Apple Inc. and Mary Kay Cosmetics

P29 Q1 1. The merchandise channel for Mary Kay cosmetics is called a direct designate channel. The company user a sales force of over zillion Independent knockout Consultants around the world. These consultants are non employees of Mary Kay conjunction they buy cosmetics from the company at a wholesale price and sell to end-users at a retail price. They maintain personal consanguinitys with their end-user consumers and deliver fruit to them after it is ordered it is a high-service purchasing relationship from the consumers question of view.Consultants thus act as both distributors and retailers. a. To what extent does an Independent Beauty Consultant participate in the eight universal marketing flows? b. How readiness these flows be shifted, either among the members now in the channel or to several(predicate) agencies or institutions not presently included? What do you think would be the implications of such shifts? (think about how cosmetics are sold through department stores or through drugstore chains, for example. ) c. Within each of these distribution systems, specify the consumers role from a flow-absorption perspective.Contrast this with the consumers role when buying cosmetics from a department store or a drugstore chain. P64 Q1,2,3 2. For each of the tether scenarios below, categorize the demand for bulk-breaking spatial convenience, waiting/ delivery time, and assortment/ innovation as high, medium, or low. In each case, explain your answers. a. A womanhood in an emerging-market country of Southeast Asia wishes to buy some cosmetics for herself. She has never make so before and is not entirely sure of the occasions on which she will wear the cosmetics. She does not live near a big(p) city.She is too poor to own a car but has a bit of extra money for a small luxury. b. A maker uses a particular industrial chemical in one of its big production processes and wishs to buy more of the chemical. The rest of the raw materials for its en graft operations are delivered in a just-in-time fashion. c. Before you visit sure parts of the world, you are required to get a yellow febrility vaccine. Many travelers let this slip until the last minute, forgetting that it is advisable (or avoiding an unpleasant crack cocaine as long as possible).But they definitely realize they need the shot, and they do not want to have to suffercel their trip at the last minute because they did not get it. They often find themselves fashioning a long trip to a reginal medical center because trhey did not plan ahead. 3. For the trinity scenarios in Question 1, describe a marketing channel that would meet the target end-users demands for service outputs. 4. Describe three different buying situations with which you are familiar and the SODs of the buyers in each one. Do you think the SODs being supplied are close to those being demanded?Why or why not? P. 103 Q4 5. Explain how the shopping characteristics for the following consumer and indu strial goods fall the channels for them CONSUMER GOODS INDUSTRIAL GOODS Bread Laser printer toner cartridges Breakfast texture Uranium for nuclear power plants Womens hosiery Cement Refrigerators medical exam machinery(e. g. , ultrasound machines) P. 150 Q5 6. Apple, as a computer company, has struggles over the geezerhood with the assortment problem. Company-owned Apple stores offered only Apple computers.Although management liked having ascendence of the assortment, customers wanted side-by-side comparisons with other brands, eventually driving Apple to close many of its own stores. Apple also has had difficulty influencing how independent computer outlets rootage and display its products. Apple is now using the success of its music downloading systems (iPod and variations) to quiet larger assortments-and is reopening company-owned stores. Is this a good idea? What, if anything, would you recommend to Apple as an alternative strategy to improve its products coverage and sal es?P192(4) 7. A shaper is in the habit of offering liberal payment terms to distributors They can pay anytime within 45days of receipt of the merchandise. The manufacturer currently has a stack line of credit to cover accounts receivable and pays an interest rate (prime+1%) on the balance on loan from the bank. One of the manufacturers key distributors offers to pay for shipments by immediate bank funds transfer upon receipt of merchandise if the manufacturer will reduce the price by 1%. Does this offer close a gap?If so, what sort (demand side, cede side, what flow)? P238 Q6 8. You are the owner/manager of an auto dealership in Germany interchange the Audi line. Your dealership is exclusive to Audi you have invested heavily to build the dealership and your slew is such that, if you decide to sell your dealership, Audi has the right to approve or eliminate any buyer you might find. What is the balance of power in your relationship? What sort of working relationship are you lik ely to have with your provider? What could your supplier do to ensure you do not become disaffect?