Solved

Use This Information for Questions That Refer to the Sporting

question 196

Multiple Choice

Use this information for questions that refer to the Sporting Products, Inc. (SPI) case. Randy Todd, marketing manager for Sporting Products, Inc. (SPI) , is thinking about how changes taking place among retailers in his channel might impact his strategy.
SPI sells the products it produces through wholesalers and retailers. For example, SPI sells basketballs to Wholesale Supply for $8.00. Wholesale Supply uses a 20 percent markup and most of its "sport shop" retailer customers, like Robinson's Sporting Goods, use a 33 percent markup to arrive at the price they charge final consumers. However, one fast growing retail chain, Sports Depot, only uses a 20 percent markup for basketballs, even though it pays Wholesale Supply the same price as other retailers. Furthermore, Sports Depot occasionally lowers the price of basketballs and sells them at cost--to draw customers into its stores and stimulate sales of its pricey basketball shoes.
Sports Depot is also using other pricing approaches that are different from the sports shops that usually handle SPI products. For example, Sports Depot prices all of its baseball gloves at $20, $40, or $60--with no prices in between. There are three big bins - one for each price point.
Todd is also curious about how Sports Depot's new strategy to increase sales of tennis balls will work out. The basic idea is to sell tennis balls in large quantities to nonprofit groups who resell the balls to raise money. For example, a service organization at a local college bought 2,000 tennis balls printed with the college logo. Sports Depot charged $.50 each for the tennis balls-plus a $500 one-time charge for the stamp to print the logo. The service group plans to resell the tennis balls for $2.50 each and contribute the profits to a shelter for the homeless.
Todd is not certain if Sports Depot ideas will affect SPI's plans. For example, SPI is considering adding tennis racquets to the lines it produces. This would require a $500,000 addition to its factory as well as the purchase of new equipment that costs $1,000,000. The variable cost to produce a tennis racquet would be $20, but Todd thinks that SPI could sell the racquet at a wholesale price of $40 each. That would allow most retailers to add their normal markup and make a profit. However, if Sports Depot sells the racquet at a lower than normal price other retailers might decide to carry it.
The pricing approach Sports Depot uses to price its baseball gloves is called:

Define and differentiate between key terms such as sexism, prejudice, discrimination, and racism, including their various forms.

Recognize the origins and consequences of prejudice and strategies for its reduction.

Compare and contrast different forms of conflict management and understand their applicability in various scenarios.

Explain Schwartz's value framework and its relation to personal and cultural values.

Definitions:

Specialized Documents

These refer to texts or materials designed for specific professional domains or areas of expertise, tailored to meet the needs and expectations of particular audiences.

News Media

Outlets and platforms that distribute news and information to the public, including newspapers, television, radio, and online publications.

Press Releases

Official statements issued to the media to announce a range of news items, including events, awards, or product launches.

Social Media Releases

Press releases designed specifically for the social media context, integrating multimedia elements and social sharing capabilities to enhance distribution and engagement.