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6.You Make the Call—Situation 1In 1998, Rosie Herman was in debt up to her ears. Years of fertility treatments had left her owing $75,000. She needed money but did not want to leave her young twins while she worked. So she turned to what she knew best. Herman had been a manicurist for 20 years and put this experience to use. She focused her attention on creating a body-care product. Mixing a combination of oils, sea salts, and other organic products, she came up with what she thought was a winning product. She was the guinea pig (what we refer to as a test market) for her product and found that the lotion she had created was perfect for treating her own skin, which had become dry and cracked from exposure to chemicals and water in her career as a manicurist.(Source: Sara Wilson, “Skin Deep,” Entrepreneur, January 2005, p. 21.)Question 1What type of research could Herman do to estimate the demand for her skin-care product?Question 2How might she raise the funds to start up her small business?Question 3How could a marketing plan help Herman be more successful as her company grows?ANS:1.Rosie could have performed both a secondary data search or collected her own primary data. Secondary data (information that already exists) could help provide numbers regarding the growth of the skin care market as well as any important trends shaping the industry. Of course, the web would be a great place to start to find such information. Ms. Herman could also have performed her own research (primary data). This could entail observational research or surveys of women regarding their skin care regimen.2.A small business owner like Rosie has many options regarding finding start-up funds. Given that she was already in debt, it would probably be best to approach friends or family as possible investors. More formal channels of funding might include local banks or the small business administration (SBA).3.A marketing plan will help Rosie make better use of scarce resources like time and money. A marketing plan establishes the company’s mission, competitive environment, goals, marketing ??? tactics, as well as the resources needed to accomplish the company’s goals. The marketing plan sets as a road map for the company identifying its present location, its desired location and how to get from here to there.PTS:1REF:p. 188OBJ:7-2 TYPE: C