THE HONG KONG UNIVERSITY OF SCIENCE & TECHNOLOGY
DEPARTMENT OF MARKETING
MARK3510 Business-to-Business Marketing
Fall 2014
L1: Tuesdays & Thursdays, 10:30 to 11:50 at LSK1034
L2: Tuesdays & Thursdays, 12:00 to 13:20 at LSK1034
Instructor: Mr. Dennis T. LIM (LSK4056)
Phone: 2358 7712 (contact via email preferred)
Email: dtlim@ust.hk
Office Hours: By appointment
Teaching Assistant: Ms. Pauline CHAN (LSK4025)
Phone: 2358 7705
Email: paulinechan@ust.hk
Office Hours: By appointment
COURSE DESCRIPTION & OBJECTIVES
Business-to-Business (B2B) Marketing refers to marketing activities that are directed toward businesses,
governments, and not-for-profit organizations, in contrast to Business-to-Consumers (B2C) which are
directed to end consumers.
This course enables you to understand the specific and unique marketing issues and opportunities facing
firms that have other firms/organizations as customers; and to apply strategies and tactics that firms can use
to analyze and tap into business markets.
On completion of this course, students will be able to:
- Describe the nature of business markets and the related concepts and theories involved in business
activities among business organizations
- Recognize the similarities and differences between consumer markets and business markets.
- Understand the complex nature of organization buying behavior
- Apply marketing mix concepts and theories to business-to-business situations and take appropriate
decisions using a strategic marketing perspective
COURSE FORMAT
LECTURE
Guided by the course materials and lecturer exercises, we will interactively discuss the key issues, challenges
and opportunities related to Business-to-Business Marketing. You are encouraged to raise questions related
to class topics as well as to actively participate through relevant insights and examples.
CASE ANALYSIS
Effective learning also benefits from systematic critical thinking and reasoned application of theoretical concepts
and frameworks. To this end, business case analysis is used as a primary learning tool.
 Each student is expected to read each of the five cases and actively participate in class discussions.
 Each team will also select (random draw) three out of the five cases to prepare team presentations (MS
PowerPoint) for submission.
 Some teams will be randomly picked to present their case analysis report in class, and the rest of the
class is encouraged to participate with their insights and observations.
Class discussion of the case studies will form an important part of your class participation grade. More
importantly, the case analysis and discussion serves to simulate what you can expect in the working world.
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TRADE SHOW ATTENDANCE
As an international business hub, Hong Kong hosts a number of major business trade shows organized by the
Hong Kong Trade & Development Council (HKTDC). To provide you with realistic exposure to B2B marketing,
students will attend an actual trade show – you will be expected to attend a guided tour of a specific trade
show, and prepare a team report on your observations and follow-up research of a team selected exhibitor
company.
All students are required to attend the trade show. For valid absences (based on school policy & guidelines),
excused students will be expected to attend a subsequent trade show and submit a separate trade show
report (in addition to contributing to the team report).
COURSE MATERIALS
Textbook: Business Marketing: Connecting Strategy, Relationships, and Learning, 4/E. Robert F. Dwyer, John
F. Tanner. McGraw-Hill Higher Education. ISBN: 0073529907. 2009
Course Packet and Case Studies: Aside from the textbook, we will use articles and cases as course materials. All
cases and readings are placed on reserve in the library. Several copies are also available at the marketing
department’s office (LSK4018) and can be checked out for short time periods. It is your responsibility to ensure
that you have completed your readings and assignments before each class.
1. What is Industrial Marketing. 9-592-012. September 23, 1994 (Harvard Business School)
2. An Introductory Note on the Case Method. 908M85. 2008-10-21 (Ivey)
3. A Note on Team Process. 9-402-032. October 4, 2001 (Harvard Business School)
4. Mediquip S.A. (R). IMD048. 16.09.2009 (IMD International)
5. Becton Dickinson & Company: Vacutainer Systems Division (Condensed). 9-592-037. August 16, 2000
(Harvard Business School)
6. Rohm & Haas (A) New Product Marketing Strategy. 9-587-055. May 25, 1993 (Harvard Business School)
7. Fortis Industries, Inc. (A). 9-511-079. December 16, 2010 (Harvard Business School)
8. I.M.A.G.E. International. UV0023 (Darden Business Publishing, University of Virginia)
Lecture slides: Only partial lecture notes will be provided prior to each class on the course website, with
additional information provided during class. Some concepts discussed in the text will be emphasized during
class, and new concepts not found in the text will also be introduced. You are responsible for keeping up
with the readings prior to each class.
Recommended Resources (Optional)
1. Business Market Management: Understanding, Creating, and Delivering Value, 3/E. Anderson, Narus,
Narayandas. Prentice Hall. ISBN-10: 0136000886, ISBN-13: 9780136000884. 2009
2. Customer Segmentation in Business-to-Business Markets. Darden Business Publishing. UV5749. Mar. 18,
2011
3. Business-to-Business Marketing. Cespedes, Narayandas. 8145 Core Reading. Harvard Business
Publishing. February 26, 2014.
4. Pricing in Business-to-Business Environments (Chapter 4), Pricing Segmentation and Analytics. Bodea,
Ferguson. Harvard Business Publishing. BEP108. January 31, 2012.
COURSE MAILING LIST AND WEBSITE
A class mailing list is set up to disseminate information and make early announcements. All students that
have enrolled in this course are automatically included in this list.
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The course website is on LMES. Lecture slides, announcements, and other materials will be regularly posted to
this site. To access these materials, go to http://lmes2.ust.hk, type in your email (ITSC) login (without the
stu.ust.hk part). For example, if your email address is ac_cck@stu.ust.hk, you will type in ac_cck. Your initial
password is the same one that you use to login to your email account (ITSC password).
COURSEWORK AND ASSESSMENT
The coursework requirements are listed in the following table:
Coursework
Mid Term Exam
Final Exam
Case Analysis Presentation Submission
(8 points x 3 cases, indexed to Peer Rating)
Trade Show Report
(indexed to Peer Rating)
Class Participation
Research Credit
TOTAL
Points (%)
25
25
24
12
12
2
100
EXAMS
There will be a mid-term exam and a final exam in this course. Exams will be held simultaneously for all
sections of MARK3510. The mid-term exam will be scheduled in the evening time (see the tentative course
outline) and the final exam will be scheduled during the Final Exams week.
In case you are not able to take the exams on the scheduled time due to serious illness or circumstances, the
school policy on “Illness or Other Circumstances Affecting Assessment” will be followed (see below). Only
students with approved exceptions will be allowed to take a make-up examination (for missing either the
mid-term or the final exam) during an alternative date during the Finals Week, and the exam will be based
on the content of the full course (that is, all materials covered in class). Students with denied exceptions will
not earn any points for missing any exam.
ILLNESS OR OTHER CIRCUMSTANCES AFFECTING ASSESSMENT (Academic Regulations: UG Regulation:
7.5; PG Regulation: 7.7)
If students wish the University to take into account illness or some other extenuating circumstances that
have affected their performance in an examination, or ability to attend an examination, or to complete
other assessment activities, they must report the circumstances of the case in writing and provide
appropriate documentation to ARRO within one week of the scheduled date of the assessment activity.
The Director of ARRO will review the case and make a recommendation to the relevant Dean, the Dean’s
designate or the Director of IPO. (http://arr.ust.hk/reg/em/em_std_reg/reg_makeup.html)
Please click here to download the standard report form.
CASE ANALYSIS PRESENTATION & TRADE SHOW REPORT (TEAM SUBMISSION, WITH PEER CONTRIBUTION RATING)
Each of your teams is expected to submit a written case analysis presentation based on analysing the assigned
cases as well as a written trade show report. The team reports will be graded on the thoroughness of analysis
and logical recommendations based on guide questions and guidelines.
To ensure equal participation in and contribution to group projects, a peer evaluation system will be in place.
You will be asked to evaluate your team members’ (excluding your own) performance /contribution to the
team at the end of the semester.
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Your individual report grade will be based on multiplying your team grade to your individual contribution
rate (peer rating). For example, if your team report earns a grade of 10 points, and your average peer
contribution rating is 80%, then your individual report grade is 10 points x 80% contribution = 8 points.
CLASS PARTICIPATION
You are expected to attend every class and be on time. Attendance will be taken at each class, and latecomers
are responsible for notifying me of their presence after class. Unexcused absences and tardiness will affect your
participation grade.
Attendance is necessary but not sufficient to earn a good class participation grade. Learning in this class depends
heavily on your willingness to expose your insights and viewpoints to the critical judgment of your classmates.
Thus, you are expected to be prepared for class by reading the assigned materials and contributing to class
discussions.
To encourage discussions, I may randomly call on students/teams to volunteer their point of view about the
assigned readings/cases.
Do not be afraid to express your opinions. Remember, there are often no right or wrong answers in class
discussions. Instead, good answers and ideas are discovered via collaborative discussion together.
RESEARCH CREDIT
HKUST is a research institution. We therefore, encourage students to earn research credit. Students enrolled
in marketing classes are expected to earn 2 research credits (worth 2% of the grade). This can be done by
either participating in two research experiments (1 hour each) or completing two research assignments. For
further details and guidance, please refer to “Markexpt Student Manual 2014 Fall.doc” which is posted on
the course website.
TEAMWORK
Teamwork is an essential component of the course. A significant amount of the work for this course will be
done in groups. The purpose of group assignments is to expose you to the real world business environment
where skills such as dividing workload, communicating effectively, resolving conflicts, and leveraging each
person’s strength are immensely valuable. As in the real world, teamwork can sometimes be a frustrating
experience. It might be difficult to pick times to meet, you may not see eye to eye with another group
member on some issues, or the division of workload may not seem equitable to all group members. As
frustrating as it might be, it is important for you to learn how to manage teamwork. Disputes between group
members should be resolved internally.
Please form groups (~5 members, the number of people in a group depends on the final class size) by yourselves
and come up with a name for your group. Please inform your TA and I of your group members and group name
by email before the stated deadline. To facilitate group interaction, I would like each group to sit together during
class once the group is formed.
GRADING STANDARDS
GRADING
All deadlines will be strictly enforced. Late submissions will not be graded and no make-up
assignments will be allowed. No letter grade will be assigned for individual tests or assignments. Final
grades will be curved, based on your performance versus the rest of the class.
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APPEAL PROCEDURE
Out of fairness for other students, I generally do not entertain requests for re-grading an exam. If you
believe, however, that your answer on a particular question of an exam has been misunderstood, you need
to submit a request to be re-evaluated within one week of receiving your score. Please attach a typed note
to your exam with your name, student ID, and a short explanation for why you feel your answer deserves
more points. Explanations should be specific and pertain to the content of the question only. Thus
explanations like “I worked really hard and deserve more points” or “My answer on this question is better
than X’s” will not be acceptable. Please note that a re-evaluation request for a particular segment of the
exam will lead to a complete re-evaluation of the entire exam. Thus, this comprehensive re-evaluation may
cause your overall score to go up, stay the same, or go down. I will return your final grade within one week
of receiving your request.
INSTRUCTOR AS A RESOURCE
Concerns, clarifications about the course materials, and any form of feedback are welcome. If there are
concerns about course-related issues, bring them to my attention as soon as possible. Do not wait till the
end of the quarter to have them resolved. If you wish to see me outside class, please schedule an
appointment either in class or through email. If you wish to contact your TA, please directly contact her via
email to set up an appointment.
ACADEMIC INTEGRITY
Students are required to maintain the highest standards of academic integrity. You are expected to work
independently (or with your teammates for team assignment) on all quizzes and assignments (including the
simulation game). Breaches of these standards of academic integrity include, but not limited to, cheating,
plagiarizing, consulting external sources (including the Internet) in completing an assignment, test, or project
in which such behavior is prohibited.
IMPORTANT THINGS TO NOTE
1.
2.
3.
4.
5.
A name plate will be prepared for you. Please remember to bring it to every class.
Attendance and tardiness will be recorded, and will affect your participation grade.
Please turn OFF your cell phones before the class begins.
Laptops are NOT allowed in class.
Please do the assigned readings before class. This is particularly important for case discussions. For all of
us to benefit from case discussion, it is important that you come prepared for discussion.
6. Please bring your Personal Response System (PRS) clicker with you to each class, PRS participation in
class counts to your participation grade.
7. Always bring a calculator to classes and exams. Calculators CANNOT be shared during exams.
8. All deadlines will be strictly enforced. Late submissions will not be graded and no make-up assignments
will be allowed.
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APPENDIX A. TENTATIVE COURSE OUTLINE (MARK3510, FALL 2014)
* Subject to change due to time or unforeseeable constraints; changes announced in class, email or website.
(!) Please bring your Personal Response System (PRS) clicker to each class.
Wk Class Date Day Room
Topic
Assignment Due
1 09.02 Tue LSK1034 Course Introduction
1
Review of Case Study Analysis, and
Read “An Introductory Note on the Case
2 09.04 Thu LSK1034
Working in Teams
Method” & “A Note on Team Process”
09.09 Tue
NO CLASS, Public Holiday
2
3 09.11 Thu LSK1034 Introduction to B2B Marketing
Read Chapter 1
09.15 Mon
Add/Drop Deadline
09.16 Tue LSK1034 Cancelled due to Typhoon Signal 8
Read Chapter 3
3
Finalize teams (members & team name)
4 09.18 Thu LSK1034 Purchasing Function
Class seating plan locked
Teams to draw lots for Case Presentation
Deadline for HKTDC Session Sign-up
Guest Speaker, 7-820pm, replaces lecture
Associate Business Unit Director, Sanofi
(Pharmaceuticals) HK (Sanofi S.A. is a
5 09.23 Tue
TBD
Submit “Team Charter”
multinational pharmaceutical company
4
ranked in the top 5 in worldwide sales,
based in France)
6 09.25 Thu LSK1034 Organizational Buyer Behavior
Read Chapters 4
Case Study 1 – Team Presentation &
Submit Assigned Team Presentations:
7 09.30 Tue LSK1034
Discussion
“Mediquip S.A.”
5
10.02 Thu
NO CLASS, Public Holiday
Marketing Opportunities: Current &
8 10.07 Tue LSK1034
Read Chapter 5
Potential Customers
6
9 10.09 Thu LSK1034 Marketing Strategy
Read Chapter 6
Case Study 2 – Team Presentation &
Submit Assigned Team Presentations:
10 10.14 Tue LSK1034
Discussion
“Becton Dickinson: Vacutainer”
HKTDC Electronics Fair & electronic Asia – Review trade show exhibitor list:
10.15 Wed
7
Guided Tour Slots in the afternoon
http://www.hktdc.com/fair/exlist/hkelectron
icsfairae-en/HKTDC-Hong-Kong-ElectronicsNO CLASS
10.16 Thu
HKTDC Electronics Fair & electronicAsia – Fair-Autumn-Edition/List-Of-Exhibitors.htm
Start preparing HKTDC team report
Guided Tour slots in the morning
11 10.21 Tue LSK1034 Developing & Managing Products
Read Chapter 8
8
Case Study 3 – Team Presentation &
Submit Assigned Team Presentations: “Rohm
12 10.23 Thu LSK1034
Discussion
& Haas”
10.28 Tue
TBA MID TERM EXAM, 19:30-21:00
Covers classes 3 to 10
9
13 10.30 Thu LSK1034 Business Marketing Channels
Read Chapter 9
Submit Trade Show team reports
14 11.04 Tue LSK1034 Pricing & Negotiations
Read Chapter 14
10
Case Study 4 – Team Presentation &
Submit Assigned Team Presentations: “Fortis
15 11.06 Thu LSK1034
Discussion
Industries (A)”
16 11.11 Tue LSK1034 Integrated Marketing Communications
Read Chapters 10, 11
11
17 11.13 Thu LSK1034 Marketing Communications cont’d
Read Chapter 12
18
12
13
-
20
11.18 Tue LSK1034 Sales Management
Case Study 5 – Team Presentation &
11.20 Thu LSK1034
Discussion
11.25 Tue LSK1034 Evaluating Marketing Efforts
21
11.27 Thu LSK1034 Course Wrap-up
19
-
TBA
TBA
TBA
FINAL EXAM
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Read Chapter 13
Submit Assigned Team Presentations:
“I.M.A.G.E. International”
Read Chapter 16
Covers classes 12 to 22
Details TBA (Finals Week is 12.08 – 19)
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APPENDIX B. TRADE SHOW REPORT GUIDELINES (MARK3510, FALL 2014)
Assignment Deliverable
Pick ONE company or organization participating in the assigned trade show – HKTDC Hong Kong Electronics Fair
(Autumn Edition) and electronicAsia – and evaluate the following:
1. What is the nature of the business of the company/organization?
2. Who is (are) the target market (s) of the company/organization?
3. Provide a brief description of the company or organizational environment/industry. This will require a quick
secondary information search.
4. Evaluate the nature of the product or service that the company/ organization offers.
5. Evaluate the tradeshow exhibit of the company.
a. What do you see as the objective(s) of the company in joining the trade show?
b. What value proposition can you perceive from the company’s efforts? Is this consistent with what
you believe should be stated as a value proposition based on your perception of the
company’s/organization’s nature of business and market offering?
c. Evaluate the effectiveness of the trade show campaign of the company. You may devise your own
performance indicators.
d. What recommendations/suggestions can you make to improve the company’s/organization’s
tradeshow performance? Why?
NOTE: Prior to Trade Show, Teams/Students may consider short listing potential companies to focus for their
reports. The list of exhibitors is publicized on the official webpage.
http://www.hktdc.com/fair/exlist/hkelectronicsfairae-en/HKTDC-Hong-Kong-Electronics-Fair-AutumnEdition/List-Of-Exhibitors.htm
Team Report Format
 MS Word document – submit both hard copy and electronic copy (ALL members must be copied in the
email submission to signify team alignment/agreement)
 A4 size paper, normal margins (1”)
 Double-spaced, Calibri font, size 11
 Maximum of 8 pages in length (exclusive of title page, and appendices or exhibits)
 Note that format deviations will incur deductions
 Good Business English writing rules and Spelling are expected, and will influence grading (Tip: use MS Word
Grammar & Spelling function)
Trade Show Attendance (& Sign-up)
HKTDC Hong Kong Electronics Fair (Autumn Edition) and electronicAsia
World's biggest electronics event organised by the HKTDC and held at the HKCEC, the Hong Kong Electronics Fair
(Autumn Edition) presents all kinds of electronics products and services such as audio-visual products, branded
electronics, eco-friendly products, i-World, packaging & design, navigation systems, new inventions,
telecommunications products and testing, inspection & certification services .
http://www.hktdc.com/fair/hkelectronicsfairae-en/HKTDC-Hong-Kong-Electronics-Fair-Autumn-Edition.html
Student Non-attendance/Absences to Trade Show
Trade show attendance for EACH student is a requirement for the class. If valid exceptions (per discussion with
instructor) prevent attendance to the assigned Electronics Fair, the student must propose and attend an
alternative trade show and submit another separate trade show report, in addition to contributing to the
original team report.
Deadline for Guided Tour Slot Sign-up -- September 18, 2014 (Thursday)
 It is highly recommended that members from the same team sign-up in the same guided tour slot
 Guided tours on Oct 15 afternoon, or Oct 16 morning
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




Dress and behave professionally, you are representing HKUST, and Trade Show access is provided as a
courtesy
Maximum 60 minutes – tours usually lasts about 30 minutes, after which students can consider using any
remaining time to revisit booths/areas of interest
Students are required to always stay in the tour group, and to be escorted by at least one HKTDC trade
ambassador at all time
As much as possible, gather the relevant information only through observation, gathering exhibit materials
and secondary data; if you would like to interview the show exhibitors during the visit, you MUST seek
permission from the trade show tour guide and the exhibitor
Please note that taking photographs or videos at the trade show are not allowed – unless downloaded from
public sites
HKTDC Hong Kong Electronics Fair & electronicAsia Guided Tour Schedules (first come, first serve)
 Student sign-up sheet will be posted online from September 1 to September 18 (5pm)
2pm-3pm
Session 10-15.1
Min 20 to max 60 students**
4pm-5pm
Session 10-15.2
Min 20 to max 60 students**
9am-10am
Session 10-16.1
Min 20 to max 60 students**
11am-12nn
Session 10-16.2
Min 20 to max 60 students**
Oct 15, Wed
Oct 16, Thu
** Depending on final number of students signing-up, session groups may be split into 2 smaller groups
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APPENDIX C. CASE STUDY PREPARATION & TEAM PRESENTATION GUIDELINES (MARK3510, FALL 2014)
Each student is expected to read each of the five cases and actively participate in class discussions.
Each team will also select (random draw) three out of the five cases to prepare and submit team
presentations (MS PowerPoint).
Some teams will be randomly picked to present their case analysis report in class, and the rest of the class
are encouraged to participate with their insights and observations.
Team Presentation Format
 MS PowerPoint presentation – submit both hard copy and electronic copy (ALL members must be
copied in the email submission to signify team alignment/agreement)
 Maximum of 10 slides in length (exclusive of title page)
 Helvetica font, minimum size of 28 (size 32-36 preferred)
 Good Business English writing rules and Spelling are expected, and will influence grading (Tip: use MS
PowerPoint Spelling function)
 As in real life, Presentations are NOT detailed reports, and should be a summary of your key points
o Full sentences are not expected, but phrases outlining points should be logical and understandable
o Layout and manner of presenting your analysis will often be helpful to get your point across (e.g.,
using tables, diagrams, lists, etc.)
Case Discussion Questions
(1) Mediquip S.A.
Case Abstract
On December 18, Kurt Thaldorf, a sales engineer for the German sales subsidiary of Mediquip, S.A., was
informed by Lohmann University Hospital in Stuttgart that it had decided to place an order with Sigma, a
Dutch competitor, for a CT scanner. The hospital’s decision came as disappointing news to Thaldorf, who had
worked for nearly eight months on the account. The order, if obtained, would have meant a sale of DM
2,370,000 (USD 1,422,000) for the sales engineer. He was convinced that Mediquip’s CT scanner was
technologically superior to Sigma’s and, overall, a better product. Thaldorf decides to review his sales call
reports to see if he can determine why he lost the sale. He wanted to apply the lessons from this experience
to future sales situations.
Questions
a) Company Background (base on the case):
 What is the nature of the business of the company? Evaluate the nature of the product or service
that the company offers.
 Who is(are) the target market(s) or customer(s) of the company?
 In general, what is(are) the key criteria that the customer(s) use to evaluate the company’s product?
Which criteria are the most important?
b) Going into this situation, what were Thaldorf’s major strengths and weaknesses as a representative of
Mediquip (Note that it is NOT about what he did right or wrong, and is more of a SWOT analysis)?
c) Identify each member of Lohmann Hospital’s DMU and describe the role, needs concerns, power
positions and motivations of each DMU member. How well did Thaldorf interact with each member of
the DMU?
d) What were the missed opportunities based on the journal dates? On what date did Thaldorf effectively
lose the Lohmann sale?
e) What are major lessons to be learned from this case?
(2) Becton Dickinson Vacutainer Systems
Case Abstract
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In the midst of Health Care Regulation aimed to reduce hospital spending, Becton Dickinson (BD), a producer
of injection tubes and needles is in tough negotiations with APG, a large hospital buying group. APG wants
them to reduce their prices 20%, allow them to use a private label and distribute their product through APGrelated distributors. In exchange they guarantee 90% market share in affiliated hospitals. BD needs to
prepare a proposal for the final round of negotiations.
Questions
a) Company Background (base on the case):
 What is the nature of the business of the company?
 Evaluate the nature of the product or service that the company offers.
 Who is(are) the target market(s) or customer(s) of the company?
 In general, what is(are) the key criteria that the customer(s) use to evaluate the company’s product?
Which criteria are the most important?
b) How has the healthcare industry changed from pre-1983 to post-1983? What were the key drivers of the
change?
c) From a Marketing standpoint, what differentiates BD from competitors? How does this differentiation
impact BD’s customers?
d) How would you describe distribution structure of BD? What are the benefits of the structure to BD?
e) What should BD propose to APG? Why?
(3) Rohm and Haas
Case Abstract
Rohm & Haas is launching a new maintenance biocide for metalworking fluids used in small machine tool
shops. While tests show that the product is highly efficient the launch results are disastrous. Product
manager, Joan Macey, is wondering how to turn around this product line.
Questions
a) Company Background (base on the case):
 What is the nature of the business of the company?
 Evaluate the nature of the product or service that the company offers.
 Who is(are) the target market(s) or customer(s) of the company?
 In general, what is(are) the key criteria that the customer(s) use to evaluate the company’s product?
Which criteria are the most important?
b) What is the Economic Value of Kathon MWX for the customer?
c) What is the problem facing Macey? Why?
d) What are Macey’s options? What should she do and why?
(4) Fortis Industries
Case Abstract
Fortis Industries' packaging division manufactures steel and plastic strapping. The case focuses on the
packaging division's need to maintain high profitability in a declining market for steel strapping. Since 2002,
Fortis has been losing 1% per year of the steel strapping market. Since then, there has been significant
erosion of prices. The division president is faced with (1) decreasing price to increase market share, or (2)
maintain/increase prices to increase cash flow. The specific decision revolves around the potential adoption
of a price-flex system that is designed to authorize selective discounting by the division's sales personnel.
Questions
a) Company Background (base on the case):
 What is the nature of the business of the company?
 Evaluate the nature of the product or service that the company offers.
 Who is(are) the target market(s) or customer(s) of the company?
 In general, what is(are) the key criteria that the customer(s) use to evaluate the company’s product?
Which criteria are the most important?
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b)
c)
d)
e)
f)
Why is Fortis losing market share?
What is Fortis's current marketing strategy?
What is the significance of Exhibit 8?
What are the options for George Reynolds? What should George Reynolds do?
How will Fortis's sales force, customers, competitors and investors react to these decisions?
(5) I.M.A.G.E. International
Case Abstract
IMAGE is a company selling high-end copiers with its own sales force. The head of the US sales force is being
challenged by the French headquarters on expenses and his “easy going” management methods.
Questions
a) Background (base on the case):
 What is the nature of the business of the company?
 Evaluate the nature of the product or service that the company offers.
 Who is(are) the target market(s) or customer(s) of the company?
 In general, what is(are) the key criteria that the customer(s) use to evaluate the company’s product?
Which criteria are the most important?
b) What do you think of Mr. Reynolds’ management methods in general? Why?
c) How does he set sales objectives for the sales force? How would you evaluate the methods he uses?
d) What do you think of the sales force budget (expenses)? Is it well spent?
MARK3510, Fall 2014 (Release 3, Updated 2014-09-16)
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