[Name : Rabialdy Caisar Wiraputra
Student ID : 29119048
Pre-Class Assignment:
Clique Pens: The Writing Implements Division of US Home
QUESTION
1. How are the objectives of MDF different from trade discounts?
2. Should Clique be more concerned with retailer needs (requirements) or consumer needs?
‘What factors drive this decision?
3. Should Clique institute MDF as a marketing initiative or as another means for sales to
compete for retail shelf space?
4, If Clique were to fully implement MDE oriented to consumers, how should Ferguson go
about obtaining retailer suppor?
5. How should Ferguson manage the pull/push conflict between the marketing department
(Chen) and the sales department (McMillan)?
ANSWER
1. MDE (Marketing Development Funds)
Trade Discount
Product Retail
Ivete Peony wc
Price
Ies seems that MDF or Trade discount has same objective that is to increase sale
that will be affect gross profie margin. Otherwise, in the term of what the main focused
of MDF ot Trade discound orally differnt. MDF focused on increasing related to the
marketing promotion that will increase brand awareness by consumer, instead trade
discount focus on reducing retailed price rather than end product for costumer.
2. I certainly sure thar retailer needs should be more focused rather than consumer.
In the term of sale writing implement firms is very dependable on intermediaries firm
moreover retailer firm have kind of bergain power in the term of price. Writing implement
consumer are insensitive to the price issue its looks like comodity product, so the
competition of this product would be so tight. Ignoring retailer needs will be affected on
reducing firm competitiveness to the competitor3,
I think in order to incresing the gross profit margin we need to have clear solution
about weather MDF consumer oriented or sales strategy will suit the most co fix the
problem. Both of MDF or sale i belive there is trade off between this strategy, MDF not
directly creat value for costumer so the firm cannot capture value itself, Sale strategy such
as trade discounc can’t be 100% will be increased gross profit margin as we know that other
competitors drive this strategy too to make sure their product can compete to gain market
share
She have to make sure that MDF can be drived sale that will affect gross profit
margin. The main objective of MDF is to make sure that this fund can make incentive for
retailer to increase product sale of co-op company. This incentive can affect to the shelf
space for product to in the term of competition with the competitors
I think berween sales or markering there is should agreement in the term of the
best solution to solve reducing in gross profit margin. In the order to find the best solution
regarding we need to find win-win solution. Both marketing or sale should conduct
integration that fitnest with the problem so the problem can be solve effectively and
efficiently.