Page 570 - Business Principles and Management

C HAPTER 20 A SSESSMENT

CASE 20-2: Appliance Marketing Mix
The Willomette Company manufactures small household appliances, such
as toasters, blenders, and food processors. Ron Willomette started the
company 20 years ago as a sole proprietorship. Initially, Mr. Willomette
reconditioned and resold used appliances that other companies had
manufactured. Now he has incorporated the business and has two manu-
facturing plants that produce his own brand of appliances. The Willomette
Company has a full line of over 50 models of products that are sold
throughout the United States.
Willomette appliances are higher priced than many other national
brands and imported products. They are usually sold through smaller
non-chain-store outlets. Willomette usually advertises in kitchen design
magazines and other media that cater to higher-income consumers.
In the past five years, competition from foreign companies in the small-
appliance market has increased. The competition hasn’t hurt Willomette
yet, but company executives don’t want to wait until sales and profits start
to decline before acting. One vice president recommended that Willomette
begin a program of international marketing. Based on the traveling she has
done, she believes that the demand for Willomette’s appliances would be
very strong in Europe and several countries in Africa and South America.
Because there has been strong customer acceptance of the company’s prod-
ucts in the United States, she believes Willomette should have no trouble
selling the same products in other countries.

THINK CRITICALLY
1. Which stage of the product life cycle do you believe Willomette is in,
based on the case information? Why?
2. In which consumer product category do you believe consumers would
classify Willomette’s products, based on the case information? Why?
3. Describe the elements of Willomette’s marketing mix.
4. Describe the target market that you believe might be attracted to
Willomette appliances.
5. Which of the major marketing activities would Willomette have to
perform to sell its products in international markets?
6. How does the marketing concept relate to the decision Willomette
must make about entering international markets?
7. Do you agree that products that are successful in the United States
will also be successful in other countries? Explain.
8. What would Willomette have to do if it wanted to increase the
demand for its products in the United States by selling industrial
products?

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