Allyson Godwin plans on setting up a small business where she will offer quilting lessons, sell material and quilting kits that she will create, and market her own creations. Last year her quilting skills earned her $2,000. She estimates that quilting as a full-time business will earn $10,000 during her first year. She has budgeted five percent of her sales estimate to be spent on promotion. What promotion method is Godwin using? What are the advantages and disadvantages of this method?
What will be an ideal response?
Godwin is using the percentage-of-sales method. The advantage of this method is that it reinforces the idea that spending on promotion is related to profits. Unfortunately, this method can imply that sales caused promotional outlays rather than viewing sales as the outcome of promotional efforts. If sales are not as high as estimated, Godwin may be reluctant to spend more on promotion even though the decrease might be due to some environmental change that could be countered with increased promotion.
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Use this information for questions that refer to the World Tennis Ball (WTB) Company case.World Tennis Ball Co. (WTB) makes tennis balls and sells them only in the United States. Raul Fernandez, the firm's marketing manager, is comparing his firm's distribution with two major competitors.1) WTB sells its products through four regional distributors, who then sell to 22 sporting goods wholesalers. The wholesalers sell to a total of 7,000 retail outlets. From its website, WTB also sells directly to any customer who will purchase a minimum quantity of 24 tennis balls. WTB cooperates with members of its channel but maintains some control through its economic power and leadership. It helps to direct the activities of the whole channel and tries to avoid or resolve channel conflicts.2)
American Tennis Ball (ATB) is a competitor that sells through two distributors-each with half the country. The distributors then sell through six sporting goods wholesalers, and they, in turn, sell to 1,000 retail outlets (split between two national sporting goods chains and two general merchandise stores). ATB and its channel make little effort to work together. However, because of a relatively low level of competition between the distributors, the wholesalers, or the retail stores, each member of the channel gives the product special attention.3) National Tennis Ball (NTB) sells its products through only three tennis specialty wholesalers that sell only to tennis clubs. NTB actually owns the wholesale firms that handle its products. NTB's balls are only available at certain tennis clubs and NTB limits coverage to only one club in a particular geographic area.Which of these companies uses a corporate channel of distribution? A. World Tennis Ball B. American Tennis Ball C. Both World Tennis Ball and National Tennis Ball use a corporate channel. D. National Tennis Ball E. There is not enough information to tell which company uses a corporate channel of distribution.
Please briefly explain what is meant by transfer of training.
What will be an ideal response?
Deregulation is the least for ________
A) customer premises equipment B) local telephone service C) long-distance telephone service D) All of the above are deregulated to about the same degree.
Statute of Frauds. Monetti, S.P.A., is an Italian firm that makes decorative plastic trays and related products for the food services industry. In 1981, Monetti set up a wholly owned subsidiary, Melform U.S.A., to market its products in the United
States. In 1984, after orally agreeing with Anchor Hocking Corp (Anchor) that Anchor would become the exclusive U.S. distributor of Monetti products, Monetti terminated all of Melform's current distributors and informed all of Melform's customers that Anchor would be the exclusive distributor of its products in the future. Relations between Monetti and Anchor Hocking deteriorated over the next several months, and eventually Monetti sued for breach of contract. Anchor contended that their contract was unenforceable under the Statute of Frauds. Although their agreement had never been reduced to a writing, at one point Raymond Davis, the marketing director of Anchor, summarized the terms of the agreement in a memorandum on Anchor's letterhead that was sent to Anchor's law department. The memo included some handwritten notes by Davis, which, Davis stated, represented "more clearly our current position regarding the agreement." Will the memorandum signed by Davis constitute a sufficient writing under the UCC Statute of Frauds provisions? Discuss.