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Introductory note on the concept of market segmentation and its processes.

Focuses on Club Med's strategy in the U.S. market. The experience of Club Med is largely among Europeans, but the Club has attracted young, single U.S. tourists to its Caribbean resorts. Should Club Med attempt to attract other market segments? What should its growth strategy be?

Introduces the student to the concept of the product life cycle. The meaning and fundamental underpinnings of the product life cycle are presented. Further, the nature of market and competitive forces at different stages in the life cycle, and the implications for managerial action, are discussed.

Focuses on the problem of the means by which a manufacturer controls its channel of distribution. U.S. Pioneer's retail outlets have turned "dissident" and management has to decide what tactics to employ to stop further erosion (short-run) and what long-run distribution channel to pursue. Software for this case is available (9-588-546).

Outlines the problems involved in defining "markets" for purposes of 1) developing competitive strategies, 2) measuring market share, and 3) evaluating the extent of competition. The primary focus is on strategic planning--specifically, the questions of delimiting the served market for a business unit and identifying potential segments within it.

After taking over Canada Dry's mixers account in 1966, Grey Advertising assembled a successful ad campaign that increased ginger ale sales significantly. But Canada Dry's market share for ginger ale and its other mixer products had remained the same or declined during this period. A consumer research study, using psychographics and various demographic and attitudinal techniques, is commissioned by Canada Dry as a prelude to a $2 million ad campaign designed to arrest the market share trend. Various consumer behavior, research, and managerial issues are raised by the study. Grey Advertising must now develop a strategy based on the results of this study.

A survey of 380 companies in 34 industries throughout the United States and Canada examined the three basic kinds of compensation plans and found: 1) Salary plans pay fixed rates of compensation and are appropriate when measurements of performance are difficult to ascertain. 2) Commission plans pay salespeople in direct proportion to their sales and are appropriate for maximizing incentives or for predicting sales costs in direct relationship to sales volume. 3) A combination plan includes all variations of salary plans plus other monetary incentive plans. This plan is more complex to administer; however, it allows for greater incentive and flexibility.

Traditional achievement and objective-achievement compensation systems either fail to account fairly for sales territories which have different potentials, or induce salesmen to provide the company with low forecasts in order to meet their quotas. The objective-forecast-actual (OFA) system is a combination of three measurements: the company objective, the forecast of the salesman, and the actual results the salesman achieves. It is an approach that accounts for unequal territories and makes good forecasting possible by rewarding a salesman according to how close his forecasts and actual results are to the company's objective. The system brings about sales volume, payment for performance, and good field information for company planning.

Studies show the positive correlation between profitability and market share. Yet, businesses with low market shares may not be at a disadvantage and can profit by exploiting their smallness. Low market share businesses must replace broad strategy with specific and far-ranging strategy. Burroughs, Crown Cork & Seal, and Union Camp all hold small shares of their industries, yet they compete with the largest corporations in their average returns on equity. Their strategy involves four major points outlined here.

Designed as a class hand-out after discussion of the (A) case.

Designed as a class hand-out after discussion of the (A) and (B) cases.

Designed as a class hand-out after discussion of the (A), (B), and (C) cases.

Illustrates uses of various sources of market and consumer behavior data, including psychographics, product positioning, and market segmentation decisions for a new dog food product. Based on cases by E.T. Popper and L.S. Ward.

Provides the background on Cumberland Metal Industries' entry into the automotive components market as a supplier of emission control equipment parts. Cumberland Metal must decide what bid to quote on Beta Motor's 1978 model year business. The company previously had a three-year contract for 100% of Beta's business, but it is now faced with a competitive situation in which a small market share, yet one greater than 50%, is a virtual certainty.

Advertising is an investment which generates sales revenue over time. The duration and amount of the revenue depends on the loyalty of customers, the frequency of purchase and competitive products. Companies often regard advertising costs as expenses incurred in a short-term context, although advertising has a cumulative effect. The distributed lag model can measure this cumulative effect. This method, based on an analysis of a company's past performance, can forecast advertising induced sales.

U.S. companies confuse marketing effectiveness with sales effectiveness. Executives determine whether an organization understands and practices marketing by conducting a marketing effectiveness audit. The audit rates marketing effectiveness in each of five major functions: customer philosophy, integrated marketing organization, adequate marketing information, strategic orientation, and operational efficiency. The resulting score tells where the organization falls on a scale ranging from no marketing effectiveness to superior effectiveness.

Illustrates several types of marketing problems that may be approached using break-even analysis. Should be used as supplemental information, helpful in handling case problems.

Every manufacturing company experiences conflict, often internecine, between its marketing and manufacturing functions. There is a strong likelihood of conflict in managing the marketing/manufacturing interface in eight areas: capacity planning and long-range sales forecasting; production scheduling and short-range sales forecasting; delivery and physical distribution; quality assurance; breadth of product line; cost control; new product introduction; and adjunct services.

Marketers of industrial and consumer goods can improve the management of their complex distribution channels by using various promotional techniques known as the "promotional mix". Marketers can use sales promotion to move merchandise through the distribution pipeline by carefully organizing the channels of distribution, selling through and not to distributors and dealers, and determining product objectives. This concept has a focused scope that is highly cost-effective and applicable to a wide range of products and situations.

Describes the pricing of Deere's crawler tractors used in a variety of construction and industrial applications. Includes a strategic, multimillion-dollar move into the large bulldozer market as well as the pricing of tractors, accessories, and parts.