your pizza, how long it's taking to
cook, and who's delivering it. Even
though interaction is digital, it somehow feels a lot more
personal than a basic phone order.
Developing customer relationships is what today's marketing is
about. The Internet is helping
companies do this.
Competing Products' Marketing Channels
How your competitors sell their products can also affect your
marketing channels. As we
explained, Dell now sells computers to firms such as Best Buy
so the computers can compete with
other brands on store shelves.
15
35. You don't always have to choose the channels your competitors
rely on, though. Netflix is an
example. Netflix turned the video rental business on its head by
coming up with a new marketing
channel that better meets the needs of many consumers.
Maybelline and L'Oréal products are
sold primarily in retail stores. However, Mary Kay and Avon
use salespeople to personally sell
their products to consumers.
Factors That Affect a Product's Intensity of Distribution
Firms that choose an intensive distribution strategy try to sell
their products in as many
outlets as possible. Intensive distribution strategies are often
used for convenience offerings—
products customers purchase on the spot without much shopping
around. Soft drinks and
newspapers are an example. You see them sold in many
different places. Redbox, which rents
DVDs out of vending machines, has made headway using an
intensive distribution strategy: the
machines are located in fast-food restaurants, grocery stores,
and other places people frequent.
Figure 6.4
36. Because installing a vending machine is less expensive than
opening a retail outlet, Redbox has
been able to locate its DVD vending machines in places where
people go frequently.
Source: Photo by Greg Goebel. (2012). Wikimedia Commons.
Used under
the terms of the Creative Commons Attribution-ShareAlike 2.0
Generic license.
16
By contrast, selective distribution involves selling products at
select outlets in specific
locations. For instance, Sony TVs can be purchased at a number
of outlets such as Circuit City,
Best Buy, or Walmart, but the same models are generally not
sold at all the outlets. By selling
different models with different features and price points at
different outlets, a manufacturer can
appeal to different target markets.
37. Exclusive distribution involves selling products through one or
very few outlets. For instance,
supermodel Cindy Crawford's line of furniture is sold
exclusively at the furniture company Rooms
To Go. Designer Michael Graves has a line of products sold
exclusively at Target. To purchase
those items you need to go to one of those retailers. TV series
are distributed exclusively. A
company that produces a TV series will sign an exclusive deal
with a network like ABC, CBS, or
Showtime, and the series will initially appear only on that
network. Later, reruns of the shows are
often distributed selectively to other networks.
To control the image of their products and the prices at which
they are sold, the makers of upscale
products often prefer to distribute their products more
exclusively. Expensive perfumes and
designer purses are an example. During the economic downturn,
the makers of some of these
products were disappointed to see retailers had slashed the
products' prices, "cheapening" their
prestigious brands.
38. Distributing a product exclusively to a limited number of
organizations under strict terms can
help prevent a company's brand from deteriorating, or losing
value. It can also prevent products
from being sold cheaply in gray markets. A gray market is a
market in which a producer hasn't
authorized its products to be sold (Burrows, 2008).
6 . 4 K E Y T A K E A W A Y
Selecting the best marketing channel is critical because it can
mean the success or failure of your product.
The type of customer you're selling to will have an impact on
the channel you select. In fact, this should
be your prime consideration. The type of product, your
organization's capabilities vs. those of other
channel members, the way competing products are marketed,
and changes in the business environment
and technology can also affect your marketing channel
decisions. Various factors affect a company's
decisions about the intensity of a product's distribution. An
intensive distribution strategy involves selling
a product in as many outlets as possible. Selective distribution
involves selling a product at select outlets
in specific locations. Exclusive distribution involves selling a
product through one or very few outlets.
17
39. 6.5 Channel Dynamics
L E A R N I N G O B J E C T I V E S
1. Explain what channel power is and the types of firms that
wield it.
2. Describe the types of conflicts that can occur in marketing
channels.
3. Describe the ways in which channel members achieve
cooperation with one another.
4. Understand how supply chains differ from marketing
channels.
Channel Power
Strong channel partners often wield what's called channel power
and are referred to
as channel leaders, or channel captains. In the past, big
manufacturers like Procter & Gamble
and Dell were often channel captains. But that is changing.
More often today, big retailers like
Walmart and Target are commanding more channel power. They
have millions of customers and
are bombarded with products wholesalers and manufacturers
want them to sell. As a result, these
40. retailers get what they want.
Category killers are in a similar position. Consumers like you
are gaining marketing channel
power, too. Regardless of what one manufacturer produces or
what a local retailer has available,
you can use the Internet to find whatever product you want at
the best price available and have it
delivered when, where, and how you want.
Channel Conflict
A dispute among channel members is called a channel conflict.
Channel conflicts are common.
Part of the reason for this is that each channel member has its
own goals, which are unlike those
of any other channel member. The relationship among them is
not unlike the relationship
between you and your boss. Both of you want to serve your
organization's customers well.
However, your goals are different. Your boss might want you to
work on the weekend, but you
might not want to because you need to study for a Monday test.
All channel members want to have low inventory levels but
immediate access to more products.
41. Who should bear the cost of holding the inventory? What if
consumers don't purchase the
products? Can they be returned to other channel members, or is
the organization in possession of
the products responsible for disposing of them? Channel
members try to spell out such details in
their contracts.
18
No matter how "airtight" their contracts are, there will still be
points of contention among
channel members. Channel members are constantly asking their
partners, "What have you done
(or not done) for me lately?" Wholesalers and retailers
frequently lament that the manufacturers
they work with aren't doing more to promote their products—for
example, distributing coupons
for them or running TV ads—so they will move off store
shelves more quickly.
Meanwhile, manufacturers want to know why wholesalers aren't
selling their products faster and
42. why retailers are placing them at the bottom of shelves where
they are hard to see. Apple opened
its own retail stores around the country, in part because it didn't
like how its products were being
displayed and sold in other companies' stores.
Vertical vs. Horizontal Conflict
The conflicts we've described so far are examples of vertical
conflict. A vertical conflict is
conflict that occurs between two different types of members in a
channel—say, a manufacturer, an
agent, a wholesaler, or a retailer. By contrast, a horizontal
conflict is conflict that occurs
between organizations of the same type—say, two
manufacturers that each want a powerful
wholesaler to carry only its products.
Horizontal conflict can be healthy because it's competition-
driven. But it can create problems,
too. In 2005, Walmart experienced a horizontal conflict among
its landline telephone suppliers.
The suppliers were in the middle of a price war and cutting the
prices to all the retail stores to
which they sold. Walmart wasn't selling any additional phones
43. due to the price cuts. It was just
selling them for less and making less of a profit (Hitt, Black, &
Porter, 2005).
Channel leaders such as Walmart usually have a great deal of
say when it comes to how channel
conflicts are handled, which is to say that they usually get what
they want. But even the most
powerful channel leaders strive for cooperation. A manufacturer
with channel power still needs
good retailers to sell its products; a retailer with channel power
still needs good suppliers from
which to buy products. One member of a channel can't squeeze
all the profits out of the other
channel members and still hope to function well.
Moreover, because each of the channel partners is responsible
for promoting a product through
its channel, to some extent they are all in it together. Each one
of them has a vested interest in
promoting the product, and the success or failure of any one of
them can affect that of the others.
44. 19
Figure 6.5
Boar's Head's in-store displays help its channel partners sell its
products.
Source: Photo by Scorpions and Centaurs. (2010). Flickr. Used
under the terms
of the Creative Commons Attribution-NonCommercial-
ShareAlike 2.0 Generic license.
Producing marketing and promotional materials their channel
partners can use for sales purposes
can also facilitate cooperation among companies. In-store
displays, brochures, banners, photos
for websites, and advertisements the partners can customize
with their own logos and company
information are examples.
Educating your channel members' sales representatives is an
important part of facilitating
cooperation, especially when you're launching a new product.
The reps need to be provided with
training and marketing materials in advance of the launch so
45. their activities are coordinated with
yours. Microsoft does a good job of training its partners. Before
launching operating systems such
as Windows XP and Vista, Microsoft provides thousands of its
partners with sales and technical
training (IrieAuctions.com, 2009).
In addition, companies run sales contests to encourage their
channel partners' sales forces to sell
what they have to offer. Offering your channel partners certain
monetary incentives, such as
discounts for selling your product, can help, too. We'll talk
more about incentive programs
in Week 7, "Public Relations and Sales Promotions."
20
Finally, you don't want to risk breaking the law or engage in
unfair business practices when
dealing with your channel partners (IrieAuctions.com, 2009).
Another issue channel partners
sometimes encounter relates to resale price maintenance
46. agreements. A resale price
maintenance agreement is an agreement whereby a producer of a
product restricts the price a
retailer can charge for it.
The producers of upscale products often want retailers to sign
resale price maintenance
agreements because they don't want the retailers to deeply
discount their products. Doing so
would "cheapen" their brands, producers believe. Producers also
contend that resale price
maintenance agreements prevent price wars from breaking out
among their retailers, which can
lead to the deterioration of prices for all of a channel's
members.
Channel Integration: Vertical and Horizontal Marketing Systems
Another way to foster cooperation in a channel is to establish a
vertical marketing system. In
a vertical marketing system, channel members formally agree to
closely cooperate with one
another. (You have probably heard the saying, "If you can't beat
'em, join 'em.") A vertical
marketing system can also be created by one channel member
taking over the functions of
47. another member.
Procter & Gamble (P&G) has traditionally been a manufacturer
of household products, not a
retailer of them. But the company's long-term strategy is to
compete in every personal-care
channel, including salons, where the men's business is
underdeveloped. In 2009, P&G purchased
The Art of Shaving, a seller of pricey men's shaving products in
upscale shopping malls. P&G also
runs retail boutiques around the globe that sell its prestigious
SK-II skin-care line (Neff, 2009).
Franchises are another type of vertical marketing system. They
are used not only to lessen
channel conflicts but also to penetrate markets. Recall that a
franchise gives a person or group the
right to market a company's goods or services within a certain
territory or location (Daszkowski,
n.d.). McDonald's sells meat, bread, ice cream, and other
products to its franchises, along with the
right to own and operate the stores. And each of the owners of
the stores signs a contract with
McDonald's agreeing to do business in a certain way.
48. By contrast, in a conventional marketing system, the channel
members have no affiliation
with one another. All the members operate independently. If the
sale or the purchase of a product
seems like a good deal at the time, an organization pursues it.
But there is no expectation among
the channel members that they have to work with one another in
the future.
21
A horizontal marketing system is one in which two companies at
the same channel level—
say, two manufacturers, two wholesalers, or two retailers—
agree to cooperate with another to sell
their products or to make the most of their marketing
opportunities. The Internet phone service
Skype and the mobile-phone maker Nokia created a horizontal
marketing system by teaming to
put Skype's service on Nokia's phones. Skype hoped it will
reach a new market (mobile phone
49. users) this way. And Nokia hoped to sell its phones to people
who like to use Skype on their
personal computers (PCs) (Gelles, 2009).
Channels vs. Supply Chains
In the past few decades, organizations have begun taking a more
holistic look at their marketing
channels. Instead of looking at only the firms that sell and
promote their products, they have
begun looking at all the organizations that figure into any part
of the process of producing,
promoting, and delivering an offering to its user. All these
organizations are considered part of
the offering's supply chain.
For instance, the supply chain includes producers of the raw
materials that go into a product. If
it's a food product, the supply chain extends back through the
distributors all the way to the
farmers who grew the ingredients and the companies from which
the farmers purchased the
seeds, fertilizer, or animals. A product's supply chain also
includes transportation companies such
as railroads that help physically move the product and
companies that build websites for other
50. companies. If a software maker hires a company in India to help
it write a computer program, the
Indian company is part of the partner's supply chain. These
types of firms aren't considered
channel partners because it's not their job to actively sell the
products being produced.
Nonetheless, they all contribute to a product's success or
failure.
Firms are constantly monitoring their supply chains and
tinkering with them so they are as
efficient as possible. This process is called supply chain
management. Supply chain
management is challenging. Done well, it's practically an art.
We'll talk more about supply chains
and what companies can do to improve them to satisfy
customers and gain a competitive edge.
As we explained earlier, your product's supply chain includes
not only the downstream companies
that actively sell the product but also all the other organizations
that have an impact on it before,
during, and after it's produced. Those companies include the
providers of the raw materials your
51. firm uses to produce it, the transportation company that
physically moves it, and the firm that
helped build the web pages to promote it. If you hired a
programmer in India to help write code
for a computer game, the programmer is also part of the
product's supply chain. If you hired a
company to process copies of the game returned by customers,
that company is part of the supply
22
chain as well. Large organizations with many products can have
thousands of supply chain
partners. Service organizations also need supplies to operate, so
they have supply chains, too.
Today, the term value chain is sometimes used interchangeably
with the term supply chain. The
idea behind the value chain is that your supply chain partners
should do more for you than
perform just basic functions; each partner should help you
create more value for customers as the
product travels along the chain—preferably more value than
your competitors' supply chain
52. partners can add to their products.
Zara, a trendy but inexpensive clothing chain in Europe, is a
good example of a company that has
managed to create value for its customers with smart supply
chain design and execution.
Originally, it took six months for Zara to design a garment and
get it delivered to stores. To get the
hottest fashions in the hands of customers sooner, Zara began
working more closely with its
supply chain partners and internal design teams. It also
automated its inventory systems so it
could quickly figure out what was selling and what was not. As
a result, it's now able to deliver its
customers the most cutting-edge fashion in just two weeks
(Smith, 2008).
Sourcing is the process of evaluating and hiring individual
businesses to supply goods and
services to your business. Procurement is the process of actually
purchasing those goods and
services. Sourcing and procurement have become a bigger part
of a supply manager's job, in part
because businesses keep becoming more specialized. Just like
Ford's workers became more
53. efficient by performing specialized tasks, so, too have
companies.
Firms look at their supply chains and outside them to see which
companies can add the most
value to their products at the least cost. If a firm can find a
company that can add more value than
it can to a function, it will often outsource the task to that
company. After all, why do something
yourself if someone else can do it better or more cost
effectively?
Other companies go a step further and outsource their entire
order processing and shipping
departments to third-party logistics (3PLs) firms. FedEx Supply
Chain Services and UPS
Supply Chain
Solution
s (which are divisions of FedEx and UPS, respectively) are
examples of
3PLs. A 3PL is a one-stop shipping solution for a company that
54. wants to focus on other aspects of
its business. Firms that receive and ship products
internationally often hire 3PLs so they don't
have to deal with the headaches of transporting products abroad
and completing import and
export paperwork for them.
23
6 . 5 K E Y T A K E A W A Y
Channel partners that wield channel power are referred to as
channel leaders. A dispute among channel
members is called a channel conflict. A vertical conflict is one
that occurs between two different types of
members in a channel. By contrast, a horizontal conflict is one
55. that occurs between organizations of the
same type. Channel leaders are often in the best position to
resolve channel conflicts. Vertical and
horizontal marketing systems can help foster channel
cooperation, as can creating marketing programs to
help a channel's members all generate greater revenues and
profits. All of the organizations that figure
into any part of the process of producing, promoting, and
delivering an offering to its user are part of the
offering's supply chain. Firms have begun looking at these
organizations in addition to the organizations
that sell and promote their products. The process of managing
and improving supply chains is called
supply chain management.
6.6 Demand Planning and Inventory Control
L E A R N I N G O B J E C T I V E S
1. Explain why demand planning adds value to products.
2. Describe the role inventory control plays when it comes to
marketing products.
56. 3. List the reasons why firms collaborate with another for the
purposes of inventory control and
demand planning.
Demand Planning
Imagine you are a marketing manager who has done everything
in your power to help develop
and promote a product—and it's selling well. But now your
company is running short of the
product because the demand forecasts for it were too low.
Recall that this is the scenario
Nintendo faced when the Wii came out. The same thing
happened to IBM when it launched the
popular ThinkPad laptop in 1992.
Not only is the product shortage going to adversely affect the
profitability of your company, but
57. it's going to adversely affect you, too. Why? Because you, as a
marketing manager, probably earn
either a bonus or commission from the products you work to
promote, depending on how well
they sell. And, of course, you can't sell what you don't have.
As you can probably tell, the best marketing decisions and
supplier selections aren't enough if
your company's demand forecasts are wrong. Demand planning
is the process of estimating
how much of a good or service customers will buy. If you're a
producer of a product, this will
affect not only the amount of goods and services you have to
produce but also the materials you
must purchase to make them. It will also affect production
scheduling, or the management of
58. 24
the resources, events, and processes need to create an offering.
For example, if demand is heavy,
you might need staff members to work overtime. Closely related
to demand forecasting are lead
times. A product's lead time is the amount of time it takes for a
customer to receive a good or
service once it's been ordered. Lead times also have to be
considered when a company is
forecasting demand.
The promotions you run will also affect demand for your
products. Consider what happened to
KFC when it came out with its grilled chicken. As part of the
promotion, KFC gave away coupons
59. for free grilled chicken via Oprah.com. Just 24 hours after the
coupons were uploaded to the
website, KFC risked running out of chicken. Customers were
turned away. Others were given
"rain checks" (certificates) they could use to get free grilled
chicken later (Weisenthal, 2009).
In addition to looking at the sales histories of their firms,
supply chain managers also consult with
marketing managers and sales executives when they are
generating demand forecasts. Sales and
marketing personnel know what promotions are being planned
because they work more closely
with customers and know what customers' needs are and if those
needs are changing. Firms also
look to their supply chain partners to help with their demand
planning.
60. Demand-planning software can also be used to create more
accurate demand
forecasts. Demand-planning software can synthesize a variety of
factors to better predict a
firm's demand—for example, the firm's sales history, point-of-
sale data, warehouse, suppliers,
and promotion information, and economic and competitive
trends. So a company's demand
forecasts are as up-to-date as possible, some of the systems
allow sales and marketing personnel
to input purchasing information into their mobile devices after
consulting with customers.
Inventory Control
Demand forecasting is part of a company's overall inventory
control activities.
61. Inventory control is the process of ensuring your firm has an
adequate supply of products and
a wide enough assortment to meet your customers' needs. One
of the goals of inventory
management is to avoid stockouts. A stockout occurs when you
run out of a product a customer
wants. Customers will simply look elsewhere—a process the
Internet has made easier than ever.
When the attack on the World Trade Center occurred, many
Americans rushed to buy batteries,
flashlights, American flags, canned goods, and other products in
the event that the emergency
signaled a much bigger attack. Target sold out of many items
and could not replenish them for
several days, partly because its inventory tracking system only
counted what was needed at the
62. 25
end of the day. Walmart, on the other hand, took count of what
was needed every five minutes.
Before the end of the day, Walmart had purchased enough
American flags, for example, to meet
demand and in so doing, completely locked up all their vendors'
flags.
Just-in-Time Inventory Systems
To lower the amount of inventory and still maintain they stock
they need to satisfy their
customers, some organizations use just-in-time inventory
systems in both good times and
bad. Firms with just-in-time inventory systems keep very little
inventory on hand. Instead, they
63. contract with their suppliers to ship them inventory as they need
it—and even sometimes manage
their inventory for them—a practice called vendor-managed
inventory (VMI). Dell is an
example of a company that uses a just-in-time inventory system
that is vendor-managed. Dell
carries very few component parts. Instead, its suppliers carry
them. They are located in small
warehouses near Dell's assembly plants worldwide and provide
Dell with parts "just-in-time" for
them to be assembled (Kumar & Craig, 2007).
Dell's inventory and production system allows customers to get
their computers built exactly to
their specifications, a production process that's called mass
customization. This helps keep
Dell's inventory levels low. Instead of a huge inventory of
64. expensive, already-assembled
computers consumers may or may not buy, Dell simply has the
parts on hand, which can be
configured or reconfigured should consumers' preferences
change. Dell can more easily return the
parts to its suppliers if at some point it redesigns its computers
to better match what its customers
want. And by keeping track of its customers and what they are
ordering, Dell has a better idea of
what they might order in the future and the types of inventory it
should hold. Because mass
customization lets buyers "have it their way," it also adds value
to products, for which many
customers are willing to pay.
Product Tracking
Some companies, including Walmart, are beginning to
65. experiment with new technologies such as
electronic product codes in an effort to better manage their
inventories.
An electronic product code (EPC) is similar to a barcode, only
better, because the number on
it is truly unique. You have probably watched a checkout person
scan a barcode off a product
identical to the one you wanted—perhaps a pack of gum—
because the barcode on your product
was missing or wouldn't scan. Electronic product codes make it
possible to distinguish between
two identical packs of gum. The codes contain information
about when the packs of gum were
manufactured, from where they were shipped, and where they
were going. Being able to tell the
66. 26
difference between "seemingly" identical products can help
companies monitor their expiration
dates if the products are recalled for quality or safety reasons.
EPC technology can also be used to
combat "fake" products, or knockoffs, in the marketplace.
Electronic product codes are stored on radio-frequency
identification (RFID) tags. A radio-
frequency identification (RFID) tag emits radio signals that can
record and track a shipment
as it comes in and out of a facility. If you have unlocked your
car door remotely, microchipped
your dog, or waved a tollway tag at a checkpoint, you have used
RFID technology (EPCglobal,
67. n.d.). Because each RFID tag can cost anywhere from 50 cents
to $50 each, they are generally
used to track larger shipments, such as cases and pallets of
goods rather than individual items.
See Figure 6.6, "How RFID Tagging Works," to get an idea.
Figure 6.6 How RFID Tagging Works
Some consumer groups worry that RFID tags and electronic
product codes could be used to track
their consumption patterns or for the wrong purposes. But keep
in mind that like your car-door
remote, the codes and tags are designed to work only within
short ranges. (You know that if you
try to unlock your car from a mile away using such a device, it
won't work.)
68. 27
6 . 6 K E Y T A K E A W A Y
The best marketing decisions and supplier selections aren't
enough if your company's demand forecasts
are wrong. Demand forecasting is the process of estimating how
much of a good or service a customer
will buy. If you're a producer of a product, this will affect not
only the amount of goods and services you
have to produce but also the materials you must purchase to
make them. Demand forecasting is part of a
company's overall inventory control activities. Inventory
control is the process of ensuring your firm has
an adequate amount of products and a wide enough assortment
of them to meet your customers' needs.
One of the goals of inventory control is to avoid stockouts
without keeping too much of a product on
hand. Some companies are beginning to experiment with new
technologies such as electronic product
codes and RFID tags to better manage their inventories and
meet their customers' needs.
69. 6.7 Warehousing and Transportation
L E A R N I N G O B J E C T I V E S
1. Understand the role warehouses and distribution centers play
in the supply chain.
2. Outline the transportation modes firms have to choose from
and the advantages and disadvantages
of each.
Warehousing
At times, the demand and supply for products can be unusually
high. At other times, it can be
unusually low. That's why companies generally maintain a
certain amount of safety stock, often in
warehouses. As a business owner, it would be great if you didn't
have excess inventory to store in
70. a warehouse. In an ideal world, materials or products would
arrive at your facility just in time for
you to assemble or sell them. Unfortunately, we don't live in an
ideal world.
Toys are a good example. Most toymakers work year-round to
be sure they have enough toys for
sale during the holidays. However, retailers don't want to buy a
huge number of toys in July. They
want to wait until November and December to buy large
amounts of them. Consequently,
toymakers warehouse them until that time. Likewise, during the
holiday season, retailers don't
want to run out of toys, so they maintain a certain amount of
safety stock in their warehouses.
Some firms store products until their prices increase. Oil is an
71. example. Speculators, including
investment banks and hedge funds, have been known to buy, and
hold, oil if they think its price is
going to rapidly rise. Sometimes they go so far as to buy oil
tankers and even entire oil fields
(Winnett, 2004).
28
A distribution center is a warehouse or storage facility where
the emphasis is on processing
and moving goods on to wholesalers, retailers, or consumers
(Wikipedia, n.d.). A few years ago,
companies were moving toward large, centralized warehouses to
keep costs down. In 2005,
72. Walmart opened a 4-million-square-foot distribution center in
Texas. (Four million square feet is
about the size of 18 football fields.)
Today, however, the trend has shifted to smaller warehouses.
The use of smaller warehouses is
being driven by customer considerations rather than costs. The
long lead times that result when
companies transport products from Asia, the Middle East, and
South America are forcing
international manufacturers and retailers to shorten delivery
times to consumers (Specter,
2009). Warehousing products regionally, closer to consumers,
can also help a company tailor its
product selection to better match the needs of customers in
different regions.
73. How Warehouses and Distribution Centers Function
So how do you begin to find a product or pallet of products in a
warehouse or distribution center
the size of 18 football fields? To begin with, each type of
product that is unique because of some
characteristic—say, because of its manufacturer, size, color, or
model—must be stored and
accounted for separate from other items. To help distinguish it,
its manufacturer gives it its own
identification number, called a SKU (stock-keeping unit)
(BusinessDictionary.com).
Warehouses and distribution centers are also becoming
increasingly automated and wired. Some
warehouses use robots to picks products from shelves. At other
warehouses, employees use voice-
74. enabled headsets to pick products. Via the headsets, the workers
communicate with a computer
that tells them where to go and what to grab off shelves. As a
result, the employees are able to pick
products more accurately than they could by looking at a sheet
of paper.
It's pretty amazing when you think about how the thousands of
products that come in and out of
Amazon's distribution centers every day ultimately end up in the
right customer's hands. After all,
how many times have you had to look really hard to find
something you put in your own closet or
garage? Processing orders—order fulfillment—is a key part of
the job in supply chains. Why?
Because delivering what was promised, when it was promised,
and the way it was promised drives
75. customer satisfaction (Thirumalai & Sinha, 2005).
One of the ways companies are improving their order
fulfillment and other supply chain processes
is by getting rid of paper systems and snail mail. Instead of
companies receiving paper orders and
sending paper invoices to one another, they send and receive the
documents via electronic data
interchange (EDI). Electronic data interchange (EDI) is a
special electronic format that
29
companies use to exchange business documents from computer
to computer. It also makes for
greater visibility among supply chain partners because they can
all check the status of orders
76. electronically rather than having to fax or e-mail documents.
Another new trend is cross-docking. Products that are cross-
docked spend little or no time in
warehouses. As Figure 6.7, "How Cross-Docking Works" shows,
a product being cross-docked will
be delivered via truck to a dock at a warehouse where it is
unloaded and put on other trucks
bound for retail outlets.
Figure 6.7 How Cross-Docking Works
Transportation
Not all goods and services need to be physically transported.
When you get a massage, oil change,
or a manicure, the services pass straight from the provider to
you. Other products can be
77. transported electronically via electronic networks, computers,
phones, or fax machines.
Downloads of songs, software, and books are an example. So
are cable and satellite television and
psychic hotline readings delivered over the phone.
Other products, of course, have to be physically shipped.
Logistics refers to the physical flow of
materials in the supply chain. You might be surprised by some
of the physical distribution
methods that companies use. To get through crowded, narrow
streets in Tokyo, Seven-Eleven
Japan delivers products to its retail stores via motorcycles. In
some countries, Coca-Cola delivers
syrup to its bottlers via camelback. More commonly, though,
products that need to be transported
physically to get to customers are moved via air, rail, truck,
78. water, or pipeline.
Companies face different tradeoffs when choosing
transportation methods. Which is most
important? Speed? Cost? Frequency of delivery? The flexibility
to respond to different market
conditions? Again, it depends on your customers.
30
Goya Foods has many challenges due to the variety of
customers it serves. The company sells
more than 1,600 canned food products. Because the types of
beans people prefer often depends
on their cultures, Goya sells about 40 varieties of beans alone.
Almost daily, Goya's truck drivers
79. deliver products to tens of thousands of US food stores, from
supermarket chains in Texas to
independent mom-and-pop bodegas in New York City.
Delivering daily is more costly than
dropping off jumbo shipments once a week and letting stores
warehouse goods, says the
company's CEO, Peter Unanue. However, it's more of a just-in-
time method that lets Goya offer
stores a greater variety and ensure that products match each
store's demographics. "Pink beans
might sell in New York City but not sell as well in Texas or
California," says Unanue (De Lollis,
2008).
6 . 7 K E Y T A K E A W A Y
Some firms store products until their prices increase. A
distribution center is a warehouse or storage
80. facility where the emphasis is on processing and moving goods
on to other parts of the supply chain.
Warehousing products regionally can help a company tailor its
product selection to better match the
needs of customers in different regions. Logistics refers to the
physical flow of materials in the supply
chain. Not all goods and services need to be physically
transported. Some are directly given to customers
or sent to them electronically. Products that need to be
transported physically to get to customers are
moved via air, rail, truck, water, and pipelines. The
transportation modes a firm uses should be based on
what its customers want and are willing to pay for.
6.8 The Pricing Framework and a Firm's Pricing Objectives
L E A R N I N G O B J E C T I V E S
1. Understand the factors in the pricing framework.
2. Explain the different pricing objectives organizations have to
choose from.
81. Prices can be changed and matched by your competitors.
Consequently, your product's price
alone might not provide your company with a sustainable
competitive advantage. Nonetheless,
prices can attract consumers to different retailers and businesses
to different suppliers.
Organizations must remember that the prices they charge should
be consistent with their
offerings, promotions, and distribution strategies. In other
words, it wouldn't make sense to
promote a high-end, prestige product, make it available in only
a limited number of stores, and
then sell it for an extremely low price. The price, product,
promotion (communication), and
placement (distribution) of a good or service should convey a
82. consistent image.
31
The Pricing Framework
Before pricing a product, an organization must determine its
pricing objectives. In other
words, what does the company want to accomplish with its
pricing? Companies must also
estimate demand for the product or service, determine the costs,
and analyze all factors (e.g.,
competition, regulations, and economy) affecting price
decisions. Then, to convey a consistent
image, the organization should choose the most appropriate
pricing strategy and determine
83. policies and conditions regarding price adjustments. The basic
steps in the pricing framework are
shown in Figure 6.8, "The Pricing Framework."
Figure 6.8 The Pricing Framework
The Firm's Pricing Objectives
Different firms want to accomplish different things with their
pricing strategies. For example, one
firm may want to capture market share, another may be solely
focused on maximizing its profits,
and another may want to be perceived as having products with
prestige. Some examples of
different pricing objectives companies may set include profit-
oriented objectives, sales-oriented
objectives, and status quo objectives.
84. Earning a Targeted Return on Investment (ROI)
ROI, or return on investment, is the amount of profit an
organization hopes to make given the
amount of assets, or money, it has tied up in a product. ROI is a
common pricing objective for
many firms. Companies typically set a certain percentage, such
as 10 percent, for ROI in a
product's first year following its launch. So, for example, if a
company has $100,000 invested in a
product and is expecting a 10 percent ROI, it would want the
product's profit to be $10,000.
32
Maximizing Profits
Many companies set their prices to increase their revenues as
85. much as possible relative to their
costs. However, large revenues do not necessarily translate into
higher profits. To maximize its
profits, a company must also focus on cutting costs or
implementing programs to encourage
customer loyalty.
In weak economic markets, many companies manage to cut
costs and increase their profits, even
though their sales are lower. How do they do this? The Gap cut
costs by doing a better job of
controlling inventory. The retailer also reduced its real estate
holdings to increase its profits when
its sales were down during an economic recession. Other firms
such as Dell cut jobs to increase
profits. Meanwhile, Walmart tried to lower its prices so as to
undercut its competitors' prices to
86. attract more customers. After it discovered that wealthier
consumers who didn't usually shop at
Walmart before the 2009 recession were frequenting its stores,
Walmart decided to upgrade some
of its offerings, improve the checkout process, and improve the
appearance of some of its stores to
keep these high-end customers happy and enlarge its customer
base. Other firms increased their
prices or cut back on their marketing and advertising expenses.
A firm has to remember, however, that prices signal value. If
consumers do not perceive that a
product has a high degree of value, they probably will not pay a
high price. Furthermore, cutting
costs cannot be a long-term strategy if a company wants to
maintain its image and position in the
87. marketplace.
Maximizing Sales
Maximizing sales involves pricing products to generate as much
revenue as possible, regardless of
what it does to a firm's profits. When companies are struggling
financially, they sometimes try to
generate cash quickly to pay their debts. They do so by selling
off inventory or cutting prices
temporarily. Such cash may be necessary to pay short-term
bills, such as payroll. Maximizing
sales is typically a short-term objective since profitability is not
considered.
Maximizing Market Share
Some organizations try to set their prices in a way that allows
them to capture a larger share of the
88. sales in their industries. Capturing more market share doesn't
necessarily mean a firm will earn
higher profits, though. Nonetheless, many companies believe
capturing a maximum amount of
market share is downright necessary for their survival. In other
words, they believe if they remain
a small competitor, they will fail. Firms in the cellular phone
industry are an example. The race to
be the biggest cell phone provider has hurt companies such as
Motorola. In the last decade,
33
Motorola held only 10 percent of the cell phone market, and its
profits on product lines were
negative.
89. Maintaining the Status Quo
Sometimes a firm's objective may be to maintain the status quo
or simply meet, or equal, its
competitors' prices or keep its current prices. Airline companies
are a good example. Have you
ever noticed that when one airline raises or lowers its prices,
the others all do the same? If
consumers don't accept an airline's increased prices and fees
such as the charge for checking in
with a representative at the airport rather than checking in
online, other airlines may decide not
to implement the extra charge, and the airline charging the fee
may drop it. Companies, of course,
monitor their competitors' prices closely when they adopt a
status quo pricing objective.
90. 6 . 8 K E Y T A K E A W A Y
Price is the only marketing variable that generates money for a
company. All the other variables (product,
communication, distribution) cost organizations money. A
product's price is the easiest marketing variable
to change and also the easiest to copy. Before pricing a product,
an organization must determine its
pricing objective(s). A company can choose from pricing
objectives such as maximizing profits, maximizing
sales, capturing market share, achieving a target return on
investment (ROI) from a product, and
maintaining the status quo in terms of the price of a product
relative to competing products.
6.9 Factors That Affect Pricing Decisions
L E A R N I N G O B J E C T I V E S
1. Understand the factors that affect a firm's pricing decisions.
2. Understand why companies must conduct research before
91. setting prices in international markets.
3. Learn how to calculate the breakeven point.
Having a pricing objective isn't enough. A firm also has to look
at a myriad of other factors before
setting its prices. Those factors include the offering's costs, the
demand, the customers whose
needs it is designed to meet, the external environment—such as
the competition, the economy,
and government regulations—and other aspects of the marketing
mix, such as the nature of the
offering, the current stage of its product life cycle, and its
promotion and distribution.
If a company plans to sell its products or services in
international markets, research on the factors
for each market must be analyzed before setting prices.
92. Organizations must understand buyers,
34
competitors, the economic conditions, and political regulations
in other markets before they can
compete successfully.
Next, we look at each of the factors and what they entail.
Customers
How will buyers respond? Three important factors are whether
the buyers perceive the product
offers value, how many buyers there are, and how sensitive they
are to changes in price. In
addition to gathering data on the size of markets, companies
must try to determine how price-
93. sensitive customers are. Will customers buy the product, given
its price? Or will they believe the
value is not equal to the cost and choose an alternative, or
decide they can do without the product
or service? Equally important is how much buyers are willing to
pay for the offering. Figuring out
how consumers will respond to prices involves judgment as well
as research.
Price elasticity, or people's sensitivity to price changes, affects
the demand for products. Think
about a pair of sweatpants with an elastic waist. You can stretch
an elastic waistband, but it's
much more difficult to stretch the waistband of a pair of dress
slacks. Elasticity refers to the
amount of stretch or change. The waistband of sweatpants may
stretch if you pull on it.
94. Similarly, the demand for a product may change if the price
changes. Imagine the price of a 12-
pack of sodas changing to $1.50 a pack. People are likely to buy
a lot more soda at $1.50 per 12-
pack than they are at $4.50 per 12-pack.
Conversely, the waistband on a pair of dress slacks remains the
same (doesn't change) whether
you pull on it or not. Likewise, demand for some products won't
change even if the price changes.
The formula for calculating the price elasticity of demand is as
follows.
Price elasticity = percentage change in quantity demanded ÷
percentage change in price
95. 35
Figure 6.9 The Relationship Between Price and Demand
When consumers are very sensitive to the price change of a
product—that is, they buy more of it at
low prices and less of it at high prices—the demand for it is
price elastic. Durable goods such as
TVs, stereos, and freezers are more price elastic than
necessities. People are more likely to buy
them when their prices drop and less likely to buy them when
their prices rise. By contrast, when
the demand for a product stays relatively the same and buyers
are not sensitive to changes in its
96. price, the demand is price inelastic. Demand for essential
products such as many basic food
and first-aid products is not as affected by price changes as
demand for many nonessential goods.
The number of competing products and substitutes available
affects the elasticity of demand.
Price elasticity is also affected by whether a person considers a
product a necessity or a luxury as
well as the percentage of a person's budget allocated to different
products and services. Some
products, such as cigarettes, tend to be relatively price inelastic
since most smokers keep
purchasing them regardless of price increases and the fact that
other people see cigarettes as
unnecessary. Service providers, such as utility companies in
markets in which they have a
97. monopoly (only one provider), face more inelastic demand since
no substitutes are available.
Competitors
How competitors price and sell their products will affect a
firm's pricing decisions. If you wanted
to buy a certain pair of shoes, but the price was 30 percent less
at one store than another, what
would you do? Because companies want to establish and
maintain loyal customers, they will often
match their competitors' prices. Some retailers, such as Home
Depot, will give you an extra
discount if you find the same product for less somewhere else.
Similarly, if one company offers
you free shipping, you might discover other companies will,
too. With so many products sold
online, consumers can compare the prices of many merchants
before making a purchase decision.
98. Elastic demand
Price goes down as
demand goes up
Inelastic demand
Price goes up
when demand
goes up
36
The availability of substitute products affects a company's
pricing decisions as well. If you can
find a similar pair of shoes selling for 50 percent less at a third
store, would you buy them?
There's a good chance you might.
99. The Economy and Government Laws and Regulations
The economy also has a tremendous effect on pricing decisions.
In Week 1, we noted that factors
in the economic environment include interest rates and
unemployment levels. When the economy
is weak and many people are unemployed, companies often
lower their prices. In international
markets, currency exchange rates also affect pricing decisions.
Pricing decisions are affected by federal and state regulations.
Regulations are designed to protect
consumers, promote competition, and encourage ethical and fair
behavior by businesses. For
example, the Robinson-Patman Act limits a seller's ability to
charge different customers
different prices for the same products. The intent is to protect
100. small businesses from larger
businesses that try to extract special discounts and deals for
themselves to eliminate their
competitors. However, cost differences, market conditions, and
competitive pricing by other
suppliers can justify price differences in some situations. In
other words, the practice isn't illegal
under all circumstances. You have probably noticed that
restaurants offer senior citizens and
children discounted menus. Movie theaters also charge different
people different prices based on
their ages and charge different amounts based on the time of
day, with matinees usually less
expensive than evening shows. These price differences are
legal.
Price fixing, which occurs when firms get together and agree to
101. charge the same prices, is
illegal. Usually, price fixing involves setting high prices so
consumers must pay a high price
regardless of where they purchase a good or service. Video
systems, LCD (liquid crystal display)
manufacturers, auction houses, and airlines are examples of
offerings in which price fixing
existed. When a company is charged with price fixing, it is
usually ordered to take some type of
action to reach a settlement with buyers.
Price fixing has occurred over the years. Nintendo and its
distributors in the European Union
were charged with price fixing and increasing the prices of
hardware and software. Sharp, LG, and
Chungwa collaborated and fixed the prices of the LCDs used in
computers, cell phones, and other
102. electronics. Virgin Atlantic Airways and British Airways were
also involved in price fixing for their
flights. Sotheby's and Christie's, two large auction houses, used
price fixing to set their
commissions.
37
By requiring sellers to keep a minimum price level for similar
products,
unfair trade laws protect smaller businesses. Unfair trade laws
are state laws preventing large
businesses from selling products below cost (as loss leaders) to
attract customers to the store.
103. When companies act in a predatory manner by setting low prices
to drive competitors out of
business, it is a predatory pricing strategy.
Similarly, bait-and-switch pricing is illegal in many states. Bait
and switch, or bait advertising,
occurs when a business tries to "bait," or lure customers with an
incredibly low-priced product.
Once customers take the bait, sales personnel attempt to sell
them more expensive products.
Sometimes the customers are told the cheaper product is no
longer available.
Product Costs
The costs of the product—its inputs—including the amount
spent on product development,
testing, and packaging required have to be considered when a
pricing decision is made. So do the
104. costs related to promotion and distribution. For example, when
a new offering is launched, its
promotion costs can be very high because people need to be
made aware that it exists. Thus, the
offering's stage in the product life cycle can affect its price.
The point at which total costs equal total revenue is known as
the breakeven point (BEP). For
a company to be profitable, a company's revenue must be
greater than its total costs. If total costs
exceed total revenue, the company suffers a loss.
Total costs include both fixed costs and variable costs. Fixed
costs, or overhead expenses, are
costs that a company must pay regardless of its level of
production or level of sales. A company's
105. fixed costs include items such as rent, leasing fees for
equipment, contracted advertising costs,
and insurance. As a student, you may also incur fixed costs such
as the rent you pay for an
apartment. You must pay your rent whether you stay there for
the weekend or
not. Variable costs are costs that change with a company's level
of production and sales. Raw
materials, labor, and commissions on units sold are examples of
variable costs. You, too, have
variable costs, such as the cost of gasoline for your car or your
utility bills, which vary depending
on how much you use.
Consider a small company that manufactures specialty DVDs
and sells them through different
retail stores. The manufacturer's selling price (MSP) is $15,
106. which is what the retailers pay for the
DVDs. The retailers then sell the DVDs to consumers for an
additional charge. The manufacturer
has the following charges:
38
Copyright and distribution charges for the titles $150,000
Package and label designs for the DVDs $10,000
Advertising and promotion costs $40,000
Reproduction of DVDs $5 per unit
Labels and packaging $1 per unit
Royalties $1 per unit
107. In order to determine the breakeven point, you must first
calculate the fixed and variable costs.
To make sure all costs are included, you may want to highlight
the fixed costs in one color and the
variable costs in another color. Then, using the formulas below,
calculate how many units the
manufacturer must sell to break even.
The formula for BEP is as follows:
BEP = total fixed costs (FC) ÷ contribution per unit (CU)
contribution per unit = MSP – variable costs (VC)
BEP = $200,000 ÷ ($15 – $7) = $200,000 ÷ $8 = 25,000 units to
break even
108. To determine the breakeven point in dollars, you simply
multiply the number of units to break
even by the MSP. In this case, the BEP in dollars would be
25,000 units times $15, or $375,000.
6 . 9 K E Y T A K E A W A Y
In addition to setting a pricing objective, a firm has to look at a
number of factors before setting its prices.
These factors include the offering's costs, the customers whose
needs it is designed to meet, the external
environment—such as the competition, the economy, and
government regulations—and other aspects of
the marketing mix, such as the nature of the offering, the stage
of its product life cycle, and its promotion
and distribution. In international markets, firms must look at
environmental factors and customers'
buying behavior in each market. For a company to be profitable,
revenues must exceed total costs.
109. 39
6.10 Pricing Strategies
L E A R N I N G O B J E C T I V E S
1. Understand introductory pricing strategies.
2. Understand the different pricing approaches that businesses
use.
Once a firm has established its pricing objectives and analyzed
the factors that affect how it
should price a product, the company must determine the pricing
strategy (or strategies) that will
help it achieve those objectives. As we have indicated, firms
use different pricing strategies for
110. their offerings. And often, the strategy depends on the stage of
life cycle the offerings are in. Next,
we'll examine three strategies businesses often consider when a
product is introduced and then
look at several different pricing approaches that companies use
during the product life cycle.
Introductory Pricing Strategies
Think of products that have been introduced in the last decade
and how products were priced
when they entered the market. Remember when the iPhone was
introduced, its price was almost
$700. Since then, the price has dropped considerably even for
new models. The same is true for
DVD players, LCD televisions, digital cameras, and many high-
tech products. As we mentioned in
Week 5 as part of our discussion on offerings, a skimming price
strategy is when a company
111. sets a high initial price for a product. The idea is to go after
consumers who are willing to pay a
high price (top of the market) and buy products early. This way,
a company recoups its
investment in the product faster.
The easy way to remember a skimming approach is to think of
the turkey gravy at Thanksgiving.
When the gravy is chilled, the fat rises to the top and is often
"skimmed" off before serving. Price
skimming is a pricing approach designed to skim that top part of
the gravy, or the top of the
market. Over time, the price of the product goes down as
competitors enter the market and more
consumers are willing to purchase the offering.
112. In contrast to a skimming approach, a penetration pricing
strategy is one in which a low
initial price is set. Often, many competitive products are already
in the market. The goal is to get
as much of the market as possible to try the product. Penetration
pricing is used on many new
food products, health and beauty supplies, and paper products
sold in grocery stores and mass
merchandise stores such as Walmart, Target, and Kmart.
40
Another approach companies use when they introduce a new
product is everyday low prices.
That is, the price initially set is the price the seller expects to
charge throughout the product's life
113. cycle. Companies like Walmart and Lowe's use everyday low
pricing.
Pricing Approaches
Companies can choose many ways to set their prices. Many
stores use cost-plus pricing, in
which they take the cost of the product and then add a profit to
determine a price. The
strategy helps ensure that a company's products' costs are
covered and the firm earns a
certain amount of profit. When companies add a markup, or an
amount added to the cost of
a product, they are using a form of cost-plus pricing. When
products go on sale, companies
mark down the prices, but they usually still make a profit.
Potential markdowns or price
reductions should be considered when deciding on a starting
price.
114. Many pricing approaches have a psychological appeal. Odd-
even pricing occurs when a
company prices a product a few cents or a few dollars below the
next dollar amount. For
example, instead of being priced $10.00, a product will be
priced at $9.99. Likewise, a
$20,000 automobile might be priced at $19,998, although the
product will cost more once
taxes and other fees are added. See Figure 6.10 for an example
of odd-even pricing.
Figure 6.10
Walmart uses a combination of odd-even pricing and
everyday low pricing in this store in Gladstone, Missouri.
115. Source: Photo by Walmart. (2011). Flickr. Used under the
terms of the Creative Commons Attribution 2.0 Generic license.
41
Prestige pricing occurs when a higher price is used to give an
offering a high-quality image.
Some stores have a quality image, and people perceive that
perhaps the products from those
stores are of higher quality. Many times, two different stores
carry the same product, but one
store prices it higher because of the store's perceived higher
image. Neckties are often priced
using a strategy known as price lining, or price levels. In other
words, there may be only a
few price levels ($25, $50, and $75) for the ties, but a large
116. assortment of them at each level.
Movies and music often use price lining. You may see a lot of
movies and CDs for $15.99,
$9.99, and perhaps $4.99, but you won't see a lot of different
price levels.
Remember when you were in elementary school and many
students bought teachers little
gifts before the holidays or on the last day of school. Typically,
parents set an amount such as
$5 or $10 for a teacher's gift. Knowing that people have certain
maximum levels that they are
willing to pay for gifts, some companies use demand backward
pricing. They start with the
price demanded by consumers (what they want to pay) and
create offerings at that price. If
you shop before the holidays, you might see a table of different
117. products being sold for $5
(mugs, picture frames, ornaments) and another table of products
being sold for $10 (mugs
with chocolate, decorative trays). Similarly, people have certain
prices they are willing to pay
for wedding gifts—say, $25, $50, $75, or $100—so stores set up
displays of gifts sold at these
different price levels. IKEA also sets a price for a product—
which is what the company
believes consumers want to pay for it—and then, working
backward from the price, designs
the product.
Leader pricing involves pricing one or more items low to get
people into a store. The
products with low prices are often on the front page of store ads
and "lead" the promotion.
118. For example, prior to Thanksgiving, grocery stores advertise
turkeys and cranberry sauce at
very low prices. The goal is to get shoppers to buy many more
items in addition to the low-
priced items. Leader or low prices are legal; however, as you
learned earlier, loss leaders, or
items priced below cost in an effort to get people into stores,
are illegal in many states.
Sealed bid pricing is the process of offering to buy or sell
products at prices designated in
sealed bids. Companies must submit their bids by a certain time.
The bids are reviewed all at
once, and the most desirable one is chosen. Sealed bids can
occur on either the supplier or
the buyer side. Via sealed bids, oil companies bid on land for
potential drilling purposes, and
119. the highest bidder is awarded the right to drill. Similarly,
consumers sometimes bid on lots to
build houses. The highest bidder gets the lot. On the supplier
side, contractors often bid on
different jobs and the lowest bidder is awarded the job. The
government often makes
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purchases based on sealed bids. Projects funded by stimulus
money were awarded based on
sealed bids.
Bids are also being used online. Online auction sites such as
eBay give customers the
chance to bid and negotiate prices with sellers until an
120. acceptable price is agreed upon. When
a buyer lists what he or she wants to buy, sellers may submit
bids. This process is known as
a forward auction. If the buyer not only lists what he or she
wants to buy but also states
how much he or she is willing to pay, a reverse auction occurs.
The reverse auction is
finished when at least one firm is willing to accept the buyer's
price.
Going-rate pricing occurs when buyers pay the same price
regardless of where they buy the
product or from whom. Going-rate pricing is often used on
commodity products such as wheat,
gold, or silver. People perceive the individual products in
markets such as these to be largely the
same. Consequently, there's a "going" price for the product that
121. all sellers receive.
Price bundling occurs when different offerings are sold together
at a price that's typically lower
than the total price a customer would pay by buying each
offering separately. Combo meals and
value meals sold at restaurants are an example. Companies such
as McDonald's have promoted
value meals for a long time in many different markets. Other
products such as shampoo and
conditioner are sometimes bundled together. Automobile
companies bundle product options. For
example, power locks and windows are often sold together,
regardless of whether customers want
only one or the other. The idea behind bundling is to increase an
organization's revenues.
122. Captive pricing is a strategy firms use when consumers must
buy a given product because they
are at a certain event or location or they need a particular
product because no substitutes will
work. Concessions at a sporting event or a movie provide
examples of how captive pricing is used.
Maybe you didn't pay much to attend the game, but the snacks
and drinks were extremely
expensive. Similarly, if you buy a razor and must purchase
specific blades for it, you have
experienced captive pricing. The blades are often more
expensive than the razor because
customers do not have the option of choosing blades from
another manufacturer.
Pricing products consumers use together (such as blades and
razors) with different profit margins
123. is also part of product mix pricing. Recall from Week 5 that a
product mix includes all the
products a company offers. If you want to buy an automobile,
the base price might seem
reasonable, but the options such as floor mats might earn the
seller a much higher profit. While
consumers can buy floor mats at stores like Walmart for $30,
many people pay almost $200 to
get the floor mats that go with the car from the dealer.
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Nearly everyone has a cell phone. Are you aware of how many
minutes you spend talking or
texting and what it costs if you go over the limits of your phone
plan? Maybe not if your plan
124. involves two-part pricing. Two-part pricing means there are two
different charges customers
pay. In the case of a cell phone, a customer might pay a charge
for one service such as 1,000
minutes, and then pay a separate charge for each minute over
1,000. Get out your cell phone and
look at how many minutes you have used. Many people are
shocked at how many minutes they
have used or the number of messages they have sent in the last
month.
Have you ever seen an ad for a special item only to find out it is
much more expensive than what
you recalled seeing in the ad? A company might advertise a
price such as $25*, but when you read
the fine print, the price is really five payments of $25 for a total
cost of $125. Payment pricing,