1. (A) General Motors has announced plans to open 75 regional distribution centers across the United States with large inventories of cars and light trucks. Some of the centers will carry as many as 2,000 vehicles. This plan will move some of the dealer's inventory, which GM subsidizes to the new regional centers. With 75 new regional distribution centers, GM's inventory interest charges will increase. (a) How will the new centers help the retail dealers? (b) How will they help GM? (c) Evaluate GM moves from a strategic point of view, and (d) What type of distribution intensity strategy is used by G.M.? Explain.
(B) Avon Products Inc. is one of the largest direct sellers of cosmetics and other products in the world. It has a corps of over 450,000 sales representatives who sell to customers in their homes and workplaces. The company has announced plans to open its first ever retail outlet in the United States. Why is Avon making this move? Would such move affect members of their channel of distribution? How? What you suggest to do in this situation?
2. (A) Develop a detailed sales promotion for the following three companies:
(i) Warner-Lambert introducing its new anti-itch cream Benadryl. Prospects are those most likely to become victims of poison ivy, mosquito bites, and heat rash.
(ii) Visa USA wants customers to use its card more often, especially with/on the coming up Christmas holiday season.
(iii) Philip Morris Co., with brands such as Marlboro, has about a 50 percent share of the U.S. cigarette market, would like to promote its "Quit Smoking" program to the public.
(B) Machaca-filled burritos have long been a favorite dish at Mexican restaurants in southern Arizona. Maria Gutierrez decided to market this traditional treat regionally under the brand name Mama G's. She sells a package of dehydrated machaca meat with a stack of flour tortillas and some envelopes of her famous red salsa. You are Maria's best friend and expert in advertising. Help Maria to develop a comprehensive advertising campaign/program - including all decisions she needs to make - for Mama G's. (Don't forget - she is your best friend - you better explain it well for her).
3. Your Smartphone might someday be the only thing you'll need for locking your door, starting a car, paying for purchases, or even simply paying your friend the $20 you owe him. Mobile technologies allow users to do almost anything remotely and allow marketers to target services and promotions directly to consumers based on where they are. You may have noticed some Starbucks customers just wave their phones in front of a scanner - no wallet, cash, or card required. These customers may have gotten discount offers that lured them to Starbucks because their phone tipped the marketer off that they were nearby.
(a) What mobile applications currently exist and what's on the horizon? How many of these applications do you use or someone you know use? Are you OKAY using these application? Why or why not? Any concerns?
(b) What are the barriers to adoption of mobile applications?
(c) Describe briefly the impact of social media on marketing today?
4. The Jones Company was trying to decide whether to continue using independent sales reps or to replace them with company salespeople. The firm produced a line of ceramic dinnerware that was sold by 15 rep organizations employing 55 sales people to contact 12,100 retail stores. Management felt that the reps were not giving Jones's dinnerware enough attention, particularly in the large department stores. Annual sales of Jones Company were $5.5 million. The company liked to have its retail accounts contacted every six weeks. The reps were paid 10 percent of sales, although 12 percent was typical for this type of merchandise in other firms.
(a) Compare the advantages and disadvantages of independent reps with those of company salespeople. (b) How many company sales people would be needed to call on the retail accounts (you may need to make some assumptions)? (c) Should Jones switch to company salespeople? Why should or should not? Explain (d) In either case (i.e., own sales people or independent reps), what should the management do to improve the performance of the sales people? Explain in detail.
5. (A) The president of your company (XYZ Manufacturing, Inc., Buffalo, New York) comes to you with a license offer for a company in Osaka, Japan. In return for sharing the company's patents and know-how, the Japanese company will pay a license fee of 5 percent of ex-factory price of all products sold based on the U.S. Company's license. The president wants your advice. What would you advise the president to do regarding the above offer? Explain in details.
(B) When 3M Company enters international markets, it typically begins by exporting products from the United States and selling them through company-owned overseas subsidiaries. As volume increases, 3M ships semi-finished goods, such as huge rolls of tape, and uses local workers to cut and package the material. The next step is to move in local manufacturing on its own. Why does 3M use this approach instead of licensing or joint ventures? Explain in details.