You are on page 1of 50

Strategic Marketing 10th Edition

Cravens Solutions Manual


Visit to download the full and correct content document: https://testbankdeal.com/dow
nload/strategic-marketing-10th-edition-cravens-solutions-manual/
Part IV – Internet Application Guidelines

PART IV

INTERNET APPLICATION GUIDELINES


CHAPTER 1

New Challenges for Market-Driven Strategy

A. Visit the websites of fashion clothing companies Zara (www.zara.com) and H&M
(www.hm.com). What do these sites tell you about the targeting and positioning strategies
being pursued by these companies?

Interestingly, while they are apparently quite similar fashion apparel retailers, examination of their
strategies suggest some interesting differences in their strategies. The two companies share an
increasingly global perspective in their international chains of stores, considerable supply chain
strength and a focus on “fast fashion” at low cost. However, Zara apparently targets a slightly older
and more fashion conscious consumer, while H&M targets a younger fashion market. Both firms
have prospered by maintaining this positioning relative to each other. However, as both firms
expand there is a risk that they will end up in head-on competition for all younger fashion buyers.
The issue will then become which firm has the greater appeal across age-groups and fashion-
orientation.

B. What does Google’s website (www.Google.com) tell us about the company’s ability to
collect information about individuals and businesses? What privacy issues arise, and how can
they be resolved?

It is clear from Google’s own descriptions of its operations and more general commentary on the
Web that the search engine business has the capacity to store search behavior characteristics for all
Google users. It is the patterns in those search behaviors that provide the ability to target online
advertising and other communications to relevant buyers. However, the business is also surrounded
by some controversy regarding whether it is appropriate to collect and store information which is
revealing of the behavior of individuals and businesses and which they may prefer not to have
collected, stored and used to identify them for commercial purposes. Indeed, Google has itself
imposed some limitations on the time for which it will retain such data. However, considerable
concerns also surround the ability of Google’s processes to share information about online behavior
with others. Information sharing for commercial uses (online advertising and promotion) may be
broadly acceptable. However, sharing information regarding individual behavior with government
agencies or law enforcement may pose ethical dilemmas for many people—particularly, for
example, if information is shared with government agencies in non-democratic states. Such
dilemmas can only be resolved by Google itself, as it responds to the concerns of society.

C. Review the McKinsey & Co. website. Are there indications that the consulting company is
market-oriented?

The website is www.mckinsey.com. There are several indications of this company’s efforts to
provide customers with superior value. For example, customer focus is evidenced by the extensive
use of reference sites (successful) projects, to reassure users of the firm’s credibility. The site

Part IV-1
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

provides much information about leading consultants. Two major concerns of consultancy clients
relate to the firm’s experience and the quality of its people. The company’s mission is to help its
clients make distinctive’ lasting, and substantial improvements in their performance and to build a
great firm that attracts, develops, excites, and retains exceptional people. The projects described on
the site emphasize the cross-functional nature of McKinsey projects. The site provides an extensive
intelligence and news service for clients. While it is not possible to exactly evaluate McKinsey’s
cross-functional working and their competitive intelligence capabilities, the website is strongly
suggestive of a total business perspective that focuses on offering superior value to clients.

Part IV-2
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

CHAPTER 2

Markets and Competitive Space

A. Visit the website of Project 2000 (www2000.ogsm.Vanderbilt.edu), founded at the Owen


Graduate School of Vanderbilt University to determine if the Web provides useful
information for market and competitor analysis. Describe the various types of market
information available on the Web.

This site provides numerous examples of the new types of research and market tests which are
becoming available to evaluate the effectiveness of alternative Web strategies and website
developments. The current phase of this innovative program includes a large online consumer
panel, a virtual laboratory, a demonstration e-commerce site, and the analysis of clickstream data
sets of Web navigation behavior, as part of the researchers’ eLab work. In addition, the eLab offers
an extensive list of research papers available for download. This site is an exciting demonstration
of the research challenges and resources faced by Web-based marketing strategies.
More generally, it is clear that the Web is incredibly rich in information about markets and
competitors, much available free of cost. Students can list types and examples if marketing
information is available. The list might include:
• Competitors’ websites—choose any market and compare several of the market leaders in
strategy and performance
• International markets—go to the CIA website https://www.cia.gov/library/publications/the-
world-factbook/index.html for up-to-date economic and market data on countries throughout
the world
• Market characteristics—select a product-market and search it through Google to uncover
press and analyst commentaries.

B. Visit Hoover’s website (www.hoovers.com). Investigate the different options for


competitive and market analysis provided. How can these online tools best be utilized? What
limitations apply?

Hoover’s online portal affords its paying users many options to conduct competitive, industry and
market analysis. Information is obtainable on most major companies in the world, including their
subsidiaries. Financial data is available for quarterly and annual performances. In addition, one can
obtain benchmark information on each company’s competitors and learn about the industry.
Investment reports published by the major investment houses of the world can be retrieved as well
as information on products and operations, key people, news and other items of interest.
The information provided on www.hoovers.com is useful for a beginning understanding of a
company to be analyzed. In many cases this might suffice, especially when one only needs a high
level understanding of the business, industry, or market. However, in other instances the
information has to be supplemented with data retrieved from other databases, Securities and
Exchange Commission (SEC) filings, information from corporate intelligence findings etc.
Nevertheless, www.hoovers.com is a valuable starting point for any type analysis on companies,
industries and markets.

Part IV-3
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

C. Johnson & Johnson is currently competitive in the surgical stent market (a device inserted
surgically in an artery to enable blood flow). Perform an Internet analysis of the stent market
indicating past and current unit sales levels and forecasts for 2006-2010.

The stent market consists of the regular stent and the newer drug-coated version. Initially, sales
shifted toward drug-coated stents but the publicity associated with potential risks with the drug-
coated version had negative impacts on sales of Boston Scientific Corp. and Johnson & Johnson.
One study based a two-year analysis of 2,300 patients in 14 countries stimulated concerns about the
safety of drug-coated stents (see “Drug-Coated Stents are Questioned,” WSJ, 09/05/07, D7;
http://online.wsj.com/article/SB118895132186017540.html). Interestingly, a Swedish study of
35,000 patients found no differences in the risks for coated and regular stents. Boston Scientific’s
sales in the first quarter of 2007 were $468 million, down 26% from Q1 2006 (see Value Line
Investment Survey). Students should separate forecasts into regular stents and drug-coated stents. It
is also important to forecast U.S. domestic sales and international sales. Sales in Europe and Japan
are substantial.

D. Samsung Electronics is one of the top producers of cell phones. Draw from Internet
sources to prepare an analysis of the global cell phone market.

The top three global producers of cell phones in 2010 were Nokia, Samsung, and LG. Nokia’s
market share was around 28% world wide in 2010. China was Nokia’s top market, followed by
India, Germany, Russia, and United States. Nokia’s net sales in 2010 were 53 billion USD.
Industry sources should have available data on industry sales and growth projections. Nokia’s
website has company sales data, which can be projected to industry sales using the market share
estimate (http://www.nokia.com/global/about-nokia/investors/financials/financials/).
The students may visit the following link to get Samsung’s performance:
http://www.samsung.com/in/aboutsamsung/corporateprofile/ourperformance/samsungprofile.html

Part IV-4
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

CHAPTER 3

Strategic Market Segmentation

A. Explore several of the following web sites:


www.adquest.com
www.autosite.com
www.sidewalk.com
www.monster.com
www.realtor.com
How does the information available from these sites affect our traditional concept of market
segmentation? How is the market segmentation process altered by such Internet providers?

The traditional concept of market segmentation, specifically companies gaining vast access to
consumer data and using it as a competitive advantage, may quickly become obsolete. Information
from the Web, specifically from the above sites, is becoming more readily accessible to consumers
and could replace traditional venues such as articles and advertisements in newspapers and
magazines. Whereas information from these traditional sources are presented in one dimensional,
black and white ads, the Internet offers colorful, multimedia, and interactive advertisements. Using
the Internet, customers can more effectively search for goods and services. Sites can be customized
for specific users. Thus, Internet advertisers and companies can gain much information quickly
about customers using their site. They have access to their customers’ unique interests by viewing
which sites they visit most frequently. Because of the ease and speed of use, consumers may prefer
searching for information on the Internet rather than looking through a magazine or newspaper.
For example, www.autosite.com offers to consumers a variety of information concerning the
purchase of a new or used car. The site has pictures of models of different cars, used car reports,
and classifieds built into the site. The site also offers a loan/lease calculation function where
customers can figure out their payments on a new or used car. Consumers have access to book
value reports and advice on owning a car such as repairs, maintenance, insurance quotes, financing,
and warranties. When customers use this site, the company gains information on the customers’
desired product, preferred features, as well as demographic information.
Thus, such Internet marketers alter the traditional market segmentation process. Internet marketers
can gain a larger amount of information than the traditional marketers can in less time. This
eliminates the traditional marketer’s previous competitive advantage. In order to compete with the
Internet, traditional marketers will have to collaborate or partner with Internet marketers to gain
their previous wealth of knowledge.

B. Evaluate the following site for additional ideas and material concerned with market
segmentation and the types of support that can be provided for companies:
www.marketsegmentation.co.uk.

This webpage has been designated a “Cool Site” by the Open Directory because of its clarity and
free downloads. The site provides an extremely pragmatic operational approach to segmentation
developed from a consultancy perspective. It provides a number of pages relating to how to define
markets, market mapping and market segmentation to enhance company strategy and profitability.
The site is also popular because it is possible to download a free presentation on market
segmentation.
This site can achieve two things: it can reinforce the practical issues to be addressed in developing
market segmentation strategies for companies, but it also underlines the growing availability of
resources on the Web to support strategic development in companies and executive education.

Part IV-5
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

CHAPTER 4

Strategic Customer Management: Systems, Ethics, and Social Responsibility

A. Visit the website of SalesForce.com. Based on the information provided discuss how can
SalesForce.com contribute to a company’s CRM.

SalesForce.com has displayed strong revenue growth with $51 million in 2002 to nearly $1 billion
in 2008. It is the leading producer of on-demand CRM services. SalesForce’s business model
provides customers management software over the net which can be used by salespeople. The
service is sold on a subscription basis to companies, enabling them to avoid the high fixed costs of
software development. The Internet information technology contributes to salespeople’s
capabilities. The worldwide services are probably more attractive to smaller and medium-size
companies, providing them CRM software at attractive prices. Of course, the standardized software
does not provide the features of software designed for a company’s specific needs.

B. Visit one of the websites discussed in Exhibit 4.3. Discuss how the website may be useful to
a company in its CRM initiatives.

The brief descriptions in Exhibit 4.3 provide an overview of what each website offers. Another
useful information source is E-Commerce News: CRM Industry News. The service provides
articles and news that should be of interest to professionals and managers involved in CRM
activities. The August 20, 2007 Industry News included an article on “Where Is the Industry
Headed?” Included were interviews with six of the top CRM software firms, including the director
of product marketing at Salesforce.com [www.ecommercetimes.com].

Part IV-6
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

CHAPTER 5

Capabilities for Learning about Customers and Markets

A. Revisit the list of major marketing research agencies in Exhibit 5.3. Visit several of the
websites listed. Examine the major types of information provided both as standardized
services and special study capabilities. List these and identify the ways in which such
resources can impact on marketing decisions.

The purpose of this exercise is to build some familiarity with the resources provided by leading
marketing research agencies both in standardized services—panels, market reports, etc.—and in the
capabilities for undertaking special studies to address particular issues. The exact listing will
depend on which sites are selected, but the tabulation should have the following structure:

Agency Standardized Information Application to Marketing


Services Decisions

Agency Special Study Capabilities Application to Marketing


Decisions

A number of interesting issues are raised about the quality of information in the context of making
strategic decisions rather than just the technical quality of data collected, and the likely costs of
information to be balanced against benefits.

B. Select a well-known company or brand and use a search engine to find Web pages that
include its name. Review the content of blogs and online reviews, and examine the lessons
that the company should learn from this feedback. Discuss the impact of Internet-based
information on traditional ideas about confidentiality and privacy.

This exercise provides the chance for creative trawling through the diverse Web information and
opinion concerning a company and its brands. Results should encompass: performance and news
from the company’s own website; financial analysis from services like Hoovers capsules and other
collation services; up-to-date stories from the financial press and journals; distributors associating
themselves with the company or brand in question; competitive and price comparisons; customer
chat rooms and bulletin boards; and, in some cases even customer pages that criticize the company
or its products—XYXCorpSucks.com and the like. Formal online reviews may be informative, but
blogs are likely to be even more insightful into customer perceptions.

Part IV-7
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

The goal of this exercise is to demonstrate the amazing amount that can be learned about a
company by a simple Web search. There are fewer and fewer hiding places! Reports based on Web
searches can be enormously revealing about companies that may be competitors or potential
alliance partners, or suppliers or major customers. They also underline how much other
organizations can learn about our own company. They frequently dispel many traditional views
about what is confidential in business and about issues of privacy. These last questions can be the
subject of an interesting discussion about changing behavioral standards driven by technological
revolution, contrasted with the possible need to control technology to preserve integrity.

Part IV-8
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

CHAPTER 6

Market Targeting and Strategic Positioning

A. PepsiCo competes in the United States and many other countries. Consider how Pepsi may
utilize maps in analyzing and selecting market targets (see www.nationalgeographic.com).

A large and diverse company such as PepsiCo that operates all around the world needs to carefully
plan and execute its market targeting strategies. A thorough analysis of different population
segments is necessary to determine specifically with whom to communicate and whom to select for
special type promotions and other marketing initiatives designed to best place products and service
offerings in the marketplace. Maps as available online can help to divide a population, nationally or
globally, according to various criteria. For example, the Census data provide information on
household income, racial and ethnical background, education level, and many other categories
useful for the marketer. PepsiCo, over the course of its history has collected valuable information
on customer habits and preferences that it can use to supplement the information retrieved from
demographic data sources, such as the Census. It may know that less affluent population segments
prefer the usage of a special type of carbonated beverage or chip snack and then, utilizing maps,
devise its marketing communication strategies accordingly (e.g. run promotional ads on regional
TV stations where appropriate). Very often, multi-nationals such as PepsiCo, find that people in
different countries desire products to be localized and adapted to their particular tastes. Here, Pepsi
can use country maps to determine where there is overlap (e.g. Germany, Austria, and German-
speaking Switzerland may require a similar product mix) and where there are differences.

B. Go to www.johnsonandjohnson.com and click on “Background” and then on “Principal


Global Operations.” Identify the positioning strategies of the different companies.

The following is adapted from company website


• Consumer
o Major franchises—skin and hair care, sanitary protection, wound care, oral care, baby
care and nonprescription drugs.
o Familiar brand names include JOHNSON’S line of products; NEUTROGENA® skin
and hair care products; adult and children’s TYLENOL® (acetaminophen) and
MOTRIN® (ibuprofen) analgesics; BENECOL®; SPLENDA® Brand Sweetener;
Tampons; STAYFREE® sanitary protection products; REACH® toothbrushes; BAND-
AID® Brand Adhesive Bandages; IMODIUM® A-D antidiarrheal; MYLANTA®
gastrointestinal; MONISTAT® for vaginal yeast infections; HEALTHY WOMAN®
Dietary Supplements; and PEPCID® AC Acid Controller.
• Medical Devices and Diagnostics
o Product lines include surgical implants, instruments, needles and sutures; blood
glucose monitoring systems; wound closure devices; endoscopic instruments;
specialty dressings; orthopedic products for joint repair and replacement and for
correcting spinal deformities; contact lenses; clinical chemistry systems; medical
devices, including cardiovascular monitoring and vascular access products;
intravenous catheters and shunts; coronary and biliary stents; diagnostics used in
physicians’ offices and laboratories for identification of diseases such as hepatitis C.
o Well-known brands include ACUVUE® Disposable Contact Lens; PROLENE®
sutures; ENDOPATH® Trocars; ONE TOUCH® PROFILE® blood glucose monitor;
PROTECTIV® I.V. Catheters; P.F.C.® Sigma Knee System; PALMAZ-SCHATZ®

Part IV-9
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

Balloon-Expandable Stent and the S.M.A.R.T.™ stent, a self-expandable, crush-


recoverable nitinol stent.
• Pharmaceutical
o Development of products for family planning; psychiatry, mental illness and diseases
of the nervous system; gastroenterology; oncology; immunotherapy; cardiovascular
disease; dermatology; pain management; allergy; antifungals; antihistamines; anti-
infectives; and antiparasitic drugs; and biotechnology-derived products.
o Well-known brands include PROCRIT® for the treatment of Anemia; SPORANOX®
antifungal; RISPERDAL® antipsychotic for schizophrenia; LEVAQUIN® anti-
infective; ULTRAM® analgesic; NIZORAL® antifungal; RETIN-A MICRO® acne
treatment; REMICADE® for treating Crohn’s Disease and Rheumatoid Arthritis;
ORTHO-NOVUM® group of oral contraceptives; and ORTHOCLONE® OKT-3, for
kidney, liver and heart transplant rejection.

C. Go to www.mcdonalds.com and analyze McDonald’s positioning initiatives and discuss


important positioning issues for McDonalds.

In 2007, McDonalds’ positioning initiatives in the U.S. included a few new/modified products,
advertising and sales promotion, and Internet initiatives. Price was not being used as an active
competitive component, although specials such as $1.00 hamburgers were offered. In 2003
McDonald’s launched major positioning initiatives designed to strengthen consumers’ brand
preferences. Advertising and sales promotion played a key role in moving the fast-food chain
toward higher sales and profits. The product SnackWrap was also a contributor as well as expanded
breakfast products.
Important positioning issues that are relevant to McDonald’s in the decade ahead include:
• Product strategy changes.
• Possible sale of Boston Market.
• Brand building initiatives.
• International expansion.
• Increasing gasoline prices for customers.

D. Based on the information available at www.Cisco.com describe Cisco Systems positioning


strategy.

Cisco Systems is the leading supplier of high-performance networking products for linking local-
area and wide-area computer systems networks. Sales were expected to reach $39 billion in 2008
and profits were strong. Product strategy is a core positioning component for Cisco’s targeting of
its business customers. The large business-to-business salesforce is also a key positioning
component. Sales to phone companies are essential to Cisco and industry consolidation has
presented challenges. Innovation relevant to the phone companies has been emphasized.

Part IV-10
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

CHAPTER 7

Strategic Relationships

A. Visit the website www.alliancestrategy.com and review the presentations and material
available at the site. Summarize what factors should be considered in making alliances
between organizations effective.

This site provides an extensive array of supplementary materials concerning the effectiveness of
strategic alliances from numerous sources. There are a variety of downloads—articles, reports and
presentations; an up-to-date news service around prominent alliances; web-cast seminars on
alliances issues, and descriptions of consulting projects completed in the alliance strategy area.
These resources provide a basis for developing a view of the rationale for alliances (market,
resource, capabilities or technology access, etc.) and the commonest problems faced in making
alliances effective (common interests, balance, liaison mechanisms, control measures, etc.)

B. Go to the investor information and company history on www.amazon.com. Identify the


evolving network of strategic relationships with customers, suppliers, and collaborators both
on the Web and with conventional organizations. Which of these relationships are the most
important to Amazon?

There are many interesting elements in the Amazon.com business model, but one of the most
critical is the evolving set of relationships that the company must manage as it extends its
operations. At the outset, Amazon set out to sell books without incurring the costs of inventory by
sourcing books from third parties in response to customer orders. The partnering with “Amazon
Associates” involved other websites providing links to Amazon for their site visitors, and receiving
a commission on any sales made by Amazon to those customers. Founder, Jeff Bezos, is quoted as
saying that the future for Amazon is in being a broker who helps people find things on the Web,
and takes a commission from sellers as a reward for putting them in touch with buyers. For
example, zShops and the Amazon Commerce Network allow space for smaller suppliers to sell on
the Amazon.com website, in return for a 1-5% commission on sales. Important new alliances are
extending the business model further.
Considering which of these relationships—which include customers, suppliers, and collaborators—
is the most critical is an interesting debate. Managing suppliers is critical to operating the business
model with minimum inventory costs and effective fulfillment of customer orders. Collaborations
are critical to extending the product range, geographical coverage and building the scale of the
operation. However, the relationship with the customer probably remains the most important on the
grounds that only by maintaining the strength of that relationship can customers be retained and
become the marketplace for the new extended ventures.

Part IV-11
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

CHAPTER 8

Innovation and New-Product Strategy

A. Visit the website of the Gap (www.gap.com). Discuss how the web can be used in new-
product planning for a bricks-and-mortar retailer such as the Gap.

The Gap can utilize the Internet in several ways for its new product planning efforts. Customer
purchases realized through Gap’s online store could be much easier tracked and valuable marketing
data derived from transactions occurring online. New promotional programs and product offerings
could be potentially test-marketed online to gauge consumer interest and adoption before incurring
the expense of launching these initiatives in the brick-and-mortar stores. Mass customization can
be easier realized using specific customer data retrieved from user input and fed to manufacturing
outlets. Direct online customer feedback forms could provide a valuable tool for the Gap to query
the end-consumer.
Moreover, online customers are enabled to specify the design of the clothes they wish to buy from
Gap. Here the company has the opportunity to use mass customization technology in order to
personalize clothing for its customers. Further, the Internet allows Gap to announce new product
innovations faster than through any other medium. Customers can essentially be included in the
idea generation process for new products through online panels and the like.

B. Virgin Group Ltd. is an interesting corporate conglomerate headed by British tycoon,


Richard C.N. Branson. Visit Virgin.com and develop a critical analysis of Virgin’s new-
product strategy of launching a portfolio of online businesses.

Virgin offline as well as online sticks its name on virtually any conceivable enterprise. The
Virgin.com website merely serves as a portal for several of the existing businesses under the Virgin
umbrella. Virgin’s online businesses are poised to support the company’s brick-and-mortar
ventures by allowing customers easier access and the comfort of being able to conduct their
business at home. However, just as with Virgin’s myriad of ‘physical undertakings’, the online
world of Virgin is beginning to look a bit too cluttered and the company might be in danger of
losing its focus. While it is commendable to offer one’s clientele a wide variety of products and
services a concentration on what one does best has still often proven superior over an all-inclusive
strategy. Amazon.com in the United States was often bashed for going into too many directions at
once. Virgin might run the risk of becoming the Amazon of the UK.
A key issue concerning the Virgin Group’s entry into new business areas is evaluating the
company’s distinctive capabilities. While the brand is familiar to a huge population base, the
identity does not logically extend to a diverse range of product categories. The danger, of course, is
possible weakening of the core brand equity.

C. Dell Inc. is expanding its product portfolio. Go to www.dell.com and describe the product
categories in which Dell competes.

Dell Inc. lists its products around its key market targets: for home; for small and home office; for
small and medium business; for education, government, and healthcare; and for large enterprise.
For the major traditional Dell sectors, products consist of:
• Personal computers—work stations, desktops, laptops and handheld machines
• Servers, storage and networking products
• Printers, projectors and other peripherals
• Software
Part IV-12
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

However, the home and small and home office category shows radical changes to the Dell product
portfolio:
• Laptops and Ultrabooks
• Desktops and All-in-Ones
• Alienware
• HDTVs and Home Theater
• Electronics, Software, Printers and Ink
• Monitors
• Laptops, Ultrabooks and Tablets
• Desktops, Workstations and Thin Clients
• Servers, Storage and Networking
• Printers, Ink and Toner
• Electronics, Software and accessories
This analysis raises several important questions about Dell’s capabilities for marketing and
servicing products in the home and small and home office marketplace, as well as the issue of
relationships with suppliers like Sony (a minor player in PCs but a major player for televisions and
media products where Dell is now competing. It is interesting to attempt to reconstruct the strategic
logic which has led Dell to expand its product portfolio in this direction, and to evaluate whether
the Dell direct business model has good fit with this new direction.

D. Visit the Hennes & Mauritz website and compare H&M’s product offerings with those
offered by Gap (www.gap.com).

The Hennes & Mauritz website is www.hm.com. On the face of things both H&M and Gap very
similar retailers—both are fashionable apparel sellers, both are international, and both rely heavily
on supply chain expertise to deliver customer value. But, the differences between H&M and Gap
are clear in their product offerings—both in functionality and design. There is some small overlap
in terms like the “updated classics”, although here H&M is substantially cheaper. While Gap has
moved up the market towards the position previously held by Banana Republic—i.e., smart casual
wear—H&M has moved to dominate the younger, “cheap chic” marketplace. Interestingly, H&M’s
performance with its “cheap chic” concept in the young fashion marketplace globally has been very
effective, at a time when Gap has been struggling with its competitive position and financial
performance.

Part IV-13
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

CHAPTER 9

Strategic Brand Management

A. Examine the Fortune Brands website (www.fortunebrands.com). Analyze and evaluate the
strategic initiatives used by Fortune Brands in their strategic brand management.

Fortune Brands has separated its businesses.


• Beam, as a leader in the global spirits industry, is “Crafting the Spirits that Stir the
World.” (http://www.beamglobal.com/)
• The Fortune Brands Home & Security’s mission is to create products and services
that help fulfill the dreams of homeowners and help people feel more secure
(http://www.fbhs.com/). The specific brands in the portfolio include Moen,
Aristokraft, Master Lock, Simonton Windows, Thermatru Doors, etc.
The Fortune Brands Home & Security’s website says that, “our strategy includes leveraging the
elements of its strong foundation by delivering consumer-driven product and program innovation,
expanding into new and adjacent markets, and continuing to improve its operating platform. This
approach is designed to position it for continued innovation, industry leadership, and growth.”

B. Visit the website of lastminute.com (www.LastMinute.com). Map the business model used
by this Web brand. Review the strengths and weaknesses of the model, and consider how the
brand has been established and how it may be extended.

A tour of the LastMinute.com website reveals the company’s ethos to be: a five-star lifestyle for
three-star cash. The products and services on offer are organized into Hotels, City breaks, Flights,
Holidays (including luxury and budget travel, car rental), Car hire, Spa, Theatre, Restaurants
(including takeaway food), Entertainment, and Experiences.
The LastMinute.com business model could not operate without the Web, which provides the last-
minute marketplace linking buyers and sellers, but with no involvement in fulfillment. The
business is genuinely a “Web brand”, providing information and customer service and taking a
commission from suppliers. The business model can be mapped very simply:

Part IV-14
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

Consumers

Information

Order
Fulfilment
LastMinute.com

Information Commission

Suppliers

The history of this company and its Web-based operation also illustrates the requirements for
building a Web brand to be similar to those for any successful brand. LastMinute.com used all the
conventional means of advertising and publicity in the press and elsewhere to establish brand
awareness and the values associated with its brand. There was never any question that because it
was a Web brand it would only advertise on the Web. The company’s history shows the potential
for brand extension in the move from travel and theater tickets into a range of services for the “cash
rich, time poor” consumer.

C. Go to www.e4m.biz, operated by the U.K.’s Marketing Council. Register at the site and
choose the Business-to-Consumer area, and the Brand Consistency option under Strategy
Area. Review several of the short cases describing how major companies are striving for
consistency in their brand identification while using multiple channels including the Internet.
What conclusions can you draw regarding the requirements for brand consistency across
multiple channels?

This website is a free service offered by the Marketing Council in the U.K. There are a variety of
cases and links to other websites for further information, covering both Business-to-Business and
Business-to-Consumer cases. There are pages concerned with several important aspects of e-
marketing, such as customer retention and building customer loyalty, but the focus here is on
managing a consistent brand experience across multiple channels.
Under the topic of brand consistency, the site offers a group of 12 company examples, each with a
synopsis, a downloadable summary, and links to other websites for further information. These
cases are extremely up-to-date, and reflect the experiences of well-known companies. The owners
of the site promise to update and extend the cases available.
This material provides the basis for a discussion of how the consumer’s experience of the brand
may be different across different channels (particularly the Internet channel compared to the
conventional) and the problems that this poses for companies who rely on a consistent brand
Part IV-15
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

identification as perceived by the consumer. The cases from the site provide examples of how
different companies have faced up to this challenge.

D. Visit the Yahoo Inc. website. Describe Yahoo’s brand portfolio.

Yahoo! is widely recognized as a premier online brand globally and is seen by some as a prototype.
The Yahoo! products are listed on the website. Yahoo! developed through a focused brand strategy
built around a family of media products. Initially a portal with search facilities, Yahoo! invested in
building a credible, sustainable and likeable brand. Initially, extensions were close to the original
Yahoo! Concept—for example, localized versions of Yahoo! for overseas countries, or even cities
like San Francisco; Yahooligans!, a web guide for children; and, My Yahoo!, a web guide
customized around individual preferences. More recent additions to the portfolio have included
ventures like Yahoo Platinum—a premium online video and audio service—and Yahoo! web
hosting. More recent extensions to the family of media products have been consumer electronics
(through an alliance with the manufacturer) including home theater systems and DVD players.
Yahoo! is an interesting example of the development and extension of an online brand.

Part IV-16
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

CHAPTER 10

Value-Chain Strategy

A. Examine the websites of Aveda (www.aveda.com) and The Body Shop


(www.bodyshop.com). Compare and contrast the distribution networks of these two retailers.

The Body Shop’s distribution network is concentrated on retail outlets owned by The Body Shop.
There are around 2400 shops in 61 countries, although 70 percent of them are franchised. They also
offer a catalog, and in the U.S.A., U.K., and Australia offer an in-home sales facility for
consumers. Aveda distributes its products primarily through intermediaries or free-standing Aveda-
owned stores selling only Aveda products. These intermediaries are hair care salons designated as
either an Aveda Concept Salon or an Aveda Distributor. The free-standing stores are Aveda
Lifestyle Stores. Both The Body Shop and Aveda offer a range of products from hair care to
cosmetics. However, Aveda must zealously protect its distribution network from unauthorized
distribution by intermediaries. Aveda is concerned that these intermediaries will not uphold the
image and standards of the brand. Aveda even maintains strict regulations for use of the Aveda
name in websites by authorized distributors. Aveda provides extensive education and training for
its re-sellers. The Body Shop sells direct to end-users and avoids much of the conflict with
intermediaries. However, The Body Shop has experienced problems in maintaining its share price
and is facing more intense competition and challenges in management of its retail outlets. The
Body Shop exited from manufacturing to concentrate on retailing but has lost substantial ground to
competitors like Bath & Body Works and more general pharmacy/drug store chains with imitative
products.

B. Go to the site of the Agentrix (www.agentrix.com) and review the public pages describing
the history, membership and operation of this international online exchange for retailers
(combining the earlier online exchanges the Global Exchange Network and the Worldwide
Retail Exchange). Identify and list the ways in which the exchange alters distribution strategy
for suppliers, and the impact on consumers.

Online exchanges have demonstrated mixed success in actually performing in several sectors.
Nonetheless, they remain an extremely significant potential for radically altering buyer-seller
relationships in the value chain with some major effects. Retailer online exchanges like Agentrix
represent many of the world’s largest retail groups with very substantial sales revenue.
Touring the site provides insight into the history and membership, but also the growing range of
added-value services provided to members, e.g., collaboration software for suppliers to plan private
label production with retailer customers; reverse and forward auctions and negotiation facilities;
group buying facilities to pool demand among members and buy together; supplier catalog
searching; assistance with logistics and international trade controls; and a framework for
collaborative planning.
There are a number of clear impacts of this type of online exchange already apparent. The
exchange consolidates the buying power of major retailing groups—they can source products
globally, compare prices and specifications, and negotiate on the basis of that knowledge.
Suppliers, particularly of unbranded products, must compete with competitive sources of those
products throughout the world—for example, with producers enjoying lower local wage-rates and
cost structures in overseas countries. In addition, the online exchange provides the framework for
the retailer not just to negotiate lower prices from suppliers, but also to intervene more directly in
the upstream part of the value chain—e.g., locating cheaper sources of raw materials and packaging
for its suppliers, to exert further leverage on prices.

Part IV-17
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

Effects on consumers are less clear. There is the potential for lower prices of goods where the
online exchange provides a mechanism for retailers to cut costs further in the value chain. There is
also the possibility of greater product choice, since the retail assortment reflects the global
availability of new products. There may, however, also be concerns about product quality as more
components and packaging are sourced internationally, and that consumer choice will be restricted
as retailers prefer to reduce assortment size to reduce costs and avoid low-volume products.

Part IV-18
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

CHAPTER 11

Pricing Strategy

A. Explore the web site of British Airways (www.ba.com). Consider how the website can
facilitate price discrimination.

Price discrimination, especially in the airline market will become increasingly difficult in the
future, considering the rising transparency and availability of online booking options. There are a
myriad of sites offering travel related services, most prominently flight reservation and booking
services. However, airlines have increasingly re-directed traffic to their own websites by making
special deals and discounts available only there. British Airway’s loyalty program is called the
Executive Club, featuring multiple tiers, has benefits such as access to special lounges and
dedicated ‘fast’ queues. BA also invites its top corporate accounts to join a “Premier” incentive
programme. British Airways operates airside lounges for passengers travelling in premium cabins
and these are available to certain tiers of Executive Club members. First class passengers, as well
as Gold Executive Club members, are entitled to use First Class Lounges. Business class
passengers (called Club World or Club Europe in BA terms) as well as Silver Executive Club
members may use Business lounges. Often, at airports in which BA does not operate a departure
lounge, a third party lounge is usually provided for premium/status passengers
(http://en.wikipedia.org/wiki/British_Airways). These indirectly facilitate price discrimination.
Further, the British Airways website has the facility for potential customers to sign up for British
Airways’ Executive Club programme. This allows British Airways to specially target these
customers with fare promotions suited to individual needs. The information gained through the
online sign-up procedure will allow British Airways to complement its database and intelligently
plan promotions and special discount deals and individualize its offerings. It is important to be very
careful about charging different prices, however, so as to not offend customers who might learn
about the different prices offered.

B. Visit the website of Amazon.com. Evaluate Amazon’s pricing strategy. How do its prices
compare to those of “brick and mortar” retailers? Critically evaluate the company’s product
offering and identify potential market segments.

Amazon.com is one of the largest online retailers in the world, offering a vast array of products and
services either on its own or in conjunction with one of its strategic alliance partners.
Amazon.com’s expansion out of its core business, online book selling, allowed the company to
capture a larger share of the whole e-commerce pie than before. The company’s pricing strategy
compared to brick and mortar establishments was initially to offer low prices for premium
products, providing fast and reliable service. In the beginning of its corporate history, Amazon
even subsidized the shipment of its products to ensure timely delivery. The online retail giant made
profits for the first time in Q4 of 2001. However, recently the company has begun to up its prices
for the extra convenience afforded to online buyers. Amazon targets virtually every online shopper,
from the United States and all around the world. The company’s second largest market is Germany,
closely followed by the United Kingdom. Its portfolio of products offered on its website is largest
in America, something that is poised to change after Amazon realized in the US that it can make
profits selling such unrelated items as a Shakespeare play and a lawnmower. Some segments that
may be worthwhile targeting with special promotions are university students (books, music,
computers, home electronics etc.), housewives (books, gifts, accessories, household goods) etc.
The company needs to be aware of the fact that brand extension into too many unrelated areas
harbors great risk for the established brand equity and should be conducted very carefully.

Part IV-19
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

C. Visit the Oracle.com website. Discuss how Oracle considers price in the information
provided for its business process software suite.

The emphasis on the Oracle website is on the technical excellence of its products and the user
benefits they provide. Prices are not emphasized. The price lists are published but they are at the
back of the site. They are also complex. For example, there are separate lists for U.S. Oracle
Technology Commercial Price List; U.S. Oracle Applications Commercial Price List; U.S.
Commercial Price List for Oracle on Demand; Oracle Fusion Applications Global Price List;
Application Licensing Table; Oracle Engineered Systems Price List; and Business Intelligence
Application Pricelist. Within each price list there is a choice of a named user plus or a processor
license, and within these categories there are additional costs for software update license and
support. While price is not the primary selling device for Oracle, they have designed price lists to
allow business users to make choices in the type of license they buy, and to opt in or out of
additional services, to fit different budgets.

D. Study the information available from Starbucks’ website (www.Starbucks.com). Discuss


how the website enhances the firm’s ability to obtain premium prices.

Numerous attributes of the Starbucks website are designed to build an image and reality of quality,
choice and user experience, such that price is a relatively minor issue. Indeed, there is no mention
of prices on the site. Instead, the site is about fine coffee—coffee by profile; coffee by form;
Starbucks Reserve® coffee. Information on the Menu tab features drinks; food; and nutrition
information. The Coffeehouse tab features information about the entertainment; Wi-Fi; store
design; mobile applications; and online community. The Responsibility tab talks about the
community; wellness; ethical sourcing; global responsibility report; environment; and diversity.
The Starbucks card tab informs the visitor about how to buy a card; how to manage a card; and
what kinds of Starbuck rewards is the customer entitled for. The Starbucks’ Card has the effect of
pre-paying for coffee to make the consumer less aware of the costs incurred. The site does an
impressive job in avoiding the issue of price, and indeed building the expectation that such fine
products in such outstanding stores would naturally come at a high price, and that may even be part
of the attraction in providing the consumer with the opportunity for self-indulgence.

Part IV-20
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

CHAPTER 12

Promotion, Advertising, and Sales Promotion Strategies

A. Discuss how Godiva Chocolatier’s website (www.godiva.com) corresponds to the brand


image portrayed by its retail stores. What are the promotion objectives that Godiva’s
management seems to be pursuing on the website?

Godiva’s website is designed to reflect the brand’s image of upscale, luxury chocolates providing
the ultimate in satisfaction for the chocolate connoisseur. The layout and design correspond to the
product wrappings and promotional displays used in retail stores and partner outlets (e.g. Barnes
and Noble bookstores). Gold, a precious metal, conveys the notion of expensive and exclusive.
Godiva chocolates are not to be confused with a Hershey bar, although their substance may be
quite similar. However, Godiva is satisfying not merely the craving for chocolate but also the
desire to be different, to appear as tasteful, affluent and perhaps somewhat sophisticated—an Old
World characteristic. Godiva may be regarded as the Mercedes in the chocolate world, at least in
America. In Europe the brand fights against Lindt, which is equally a luxury chocolate brand but
sold in ordinary grocery stores, a distribution channel Godiva largely avoids. On its website,
Godiva is heavily promoting its business gift giving initiatives, targeting executives who wish to
make a difference with their gift giving. Chocolates are almost always a perfect gift, appreciated by
a broad spectrum of otherwise very diverse people. The Web seems ideal for promoting such a
program because most executives find themselves pressed on time and may thus be more likely to
resort to a quick online solution.

B. Go to the websites of NBC and the BBC (www.nbc.com and www.bbc.co.uk). Contrast the
ways NBC and the BBC promote their daily TV programs online. Which similarities and
differences do you detect? Suggest ways of improvement considering the respective cultural
frame of reference and target market for NBC and the BBC?

While NBC’s homepage is clearly all about television, the British Broadcasting Co’s website
appears more like a regular Internet portal (e.g. Yahoo), offering news, sport, weather, travel,
future etc. NBC is content to only provide information on its programming and also offers NBC
merchandise on sale at its online store. The BBC may have chosen the more effective method of
driving traffic to its site as users may visit it in order to read the news, manage their portfolio of
stocks, search for topics of interest, communicate with friends etc. NBC also offers news and
financial services but not on its nbc.com site but rather on affiliate web pages (MSNBC, CNBC)
which one can click on nbc.com. The availability of TV program channels is much more limited in
the UK compared to the US. The differences in the competitive environments may help to explain
the NBC and BBC Internet initiatives.

C. Discuss how Apple’s (www.apple.com) marketing strategy for iPod Mini is enhanced by a
Web-based approach.

The Apple marketing strategy for the iPod has two essential elements: to dominate supply of the
hardware for legal music downloads from the Web, and to operate the most successful download
site (effectively acting as a wholesaler for music companies).
The Web-based strategy shows a constant stream of product innovations to fend off other hardware
suppliers like Sony. The original iPod led to the smaller iPod Mini (a much smaller, lighter
machine, with an innovative click wheel control, and available in five colors). The iPod Mini was
officially discontinued in 2005 and was replaced by the iPod Nano line

Part IV-21
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

(http://en.wikipedia.org/wiki/IPod_Mini). Apple followed the iPod Mini with the iPod photo—
carrying music and 25,000 photographs, and product variants like the USiPod Special Edition (in
black with a red click wheel, and with engraved signatures from the US rock stars). The site also
offers an iPod store for iPods and accessories.
However, in addition to the hardware innovations, the Apple strategy relies on success in
dominating the supply of downloads and other related services. The iTunes download site is the
largest legal source of music downloads, but this position must be defended. Innovations include
free single downloads for users of the site, and the addition of audiobooks.
The Web-based strategy offers Apple the opportunity to bring innovative product and service offers
around the iPod/iTunes to their target market faster than any other channel and with greater control
over prices and market access. The key to success is probably the download service itself, so
attracting large volumes of consumers to sample and adopt iTunes is vital. The time-frame within
which Apple has strategic freedom is limited—new hardware from competitors is reaching the
market rapidly; supermarket retailers and launching their own download sites; Starbucks is offering
download facilities in its stores; and Microsoft will inevitably target this market.

Part IV-22
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

CHAPTER 13

Sales, Digital, and Direct Marketing Strategies

A. Examine the website of Salesforce.com. Discuss how the Internet service provider can
assist sales managers in their sales force management activities.

Salesforce.com with 100,000+ customers and 195,000 subscribers is a leading supplier of on-
demand Customer Relationship Management software. Leading applications are salesforce
automation, customer support, marketing automation, analytics, document management and
contract management. The site offers free access to video demonstrations of the key applications.
Specifically in the salesforce automation application, the product offers facilities for lead and
opportunity management, territory management, team selling, account management, and key
analytical metrics.
The advantages for the sales manager lie in the enhanced access to information about salesperson
activities and results—including key metrics like business in the pipeline and up-to-date forecasts.
The system provides a full set of analytical metrics available instantly and at any level of
aggregation required. Moreover, the CRM technology provides salespeople with superior flows of
information about the results they are achieving with their own accounts and the ability to react
quickly to adverse changes, while understanding which of their activities are most productive with
different types of customer. There is also a potentially substantial reduction in the time needed for
record-keeping and reporting, since much is automated. Although not replacing the critical
interface between sales manager and salesperson, the CRM technology is a very promising
approach to assisting managers in enhancing salesforce productivity.

B. Visit Nokia’s U.S. website (www.nokiausa.com). Evaluate Nokia’s sales approach online.
How does Nokia enhance its direct marketing strategy through Web-based offerings? How
could the company increase traffic to its online sales platform without creating channel
conflict?

Nokia is clearly the world’s number one in the cellular phone and accessories market. The
company has developed long-standing relationships with cellular phone services providers (e.g.
AT&T, Vodafone, Deutsche Telekom/VoiceStream etc.). Online it offers a wide array of new
phones and other cellular devices. The Web accords Nokia the opportunity to carry all of its
manufactured items in one central, though virtual, store. Brick-and-mortar retailers lack the shelf
space and mail order catalogs will not include the newest model, a serious drawback in a
tumultuous, fast-changing industry. The Web also allows Nokia to respond quickly to price
changes in the industry and thus fend off possible competitive threats. Moreover, Nokia will be
able to directly learn important information from its customers (e.g. demographics, usage behavior
etc.). This will be beneficial when creating new cellular solutions. Nokia can use the web to better
interact with the end-consumer, offer its newest products at updated prices, and sell direct without
intermediary channels. However, the company needs to be careful not to offend its existing
channels (e.g. should Nokia decide to sell a particular phone model cheaper online than through the
brick and mortar stores).

C. Review the website of Merrill Lynch (www.ml.com). How does Merrill Lynch leverage its
global position to adjust to local markets through the Internet? Why is the Internet
particularly relevant for firms in the financial services industry?

Part IV-23
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

Merrill Lynch, the global investment powerhouse, is present in virtually every major financial
center in the world. Its Internet portal is designed for global customers, as well as two primary
country markets (USA and Japan). The company offers a myriad of research capabilities, account
handling, online financial services, advice and other items online. Since the global money market
virtually never sleeps, firms in the financial services industry find the Internet especially useful to
secure a 24-hour service to its worldwide clients ( account access, transfer etc.). Nowhere are
purchases and sales handled at such mind-boggling speeds as in the financial services industry.
Money changes hands in a matter of nanoseconds and the Internet plays a pivotal role in enabling
these transactions. Through the Internet one can conduct business effectively from anywhere where
a telephone or cellular connection is accessible. Thus, being present online and offering wide-
ranging services on the Internet allows Merrill Lynch to capture more business than before,
enhance its customer service initiatives, and communicate better to its clients.

Part IV-24
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

CHAPTER 14

Designing Market-Driven Organizations

A. Visit the website of the Strategic Account Management Association


(www.strategicaccounts.org) and review some of the research library resources available at
the site. What is the basis for suggesting that the strategic/key account manager is anything
more than a senior salesperson working on major accounts—why is it any different? Where
can a strategic account manager be positioned in the marketing and sales organization?

The Strategic Account Management Association (SAMA) is the professional body focused on
major, national, key, or strategic account management approaches. It is committed to a very broad
view of strategic account management:
“Installing a comprehensive strategic account management approach within a company requires
significant financial investment, long-term focus and multi-functional capabilities along with
substantial restructuring of the sales organization. Critical success factors for SAM include
organizational alignment, senior management commitment, processes and systems for
communications and knowledge management, selecting strategic accounts, account planning,
relationship and program metrics and the potential to realize the benefits of a mutually
profitable strategic account relationship.
A strategic account manager (also titled major account manager, key account manager,
national/global account manager) is the guardian of the strategic customer relationship,
orchestrating the deployment of corporate-wide resources to provide comprehensive product,
service and solutions to the strategic account. This position is overseen by a VP / director of
strategic accounts (also titled manager of strategic accounts, VP of sales) and senior executive
sponsors, all of whom support and empower the strategic account manager in their respective
roles. Other support personnel may include account teams of varying composition.”
The SAMA website offers a range of research reports and studies for sale, but also Knowledge
Resources, providing access to downloads of articles, white papers, presentation material, research
papers, and lists of other resources in the field.
The strategic account approach positions the SAM as an individual with a general management-
type of responsibility for the strategic account. Activities include collaborating with the customer
to plan the customer’s own end-market business, and developing joint decision making
mechanisms and other approaches to integration between buyer and seller organizations. This is the
basis on which it is suggested that strategic account management goes beyond a senior sales role.
Nonetheless, it is clear that in practice many individuals with job titles like strategic/key account
manager are actually senior salespeople with a portfolio of major accounts. This diversity in
practice suggests that organizational positioning will depend on the type of strategic account
management being adopted. The full-blown SAMA-style strategic account management is a new
business model, and may require structures which are cross-functional and not located in
conventional sales or marketing organizations.

B. Go to the website of Coca-Cola Inc. (www.cocacola.com). Use the corporate information


pages (Our Company, Our Brands, and Around the World) to identify the growth in brands
marketed by the company and its geographic emphasis. Identify the challenges for this
company in organizing for a growing brand portfolio in a diverse global marketplace.

The Coke website is extremely interesting and diverting. The Coco-Cola Heritage page highlights
the history of Coca-Cola since its birth (http://www.thecoca-

Part IV-25
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

colacompany.com/heritage/ourheritage.html). The site also provides an online Annual Report


(http://www.thecoca-colacompany.com/ourcompany/company_reports.html).
However, in addition to entertainment value, the Coke site is also revealing of the major transition
in the company’s branding policy in response to marketplace change, as well as the high degree of
internationalization. The Product List page demonstrates that (at the time of writing) Coke is
managing a portfolio of 3,500 beverages (http://www.thecoca-
colacompany.com/brands/brandlist.html).
The challenges facing Coke in managing this diverse brand, product and geographical portfolio are
several, and may be illustrative of those facing other companies with mature brands marketed
globally. In addition to positioning its new products and brands differently with consumers in
different markets, to the traditional Coke positioning in the U.S., the company also has to confront
major differences between markets. As the global drinks market fragmented, Coke had no choice
but to develop local brands, and could no longer rely on the power of the global brand identity
backed by global advertising. Changes in market tastes have driven the company into mineral water
and juice-based drinks, milk-based drinks and even clothing. The organizational challenge is to
manage a growing range of new products, as well as increasing market diversity.

C. Consultants Booz Allen and the Association of National Advertisers have an online tool for
assessing the “DNA” of marketing organizations—www.marketingprofiler.com. Visit this site
and consider if the questions asked in the diagnostic provide a good basis for evaluating a
marketing organization. Use the profiling diagnostic to evaluate a marketing organization
that you know.

This website is particularly interesting for a number of reasons: it is revealing of the current
thinking about organizational issues of a major consultancy which works with many major
companies, and it identifies a number of criteria for evaluating the effectiveness of marketing
organization. However, having identified the organizational/performance criteria used by the model
on the website, an extremely interesting debate is whether those criteria are truly the most relevant,
either in general or for a particular company. This debate can be linked back to the coverage of
newer organizing concepts.

Part IV-26
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

CHAPTER 15

Strategic Marketing Implementation and Control

A. Visit the web site for 1-800-flowers (www.1800flowers.com). How does this company
employ its web site to adapt to a constantly changing environment?

1-800-flowers is an online flower shop that does $300 million a year in business. The company
takes orders through an 800 number and provides delivery through 2,500 local flower shops,
including company-owned stores, franchisees, and independent florists. Telephone sales are now
complemented by electronic shopping on the company’s web site. The interactive ordering will
contribute $30 million to the company’s revenues.
1-800-flowers can respond rapidly to a changing environment. The company can immediately
remove flowers that are not available from the website. In contrast to print catalogs, surplus flowers
or new varieties can be added immediately. Traditional catalog merchants can inform customers of
supplements or special sales over the phone when the order is made. However, the web-based
approach allows the customer to view the product and any specials before placing the order.
Photographic images of the flowers on the web also help to minimize customer concerns about the
appearance of unfamiliar flowers. In these ways, the company responds to a changing environment
and boosts company sales.

B. Enter the phrase “marketing implementation” into your search engine and review the first
20 sites indicated. View several of those representing consultants and agencies offering
products and services to support marketing implementation. Which sound likely to be
effective? What role, if any, can external agencies play in developing effective marketing
strategy implementation initiatives?

Exactly what is found by this search will depend on when it is done and which search engine is
utilized. However, the general finding will likely be that the following types of websites are
identified:
• PowerPoint presentations on marketing implementation
• Sites that explain the concept of marketing implementation
• Consultancy companies offering their views on how external agencies can improve
implementation performance. Some will be marketing consultants specializing in strategy
issues, while others will take a general or human relations management perspective and offer
advisory services in change management.
• Software suppliers offer various products for planning and managing change programs,
which are mainly record-keeping mechanisms.
• Some sites will actually be concerned with specific technologies or projects and approaches
to their implementation, e.g., most searches will identify e-business and e-CRM products and
companies claiming expertise in their management (e.g., Cisco, IBM).
• Search normally finds a range of articles and reports, and some case studies concerned with
implementation.
The materials located through this kind of search are usually topical and interesting. However, the
different resources available need to be matched closely to what type of implementation is being
considered—there is a vast difference between implementing a CRM project and a program of
customer value enhancement. Many of the support resources available are little more than tools for
systematic planning. These tools can be extremely useful, but do not really get to grips with the

Part IV-27
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Part IV – Internet Application Guidelines

management of change at the level of structure and process in the organization. They can be
compared on this basis and views taken about their likely effectiveness in different situations.
The more general point for discussion is the advantages and disadvantage of external support in
implementing marketing strategies. While external support provides objectivity and frees resource
and expertise to concentrate on implementation, against this must be balanced the rejection of
externally-directed change initiatives by people inside the company and questions about the long-
term effectiveness of change programs that are not rooted in the culture and processes of the
company.

C. Identify suppliers of marketing dashboard software on the Web. Does this type of decision
support system replace management judgment on the most appropriate performance criteria
for their businesses?

As with any new formulation of a decision aid, there are a large number of suppliers of software
and support services offering their wares on the Web. Reviewing some of these sites provides good
insight into what is on offer to companies as possible purchases. This is interesting on its own, but
the debate becomes far more relevant if it is placed in the context of the choice of appropriate
performance criteria and the role of qualitative judgment in selecting criteria and interpreting the
measurements. There is a danger apparent in some of the sales efforts being put behind dashboard
software and systems suggesting that a small set of metrics can be used on “automatic pilot” to
monitor and evaluate marketing performance. Important issues remain for executives concerning
the choice of dashboard metrics, the revision of metric choices in the light of changing
circumstances and the interpretation of dashboards. While the dashboard is an appealing and
convenient approach to presenting metrics to managers, the broader aims of building learning
processes should not be neglected or displaced. This is an important and relevant debate.

Part IV-28
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Another random document with
no related content on Scribd:
It was still well short of supper-time, and so they stopped at Bob’s
to see the tennis-court. The surface layer was almost finished, and
two sturdy posts for the net, startlingly, shiningly green, had been
sunk. While they admired, Mr. Starling joined them from the house,
and Laurie thanked him for his assistance with the quarry company.
“Glad to have helped, Laurie,” replied Bob’s father. “And that
reminds me. Seen the pear-trees?”
“Pear-trees? No, sir. Not to—to notice them.”
“Come and look at them.” Mr. Starling led Laurie around the corner
of the new court and along the further walk to where a few fruit-trees,
their branches still bare, occupied one corner of the garden. Laurie
viewed the trees interestedly, but failed to note anything remarkable,
and he turned to his guide for enlightenment. Mr. Starling was
selecting two bills from a long black wallet, keeping his back to the
others. He thrust the bills into Laurie’s hand.
“We’d like to help a little, my sister and I,” he said. “Use that in any
way you like, Laurie, but you needn’t say where it came from. If you
need more, let me know.”
“But we don’t really need it, sir,” protested the boy. “We’ve got
twelve dollars, and I don’t believe—”
“Put it in your pocket,” insisted Mr. Starling. “You can find some
way of using it for Miss Comfort’s—er—comfort!” He raised his voice.
“Look promising, don’t they? Lots of fruit this year, I guess. Thomas
is quite a gardener, if you take his word for it.” He turned Laurie
about with a hand on his shoulder and paced back toward the
others. “We feel sort of sorry for that little woman,” he added,
lowering his voice again. “Hard to pull up stakes at her age, I guess.
Ought to do what we can for her, Laurie. Come to me again if you
need some more.”
At supper Dr. Hillman asked the twins to come to his study, and
there he produced a pink slip of paper from a desk drawer and
handed it to Laurie. “My sister and I have wanted to help ever since
we first learned of Miss Comfort’s—ah—embarrassment, but have
been somewhat at a loss to know how to do so. She is greatly
averse to anything resembling charity, as you probably know. To-day
we heard of your interest in the matter, Laurence, and of your—ah—
ingenious solution of the lady’s problem, and it occurred to us that if
we handed a small contribution to you you would doubtless be able
to use it to advantage and at the same time—ah—consider it
confidential.”
“Twenty-five more!” exclaimed Laurie when they were back in No.
16. “Forty from Mr. Starling. Seventy-seven in all! What’ll we do with
it?”
“Blessed if I know!” replied Ned, “unless we install steam heat and
open plumbing!”
CHAPTER XVIII
MISS COMFORT COMES ABOARD

B ehold the Pequot Queen at ten o’clock Saturday morning!


She is freshly painted from end to end on the shoreward side,
gleaming white, with bright yellow trim. The other side is to be done
later. Just now the painter, a sure-enough professional painter from
Joyce & Connell’s, is finishing the upper deck.
The gangway is resplendent, too, for Brose did that himself
yesterday, using plenty of drier. The deck is protected by bits of
board to walk on, although by evening the buff paint will be hard
enough. The doors are to have a second coat later, but as they are
they look pretty fine. Wonderful what paint will do, isn’t it? You’d
hardly think this was the same old Pequot Queen.
But there’s the cabin yet. Linoleum shining with new varnish, walls
and ceiling creamy white, blue and white curtains at the windows,
Miss Comfort’s old stove blackened and polished by Kewpie until
you’d never suspect it was not brand-new! And that’s a real sink in
the corner, even though it isn’t working yet. You just can’t hurry a
plumber! There’ll be a pump alongside, of course. Miss Comfort will
get her drinking-water at the Parmenter’s across the road. They’re
real friendly folks. Mr. Parmenter hauled the coal that’s in the bin in
the boiler-room himself. That shelving is all new. Brose and Bob put
that up. The hanging lamp in the center is one Mrs. Deane had. Miss
Starling sent those flowers. Looks pretty nice, doesn’t it? Wouldn’t
mind living here yourself? Well, neither would I! And look at the view
from those windows; sun sparkling on the water, boats passing!
Think Miss Comfort’ll like it?
That was a busy, bustling morning. As early as Ned and Laurie
and Kewpie reached the Pequot Queen, Polly and Mae and Brose
Wilkins were before them. Although much had been accomplished
yesterday, much remained to be done. Bob arrived an hour later,
bearing a box of flowers from his aunt. Brose, singing as he worked,
dropped his hammer to touch up a spot with a paint-brush,
abandoned paint-brush to seize again on hammer or screw-driver.
Kewpie, eager for employment, got in every one’s way and
accumulated a great deal of fresh white pigment every time he
turned around. The plumber, having set the sink up, went away, and
the awning man arrived to take measurements. The awning was to
cover the rear half of the roof-deck. There had once been an awning
all over the roof, and, although the frame had disappeared, the
sockets into which the uprights had been screwed remained. To put
an awning over the whole roof-deck was beyond their means, but
they could well afford to protect half of it. Brose was going to make
two flower-boxes to fit the benches along the railing and fill them with
earth so that, when summer came, Miss Comfort would have a
veritable roof-garden up there. Brose thought of all sorts of things,
practical and otherwise. One of the practical things was a place to
dry clothes on the small deck forward, where he stretched four
lengths of line from a post set in the flag-pole socket at the extreme
bow to four galvanized iron hooks screwed to the front of the wheel-
house.
At eleven Peter Brown arrived with Miss Comfort’s worldly
belongings. Peter was small and very black; Peter’s horse was small
and presumably white; and Peter’s wagon was small and extremely
ramshackle. How he managed to get so much on it was a question!
A narrow black walnut bedstead in several sections, together with its
appurtenances; a drop-leaf mahogany table; a funny old trunk with a
rounded top; five chairs of assorted shapes and sizes; a packing-
case of cooking-utensils; a barrel of china and crockery; a walnut
what-not; a wash-boiler filled with miscellany; a marble clock
wrapped in a patchwork quilt; some books; three pictures in faded
gilt frames; a huge bundle of bedding; a roll of frayed straw matting;
some braided rugs; a spotless deal table and various other smaller
sundries.
Peter and Brose unloaded at the end of the gangway, and the
boys bore the things aboard. In the cabin Polly and Mae directed the
bestowing of them, wiping everything clean with a dust-cloth as it
was set in place. The packing-case was left on deck, as was the
barrel, but the rest of the things went inside, and when they were all
there there was just room for the two girls to move cautiously about!
But half an hour later there was another tale to tell. The cooking-
utensils were hung on nails, the dishes were on the shelves, the bed
was set up and dressed, the trunk was under the deal table, the rugs
were on the floor, the pictures were hung, the drop-leaf table stood
under the hanging lamp, and order had emerged from chaos. Of
course, as Polly acknowledged, the place did look a trifle crowded,
but she guessed Miss Comfort wouldn’t mind. Two articles alone
defeated their efforts, the what-not and the marble clock. The what-
not, built to fit in a corner, looked sadly out of place at the foot of the
bed, and the marble clock simply cried aloud for a mantel to rest on.
But the corners were all occupied, and there was no mantel; and so
the what-not remained where they had put it, and the clock for the
time being reposed on a window-sill.
Brose hustled the empty case and barrel to the boiler-room, which
compartment held also a supply of kindling-wood and a quarter of a
ton of coal and so didn’t look one bit like a hen-house! Miss Comfort
was to have an early lunch at Mrs. Deane’s, and she and the Widow
were to arrive at the boat about half-past twelve. At exactly twelve
Polly flipped her dust-cloth for the last time, the painter stowed his
belongings in the wheel-house and called it a day, Brose
relinquished his hammer, and seven satisfied and hungry workers
gave their attention to the luncheon that the girls had prepared. To
have dined at school would have prevented the twins and Kewpie
from being on hand at Miss Comfort’s arrival, and they didn’t want to
miss that!
There was plenty to eat, and full justice was done to the viands. It
was a jolly, happy meal, too, for the Pequot Queen looked as none of
them had ever hoped to see it look, and, as Brose remarked, it would
look a sight better before they got through with it. “When the
awning’s up and there’s flowers along the rail there— What color’s
the awning, Laurie?”
“Red and white.”
“Great! And then there’ll be little window-boxes under the two
windows on this side. I’m going to paint ’em white with green
crisscrosses on ’em; sort of lattice-effect, you know. And then I was
thinking this morning that it wouldn’t be hard to make a little flower-
bed on each side of the bridge there later. I could plant morning-
glories or something so’s they’d climb along on the hand-rail. And
some bright things, too, like geraniums or zinnias.”
“Brose,” exclaimed Laurie, “you’re a wonder!” He held aloft a
paper cup filled with hot chocolate. “Ladies and gentlemen, I give
you Mr. Brose Wilkins, without whose assistance—no, directorship
this undertaking would have been a—but a partial success. To his
untiring zeal and—er—”
“There they come!” cried Kewpie excitedly.
And there they did come, Miss Comfort in her best black dress—
and probably her only black dress—and Mrs. Deane, Miss Comfort
at least a yard in advance, Mrs. Deane trying hard to recover the
distance. Polly jumped to the rail and “yoo-hooed” and waved. Miss
Comfort heard and, it seemed, saw the Pequot Queen for the first
time. She stopped short and stared from a half-block away. Mrs.
Deane regained her lost ground and stared, too. For a long moment
the two stood motionless there. Then Miss Comfort started on again,
this time at a funny little half-trot. Once more Mrs. Deane was
outdistanced!
Polly and Ned and Bob ran across the gangway to meet them. The
others remained on deck, Kewpie grinning broadly, Laurie only half
smiling, Mae emitting little whispered ejaculations, and Brose, his
comforting hammer once more in hand, humming a funny sort of
tune under his breath. Miss Comfort’s face was a study as she
paused at the end of the gangway and swept the scene with rapt
gaze. Then, still silent, she declined Ned’s offered assistance and
walked firmly and proudly across the gangway and stepped down
upon her own deck!
It was not until she stood at the cabin door and looked inside that
the little lady became articulate. Then she drew a deep breath and
said, “Well, I never!” in a voice that was scarcely more than a
whisper. Then she was inside, with the others clustering about her
and every one talking at once, Polly apologizing for the clock, Mae
explaining about the what-not, Laurie promising water for the sink
not later than Tuesday, Mrs. Deane exclaiming repeatedly to no one
in particular: “Why, I had no idea! I simply had no idea!”
After a moment or two Miss Comfort seated herself in the walnut
rocker with the gray horsehair upholstering and sighed again. “It’s
too beautiful for words,” she said. She reached out for Polly’s hand
and drew it to her, patting it with little quick gestures. “I never thought
it would be like this, my dear, never, never! I just can’t find any words
to thank you all; not now; perhaps some day—” She searched for
and found her tiny black-bordered handkerchief. Kewpie frowned
and turned toward a window. Gee, she was getting leaky again! But,
as before, Laurie provided a diversion.
“Here’s the fellow that did more than the rest of us put together,”
he said. Miss Comfort looked, and—
“Why, Brose Wilkins!” she cried. “You, too! Why, I didn’t see you!”
Brose shook hands, his broad smile again threatening his ears.
“Yes, Miss Pansy, it’s me,” he said. “But you don’t want to believe
what Laurie tells you. I ain’t done much but swing a hammer. Now,
how you feeling, ma’am?”
“Very happy, Brose,” replied Miss Comfort softly. “Happier than a
person has any right to be at my time of life, I guess. Isn’t it
wonderful?” Her gaze swept over the little white room with its blue
and white curtains aflutter in the sunlit breeze and all her friendly
belongings about. “Doesn’t the picture of grandfather’s ship look
beautifully there, Brose?”
Brose agreed that it did. Every one else agreed that it did.
Secretly, however, Bob, who had hung the article, told himself that
that representation of a barkantine with all sails set plowing through
a muddy-green sea had probably been done by the village sign-
painter!
After that Miss Comfort arose and minutely inspected every inch of
her domain, listening to Laurie’s somewhat involved explanation of
the water system not yet installed, to Ned’s story of the roof-garden
above, to Polly’s reason for placing the wash-boiler here and the
knife-board there, and to Mae’s confidences regarding the
whereabouts of the linen. Then she was taken off along the deck to
see where the coal and wood were kept. At intervals Laurie took a
slip of paper from a pocket and surreptitiously wrote on it. When they
reached the boiler-room he added the mysterious word “coal scuttle”
to several other words already on the paper.
In due course they all returned to the cabin and sat or stood
around and did a good deal of talking and exclaiming and laughing
until, at last, Mrs. Deane jumped up suddenly and announced in a
shocked voice that she must get right back and that she didn’t know
what Miss Billings would be thinking of her! That began a general
exodus. Polly said that she and Mae would be down after supper to
see if everything was all right. She had already offered to remain
during the afternoon, but Miss Comfort had almost pathetically
declined the offer. Miss Comfort, as was evident to all, wanted to be
left quite alone for a while.
“You’re sure you won’t be nervous at night,” asked Mrs. Deane
anxiously, “all alone here like this.”
“Nervous?” repeated Miss Comfort placidly. “Not a bit. No more
than I was in that empty house up there. I never was one of the
scary kind, and down here, with the friendly water around me, I’ll
never be lonesome again.”
“I’ll be looking in now and then,” said Brose. “I’m liable to be
passing most any time, Miss Pansy, and, whenever you want
anything just let me know.”
“And to-morrow,” said Mae, “we’re all coming down to call on you
in your new home, Miss Comfort.”
“Do, my dear, do! Come to-morrow afternoon, and I’ll make some
tea for you. In the morning, of course, I’ll be at church.”
“Church?” said Mrs. Deane. “I wouldn’t try it unless I felt real well,
my dear. It’s a long walk and a real steep one.”
“All the better,” replied Miss Comfort. “All my life I’ve lived so close
to the church that it wasn’t any effort at all. Sometimes I think that if
religion wasn’t made so easy for us we’d think more of it. ’Twon’t do
me a mite of harm to have to walk a little on a Sunday in order to
worship the Lord. And I guess maybe He will approve of it.”
Going back, Laurie, walking beside Polly, said with a relieved sigh:
“Gee, I was glad to get away without having her ask questions, Polly!
I thought every minute she’d want to know where everything came
from and how we had paid for it!”
“I know,” said Polly thoughtfully. “It’s sort of queer she didn’t, too.
Because she must know that white-enameled sinks and pumps and
awnings and such things don’t just happen.”
“Well, I suppose she just doesn’t stop to think,” mused Laurie.
“And I hope she won’t. It would be fierce if she got insulted and went
to the poor-farm after all!”
“Oh, she wouldn’t do that!” declared Polly in horror. After a
moment she added: “I’ll just bet you anything, Laurie, that she did
notice and that she means to ask! She’s just waiting until she can
speak to you alone, I believe.”
Laurie groaned. “Then she’s never going to get the chance,” he
muttered. Polly looked doubtful.
CHAPTER XIX
LAURIE IS CORNERED

T he following afternoon saw the boys, minus Kewpie, escorting


Polly and Mae to the Pequot Queen. Mrs. Deane had begged off.
One mustn’t expect all April days to be fine, and this particular day
proved it. It had showered off and on during the forenoon, and now,
at half-past three, the rain was coming down hard and fast. The girls
wore rain-coats over their Sunday gowns, and Ned and Laurie were
draped in colorful yellow oilskins. Bob, in an old Mackinaw jacket,
huddled under the dripping eaves of one of the two umbrellas. It
seemed a particularly long way to the Pequot Queen under these
circumstances, and it was a rather bedraggled quintet that at last
filed into the cabin. Once there, however, discomforts were forgotten.
A fire in the stove defied the dampness of the outside world; a kettle
sang cozily; the white light that entered the open windows flashed on
polished surfaces; and the bowl of flowers on the table added a
cheerful note of color. And then there was the little hostess, all
smiles of welcome and concerned murmurs over dripping coats and
wet skirts.
The coats were laid aside quickly, and the visitors found seats,
Polly and Mae occupying the same arm-chair, since there were but
five chairs in the cabin and not even Laurie would have thought of
sitting on Miss Comfort’s immaculate blue and white spread! The
lack of a sixth chair troubled Miss Comfort considerably. Bob pointed
out that even had she possessed such a thing there wouldn’t have
been room for it and some one would have had to sit out on deck!
And Polly and Mae assured in chorus that they didn’t mind sitting
together, not one bit.
Miss Comfort was brimming over with pride and happiness.
Everything was too wonderful for words! And sleep— She held up
her hands in something almost like consternation. Why, she hadn’t
slept the way she had slept last night for years and years! She had
had her supper late because she had been so busy fixing things up,
and then she had sat at the window there for a long time watching
the lights on the water and on the further shore; and suddenly she
couldn’t keep her eyes open a minute longer, it had seemed, and
she had gone to bed and fallen right to sleep and slept and slept!
“It was so wonderful lying there and listening to the water lapping
against the boat that I tried my best to keep awake. But I couldn’t.
And then this morning when I awoke there was a beautiful fog and I
could hear bells sounding and now and then a great, deep fog-horn
on some boat. It was perfect! From my bed I can look out of the
windows and see the river, and when the sun came out for a little
while, quite early, it was beautiful!”
“Yes, ma’am,” agreed Laurie. “For myself, I never cared much for
fog-horns, but maybe the kind they have here are different. I’m
awfully glad you slept so well, though, and—and like it.”
“Like it! Oh, Mr. Laurie, I can never, never thank you enough for
finding this beautiful home for me!”
“Oh, that wasn’t anything,” muttered Laurie.
“Why, Laurie Turner,” exclaimed Polly, “it was wonderful! The rest
of us might have passed this boat a thousand times and never
thought of making it into a—an apartment!”
“Please, Polly dear,” Miss Comfort protested, “not an apartment! I
want it just what it is, a boat—my boat. You don’t think, do you”—she
appealed to Laurie—“that it would do to change the name? Of
course the Pequot Queen is very pretty, but I would so like to call it
after grandfather’s ship there.” Her gaze went to the oil-painting on
the wall.
“Don’t see why not,” said Laurie. “All we’d have to do would be to
paint out the old name. What was your grandfather’s ship called,
ma’am?”
“The Lydia W. Frye,” replied Miss Comfort raptly. “He named her
after my grandmother. She was one of the New Jersey Fryes.”
Laurie had a slight fit of coughing, which he recovered from so
abruptly, when he encountered Ned’s scowl, that he nearly choked.
“A nice name,” declared Ned sternly. “I’m sure we could change the
letters on the bow.”
“Oh, now I don’t believe I’d want you to go to all that trouble,” said
Miss Comfort. “I’ll just call it the Lydia W. Frye to myself, and that will
do quite well. Now I’m going to give you some tea.”
There were some cookies and sweet crackers with it, and for
these the hostess apologized. She hadn’t had time to do any baking
yet, she explained, and Brose had got these at the store for her last
evening. To-morrow, however, she was going to get to work, for she
had several orders that just had to be filled at once. It was after the
first cup of tea—and it did seem that Miss Comfort’s tea was very,
very different from any other tea, tasting, as Ned put it, like tea
instead of leather—that Laurie looked inquiringly at his brother and
Ned nodded and the twins arose and stood with their backs to the
door. Then Ned bowed and announced: “Original poetical
composition by the Turner Brothers entitled—”
He paused and looked at Laurie. “What is it entitled?” he
demanded. Laurie shook his head.
“We forgot to entitle it.”
“Entitled,” continued Ned, “entitled ‘Ode.’”
Polly clapped delightedly, and Bob inquired facetiously, “How
much?” The twins bowed in unison, and Ned recited the first line and
Laurie the second, after which they again alternated.

“O Pequot Queen, your stormy voyaging ’s o’er.


No more you’ll brave the wave’s and wind’s
discomfort.
Here, nestled ’gainst a peaceful, kindly shore,
You’re parlor, bedroom, bath for our Miss Comfort!”

Applause was loud and prolonged. The twins bowed repeatedly,


their hands on their hearts, their eyes languishing gratitude on the
appreciative audience.
“Why,” exclaimed Miss Comfort, with the tone of one making a
surprising discovery, “it was poetry!”
“Yes, ma’am,” said Laurie defensively, “but we warned you!”
Miss Comfort looked a trifle puzzled until Polly laughingly assured
her that she mustn’t mind Laurie, that he was always saying silly
things. Whereupon the little lady said disapprovingly: “You mustn’t
say that, Polly. I’m sure Mr. Laurie isn’t silly. Sometimes I don’t quite
understand him, my dear, but I’m sure he isn’t silly!”
“You’re a perfect dear!” replied Polly rapturously.
Laurie had seized his cap and Mae’s umbrella. “Back in five
minutes,” he said from the doorway.
“Hold on! Where are you going?” demanded Ned.
“Got to see Brose Wilkins a minute about—about something.”
“Well, make it peppy,” said Ned. “We’re not going to wait for you
long, old son.”
Laurie’s five minutes was more like fifteen, but he returned at last
and they said good-by and were almost on their way when Miss
Comfort sent Laurie’s heart down toward his shoes. “Mr. Laurie,” she
asked apologetically, “I wonder if you’d mind stopping in to see me
for a minute to-morrow.”
“Why—why, no, ma’am,” stammered Laurie. “I’d be pleased to.”
He exchanged meaning glances with Polly. Then Polly asked: “Why
don’t you stay now, Laurie, if Miss Comfort would like you to? We’ll
leave one of the umbrellas.”
Laurie viewed her in strong disapproval but accepted the situation.
“I don’t need any umbrella, though,” he said sadly. “I’ve got my coat,
and it isn’t raining so hard now.” He and Miss Comfort watched the
others depart, and then she motioned to a chair.
“Won’t you sit down, please?” she asked. Laurie sat down, but on
the extreme edge of the chair as though to lessen the space
between him and the door. “You see,” Miss Comfort went on after a
pause, “I’ve wanted to ask you ever since Wednesday how you were
doing all this, but I didn’t like to when the others were around. Now I
do wish you’d tell me, please.”
“Yes, ma’am.” Laurie gulped. “What—was it you wanted to know,
ma’am?”
“Why, who has—has met the expense of all the changes and
improvements you have made here, Mr. Laurie.”
“Oh,” said Laurie. “Oh! Well, you see, Miss Comfort, we haven’t
done so much after all. Now, you take that hanging lamp. Mrs.
Deane had that and wasn’t using it—”
“Yes, I know about the lamp,” interrupted Miss Comfort gently, “but
there’s that sink and the awning and—and so many, many things.”
“Yes, ma’am,” Laurie glanced longingly at the doorway. “Well, now,
you’d be surprised how little things like that cost. You take that stove-
piping, Miss Comfort. Maybe you thought that was new pipe, but it
wasn’t. It was second-hand. We just shined it up, you see!” Laurie
waved an all-encompassing hand. “Same way with the other things
—more or less.”
“That sink isn’t second hand, is it?” she asked.
“Well, no, ma’am, not the sink.” Laurie smiled engagingly. “But
sinks aren’t expensive. I was surprised, honest, I was, ma’am, when
we got the price on that! Why, seems like things don’t cost half what
they did a couple of years ago!”
“Mr. Laurie,” said Miss Comfort firmly, sitting very straight in her
chair and looking at him earnestly, “you shouldn’t try to deceive me. I
know that you and the others have spent a great deal of money, and
I’d feel horribly if I thought it was all yours. Now, please tell me.”
“Well—well, it’s like this. We did put in a few dollars, Miss Comfort,
but not enough to mention, and we were so glad to do it that you
oughtn’t to care a mite. Then—then two or three other folks, grown-
ups, you understand, wanted to help out, and there was quite a good
deal to be done, and so we took the money and promised not to tell
who’d given it. You see, Miss Comfort, they wanted to see you
comfortable here. And they were folks who could afford to do it, you
know. And so—well, that’s how it was,” Laurie concluded, observing
Miss Comfort anxiously.
“Thank you for telling me,” she said. “If you promised not to
divulge the names of the people who were so kind, I shan’t expect
you to. After all—” But she stopped and was silent a moment. Then,
“I’ve always said that I would never accept charity,” she went on
musingly, “but—well, I don’t know. Maybe I haven’t any right to be
proud. Then, somehow, this doesn’t seem so—so degrading. It
seems more like—well, just kindness, don’t you think so?”
“Yes, I do,” agreed Laurie emphatically. “And that’s just what it is,
ma’am.”
“I don’t feel about it as I would have a few years ago, anyhow,”
said Miss Comfort thoughtfully. Then she smiled. “Thanks for telling
me, Laurie. You don’t mind my calling you just that, do you? You’ve
been so—so— Won’t you have some more cookies?”
“No, ma’am, thank you.” Laurie felt that after going through the last
few minutes he deserved a whole plate of cookies, but he resisted
the temptation. Too many cookies weren’t good for a fellow who
hoped—sometimes—to be a catcher!
He was so relieved at the outcome of the talk that he didn’t realize
it was pouring harder than it had poured all day until he had turned
into Ash Street. When he did, he gave up the idea of joining the
others at the Widow’s and headed as straight as Orstead’s
wandering streets would let him head for East Hall, arriving there
extremely wet despite his oilskin coat. Sounds told him that many of
the fellows had already returned, and at the head of the first flight he
encountered Elk Thurston and his room-mate, Jim Hallock, coming
down. Hallock said, “Hello, Nod,” and then Elk asked: “How’s the
great pitcher coming on? Going to spring him on us pretty soon?”
Laurie said, “Not for another week or so, Elk,” and heard Elk
laughing as he and Jim went down.
A little later, when Ned and Kewpie arrived in No. 16, Laurie held
their undivided attention.
Monday morning and recitations once more. Monday afternoon
and baseball practice again. Things went well on the field, for the
candidates for the team had returned with renewed ambitions.
Besides, there was a game with Benson High School two days later,
and that was something to work for. Laurie managed to hit the ball
on the nose every time he stood at the batting-net, and later on, in
the five-inning practice game, he caught for an inning and, so far as
he could discern, didn’t do so badly.
Back in No. 16 at half-past five, he found Kewpie awaiting him,
Kewpie looking disheveled, weary, but triumphant. “I’ve got it!” he
announced excitedly before Laurie was well through the door. “I’ve
got the hang of it at last! That guy’s a corker, Nod, and he says I’ll
know as much about it as he does in another month!”
“Restrain your enthusiasm, Kewpie,” urged Laurie. “No use telling
the whole dormitory about it. These walls aren’t awfully thick, and I
can hear Elk tramping around up-stairs like a hippopotamus right
now.” But Laurie looked very much pleased and settled himself to
hear Kewpie’s gladsome tidings. And when Ned came in a little later
he heard them all over again, and after Kewpie had reluctantly torn
himself away the twins agreed that, even allowing for a slight
exaggeration of the facts as set forth by their late visitor, stock in the
Association for the Reclamation of Kewpie Proudtree had advanced
many points. The next afternoon the lady members of that
association were also taken into the secret, and there was much
rejoicing.
Polly and Mae learned the news at Bob’s tennis tea, for that long
heralded affair was at last taking place. The court was finished and
marked, the new creamy-white net was up, and, near at hand, a
wicker table bore the paraphernalia of afternoon tea. Practice kept
Laurie away until well after five, and Kewpie was missing for a time,
too, but Ned and George Watson and Hop Kendrick and Hal Pringle
and half a dozen other boys were there from the start. The gentler
sex was represented by Polly, Mae, and Bob’s aunt, the latter
presiding at the tea-table. Bob beat George Watson, 6 to 4, in an
exhibition set, and then Mae and Hal Pringle played Polly and Hop
Kendrick. After that there was tea and sandwiches and cake, and
then Bob took on Hal and Lee, and the set went to 9 to 7 before Bob
finally broke through on Hop’s service and won. The court was all
that Bob’s fondest hope had pictured. Mr. Starling arrived before the
party broke up and went through three games with Mae to the delight
of the audience, by that time swelled with the arrival of Kewpie and
Laurie.
Benson won from Hillman’s the next afternoon, 13 to 7. The home
team played rather ragged ball in the field, although the pitching of
George Pemberton and Nate Beedle was satisfactory enough. Nate
relieved Pemberton in the fifth inning, too late to prevent three runs
that put the visitors well in the lead. Laurie saw the game from the
bench, for Cas Bennett wore the mask from start to finish.
On Saturday afternoon Hillman’s met Tudor Hall School and
played a much steadier game. The Blue dislodged the opposing
pitcher in the third inning and put the game safely away with six runs.
Later four more were added, and the total of ten was more than
enough to win, even though Tudor Hall staged a rally in the first of
the ninth and hit Croft, who had succeeded Pemberton in the
seventh, to all corners of the field and got three runners across the
plate before Pat Browne, in right field, pulled down a fly and ended
the fracas. Again Laurie was a non-combatant, although Elk
Thurston caught during the final two innings and behaved rather well
during that hectic ninth.
The following afternoon Ned, as self-appointed secretary and
treasurer, rendered an accounting of the Pequot Queen fund,
showing a balance in the treasury of $1.42. All bills had been paid,
and the question of disposing of the balance came before the
meeting. Kewpie’s suggestion was typical.
“Pay it to Miss Comfort,” he said, “and we’ll trade it out in cake!”
“It isn’t ours,” Ned reminded him sternly. “Besides it’s not for you to
be thinking of cake, old dear.”
It was Polly’s suggestion that was finally adopted. They would give
the vast sum to Brose Wilkins to be used for the purchase of flower-
seeds for the boxes and beds. That momentous question settled,
they set forth to call at the Pequot Queen, or, as Laurie reminded
them they should now call the boat, the Lydia W. Frye.
April became May, and the Hillman’s School nine went on playing
Wednesday and Saturday games, losing not quite as often as it won.
Laurie twice donned the mask in contests and did as well, perhaps a
bit better, than he had expected to. He did very well at receiving the
ball from the pitcher, and he was remarkably steady at all times, but
he was weak when it came to holding the runners on bases, his
heaves to second being erratic, to say the least. At bat, however, he
was improving fast, and when May was a fortnight old there was not
much to choose between him and Elk Thurston as a catcher,
although possibly the latter’s greater age and size inspired more
confidence. Perhaps Coach Mulford thought so, for Elk was given
more chances than Laurie behind the bat.
When Hillman’s went to play Benson, most of the school
accompanied the team. Polly and Mae went, too, escorted by Ned
and George Watson. Hillman’s won, but not until the tenth inning,
and then by 3 to 2. Nate Beedle pitched fine ball that day. Hillman’s
returned to Orstead tired but happy.
Just a week later Polly celebrated her sixteenth birthday with a
party attended by Mae, Ned, Bob, Kewpie, and, since the affair was
held in the forenoon, Laurie. And, of course, Mrs. Deane was
present. Miss Comfort had been invited and in lieu of her presence
had provided a gorgeous birthday cake. Antoinette, wearing a new
pink ribbon that exactly matched her pink nose and ears, and
Towser, the cat, may also said to have attended. Polly received
many presents and was very bright of eye and very happy.
The celebration continued in the afternoon when the entire party
attended the game with Cole’s School, although, Laurie, of course,
did not sit with the others in the stand but watched the nine tragic
innings from the bench. Nate Beedle had a bad day; Croft, who
succeeded him, was far worse; and Pemberton alone of the pitching
staff showed any class. Pemberton got through the final two innings
without allowing a hit, but the damage was already done. Cole’s won
by the scandalous score of 16 to 3! Polly remarked, a trifle
unreasonably, that she thought, since it was her birthday, Hillman’s
might have won!
Rain caused the cancellation of the game with Highland the next
Wednesday, and Laurie accompanied Kewpie on his mysterious
pilgrimage to the home of Brose Wilkins. Those pilgrimages had
been made daily, excepting Sunday for about a month now, and
never once, rain or shine, had Kewpie sought to avoid them.
Whatever it was that kept the two boys on the dilapidated Wilkins
premises for more than an hour this Wednesday afternoon, it must
have been something important, for the rain never ceased for a
moment during that time, and, knowing Kewpie as we do, it seems
fair to assume that only an important mission could have kept him
from the snug window-seat of No. 15 East Hall on such a day.
Returning, their way took them within a few yards of the Pequot
Queen. The river beyond looked gray and sullen; the rain was falling
steadily and remorselessly; the new paint of the transformed ferry
boat gleamed with moisture. But from the smoke-pipe in the roof a
cheerful trail of gray ascended, and at the windows the blue and
white curtains shone cozily. Once they saw the small, erect form of
Miss Comfort, white-aproned, pass a casement and, or so Kewpie
solemnly averred, heard the sound of a faintly sung song. There was
such an atmosphere of warmth and hominess and cheer about the
quaint abode that Kewpie lagged noticeably and would have
welcomed a suggestion from his companion that they stop a moment
and say “Hello” to the occupant. But it was close to supper-time and
Laurie went sternly on, refusing to notice Kewpie’s deep sigh.
They reached the entrance of the dormitory just as Ned got there.
Ned carried his golf-bag and was very wet indeed. Laurie viewed him
commiseratingly. “You poor forlorn fish,” he said. “Don’t tell me
you’ve been playing golf a day like this!”
“Sure have,” answered Ned cheerfully. “Won, too. Had Peyton
three up on the seventh, too, old son.”
“Well, you certainly are a nut! Didn’t either of you know it was
raining?”
“Didn’t you?” countered Ned. “Look at your own shoes!”
“We,” replied Laurie with dignity, “were engaged in a sensible and
important occupation, not merely amusing ourselves!”
“Were, eh?” Ned grinned. “What important part did you play in it?”
“I,” began Laurie, “contributed my—er—my—”
“He chased the ball,” chuckled Kewpie as he disappeared to No.
15.

You might also like