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The international procurement manager of an off-price office supply retail chain has to recommend which of several bids to accept for the right to supply computer diskettes to OfficePro's new French subsidiary.

Supplements OfficePro (A).

Supplements OfficePro (A).

In this fictional case study, Henry Carson had thought it was time for his company, Pacer Athletic Shoes, to upgrade its standard offerings for the serious runner and expand into walking shoes. But after investing considerable resources in the effort, he's having second thoughts: the returns so far aren't good; old customers seem confused or, worse, annoyed; Pacer doesn't seem to be attracting new customers, despite a flashy marketing campaign; and the company has had trouble getting its manufacturing up to speed. Industry statistics, along with a customer profile, seemed to indicate that Pacer was vulnerable to attacks from much larger competitors. As far as Henry could determine, the company had been left with no choice. It had to upgrade its offerings and build a following in the broader market so that if the industry giants did attack his niche, Pacer could survive. Henry thought he had taken steps to give Pacer staying power. Now he wonders what went wrong. Five experts offer their views on Pacer's current options.

In response to a potential competitive inroad at a key account, managers at Becton Dickinson are considering a multidivisional marketing effort.

Concerns the development, introduction, and first-year sales performance of Vision, a telecommunications service aimed at small- and medium-sized businesses. Introduced in 1990, Vision surpassed goals in that year, but was significantly below target in the first quarter of 1991. A divisional vice president must analyze the situation and recommend appropriate actions.

The CEO of Bausch & Lomb is contemplating replacing an international division with three regional divisions to sustain the company's growth, especially in international markets, and to add value to customers.

Dendrite International is a $23 million (1992 revenues) supplier of sales automation software to pharmaceuticals companies in Europe, Japan, and the United States. The firm's strategy has depended on being a full-service supplier to multinational firms. Impending changes in the pharmaceuticals industry, as well as technological and competitive developments, have raised issues concerning the best means of future growth and accompanying account-management procedures.

A medical supplies sales representative discusses how to identify potential managers and what he considers to be an organization's responsibility for developing its people. This interview offers students an intimate view of how an outstanding salesman thinks and feels about himself, his job, his company, and what motivates him.

This case deals with the termination of a sales representative, Dick Hobart, who claims that he was unfairly terminated and sues both the company and the man that fired him. The case raises issues related to the criteria for discharge, probationary practices, termination policies, discharge techniques, and the legal implications of firing someone. Students should take away from a good discussion of this case an improved understanding of good termination procedures and of the techniques and timing involved in such action. Although the case is a classic example of how not to do it, the situation is sufficiently ambiguous to provoke a rich discussion of the key issues involved in terminating an unsatisfactory employee.

Furthers understanding of, and familiarity with, nonfinancial incentives. Describes major elements that go into making a high-performance sales force; the practices, policies, and philosophies that are revealed about ways to motivate people provide a basis for discussion. Also gives the instructor an opportunity to teach students about the unexciting but necessary side of managing a sales force with its quotas, contests, and sales standings.

Catalina Marketing is a very successful marketing service firm. Their current customers include major supermarket retailers and consumer products manufacturers nation-wide. Catalina provides a unique way for these clients to distribute coupons for their products via point-of-sale technology at the supermarket register. Catalina is currently trying to decide where and how to expand its operations.

Loctite Corp., dissatisfied with the sales growth achieved by its independent distributor in Hong Kong, is considering whether to find a new distributor or acquire a controlling interest in a wholly owned subsidiary covering Hong Kong and possibly other markets. Loctite has a varied portfolio of international distribution arrangements and experience on which to base this decision.

In February 1993, Curran Dandurand, senior vice president of Mary Kay Cosmetics Inc.'s global marketing group, was reflecting on the company's international operations. Mary Kay Cosmetics Inc. products had been sold outside the United States for over 15 years, but by 1992, international sales represented only 11% of the $1 billion total. In contrast, one of Mary Kay Cosmetics' U.S. competitors, Avon Products Inc., derived over 55% of its $3.6 billion sales (at wholesale prices) from international markets in 1992.

Spreadsheet supplement for case 594023.

Faced with the costs of building customer information systems, some managers question whether or not marketing technology can achieve competitive miracles. But the author believes that retailers and consumer goods companies can't afford to ignore the new economies of scale the best marketing information systems offer. Today's sophisticated technologies help companies sort massive amounts of information to target small groups of highly responsive customers almost automatically. The great Atlantic and Pacific Tea Co. (A&P), for example, is using point-of-sale scanning and frequent-shopper programs to build a sophisticated customer database. The mail-order company Fingerhut bases every catalog mailing and promotion on statistically determined predictions about customer behavior. And R.R. Donnelley and Sons, the world's largest printer, is using leading-edge technology to offer customers everything from consumer and life-style data to customized individual publications. Through such technology, big companies can own niches the way smaller competitors do. But it's not just a matter of size. Large companies without the vision to develop their own marketing IT will be left behind.

When it comes to marketing, concentrating on the four Ps - product development, price determination, place of distribution, and promotion - no longer ensures competitiveness. Relying on short-term thinking, many companies base their marketing budgets on annual sales forecasts and then demand immediate results based on dollars spent. These companies are confusing cause and effect. They don't realize that developing a "quality" customer base - loyal customers who yield high profits - can take many years. And quality is what matters for long-term success. Companies would do better treating marketing expenditures the same way they treat capital outlays: as investments that drive revenue over time. Many industry giants - Ivory Soap, Heinz Tomato Ketchup, and Ritz Crackers, to name a few - got that way through cumulative investment of years and even decades. Newcomers can leverage to beat the odds, however, and, with a shrewd strategy, turbocharge their returns.

Filene's Basement is in the process of deciding where, and if, to locate two new stores in its new Chicago area of operations. The existing Chicago area stores have been performing well, however, management is concerned with over saturation of the market. At the time of the case, Filene's Basement has 49 stores in operation.

Describes organization changes announced by Nestle's chariman in 1991 and updates the description of Nestle's marketing organization.

In late June 1987, Ron MacKenzie, executive vice-president of Quadra Logic Technologies Inc. (QLT) located in Vancouver, was thinking over the firm's latest opportunity to commercialize a product. The small company's research group had come up with a drug which, when combined with laser technology, could be used in the treatment of cancer. Killing malignant tumours with beams of light ... it's right out of science fiction, he muttered to himself. We've got to market this product. But how? Can we do it ourselves or should we sell it to someone else? Maybe we should wait until we're in a better position to support it. A follow-up case, Quadra Logic Technologies Inc. (B) is also available.