This activity is important because companies introducing a new product face a decision critical to its long-term success: How should the firm position its new product such that prospective buyers view it as desirable as compared to those products offered by its competitors? For the purpose of the activity, imagine that you are a marketing manager working for a startup golf equipment company that is introducing a new line of golf clubs. The company must decide how it wants to enter the market and, more importantly, how it will position this new line of clubs. The goal of this exercise is to demonstrate your understanding of the different types of product and promotion strategies firms utilize as part of their global marketing programs.

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.