Describe the three types of vertical marketing systems.
What will be an ideal response?
There are three types of vertical marketing systems: administered, contractual, and corporate. In an administered vertical marketing system, there is no common ownership or contractual relationship, but the dominant channel member controls or holds the balance of power. In a contractual vertical marketing system, independent firms at different levels of the marketing channel join through contracts to obtain economies of scale and coordination to reduce conflict. Finally, in a corporate vertical marketing system, the parent company has complete control and can dictate the priorities and objectives of the marketing channel because it owns multiple segments of the channel, such as manufacturing plants, warehouse facilities, and retail outlets.
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Briefly describe occasion segmentation
What will be an ideal response?
Garcia Corporation's April sales forecast projects that 5,000 units will sell at a price of $10.50 per unit. The desired ending inventory is 30% higher than the beginning inventory of 1,000 units. Budgeted purchases in April would be:
A. 6,300 units. B. 5,000 units. C. 6,000 units. D. 5,300 units. E. None of the choices are correct.
McBurger has just developed a new method of preparing its products that greatly reduces the fat content and other medical problems associated with fast food. Although still in the developmental phase, McBurger has been very careful not to release any
information regarding the process. The information is constantly under lock and key. Jerry, a competitor's employee, took a public tour of McBurger University to evaluate going to work for McBurger. While on the tour, he accidentally saw the process being conducted in a small laboratory that was visible to everyone, but not part of the tour. Jerry realized that probably no one else would recognize the process, and said nothing. Jerry was able to duplicate McBurger's process, and is now about to be promoted to vice-president of his company. Does McBurger have a claim against Jerry and his employer? What is the likely outcome? Discuss fully.
During the year a donor pledged $1,000,000 in funds to a not-for-profit private charter school. The school will receive the pledge if it is able to raise $500,000 in funds over the next year. According to the FASB, how would this pledge be recorded?
A. Deferred Revenue. B. Contribution-With Donor Restrictions. C. Contribution-Without Donor Restrictions. D. It would not be recorded.