Dell's rise to a leading position in the global PC industry was based on Michael Dell's decision to bypass conventional channels by selling direct and by customizing computers
Discuss the importance of channel innovation, giving examples of piggyback marketing in emerging markets.
Channel innovation can be an essential element of a successful marketing strategy as noted in the case of Dell computers, which began as a b-to-b marketer. The business model proved to be very successful, that the company began marketing direct to the home PC market. This strategy may not work for other products, particularly where a complicated system or mechanism is involved. Before deciding which system to use, marketers must study each country individually. In general, if the market is large, it is more feasible to use a manufacturer's own sales force. Piggyback marketing is a good example of another channel innovation that has grown in popularity. In this type of marketing, one manufacturer obtains product distribution by utilizing another company's distribution. Both parties can benefit by increasing the total revenue generated by the channel members. Successful piggyback marketing requires that the combined product lines be complementary. They must appeal to the same customer and must not compete with each other. Several companies have taken advantage of the opportunity to piggyback with Avon, which has a network of direct sales representatives in over 100 countries. Several of Mattel's toy lines are being marketed in China by local Avon representatives. In Australia, New Zealand, Brazil, Canada, and France, Avon representatives offer Reader's Digest subscriptions along with Avon's health and beauty products. In emerging markets, Avon offers a second catalog featuring products from Timex, Duracell, Time-Life, and others. Thus, piggyback products already account for 15% of sales in some emerging markets.
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Under process costing, the total production costs incurred in each process must be split between the units that have been completed in that process and transferred to the next process and the ________.
A) Finished Goods Inventory if it is the first process B) units not completed and remaining in Work-in-Process Inventory for that department C) Cost of Goods Sold when the units are sold D) Work-in-Process Inventory of the previous department when there are no sales
On December 31, Carmack Company's Prepaid Insurance account had a balance before adjustment of $6,000. The insurance was purchased on July 1 of the same year for one year of insurance coverage, with coverage beginning on that date. The adjusting entry needed on December 31 is:
A. Debit Insurance Expense $3,000; credit Prepaid Insurance $3,000. B. Debit Prepaid Insurance $6,000; credit Cash $6,000. C. Debit Insurance Expense $6,000; credit Accounts Payable $6,000. D. Debit Cash $6,000; credit Prepaid Insurance $6,000. E. Debit Insurance Expense $3,000; credit Accounts Payable $3,000.
Allannah has entered into a contract to buy a new Steinway piano. The law governing the contract is Article 3 of the UCC
a. True b. False Indicate whether the statement is true or false
?The sinking fund provision requires a firm to:
A. ?issue bonds every year to finance interest payment on bonds. B. ?retire a portion of the bond issue each year. C. ?increase the coupon rate by one percent every year. D. ?use annual interest payments for the repayment of bonds. E. ?gradually reduce the face value of debt to the level of market value of debt.