BU362 Lecture Notes - Lecture 9: Heating Pad, Marketing Mix, Personal Selling
Document Summary
Mark tanner wants to introduce a new product into the canadian market but has. Bu362: portable heat pad limited experience in the new business. Mark tanner: recouping large capital initial expense. Richard mckay: marketing manager, personal rep, relationships, previous experience. Retail price= (selling price cost)/selling price. = cost or the price sold to retailers. Contribution margin: - = . Distributor= (selling price cost)/selling price. = cost of the price sold to distributors. Contribution margin: 8 = , vc: Labour= 0. 50 ( per hour/ 150 produced per hour) With sales employees: 20,770: profit (assuming 50%) Marketing mix: product: portable heating pad, price: to consumer, to retailer, promotion: doctor recommendations, acceptable by the medical professionals. Direct: sales people to push to retailers: place: retail distribution throughout canada. Economic: mature market: change consumer pattern, changing demographics: positive changes. Threats: large and established competitors with stable market share. Retailer distribution and gain support through doctor recommendations.
