MKT week 6 (Snowboard) - Class discussion: Mini-Case:...

MKT week 6 (Snowboard)
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Class discussion: Mini-Case: Snowboard Rental. Students will respond to the following: o Discuss the desired outcome when businesses revenue sharing as a marketing strategy. o Evaluate whether or not revenue sharing is a viable solution for the challenges facing this entrepreneur. o What other alternatives are available to this entrepreneur. Revenue sharing as a marketing strategy refers to an organization paying partners and associates a certain percentage for recommending customers to the company and helping to build business. By sharing revenue in this way, a company can build strategic partnerships with professionals related to, but not directly within, a company. Bruce will make more money if he will follow the B-school student advice Like 4 x 40 x 50 = 8,000 instead of 12,000, with more boards. If he keeps the fees the same $20, he will have $96,000 revenue & for the profit will be 96000 – 8000 = $88000, with revenue of 75% which is 72,000 - 8,000 = 64,000 The other alternatives available would be 50/50 is an association of two or more
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