Describe a consumer product pricing distribution scenario

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1. Accordiing to the book: drucker on marketing, He offers a different perspective? The question before you is . . . A) what are Drucker's main points? He does seems to be quite bullish on Marketing. B) Secondly, express each of Drucker's main points (As you understand them) by arguing whether their validity are conditional, shallow, or not supported by contemporary thought. You are welcome to draw from any additional sources. But please provide a citation, where necessary. You should be able to answer this question on two pages, single-spaced and with 12-point font size.


2. Describe a consumer product pricing distribution scenario of your choice, using a buy/sell box to support your illustration. You should show mark-ups (%) for the manufacturer, distributor and retailer. Of course, begin with an end-user target price. Show me all your calculations.

3. Market research tell us that the best end-user price for your new product is 25 euros and 35 dollars in Europa and the United States, respectively. The product will be sold through hypermarkets in Europe and Wal-Mart in the United States. The margins for the retailers in Europe are about 45%. In the US, Wal-Mart's margin will be 25%. These products will only go through these retailers. No distributors. Convert Euros into dollars for this exercise. Choose a recent exchange rate.

A) If the manufacturer of this product demands a 50% margin what should marketing state (To R&D via a MNR) as the needed unit cost of production for each scenario (Europe and US).

B) If the annual unit sales is expected to be the same in all of Europe and the United States, can we say that one target market is more profitable that the other? Assume the product is manufactured in both Europe and the United States and there is no difference in cost of unit production. Show me your numbers. Choose your own exchange rate. If you need further parameters, please add them.

Reference no: EM13729879

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