Houston Scarborough - Copy

Houston Scarborough - Copy - Houston Scarborough Prof....

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Houston Scarborough Prof. Planchon Final Exam 12/11/09 1. The purpose of marketing is to deliver and/or convey a service in the interest of profitability. Since all firms seek to invest in profit maximizing activities, marketing seeks to maximize a firms profit by targeting the consumer in four ways. Marketing reaches the consumer by price, promotion, product and distribution. The focus consistently remains upon the consumer, making sure that the consumer’s needs are tended to and that no other company is able to cater to those needs as your company can. Everything in marketing, theories, relationships, etc. relates back to price, promotion, production and distribution. To understand how to properly promote, price, produce and distribute your product takes research and understanding of the targeted consumer; the segment (target) market. Knowing what the consumer whats/needs in their life to make life easier is half the battle, the rest remains in getting the product to be noticed and remember by the consumer for the next time they are at the market. 2. A.) By Lanky using retailers to sell and market their product, they lose 7% of each sale, equaling $200.20 per sale to the retailer. Glen’s has a competitive advantage over Lanky in this regard, in particularly since Glen does not charge a high carrying cost to a retailer. This cuts out a middle man for Glen, who much like Dell Computers operates on a per request basis, and delivers direct to a consumer. Lanky potentially sells the same quality product with a high mark up value in order to offset the cost incurred from selling their product via retail channels. B.) Glen employs a cost differentiation strategy which focuses on garnering the attention of the consumer based on their least expensive price. It is not necessarily true that Glen is producing a less higher quality product but rather than there is no middle man involved. But if industry part prices are falling Glen should capitalize by simply maintaining their quality of production. There may not be in difference in the quality of the two products, but Glen markets itself by being offered at the lower price but with the same quality of parts and performance as the
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This note was uploaded on 12/13/2010 for the course ENGL 151 taught by Professor Dolphin during the Spring '08 term at Rhodes.

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Houston Scarborough - Copy - Houston Scarborough Prof....

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