Please post two email usage guidelines that you feel are most important to follow and tell us why you feel those guidelines are important (guidelines may be found online or from your experience).

1. Be concise and to the point.

Do not make an e-mail longer than it needs to be. Remember that reading an e-mail is harder than reading printed communications and a long e-mail can be very discouraging to read.

2. Answer all questions, and pre-empt further questions.

An email reply must answer all questions, and pre-empt further questions – If you do not answer all the questions in the original email, you will receive further e-mails regarding the unanswered questions, which will not only waste your time and your customer’s time but also cause considerable frustration. Moreover, if you are able to pre-empt relevant questions, your customer will be grateful and impressed with your efficient and thoughtful customer service. Imagine for instance that a customer sends you an email asking which credit cards you accept. Instead of just listing the credit card types, you can guess that their next question will be about how they can order, so you also include some order information and a URL to your order page. Customers will definitely appreciate this.

3. Use proper spelling, grammar & punctuation.

This is not only important because improper spelling, grammar and punctuation give a bad impression of your company, it is also important for conveying the message properly. Emails with no full stops or commas are difficult to read and can sometimes even change the meaning of the text. And, if your program has a spell checking option, why not use it?

4. Make it personal.

Not only should the e-mail be personally addressed, it should also include personal i.e. customized content. For this reason auto replies are usually not very effective. However, templates can be used effectively in this way, see next tip.

5. Use templates for frequently used responses.

Some questions you get over and over again, such as directions to your office or how to subscribe to your newsletter. Save these texts as response templates and paste these into your message when you need them. You can save your templates in a Word document, or use pre-formatted emails. Even better is a tool such as ReplyMate for Outlook (allows you to use 10 templates for free).

6. Answer swiftly.

Customers send an e-mail because they wish to receive a quick response. If they did not want a quick response they would send a letter or a fax. Therefore, each e-mail should be replied to within at least 24 hours, and preferably within the same working day. If the email is complicated, just send an email back saying that you have received it and that you will get back to them. This will put the customer's mind at rest and usually customers will then be very patient!

7. Do not attach unnecessary files.

By sending large attachments you can annoy customers and even bring down their e-mail system. Wherever possible try to compress attachments and only send attachments when they are productive. Moreover, you need to have a good virus scanner in place since your customers will not be very happy if you send them documents full of viruses!

8. Use proper structure & layout.

Since reading from a screen is more difficult than reading from paper, the structure and lay out is very important for e-mail messages. Use short paragraphs and blank lines between each paragraph. When making points, number them or mark each point as separate to keep the overview.

9. Do not overuse the high priority option.

We all know the story of the boy who cried wolf. If you overuse the high priority option, it will lose its function when you really need it. Moreover, even if a mail has high priority, your message will come across as slightly aggressive if you flag it as 'high priority'.

10. Do not write in CAPITALS.

IF YOU WRITE IN CAPITALS IT SEEMS AS IF YOU ARE SHOUTING. This can be highly annoying and might trigger an unwanted response in the form of a flame mail. Therefore, try not to send any email text in capitals.

11. Don't leave out the message thread.

When you reply to an email, you must include the original mail in your reply, in other words click 'Reply', instead of 'New Mail'. Some people say that you must remove the previous message since this has already been sent and is therefore unnecessary. However, I could not agree less. If you receive many emails you obviously cannot remember each individual email. This means that a 'threadless email' will not provide enough information and you will have to spend a frustratingly long time to find out the context of the email in order to deal with it. Leaving the thread might take a fraction longer in download time, but it will save the recipient much more time and frustration in looking for the related emails in their inbox!

12. Add disclaimers to your emails.

It is important to add disclaimers to your internal and external mails, since this can help protect your company from liability. Consider the following scenario: an employee accidentally forwards a virus to a customer by email. The customer decides to sue your company for damages. If you add a disclaimer at the bottom of every external mail, saying that the recipient must check each email for viruses and that it cannot be held liable for any transmitted viruses, this will surely be of help to you in court (read more about email disclaimers). Another example: an employee sues the company for allowing a racist email to circulate the office. If your company has an email policy in place and adds an email disclaimer to every mail that states that employees are expressly required not to make defamatory statements, you have a good case of proving that the company did everything it could to prevent offensive emails.

13. Read the email before you send it.

A lot of people don't bother to read an email before they send it out, as can be seen from the many spelling and grammar mistakes contained in emails. Apart from this, reading your email through the eyes of the recipient will help you send a more effective message and avoid misunderstandings and inappropriate comments.

14. Do not overuse Reply to All.

Only use Reply to All if you really need your message to be seen by each person who received the original message.

15. Mailings > use the Bcc: field or do a mail merge.

When sending an email mailing, some people place all the email addresses in the To: field. There are two drawbacks to this practice: (1) the recipient knows that you have sent the same message to a large number of recipients, and (2) you are publicizing someone else's email address without their permission. One way to get round this is to place all addresses in the Bcc: field. However, the recipient will only see the address from the To: field in their email, so if this was empty, the To: field will be blank and this might look like spamming. You could include the mailing list email address in the To: field, or even better, if you have Microsoft Outlook and Word you can do a mail merge and create one message for each recipient. A mail merge also allows you to use fields in the message so that you can for instance address each recipient personally. For more information on how to do a Word mail merge, consult the Help in Word.

16. Take care with abbreviations and emoticons.

In business emails, try not to use abbreviations such as BTW (by the way) and LOL (laugh out loud). The recipient might not be aware of the meanings of the abbreviations and in business emails these are generally not appropriate. The same goes for emoticons, such as the smiley :-). If you are not sure whether your recipient knows what it means, it is better not to use it.

17. Be careful with formatting.

Remember that when you use formatting in your emails, the sender might not be able to view formatting, or might see different fonts than you had intended. When using colors, use a color that is easy to read on the background.

18. Take care with rich text and HTML messages.

Be aware that when you send an email in rich text or HTML format, the sender might only be able to receive plain text emails. If this is the case, the recipient will receive your message as a .txt attachment. Most email clients however, including Microsoft Outlook, are able to receive HTML and rich text messages.

19. Do not forward chain letters.

Do not forward chain letters. We can safely say that all of them are hoaxes. Just delete the letters as soon as you receive them.

20. Do not request delivery and read receipts.

This will almost always annoy your recipient before he or she has even read your message. Besides, it usually does not work anyway since the recipient could have blocked that function, or his/her software might not support it, so what is the use of using it? If you want to know whether an email was received it is better to ask the recipient to let you know if it was received.

21. Do not ask to recall a message.

Biggest chances are that your message has already been delivered and read. A recall request would look very silly in that case wouldn't it? It is better just to send an email to say that you have made a mistake. This will look much more honest than trying to recall a message.

22. Do not copy a message or attachment without permission.

Do not copy a message or attachment belonging to another user without permission of the originator. If you do not ask permission first, you might be infringing on copyright laws.

23. Do not use email to discuss confidential information.

Sending an email is like sending a postcard. If you don't want your email to be displayed on a bulletin board, don't send it. Moreover, never make any libelous, sexist or racially discriminating comments in emails, even if they are meant to be a joke.

24. Use a meaningful subject.

Try to use a subject that is meaningful to the recipient as well as yourself. For instance, when you send an email to a company requesting information about a product, it is better to mention the actual name of the product, e.g. 'Product A information' than to just say 'product information' or the company's name in the subject.

25. Use active instead of passive.

Try to use the active voice of a verb wherever possible. For instance, 'We will process your order today', sounds better than 'Your order will be processed today'. The first sounds more personal, whereas the latter, especially when used frequently, sounds unnecessarily formal.

26. Avoid using URGENT and IMPORTANT.

Even more so than the high-priority option, you must at all times try to avoid these types of words in an email or subject line. Only use this if it is a really, really urgent or important message.

27. Avoid long sentences.

Try to keep your sentences to a maximum of 15-20 words. Email is meant to be a quick medium and requires a different kind of writing than letters. Also take care not to send emails that are too long. If a person receives an email that looks like a dissertation, chances are that they will not even attempt to read it!

28. Don't send or forward emails containing libelous, defamatory, offensive, racist or obscene remarks.

By sending or even just forwarding one libelous, or offensive remark in an email, you and your company can face court cases resulting in multi-million dollar penalties.

29. Don't forward virus hoaxes and chain letters.

If you receive an email message warning you of a new unstoppable virus that will immediately delete everything from your computer, this is most probably a hoax. By forwarding hoaxes you use valuable bandwidth and sometimes virus hoaxes contain viruses themselves, by attaching a so-called file that will stop the dangerous virus. The same goes for chain letters that promise incredible riches or ask your help for a charitable cause. Even if the content seems to be bona fide, the senders are usually not. Since it is impossible to find out whether a chain letter is real or not, the best place for it is the recycle bin.

30. Keep your language gender neutral.

In this day and age, avoid using sexist language such as: 'The user should add a signature by configuring his email program'. Apart from using he/she, you can also use the neutral gender: ''The user should add a signature by configuring the email program'.

31. Don't reply to spam.

By replying to spam or by unsubscribing, you are confirming that your email address is 'live'. Confirming this will only generate even more spam. Therefore, just hit the delete button or use email software to remove spam automatically.

32. Use cc: field sparingly.

Try not to use the cc: field unless the recipient in the cc: field knows why they are receiving a copy of the message. Using the cc: field can be confusing since the recipients might not know who is supposed to act on the message. Also, when responding to a cc: message, should you include the other recipient in the cc: field as well? This will depend on the situation. In general, do not include the person in the cc: field unless you have a particular reason for wanting this person to see your response. Again, make sure that this person will know why they are receiving a copy.

Everyone should be concerned about Leadership: We're each leaders in various ways—within our families, our community organizations, our work organizations, groups we belong to, even of (and maybe most importantly, of) ourselves. And all of us, without exception, are consumers of others' leadership, like it or not. We're subject to the leadership influences of others at all systemic levels, ranging from the smallest social unit, to gigantic organizations, world governments, and other influential systems. Living as we do in more or less constant relationship with leadership, it behooves us all to be informed consumers and wielders of leadership.

The Cry for Leadership

Why do we not have better leadership? The question is asked over and over. We complain, express our disappointment, often our outrage; but no answer emerges.

When we ask a question countless times and arrive at no answer, it is possible that we are asking the wrong question--or that we have misconceived the terms of the query. Another possibility is that it is not a question at all but simply convenient shorthand to express deep and complex anxieties. It would strike most of our contemporaries as old-fashioned to cry out, "What shall we do to be saved?" And it would be time-consuming to express fully our concerns about the social disintegration, the moral disorientation, and the spinning compass needle of our time. So we cry out for leadership.

To some extent the conventional views of leadership are shallow, and set us up for endless disappointment. There is an element of wanting to be rescued, of wanting a parental figure who will set all things right. Such fantasies for grown-up children should not lead us to dismiss the need for leaders nor the insistent popular expression of that need. A great many people who are not given to juvenile fantasies want leaders-- leaders who are exemplary, who inspire, who stand for something, who help us set and achieve goals.

Unfortunately, in popular thinking on the subject, the mature need and the childlike fantasies interweave. One of the tasks of this book is to untangle them, and to sketch what is realistically possible. Leadership is such a gripping subject that once it is given center stage it draws attention away from everything else. But attention to leadership alone is sterile--and inappropriate. The larger topic of which leadership is a subtopic is the accomplishment of group purpose, which is furthered not only by effective leaders but also by innovators, entrepreneurs and thinkers; by the availability of resources; by questions of morale and social cohesion; and by much else that I discuss in this book. It is not my purpose to deal with either leadership or its related subjects comprehensively. I hope to illuminate aspects of the subject that may be of use in facing our present dilemmas -- as a society and as a species.

The Issues Behind the Issues

We are faced with immensely threatening problems--terrorism, AIDS, drugs, depletion of the ozone layer, the threat of nuclear conflict, toxic waste, the real possibility of economic disaster. Even moderately informed citizens could extend the list. Yet on none of the items listed does our response acknowledge the manifest urgency of the problem. We give every appearance of sleepwalking through a dangerous passage of history. We see the life-threatening problems, but we do not react. We are anxious but immobilized.

I do not find the problems themselves as frightening as the questions they raise concerning our capacity to gather our forces and act. No doubt many of the grave problems that beset us have discoverable, though difficult, solutions. But to mobilize the required resources and to bear what sacrifices are necessary calls for a capacity to focus our energies, a capacity for sustained commitment. Suppose that we can no longer summon our forces to such effort. Suppose that we have lost the capacity to motivate ourselves for arduous exertions in behalf of the group. A discussion of leadership cannot avoid such questions.

Could it be that we suppress our awareness of problems--however ominous--because we have lost all conviction that we can do anything about them? Effective leaders heighten both motivation and confidence, but when these qualities have been gravely diminished, leaders have a hard time leading. Suppose that fragmentation and divisiveness have proceeded so far in American life that we can no longer lend ourselves to any worthy common purpose. Suppose that our shared values have disintegrated to the point that we believe in nothing strongly enough to work for it as a group. Shared values are the bedrock on which leaders build the edifice of group achievement. No examination of leadership would be complete without attention to the decay and possible regeneration of the value framework. Suppose that our institutions have become so lacking in adaptive-ness that they can no longer meet new challenges. All human institutions must renew themselves continuously; therefore, we must explore this process as it bears on leadership.

I think of such matters--motivation, values, social cohesion, renewal--as the "issues behind the issues," and I shall return to them often in the pages that follow.

Our Dispersed Leadership

In this society, leadership is dispersed throughout all segments of the society--government, business, organized labor, the professions, the minority communities, the universities, social agencies, and so on. Leadership is also dispersed down through the many levels of social functioning, from the loftiest levels of our national life down to the school principal, the local union leader, the shop supervisor.

We have always associated both kinds of dispersion with our notions of democracy and pluralism. But as our understanding of the principles of organization has developed, we have come to see that there is really no alternative to such dispersal of leadership if large-scale systems are to retain their vitality. The point is relevant not only for our society as a whole but also for all the organized subsystems (corporations, unions, government agencies, and so forth) that compose it.

Most leadership today is an attempt to accomplish purposes through (or in spite of) large, intricately organized systems. There is no possibility, that centralized authority can call all the shots in such systems, whether' the system is a corporation or a nation. Individuals in all segments and at all levels must be prepared to exercise leaderlike initiative and responsibility, using their local knowledge to solve problems at their level. Vitality at middle and lower levels of leadership can produce greater vitality in the higher levels of leadership.

In addition to all people down the line who may properly be called leaders at their level, there are in any vital organization or society a great many individuals who share leadership tasks unofficially, by behaving responsibly with respect to the purposes of the group. Such individuals, who have been virtually ignored in the leadership literature, are im-mensely important to the leader and to the group. (And as I point out later, even the responsible dissenter may be sharing the leadership task.)

Understanding Leadership

I have seen a good many leaders in action. My first chore for a president was for Eisenhower, whom I had known earlier when he headed Columbia University. Of the seven presidents since then, I have worked with all but two. But I have learned powerful lessons from less lofty leaders--from a top sergeant in the Marine Corps, from university presidents, corporate chief executive officers, community leaders, bank-ers, scientists, union leaders, school superintendents, and others. I have led, and have worked in harness with other leaders.

The development of more and better leaders is an important objective that receives a good deal of attention in these pages. But this is not a how-to-do-it manual. The first step is not action; the first step is understanding. The first question is how to think about leadership. I have in mind not just political buffs who want more and better leaders on the political scene, nor just CEOs who wonder why there are not more leaders scattered through their huge organizations. I have in mind citizens who do not want to be victimized by their leaders, neighborhood organizations that want to train their future leaders, the young people who dream of leadership, and all kinds of people who just want to comprehend the world around them.

Citizens must understand the possibilities and limitations of leadership. We must know how we can strengthen and support good leaders; and we must be able to see through the leaders who are exploiting us, playing on our hatred and prejudice, or taking us down dangerous paths.

Understanding these things, we come to see that much of the responsibility for leaders and how they perform is in our own hands. If we are lazy, self-indulgent, and wanting to be deceived; if we willingly follow corrupt leaders; if we allow our heritage of freedom to decay; if we fail to be faithful monitors of the public process--then we shall get and deserve the worst.

Accountability

The concept of accountability is as important as the concept of leadership. Humankind has spent thousands of years trying to figure out how to hold power accountable. And we have come a long way in devising the strategies that make that difficult task possible. The rule of law, trial by jury, the secret ballot, a free press and other principles have contributed importantly to that end. But it is still difficult. And that, too, is a part of the conversation about leaders.

Leadership Development

How many dispersed leaders do we need? When one considers all the towns and city councils, corporations, government agencies, unions, schools and colleges, churches, professions and so on, the number must be high. In order to have a target to think about, and setting precision aside, let us say that it is 1 percent of the population--2 .4 million men and women who are prepared to take leaderlike action at their levels. How can we ever find that many leaders?

Fortunately, the development of leaders is possible on a scale far beyond anything we have ever attempted. As one surveys the subject of leadership, there are depressing aspects but leadership development is not one of them. Although our record to date is unimpressive, the prospects for improvement are excellent. Many dismiss the subject with the confident assertion that "leaders1 are born not made." Nonsense! Most of what leaders have that enables them to lead is learned. Leadership is not a mysterious activity. It is possible to describe the tasks that leaders perform. And the capacity to perform those tasks is widely distributed in the population. Today, unfortunately, specialization and patterns of professional functioning draw most of our young potential leaders into prestigious and lucrative non-leadership roles.

We have barely scratched the surface in our efforts toward leader-ship development. In the mid-twenty-first century, people will look back on our present practices as primitive.

Most men and women go through their lives using no more than a fraction--usually a rather small fraction--of the potentialities within them. The reservoir of unused human talent and energy is vast, and learning to tap that reservoir more effectively is one of the exciting tasks ahead for humankind.

Among the untapped capabilities are leadership gifts. For every effectively functioning leader in our society, I would guess that there are five or ten others with the same potential for leadership who have never led or perhaps even considered leading. Why? Perhaps they were drawn off into the byways of specialization...or have never sensed the potentialities within them... or have never understood how much the society needs what they have to give.

We can do better. Much, much better.

YOUR DISCUSSION QUESTION:

Q1: Find at least 3 things in the "Cry for Leadership" that really speak to YOU—get you thinking, questioning, opining, agreeing, disagreeing, worked up, excited, ticked (or whatever) off, etc.—about something you see as important in TODAY'S world. Share the 3 things from "Cry…," how/why they're relevant TODAY, how they speak to YOU, and any other aspects of your reaction to "The Cry for Leadership," etc. In your original (i.e., first) posting, pleaseSEPARATE your 3 selections so that it's clear what each is, each one's relevance, your views regarding each, etc., etc. This will give others a rich source of comments to react to. (Please NO postings as "see attached file"—post text directly).

The first article is called the "The Truth of Black Lives Matter" by New York Times and the second article is called "New York Times Defends Folly of Black Lives Matter" by Jerome Hudson at breitbart.com. Please provide a half page summary for "The Truth of Black Lives Matter" and cite what the author is trying to argue. Also please provide a half page summary for "New York Times Defends Folly of Black Lives Matter" and cite what the author is trying to argue. I will provide the links to them down below just in case but I will put the articles here too. MLA format also please.

New York Times "The Truth of Black Lives Matter"

By THE EDITORIAL BOARD SEPT. 3, 2015

CreditAlex Nabaum

The Republican Party and its acolytes in the news media are trying to demonize the protest movement that has sprung up in response to the all-too-common police killings of unarmed African-Americans across the country. The intent of the campaign — evident in comments by politicians like Gov. Nikki Haley of South Carolina, Gov. Scott Walker of Wisconsinand Senator Rand Paul of Kentucky — is to cast the phrase “Black Lives Matter” as an inflammatory or even hateful anti-white expression that has no legitimate place in a civil rights campaign.

Former Gov. Mike Huckabee of Arkansas crystallized this view when he said the other week that the Rev. Dr. Martin Luther King Jr., were he alive today, would be “appalled” by the movement’s focus on the skin color of the unarmed people who are disproportionately killed in encounters with the police. This argument betrays a disturbing indifference to or at best a profound ignorance of history in general and of the civil rights movement in particular. From the very beginning, the movement focused unapologetically on bringing an end to state-sanctioned violence against African-Americans and to acts of racial terror very much like the one that took nine lives at Emanuel African Methodist Episcopal Church in Charleston, S.C., in June.

The civil rights movement was intended to make Congress and Americans confront the fact that African-Americans were being killed with impunity for offenses like trying to vote, and had the right to life and to equal protection under the law. The movement sought a cross-racial appeal, but at every step of the way used expressly racial terms to describe the death and destruction that was visited upon black people because they were black.

Even in the early 20th century, civil rights groups documented cases in which African-Americans died horrible deaths after being turned away from hospitals reserved for whites, or were lynched — which meant being hanged, burned or dismembered — in front of enormous crowds that had gathered to enjoy the sight.

The Charleston church massacre has eerie parallels to the 1963 bombing of the 16th Street Baptist Church in Birmingham, Ala. — the most heinous act of that period — which occurred at the height of the early civil rights movement. Four black girls were murdered that Sunday. When Dr. King eulogized them, he did not shy away from the fact that the dead had been killed because they were black, by monstrous men whose leaders fed them “the stale bread of hatred and the spoiled meat of racism.” He said that the dead “have something to say” to a complacent federal government that cut back-room deals with Southern Dixiecrats, as well as to “every Negro who has passively accepted the evil system of segregation and who has stood on the sidelines in a mighty struggle for justice.” Shock over the bombing pushed Congress to pass the Civil Rights Act the following year.

During this same period, freedom riders and voting rights activists led by the young John Lewis offered themselves up to be beaten nearly to death, week after week, day after day, in the South so that the country would witness Jim Crow brutality and meaningfully respond to it. This grisly method succeeded in Selma, Ala., in 1965 when scenes of troopers bludgeoning voting rights demonstrators compelled a previously hesitant Congress to acknowledge that black people deserved full citizenship, too, and to pass the Voting Rights Act of 1965. Along the way, there was never a doubt as to what the struggle was about: securing citizenship rights for black people who had long been denied them.

The “Black Lives Matter” movement focuses on the fact that black citizens have long been far more likely than whites to die at the hands of the police, and is of a piece with this history. Demonstrators who chant the phrase are making the same declaration that voting rights and civil rights activists made a half-century ago. They are not asserting that black lives are more precious than white lives. They are underlining an indisputable fact — that the lives of black citizens in this country historically have not mattered, and have been discounted and devalued. People who are unacquainted with this history are understandably uncomfortable with the language of the movement. But politicians who know better and seek to strip this issue of its racial content and context are acting in bad faith. They are trying to cover up an unpleasant truth and asking the country to collude with them.

"New York Times Defends Folly of Black Lives Matter" by Jerome Hudson at breitbart.com

In a 743 word defense of Black Lives Matter, The New York Times editorial board couldn’t bring itself to sanction a single syllable shaming the grievance group for its growing number of transgressions.

“The Truth of ‘Black Lives Matter’ flat-out ignores that Black Lives Matter is based on a number of pernicious lies. Chief among them is that Michael Brown was executed by Officer Darren Wilson. If that were true, why did an Eric Holder-headed Justice Department investigation conclude that Michael Brown did not have his hands up when Officer Wilson fired the fatal shots? For this group, facts and truth don’t matter. Still, Black Lives Matter demands that Wilson be arrested.

The Times interweaves Martin Luther King, Jr.’s words and the purpose of the civil rights movement together in an effort to legitimize and beautify Black Lives Matter’s cause.

The truth, however, is much less romantic. Black Lives Matter is a disgrace to the memory of Martin Luther King, Jr., and the civil rights movement. To compare them is to bastardize 100 years of American history–and the legitimate hard-fought gains the movement proudly claims.

Martin Luther King, Jr., didn’t mince words when he stated his dream was that his children live in a world where they were judged by their “character” and not their “skin.”

I challenge The New York Times, America’s sanctimonious overseers, to present a King quote anywhere near the morally deprived neighborhood of “pigs in a blanket, fry them like bacon.”

Would Rosa Parks stand with Houston area Black Lives Matter supporter Monica Foy, who said slain Sheriff’s Deputy Darren Goforth had “creepy perv eyes” and deserved to be executed and shot 15 times?

How does The New York Times reconcile this incredible contradiction?

The admirable activists making the case for whatever problems of over-policing that do persist are at odds with a Black Lives Matter movement that is celebrated and seldom challenged for its habit of overindulging in generalities as it constantly convicts all of America as a devoutly racist place.

Another lie: the Times‘ assertion that unarmed black people “are disproportionately killed in encounters with the police” is simply not true and is not substantiated by facts.

It is “an indisputable fact–that the lives of black citizens in this country historically have not mattered,” the Times contends. Black Lives Matter, and the Times, for that matter, is tied to a tragic American past that no longer lends its evils to today.

In some sense, black lives do matter more than others. I am black. If I were unarmed and gunned down by police today, my story would warrant wall-to-wall press coverage. It’s hard to imagine the same outcome if I were white.

This is good and bad.

That America’s foremost news organs commit so much energy to covering every detail surrounding the death of black people–making them household names in the process–is evidence that we are far better off as a racially harmonized nation than we were 50 years ago. And that’s good. But this societal progress wasn’t achieved by decisive movements like Black Lives Matter.

It’s no accident then that 64 percent of black people prefer the phrase “all lives matter.”

Now for the bad. Such an intense focus on black lives has normalized a callous disassociation of a victim’s humanity if he happens to be white when killed by a cop. Or, as evidenced in Houston–if he happens to be a cop.

It’s as if we have all been shamed into nodding our heads in agreement that we must care less about police-involved shootings unless the victim is black.

The New York Times’ defense of Black Lives Matter also misses the point, and an opportunity. Their editorial came on the same day that slain Texas Deputy Sheriff Darren Goforth is being laid to rest. Their defensive editorial also coincided with this Chicago Tribune headline: “Chicago marks deadliest day by gunfire in more than a decade.” Yet neither far more relevant threats to black lives warranted a single mention in the Times’self-serving sermon.

The news stories on cities like Chicago, consumed by black-on-black carnage resemble Somalia more than America.

Yes, Social Justice Warriors. I just played the black-on-black crime card. Why? Because one can be both outraged and motivated to solve the vexing problem of black criminality while simultaneously acting to improve policing in one’s own community.

But Black Lives Matter wants fewer police in minority neighborhoods. Specifically, they want a “national policy specifically aimed at redressing the systemic pattern of anti-black law enforcement violence in the United States.”

This is just nonsense and borders satire.

The New York Times is concerned with parsing out the importance of recognizing the Black Lives Matter movement ahead of the fact that all lives matter–yet seem unwilling to recognize that one of the impacts of the movement has been to increase the threat against police officers. So if to just say, “All Lives Matters” is to “cover up an unpleasant truth” as the NYT claims, then you also have to admit that embracing Black Lives Matter with no acknowledgement of the associated violence against police is no less of an effort at concealment.

Neither The New York Times nor Black Lives Matter wants to broaden the parameters of the conversation about the vexing problems in black precincts. Both groups want a narrow conversation centered on inflated instances of racism.

If we talk about black poverty, should we also ask how 70 percent illegitimacy rates (90 percent in some inner cities) might contribute to our malaise? Or do we continue to pretend that the persistent problem of black poverty is the result of racism and discrimination alone?

Black Lives Matter is not a civil rights movement. When a Black Lives Matter spokesman says the phrase “All lives matter” is a “violent statement,” the group itself becomes an affront to our most sacred democratic principle: that all men are equal in the eyes of the law.

Thanks, but no thanks. I would rather not be lectured about the perils of civil rights suffrage and police oppression by an editorial board that’s whiter than a Coldplay concert.

What does it say about The New York Times‘ concern for black lives if they–in an editorial about how black lives matter–decided to completely ignore the countless communities suffocated by crime and a gang culture that sends infinitely more black bodies to the morgue than police?

Introduction

By focusing on the needs of consumers, an organization creates a business that can outperform its competitors. Being closer to consumers and providing exactly what they want is known as market orientation. A market orientated business carries out research to find the needs and wants of consumers. It then uses the findings to design products and marketing strategies to satisfy these needs. This compares to product orientation which focuses first on developing a product and then seeks ways to persuade the consumer to buy it.

This case study describes how JD (part of the JD Sports Fashion PLC Group of companies), a large and well-known retailer, manages the balance of its marketing mix around its consumers’ needs in order to achieve business growth. The marketing mix is often termed the 4Ps. It is a useful way of looking at how organizations reach their consumers. For example, businesses need to create a mix that involves:

• the right products

• sold in the right place

• at the right price

• using the most suitable forms of promotion.

Founded in 1981 in Mossley, in Manchester, with a single shop, JD today is a well-recognised brand. With 335 stores JD is the UK’s leading retailer of fashionable sports and casual wear. For 20 years JD expanded through organic growth. It opened up stores in new locations to grow its customer base and increase revenues. It traded on the rising trend, particularly amongst young people, of wearing sportswear in everyday life.

In addition to organic growth, The JD Sports Fashion Group has also expanded in recent years by acquisition and now has a number of businesses in its portfolio. It has increased its JD store base through the acquisition of First Sport and All: sports as well as acquiring Scotts (premium branded menswear) and Bank (young male and female branded fashion) in the UK. The Group also made international acquisitions including the French sports fashion retailer Chausport and Champion Sports in Ireland. The JD Sports Fashion Group has also acquired brands such as The Duffer of St George, Nicholas Deakins, Canterbury of New Zealand, Kooga, Kukri and also the fashion brands Chilli Pepper, Nanny State, and Sonneti. Brands such as Mckenzie, Brookhaven, Carbrini and Pure are exclusive brands that are only available at JD stores. With over 500 stores in the UK, Ireland, and France, the JD Sports Fashion Group has a reputation for stocking the most exclusive and stylish lifestyle products.

As a B2C (business to consumer) organization, the performance of the JD fascia depends on how desirable its brands are to consumers. By providing exactly what the consumers want JD can outperform its competitors. It also helps it to remain buoyant in a challenging business environment. JD has continued to grow despite the fact that levels of unemployment are increasing and many consumers now have reduced disposable income. The demand for non-essential goods, such as branded clothing, would normally decrease as incomes fall.

Product

The ‘product’ is concerned with the function and features offered by a good or service. The product also encompasses factors such as quality, design, after-sales service and branding. JD sells lifestyle products. These are sportswear ranges worn in everyday life. JD targets different groups of consumers who desire trainers and sports fashion as casual day wear. Many of the products that it sells are from the global ‘power brands’. These are long established, popular brands such as Nike and Adidas. These brands appeal to large groups of consumers and are easily recognized by JD customers. They are backed by large marketing budgets which help to boost sales and sustain demand by consumers. Usually, it is manufacturers who decide what products to produce and retailers have no say in this. However, JD is different. The company has so much buying power and knowledge of the market that manufacturers are happy to take its ideas. These are then used to produce exclusive products for JD. For example, the Adidas Forest Hills and Adidas Training PT footwear ranges were developed exclusively for the JD Group and cannot be found in any other retailer. JD works with suppliers across the world to develop and deliver own-brand products. Prior to any orders being placed, all new suppliers must complete the Group’s risk assessment form to ensure that their activities are in line with the Ethical Trade Initiative Base Code. This code covers areas such as health and safety, working hours, wages, fire procedures and maternity pay provisions. This ensures that the people employed to make JD’s own brand products have good working conditions and that product are sourced ethically. Other social and environmental factors are also taken into account. For example, last year 423.3 tonnes of cardboard, used in packaging, was returned to the Group’s distribution center for recycling.

Price

The price charged for a product will depend on a number of factors: the cost to make it, the level of profit required, competitor prices and the price consumers are willing to pay. The demand for necessities, such as bread and fuel, is unlikely to change much as prices fluctuate. The demand for sportswear and casual clothing, however, is more likely to be price sensitive. Getting the price right is a key part of an organization’s marketing strategy. This is because it is the price that directly generates income, allows debts to be paid, re-investment to occur in the business infrastructure and profits to be made. Businesses need to ensure that the price charged is perceived by consumers as value for money in relation to the quality of goods and services.

There are different pricing strategies which can be adapted to generate demand:

• Market penetration – introducing a new product at a lower price to help gain market share.

• Competitive pricing – often used for well-known products or brands that are in high demand. Prices are similar to competitors. To be competitive, JD must ensure it doesn’t charge higher prices for the same goods (or similar) than other sports and fashion retailers.

• Strategic pricing – This might be used to position an exclusive product or brand to make it more desirable for consumers and generate demand or demonstrate value. By buying in large volumes, the company’s unit costs are lower. For example, discounts achieved by bulk purchases of trainers means the cost for each pair is lower than that paid by smaller retailers. This ensures JD remains competitive.

Place

The place element of the marketing mix involves making products available to the customer in the most convenient way. JD operates in:

• the high street

• out of town locations

• shopping centers

• e-commerce.

JD wants to make the shopping experience distinctive from that of its rivals. It does this by innovative displays and creative imagery to make the store experience fun and exciting. For example, the JD store in Cardiff won a UK Retail Interior of the Year award for its design and ambiance. This included a giant table-football fixture and light-boxes to display trainers.

The JD Property Committee meets regularly to look at the performance of all stores and consider new locations. This includes analyzing sales performance and forecasting sales. This type of data helps JD to assess where its outlets are giving the best return on investment. The right location can maximize sales, limit costs and therefore maximize profits. There is a range of factors that influence the choice of new store locations.

In addition to traditional forms of shopping, JD has also invested in e-commerce. JD recognizes that with the increasing use of online shopping, consumers now expect very high standards of service and functionality from a web ordering site. In order to reach consumers in the best possible way, the company’s web designers constantly aim to improve the functionality of the site. It is now possible for consumers to buy products directly from the website.

In a mystery shopper survey of 49 major UK e-commerce sites in 2010, JD was the top all-round performer. It scored well for:

• quality of its customer service - particularly its clear delivery and returns information

• its checkout process - which is simple and easy to use

• its product pages - with photography that provides consumers with the most helpful views of products before they buy.

Promotion

The purpose of promotion is to create awareness in consumers or generate interest and desire to buy products. Promotion can also be used to create or change a brand image and maintain market share. JD wants to position itself away from competitors to give it a competitive advantage. This means that high profile manufacturers and brands will prefer to release their products to JD rather than its competitors as they are likely to sell more products and protect the brand’s positioning.

JD promotional activity uses a mix of above-the-line and below-the-line promotions. Its above-the-line activities include:

• paid-for advertising in newspapers and magazines. JD advertises in high circulation titles, such as the men’s lifestyle magazine FHM and the music magazine NME

• product placements in a range of publications are used to promote the different brands

• TV and radio advertising. Radio advertising, in particular, allows JD to target its key 13-20-year-old audience quickly and in a way that young people find relevant.

Although these types of media reach a wide audience, they can be costly. It is also difficult to measure response rates. JD also makes significant use of other forms of paid-for advertising. Described by JD as ‘ambient marketing’, this uses outdoor advertising such as poster sites and t-sides on public transport and around key stores in areas of high footfall. JD positions itself alongside professional football clubs such as Blackpool FC and has made kit deals under the Carbrini brand, supplying kits for the field of play and training wear. The company also advertises on television backdrops, in club shops, and around the grounds. This approach helps to target the young, largely male audience which is typical of its customer profile. It also establishes the brand within local communities.

Below-the-line promotions offer opportunities to communicate directly with consumers. For example:

• E-mail helps JD to regularly contact its database of consumers with promotions and product information. Magazines and leaflets present product and lifestyle content.

• Sales incentives, promotions, and competitions with celebrities generate excitement and interest in the brand. This reinforces its youthful appeal. For example, JD partnered with Adidas to provide VIP tickets for an exclusive N-Dubz event at the O2 Arena for JD.

• Sponsorship and product endorsement by celebrities and music artists are used to highlight new ranges and products. For example, Tinchy Stryder promoted the Star in the Hood clothing range and The View promoted The Duffer of St George range in a press campaign.

• A JD partnership with the Manchester Evening News Arena not only puts the brand in the arena itself but also enables the company to feature competitions and offer prizes to capture potential custom.

• JD also uses impactful photography and high-quality point-of-sale materials in stores and window displays to attract consumers and increase footfall.

The growth of social media such as Facebook and Twitter also enables the company to use consumer recommendations as part of its promotional activities. It is estimated that every person viewing a page may pass on information to another 150 people.

Conclusion

JD’s marketing mix has created a unique position for the brand within the mind of its consumers whilst remaining true to its corporate values. The company focuses on stocking the products its consumers want, as well as offering distinctive or exclusive ranges that can only be bought at JD. This, combined with its choice of strategies for placing and positioning the brand, has resulted in significant growth for the business. By uniquely understanding and valuing consumers, JD continues to grow within a difficult economic and competitive market. By constantly adapting and changing its marketing mix through a focus on consumers, it has effectively managed to stay ahead of the competition.

Question: 1 what are some of the key developments and decisions regarding the ‘place’ element of the marketing mix impacting businesses today? (25 mks)

Please read the case provided below and answer the following question:

COMPANY Case: Porsche: Guarding the Old While Bringing in the New

Porsche (pronounced Porsh-uh) is a unique company. It has always been a niche brand that makes cars for a small and distinctive segment of automobile buyers. In 2009, Porsche sold only 27,717 cars in the five models it sells in the United States. Honda sold about 10 times that many Accords alone. But Porsche owners are as rare as their vehicles. For that reason, top managers at Porsche spend a great deal of time thinking about customers. They want to know who their customers are, what they think, and how they feel. They want to know why they buy a Porsche rather then a Jaguar, a Ferrari, or a big Mercedes coupe. These are challenging questions to answer; even Porsche owners themselves don’t know exactly what motivates their buying. But given Porsche’s low volume and the increasingly fragmented auto market, it is imperative that management understands its customers and what gets their motors running.

Since its early days, Porsche has appealed to a very narrow segment of financially successful people. These are achievers who see themselves as entrepreneurial, even if they work for a corporation. They set very high goals for themselves and then work doggedly to meet them. And they expect no less from the clothes they wear, the restaurants they go to, or the cars they drive. These individuals see themselves not as a part of the regular world but as exceptions to it. They buy Porsches because the car mirrors their self-image; it stands for the things owners like to see in themselves and their lives.

Most of us buy what Porsche executives call utility vehicles. That is, we buy cars primarily to go to work, transport children, and run errands. Because we use our cars to accomplish these daily tasks, we base buying decisions on features such as price, size, fuel economy, and other practical considerations. But Porsche is more than a utility car. Its owners see it as a car to be enjoyed, not just used. Most Porsche buyers are not moved by information but by feelings. A Porsche is like a piece of clothing—something the owner “wears” and is seen in. They develop a personal relationship with their cars, one that has more to do with the way the car sounds, vibrates, and feels, rather than the how many cup holders it has or how much cargo it can hold in the trunk. They admire their Porsche because it is a competent performance machine without being flashy or phony.

People buy Porsches because they enjoy driving. If all they needed was something to get them from point A to point B, they could find something much less expensive. And while many Porsche owners are car enthusiasts, some of them are not. One successful businesswoman and owner of a high-end Porsche said, “When I drive this car to the high school to pick up my daughter, I end up with five youngsters in the car. If I drive any other car, I can’t even find her; she doesn’t want to come home.”

For its first few decades, Porsche AG lived by the philosophy of Ferry Porsche, Ferdinand’s son. Ferry created the Porsche 356 because no one else made a car like he wanted. But as the years rolled on, Porsche management became concerned with a significant issue: Were there enough Porsche buyers to keep the company afloat? Granted, the company never had illusions of churning out the numbers of a Chevrolet or a Toyota. But to fund innovation, even a niche manufacturer has to grow a little. And Porsche began to worry that the quirky nature of the people who buy Porsches might just run out on them.

This led Porsche to extend its brand outside the box. In the early 1970s, Porsche introduced the 914, a square-ish, mid-engine, two-seater that was much cheaper than the 911. This meant that a different class of people could afford a Porsche. It was no surprise that the 914 became Porsche’s top selling model. By the late 1970s, Porsche replaced the 914 with a hatchback coupe that had something no other regular Porsche model had ever had: an engine in the front. At less than $20,000, more than $10,000 less than the 911, the 924 and later 944 models were once again Porsche’s pitch to affordability. At one point, Porsche increased its sales goal by nearly 50 percent to 60,000 cars a year.

Although these cars were in many respects sales successes, the Porsche faithful cried foul. They considered these entry-level models to be cheap and underperforming. Most loyalists never really accepted these models as “real” Porsches. In fact, they were not at all happy that they had to share their brand with a customer who didn’t fit the Porsche owner profile. They were turned off by what they saw as a corporate strategy that had focused on mass over class marketing. This tarnished image was compounded by the fact that Nissan, Toyota, BMW, and other car manufacturers had ramped up high-end sports car offerings, creating some fierce competition. In fact, both the Datsun 280-ZX and the Toyota Supra were not only cheaper than Porsche’s 944 but also faster. A struggling economy threw more sand in Porsche’s tank. By 1990, Porsche sales had plummeted, and the company flirted with bankruptcy.

But Porsche wasn’t going down without a fight. It quickly recognized the error of its ways and halted production of the entry-level models. It rebuilt its damaged image by revamping its higher-end model lines with more race-bred technology. In an effort to regain rapport with customers, Porsche once again targeted the high end of the market in both price and performance. It set modest sales goals and decided that moderate growth with higher margins would be more profitable in the long term. Thus, the company set out to make one less Porsche than the public demanded. According to one executive, “We’re not looking for volume; we’re searching for exclusivity.”

Porsche’s efforts had the desired effect. By the late 1990s, the brand was once again favored by the same type of achiever who had so deeply loved the car for decades. The cars were once again exclusive. And the company was once again profitable. But by the early 2000s, Porsche management was again asking itself a familiar question: To have a sustainable future, could Porsche rely on only the Porsche faithful? According to then CEO Wendelin Wiedeking, “For Porsche to remain independent, it can’t be dependent on the most fickle segment in the market. We don’t want to become just a marketing department of some giant. We have to make sure we’re profitable enough to pay for future development ourselves.”

So in 2002, Porsche did the unthinkable. It became one of the last car companies to jump into the insatiable sport utility vehicle (SUV) market. At roughly 5,000 pounds, the new Porsche Cayenne was heavier than anything that Porsche had ever made, with the exception of some prototype tanks it made during WWII. Once again, the new model featured an engine up front. And it was the first Porsche to ever be equipped with seatbelts for five. As news spread about the car’s development, howls could be heard from Porsche’s customer base.

But this time, Porsche did not seem too concerned that the loyalists would be put off. Could it be that the company had already forgotten what happened the last time it deviated from the mold? After driving one of the first Cayenne’s off the assembly line, one journalist stated, “A day at the wheel of the 444 horsepower Cayenne Turbo leaves two overwhelming impressions. First, the Cayenne doesn’t behave or feel like an SUV, and second, it drives like a Porsche.” This was no entry-level car. Porsche had created a two-and-a-half ton beast that could accelerate to 60 miles per hour in just over five seconds, corner like it was on rails, and hit 165 miles per hour, all while coddling five adults in sumptuous leather seats with almost no wind noise from the outside world. On top of that, it could keep up with a Land Rover when the pavement ended. Indeed, Porsche had created the Porsche of SUVs.

Last year, Porsche upped the ante one more time. It unveiled another large vehicle. But this time, it was a low-slung, five-door luxury sedan. The Porsche faithful and the automotive press again gasped in disbelief. But by the time the Panamera hit the pavement, Porsche had proven once again that Porsche customers could have their cake and eat it to. The Panamera is almost as big as the Cayenne but can move four adults down the road at speeds of up to 188 miles per hour and accelerate from a standstill to 60 miles per hour in four seconds flat.

Although some Porsche traditionalists would never be caught dead driving a front engine Porsche that has more than two doors, Porsche insists that two trends will sustain these new models. First, a category of Porsche buyers has moved into life stages that have them facing inescapable needs; they need to haul more people and stuff. This not only applies to certain regular Porsche buyers, but Porsche is again seeing buyers enter its dealerships that otherwise wouldn’t have. Only this time, the price points of the new vehicles are drawing only the well heeled, allowing Porsche to maintain its exclusivity. These buyers also seem to fit the achiever profile of regular Porsche buyers.

The second trend is the growth of emerging economies. Whereas the United States has long been the world’s biggest consumer of Porsches, the company expects China to become its biggest customer before too long. Twenty years ago, the United States accounted for about 50 percent of Porsche’s worldwide sales. Now, it accounts for only about 26 percent. In China, many people who can afford to buy a car as expensive as a Porsche also hire a chauffeur. The Cayenne and the Panamera are perfect for those who want to be driven around in style but who may also want to make a quick getaway if necessary.

The most recent economic downturn has brought down the sales of just about every maker of premium automobiles. When times are tough, buying a car like a Porsche is the ultimate deferrable purchase. But as this downturn turns back up, Porsche is better poised than it has ever been to meet the needs of its customer base. It is also in better shape than ever to maintain its brand image with the Porsche faithful and with others as well. Sure, understanding Porsche buyers is still a difficult task. But a former CEO of Porsche summed it up this way: “If you really want to understand our customers, you have to understand the phrase, ‘If I were going to be a car, I’d be a Porsche.’

4 Questions – Answer

1. Distinguish between the concepts of Needs, Wants and Demands, out of the three concepts which one you can relate it to Porsche customers . Briefly explain the concept of core competency , in your opinion what are the core competencies of Porsche.

2. Define and explain the concept of brand personality, describe the brand personality of Porsche brand in general, please justify your answers

3. Using relevant theory Analyze the buyer decision process of the Porsche Cayenne customer.

4. Identify, explain and justify the main consumer behaviour characteristics that influences the Porche buyers.

COMPANY Case: Porsche: Guarding the Old While Bringing in the New

Porsche (pronounced Porsh-uh) is a unique company. It has always been a niche brand that makes cars for a small and distinctive segment of automobile buyers. In 2009, Porsche sold only 27,717 cars in the five models it sells in the United States. Honda sold about 10 times that many Accords alone. But Porsche owners are as rare as their vehicles. For that reason, top managers at Porsche spend a great deal of time thinking about customers. They want to know who their customers are, what they think, and how they feel. They want to know why they buy a Porsche rather then a Jaguar, a Ferrari, or a big Mercedes coupe. These are challenging questions to answer; even Porsche owners themselves don’t know exactly what motivates their buying. But given Porsche’s low volume and the increasingly fragmented auto market, it is imperative that management understands its customers and what gets their motors running.

Since its early days, Porsche has appealed to a very narrow segment of financially successful people. These are achievers who see themselves as entrepreneurial, even if they work for a corporation. They set very high goals for themselves and then work doggedly to meet them. And they expect no less from the clothes they wear, the restaurants they go to, or the cars they drive. These individuals see themselves not as a part of the regular world but as exceptions to it. They buy Porsches because the car mirrors their self-image; it stands for the things owners like to see in themselves and their lives.

Most of us buy what Porsche executives call utility vehicles. That is, we buy cars primarily to go to work, transport children, and run errands. Because we use our cars to accomplish these daily tasks, we base buying decisions on features such as price, size, fuel economy, and other practical considerations. But Porsche is more than a utility car. Its owners see it as a car to be enjoyed, not just used. Most Porsche buyers are not moved by information but by feelings. A Porsche is like a piece of clothing—something the owner “wears” and is seen in. They develop a personal relationship with their cars, one that has more to do with the way the car sounds, vibrates, and feels, rather than the how many cup holders it has or how much cargo it can hold in the trunk. They admire their Porsche because it is a competent performance machine without being flashy or phony.

People buy Porsches because they enjoy driving. If all they needed was something to get them from point A to point B, they could find something much less expensive. And while many Porsche owners are car enthusiasts, some of them are not. One successful businesswoman and owner of a high-end Porsche said, “When I drive this car to the high school to pick up my daughter, I end up with five youngsters in the car. If I drive any other car, I can’t even find her; she doesn’t want to come home.”

For its first few decades, Porsche AG lived by the philosophy of Ferry Porsche, Ferdinand’s son. Ferry created the Porsche 356 because no one else made a car like he wanted. But as the years rolled on, Porsche management became concerned with a significant issue: Were there enough Porsche buyers to keep the company afloat? Granted, the company never had illusions of churning out the numbers of a Chevrolet or a Toyota. But to fund innovation, even a niche manufacturer has to grow a little. And Porsche began to worry that the quirky nature of the people who buy Porsches might just run out on them.

This led Porsche to extend its brand outside the box. In the early 1970s, Porsche introduced the 914, a square-ish, mid-engine, two-seater that was much cheaper than the 911. This meant that a different class of people could afford a Porsche. It was no surprise that the 914 became Porsche’s top selling model. By the late 1970s, Porsche replaced the 914 with a hatchback coupe that had something no other regular Porsche model had ever had: an engine in the front. At less than $20,000, more than $10,000 less than the 911, the 924 and later 944 models were once again Porsche’s pitch to affordability. At one point, Porsche increased its sales goal by nearly 50 percent to 60,000 cars a year.

Although these cars were in many respects sales successes, the Porsche faithful cried foul. They considered these entry-level models to be cheap and underperforming. Most loyalists never really accepted these models as “real” Porsches. In fact, they were not at all happy that they had to share their brand with a customer who didn’t fit the Porsche owner profile. They were turned off by what they saw as a corporate strategy that had focused on mass over class marketing. This tarnished image was compounded by the fact that Nissan, Toyota, BMW, and other car manufacturers had ramped up high-end sports car offerings, creating some fierce competition. In fact, both the Datsun 280-ZX and the Toyota Supra were not only cheaper than Porsche’s 944 but also faster. A struggling economy threw more sand in Porsche’s tank. By 1990, Porsche sales had plummeted, and the company flirted with bankruptcy.

But Porsche wasn’t going down without a fight. It quickly recognized the error of its ways and halted production of the entry-level models. It rebuilt its damaged image by revamping its higher-end model lines with more race-bred technology. In an effort to regain rapport with customers, Porsche once again targeted the high end of the market in both price and performance. It set modest sales goals and decided that moderate growth with higher margins would be more profitable in the long term. Thus, the company set out to make one less Porsche than the public demanded. According to one executive, “We’re not looking for volume; we’re searching for exclusivity.”

Porsche’s efforts had the desired effect. By the late 1990s, the brand was once again favored by the same type of achiever who had so deeply loved the car for decades. The cars were once again exclusive. And the company was once again profitable. But by the early 2000s, Porsche management was again asking itself a familiar question: To have a sustainable future, could Porsche rely on only the Porsche faithful? According to then CEO Wendelin Wiedeking, “For Porsche to remain independent, it can’t be dependent on the most fickle segment in the market. We don’t want to become just a marketing department of some giant. We have to make sure we’re profitable enough to pay for future development ourselves.”

So in 2002, Porsche did the unthinkable. It became one of the last car companies to jump into the insatiable sport utility vehicle (SUV) market. At roughly 5,000 pounds, the new Porsche Cayenne was heavier than anything that Porsche had ever made, with the exception of some prototype tanks it made during WWII. Once again, the new model featured an engine up front. And it was the first Porsche to ever be equipped with seatbelts for five. As news spread about the car’s development, howls could be heard from Porsche’s customer base.

But this time, Porsche did not seem too concerned that the loyalists would be put off. Could it be that the company had already forgotten what happened the last time it deviated from the mold? After driving one of the first Cayenne’s off the assembly line, one journalist stated, “A day at the wheel of the 444 horsepower Cayenne Turbo leaves two overwhelming impressions. First, the Cayenne doesn’t behave or feel like an SUV, and second, it drives like a Porsche.” This was no entry-level car. Porsche had created a two-and-a-half ton beast that could accelerate to 60 miles per hour in just over five seconds, corner like it was on rails, and hit 165 miles per hour, all while coddling five adults in sumptuous leather seats with almost no wind noise from the outside world. On top of that, it could keep up with a Land Rover when the pavement ended. Indeed, Porsche had created the Porsche of SUVs.

Last year, Porsche upped the ante one more time. It unveiled another large vehicle. But this time, it was a low-slung, five-door luxury sedan. The Porsche faithful and the automotive press again gasped in disbelief. But by the time the Panamera hit the pavement, Porsche had proven once again that Porsche customers could have their cake and eat it to. The Panamera is almost as big as the Cayenne but can move four adults down the road at speeds of up to 188 miles per hour and accelerate from a standstill to 60 miles per hour in four seconds flat.

Although some Porsche traditionalists would never be caught dead driving a front engine Porsche that has more than two doors, Porsche insists that two trends will sustain these new models. First, a category of Porsche buyers has moved into life stages that have them facing inescapable needs; they need to haul more people and stuff. This not only applies to certain regular Porsche buyers, but Porsche is again seeing buyers enter its dealerships that otherwise wouldn’t have. Only this time, the price points of the new vehicles are drawing only the well heeled, allowing Porsche to maintain its exclusivity. These buyers also seem to fit the achiever profile of regular Porsche buyers.

The second trend is the growth of emerging economies. Whereas the United States has long been the world’s biggest consumer of Porsches, the company expects China to become its biggest customer before too long. Twenty years ago, the United States accounted for about 50 percent of Porsche’s worldwide sales. Now, it accounts for only about 26 percent. In China, many people who can afford to buy a car as expensive as a Porsche also hire a chauffeur. The Cayenne and the Panamera are perfect for those who want to be driven around in style but who may also want to make a quick getaway if necessary.

The most recent economic downturn has brought down the sales of just about every maker of premium automobiles. When times are tough, buying a car like a Porsche is the ultimate deferrable purchase. But as this downturn turns back up, Porsche is better poised than it has ever been to meet the needs of its customer base. It is also in better shape than ever to maintain its brand image with the Porsche faithful and with others as well. Sure, understanding Porsche buyers is still a difficult task. But a former CEO of Porsche summed it up this way: “If you really want to understand our customers, you have to understand the phrase, ‘If I were going to be a car, I’d be a Porsche.’

4 Questions – Answer all Total Marks: 25

1.   Critically analyze the relevant Porters generic strategies and the growth strategies Porsche is pursuing , justify your answer by referring to the case study (5 marks)

2. Marketing had evolved through five stages, out of this five which concept or concepts is Porsche following , justify your answer. Do you agree with this why or why not (5 marks)

3. You are asked to develop a Mission statement and four Marketing objectives for Porsche for the next ten years (2021- 2025) . Draft an ideal mission statement and outline your four marketing objectives (5 marks

4. Identify , explain and justify the main consumer behaviour characteristics that influences the Porche buyers.

COMPANY Case: Porsche: Guarding the Old While Bringing in the New

Porsche (pronounced Porsh-uh) is a unique company. It has always been a niche brand that makes cars for a small and distinctive segment of automobile buyers. In 2009, Porsche sold only 27,717 cars in the five models it sells in the United States. Honda sold about 10 times that many Accords alone. But Porsche owners are as rare as their vehicles. For that reason, top managers at Porsche spend a great deal of time thinking about customers. They want to know who their customers are, what they think, and how they feel. They want to know why they buy a Porsche rather then a Jaguar, a Ferrari, or a big Mercedes coupe. These are challenging questions to answer; even Porsche owners themselves don’t know exactly what motivates their buying. But given Porsche’s low volume and the increasingly fragmented auto market, it is imperative that management understands its customers and what gets their motors running.

Since its early days, Porsche has appealed to a very narrow segment of financially successful people. These are achievers who see themselves as entrepreneurial, even if they work for a corporation. They set very high goals for themselves and then work doggedly to meet them. And they expect no less from the clothes they wear, the restaurants they go to, or the cars they drive. These individuals see themselves not as a part of the regular world but as exceptions to it. They buy Porsches because the car mirrors their self-image; it stands for the things owners like to see in themselves and their lives.

Most of us buy what Porsche executives call utility vehicles. That is, we buy cars primarily to go to work, transport children, and run errands. Because we use our cars to accomplish these daily tasks, we base buying decisions on features such as price, size, fuel economy, and other practical considerations. But Porsche is more than a utility car. Its owners see it as a car to be enjoyed, not just used. Most Porsche buyers are not moved by information but by feelings. A Porsche is like a piece of clothing—something the owner “wears” and is seen in. They develop a personal relationship with their cars, one that has more to do with the way the car sounds, vibrates, and feels, rather than the how many cup holders it has or how much cargo it can hold in the trunk. They admire their Porsche because it is a competent performance machine without being flashy or phony.

People buy Porsches because they enjoy driving. If all they needed was something to get them from point A to point B, they could find something much less expensive. And while many Porsche owners are car enthusiasts, some of them are not. One successful businesswoman and owner of a high-end Porsche said, “When I drive this car to the high school to pick up my daughter, I end up with five youngsters in the car. If I drive any other car, I can’t even find her; she doesn’t want to come home.”

For its first few decades, Porsche AG lived by the philosophy of Ferry Porsche, Ferdinand’s son. Ferry created the Porsche 356 because no one else made a car like he wanted. But as the years rolled on, Porsche management became concerned with a significant issue: Were there enough Porsche buyers to keep the company afloat? Granted, the company never had illusions of churning out the numbers of a Chevrolet or a Toyota. But to fund innovation, even a niche manufacturer has to grow a little. And Porsche began to worry that the quirky nature of the people who buy Porsches might just run out on them.

This led Porsche to extend its brand outside the box. In the early 1970s, Porsche introduced the 914, a square-ish, mid-engine, two-seater that was much cheaper than the 911. This meant that a different class of people could afford a Porsche. It was no surprise that the 914 became Porsche’s top selling model. By the late 1970s, Porsche replaced the 914 with a hatchback coupe that had something no other regular Porsche model had ever had: an engine in the front. At less than $20,000, more than $10,000 less than the 911, the 924 and later 944 models were once again Porsche’s pitch to affordability. At one point, Porsche increased its sales goal by nearly 50 percent to 60,000 cars a year.

Although these cars were in many respects sales successes, the Porsche faithful cried foul. They considered these entry-level models to be cheap and underperforming. Most loyalists never really accepted these models as “real” Porsches. In fact, they were not at all happy that they had to share their brand with a customer who didn’t fit the Porsche owner profile. They were turned off by what they saw as a corporate strategy that had focused on mass over class marketing. This tarnished image was compounded by the fact that Nissan, Toyota, BMW, and other car manufacturers had ramped up high-end sports car offerings, creating some fierce competition. In fact, both the Datsun 280-ZX and the Toyota Supra were not only cheaper than Porsche’s 944 but also faster. A struggling economy threw more sand in Porsche’s tank. By 1990, Porsche sales had plummeted, and the company flirted with bankruptcy.

But Porsche wasn’t going down without a fight. It quickly recognized the error of its ways and halted production of the entry-level models. It rebuilt its damaged image by revamping its higher-end model lines with more race-bred technology. In an effort to regain rapport with customers, Porsche once again targeted the high end of the market in both price and performance. It set modest sales goals and decided that moderate growth with higher margins would be more profitable in the long term. Thus, the company set out to make one less Porsche than the public demanded. According to one executive, “We’re not looking for volume; we’re searching for exclusivity.”

Porsche’s efforts had the desired effect. By the late 1990s, the brand was once again favored by the same type of achiever who had so deeply loved the car for decades. The cars were once again exclusive. And the company was once again profitable. But by the early 2000s, Porsche management was again asking itself a familiar question: To have a sustainable future, could Porsche rely on only the Porsche faithful? According to then CEO Wendelin Wiedeking, “For Porsche to remain independent, it can’t be dependent on the most fickle segment in the market. We don’t want to become just a marketing department of some giant. We have to make sure we’re profitable enough to pay for future development ourselves.”

So in 2002, Porsche did the unthinkable. It became one of the last car companies to jump into the insatiable sport utility vehicle (SUV) market. At roughly 5,000 pounds, the new Porsche Cayenne was heavier than anything that Porsche had ever made, with the exception of some prototype tanks it made during WWII. Once again, the new model featured an engine up front. And it was the first Porsche to ever be equipped with seatbelts for five. As news spread about the car’s development, howls could be heard from Porsche’s customer base.

But this time, Porsche did not seem too concerned that the loyalists would be put off. Could it be that the company had already forgotten what happened the last time it deviated from the mold? After driving one of the first Cayenne’s off the assembly line, one journalist stated, “A day at the wheel of the 444 horsepower Cayenne Turbo leaves two overwhelming impressions. First, the Cayenne doesn’t behave or feel like an SUV, and second, it drives like a Porsche.” This was no entry-level car. Porsche had created a two-and-a-half ton beast that could accelerate to 60 miles per hour in just over five seconds, corner like it was on rails, and hit 165 miles per hour, all while coddling five adults in sumptuous leather seats with almost no wind noise from the outside world. On top of that, it could keep up with a Land Rover when the pavement ended. Indeed, Porsche had created the Porsche of SUVs.

Last year, Porsche upped the ante one more time. It unveiled another large vehicle. But this time, it was a low-slung, five-door luxury sedan. The Porsche faithful and the automotive press again gasped in disbelief. But by the time the Panamera hit the pavement, Porsche had proven once again that Porsche customers could have their cake and eat it to. The Panamera is almost as big as the Cayenne but can move four adults down the road at speeds of up to 188 miles per hour and accelerate from a standstill to 60 miles per hour in four seconds flat.

Although some Porsche traditionalists would never be caught dead driving a front engine Porsche that has more than two doors, Porsche insists that two trends will sustain these new models. First, a category of Porsche buyers has moved into life stages that have them facing inescapable needs; they need to haul more people and stuff. This not only applies to certain regular Porsche buyers, but Porsche is again seeing buyers enter its dealerships that otherwise wouldn’t have. Only this time, the price points of the new vehicles are drawing only the well heeled, allowing Porsche to maintain its exclusivity. These buyers also seem to fit the achiever profile of regular Porsche buyers.

The second trend is the growth of emerging economies. Whereas the United States has long been the world’s biggest consumer of Porsches, the company expects China to become its biggest customer before too long. Twenty years ago, the United States accounted for about 50 percent of Porsche’s worldwide sales. Now, it accounts for only about 26 percent. In China, many people who can afford to buy a car as expensive as a Porsche also hire a chauffeur. The Cayenne and the Panamera are perfect for those who want to be driven around in style but who may also want to make a quick getaway if necessary.

The most recent economic downturn has brought down the sales of just about every maker of premium automobiles. When times are tough, buying a car like a Porsche is the ultimate deferrable purchase. But as this downturn turns back up, Porsche is better poised than it has ever been to meet the needs of its customer base. It is also in better shape than ever to maintain its brand image with the Porsche faithful and with others as well. Sure, understanding Porsche buyers is still a difficult task. But a former CEO of Porsche summed it up this way: “If you really want to understand our customers, you have to understand the phrase, ‘If I were going to be a car, I’d be a Porsche.’

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4 Questions – Answer all Total Marks: 25

1.   Critically analyze the relevant Porters generic strategies and the growth strategies Porsche is pursuing , justify your answer by referring to the case study (5 marks)

2. Marketing had evolved through five stages, out of this five which concept or concepts is Porsche following , justify your answer. Do you agree with this why or why not (5 marks)

3. You are asked to develop a Mission statement and four Marketing objectives for Porsche for the next ten years (2021- 2025) . Draft an ideal mission statement and outline your four marketing objectives (5 marks

4. Identify , explain and justify the main consumer behaviour characteristics that influences the Porche buyers.

After reviewing the case for Nature Bros. Ltd., answer the following questions. After reviewing this material, make a list of additional information which should be supplied to support the sales projections. Comment on objectives: Are they reasonable, optimistic, or conservative? What marketing mix would best support this growth rate? Evaluate the information supplied regarding a new product development and physical assets in light of the pro forma income statements Morris developed. Is the capital sought appropriate for the circumstances? If more information is needed, state what it is and how it could be obtained. What sources should Morris approach for this amount of capital? Based on the current balance sheet, how much equity should he give up for the investment?

NATURE BROS. LTD. BACKGROUND Thanksgiving Day 1993 is the day that Dale Morris remembers as the “public debut” of his creation, a new seasoned salt mix. Although he was a salesman by temperament and career, his hobby was cooking. Having experimented with both traditional home cooking and more exotic gourmet cooking, Morris had developed an appreciation for many herbs and spices. He had also done a lot of reading about the health hazards of the typical American diet. When his mother learned that she had high blood pressure, Morris decided it was time for some action. He created a low-salt seasoning mix, based on a nutritive yeast extract, that could be used to replace salt in most cases. This Thanksgiving dinner, prepared for 25 family members and friends, would be his final testing ground. He used his mix in all the recipes except the pumpkin pie—everything from the turkey and dressing to the vegetables and even the rolls. As the meal progressed, the verdict was unanimously in favor of his secret ingredient, although he had a hard time convincing them that it was his invention and was only 10 percent salt. Everyone wanted a sample to try at home. Over the next two years, Morris perfected his product. Experiments in new uses led to “tasting parties” for friends and neighbors, and the holiday season found the Morris kitchen transformed into a miniature assembly line producing gift-wrapped bottles of the mix. Morris became something of a celebrity in his small town, but it wasn’t until the Ladies’ Mission Society at his church approached him with the idea of allowing them to sell his mix as a fund-raiser that he realized the possibilities of his creation. His kitchen-scale operation could support the sales effort of the church women for a short time, but if he wanted to take advantage of a truly marketable product, he would have to make other arrangements. Morris agreed to “test-market” his product through the church group while he looked for ways to expand and commercialize his operation. The charity sale was a huge success (the best the women had ever experienced), and, based on this success, Morris moved to create his own company. Naming his product “Nature Bros. Old Fashioned Seasoning,” he incorporated the company in 1995 as Nature Bros. Ltd. Morris used most of his savings to develop and register the trademarks, for packaging, and for product displays. He researched the cost of manufacturing and bottling his product in large quantities and concluded that he just didn’t have the cash to get started. His first attempts to raise money, in the form of a personal bank loan, were unsuccessful, and he was forced to abandon the project. For several years, he concentrated on his career, becoming a regional vice president of the insurance company he worked for. He continued to make “Nature Bros. Seasoning” in small batches, mainly for his mother and business associates. These users eventually enabled Morris to get financial support for his company. To raise $65,000 to lease manufacturing equipment and building space, he sold stock to his mother and to two other regional vice presidents of the insurance company. For their contributions, each became the owner of 15 percent of Nature Bros. Ltd. The process of getting the product to the retail market began in August 2002, and the first grocery store sales started in March 2003. The initial marketing plan was fairly simple—to get the product in the hands of the consumer. Morris personally visited the managers of individual supermarkets, both chains and independents, and convinced many to allow a tasting demonstration booth to be set up in their stores. These demonstrations proved as popular as the first Thanksgiving dinner trial nearly 10 years earlier. Dale Morris’s product was a hit, and in a short time, he was able to contract with food brokerage firms to place his product in stores in a 10-state region.

PRESENT SITUATION As indicated in the balance sheet (see Exhibit 1), more capital is needed to support the current markets and expand both markets and products. Two new products are being developed: a salt-free version of the original product and an MSG-based flavor enhancer that will compete with Accent. Morris worked with a business consultant in drawing up a business plan to describe his company, its future growth, and its capital needs. OVERALL PROJECTIONS The first section discusses the objectives and sales projections for 2004 and 2005 (Exhibits 2 and 3). The resulting pro forma income statements for 2004 to 2005 are in Exhibits 4 and 5. 2004

OBJECTIVES The company’s objectives for 2004 are to stabilize its existing markets and to achieve a 5 percent market share in the category of seasoned salt, a 10 percent market share in salt substitutes, and a 5 percent market share in MSG products. Although the original product contains less than 10 percent salt, the company has developed a salt-free product to compete with other such products. The dollar volume for the seasoned salt category in the seven markets the company is in will amount to $7,931,889 in 2004. In 2003, sales of the company in the Oklahoma market were 5.5 percent of the total sales for that market for the eight-month period that the company was operational. Since these sales were accomplished with absolutely no advertising, the company can be even more successful in the future in all seven current markets with a fully developed and funded advertising campaign. The marketing approach will include advertisements in the print media, with ads on “food day” offering cents-off coupons. This program will take place in all seven markets, while stores will continue to use floor displays for demonstrations. Nearly 100 percent warehouse penetration should be achieved in 2004 in these markets. The goal for the category of salt substitutes for 2004 is 10 percent of the market share. This larger market share can be achieved since there are only a few competitors, Mrs. Dash, AMBI Inc. with Cordia Salt Alternative, and RCN with No Salt. The company’s product is superior in all respects and has a retail price advantage of 10 to 20 cents per can. In addition, the company’s product is much more versatile than competitors’ products. Aggressive marketing and advertising will emphasize the tremendous versatility of usage as well as the great taste and health benefits of the product. The informal consumer surveys at demonstrations indicated that consumers prefer Nature Bros. to competitors’ products by a wide margin. A new product, which is already developed, will be added during this time. Called “Enhance,” it too is a dry-mixed, non cooked, low-overhead, high-profit food product. Its category of MSG products has a dollar volume of $1,957,090 in these markets. This category includes only one main competitor, Accent, made by Pet Inc. Accent has not been heavily advertised, and it is a one-line product with little initial name recognition. The company’s new product will have a 10- to 20-cent per can retail price advantage to help achieve a 5 percent share of this category. In summary, 2004 will be spent solidifying the company’s present market positions. 2005

OBJECTIVES The company intends to open eight new markets in 2005 that include Los Angeles, Phoenix, Portland, Sacramento, Salt Lake City, San Francisco, Seattle, and Spokane. These new markets make up 17.1 percent of grocery store sales, according to the Progressive Grocer’s Marketing Guidebook, the industry standard. In the category of seasoned salt, these markets have a dollar volume of $15,218,886 a year. Salt substitutes sell at a volume of $10,064,028, and the MSG category $3,285,528. With proper advertising, the company’s shares forecast in our current markets will also be realized. A 5 percent penetration of the seasoned salt category is a very conservative projection considering the strong health consciousness of the West Coast. The products will be introduced in shippers, used in store demonstrations, and supported with media advertising to achieve at least a 5 percent market share. This would result in sales of $760,943 in that category. A 10 percent penetration is targeted in the salt-free category. Using aggressive marketing, price advantage at retail, and better packaging, the company will be well positioned against the lower-quality products of our competitors. With the dollar volume of this category at $10,064,028, a conservative estimate of our share would be $1,006,420. In the category of MSG, a 5 percent share will be achieved. The main competitor in this category does very little advertising. Again, attractive packaging, aggressive marketing, high quality, and a retail price advantage of 30–40 cents per unit will enable the company to realize a 5 percent market penetration. This share of the West Coast markets will generate sales of $164,276. Total sales of all three products in these eight new markets will be around $1,931,639. The company plans to continue to solidify the markets previously established through the use of coupons, co-op advertising, quality promotions, and word-of-mouth advertising. Market share in these original markets should increase by another 2.5 percent in 2005. The dollar volume of the seasoned salt category in 2005 should be around $9,522,472, and our market share at 7.5 percent would amount to $714,185. The dollar volume for the salt substitute category would be $6,220,748, giving sales at 12.5 percent of $775,593. In the MSG category, a 7.5 percent market share of the $2,055,864 volume would give sales of $154,189. The company’s total sales for the existing markets in 2005 will be in excess of $1,643,967. The totals for 2005 sales of Nature Bros. Old Fashioned Seasoning will be $1,475,128. Nature Bros. Salt-Free volume should be $1,784,013. The sales of Enhance, our MSG product, should be $318,465. This will give us a total sales volume of $3,557,606 for all three products in 2005.

FINANCIAL NEEDS AND PROJECTIONS In this plan, Morris indicated a need for $100,000 equity infusion to expand sales, increase markets, and add new products. The money would be used to secure warehouse stocking space, do cooperative print advertising, give point-of-purchase display allowances, and pay operating expenses.

NEW PRODUCT DEVELOPMENT The company plans to continue an ongoing research and development program to introduce new and winning products. Four products are already developed that will be highly marketable and easily produced. Personnel are dedicated to building a large and profitable company and attracting quality brokers. The next new product targets a different market segment but can be brought online for about $25,000 by using our existing machinery, types of containers, and display pieces. A highly respected broker felt that the product would be a big success. The broker previously represented the only major producer of a similar product, Pet Inc., which had sales of $4.36 million in 1985. The company can achieve at least a 5 percent market share with this product in the first year. The company’s product will be at least equal in quality and offer a 17 percent price advantage to the consumer, while still making an excellent profit. Another new product would require slightly different equipment. This product would be initially produced by a private-label manufacturer. The product would be established before any major machinery was purchased. Many large companies use private-label manufacturers, or co-packers, as they are called in the trade. Consumer tests at demonstrations and food shows have indicated that each of these products will be strong. PLANT AND EQUIPMENT The company’s plant is located in a nearly new metal building in Rose, Oklahoma. The lease on the building limits payments to no more than $300 per month for the next seven years. The new computer-controlled filling equipment will be paid off in two months, and the seaming equipment is leased from the company’s container manufacturer for only $1 per year. The company has the capability of producing about 300,000 units a month with an additional $15,000 investment for an automatic conveyer system and a bigger product mixer. This production level would require two additional plant personnel, working one shift with no overtime. The company could double this production if needed with the addition of another shift. One of the main advantages of the company’s business is the very small overhead required to produce the products. The company can generate enough product to reach sales of approximately $4 million a year while maintaining a production payroll of only $37,000 a year. To meet the previously outlined production goals, the company will need to purchase another filling machine in 2005. This machine will be capable of filling two cans at once with an overall speed of 75 cans per minute, which would increase capacity to 720,000 units a month. A higher-speed seaming machine will also need to be purchased. The filling machine would cost approximately $22,000; a rebuilt seamer would cost $25,000, while a new one would cost $50,000. With the addition of these two machines, the company would have a capacity of 1,020,000 units per month on one shift. By 2006, the company will have to decide whether to continue the lease or buy the property where located and expand the facilities. The property has plenty of land for expansion for the next five years. The company has the flexibility to produce other types of products with the same equipment and can react quickly to changes in customer preferences and modify its production line to meet such demands as needed.

Bianca Pascoe has provided the following statement as background and advice in terms of the recommendations you can provide to her organisation.

The number of goods sold by “The Local” is in excess of one million per year with deliveries being about

40% of that figure. The amount of goods sold has decreased marginally in recent years. “The Local” is wholly owned but Bianca and her staff have a standard of living to

maintain so there is some pressure to raise overall sales whilst keeping costs, particularly

delivery costs, in check.   

Bianca continues: It is your job to use the sample data from last year’s overall sales to do

some statistical analyses and interpretations, investigating what the current overall sales of

the business are and providing insights that will guide future business decisions. She

specifically asks: Can you put together a statistical report about the overall sales and

deliveries of “The Local”?

1. Provide a table in which you summarise complete descriptive statistics on ‘Overall sales’

and ‘deliveries’ of the goods represented by your sample data set (including but NOT limited to measures

of central location, measures of variability, etc.). What insights do these statistics provide? Additionally,

please state the coefficient of variation for ‘sales’ and ‘deliveries’ for the entire dataset. Comment on the

results you observe.  

2. Prepare frequency distributions (remember to use Sturge’s rule and create the appropriate

similarly sized classes) and accompanying histograms and ogives for these quantitative sets. Think about and provide additional analyses/diagrams that may be of interest. What insights do these

statistics provide?  

3. Analyse ‘Overall sales’ and ‘deliveries’ for any relationship, providing a scatter plot.  

Comment on the existence of a relationship, how you came to that conclusion, if a

relationship exists further comment on its strength and, in any case, what this means in terms of managing the retail outlet.  

4. Develop cross tabulation or contingency tables to provide information on:  

a. Overall sales and fat/sugar content, please only analyse those goods that have items that

exhibit Regular and Low Fat/Sugar values.  

b. Item Type and deliveries. Remember quantitative values must be presented as classes

in cross tabulation or contingency tables. Be Careful to explain any patterns or anomalies

you find in your tables.  

5. Prepare a pie chart to graphically represent the proportion of overall sales by each item

type (create classes of overall sales for this purpose). Interpret the graph comment on any

issues you perceive.