Marketing Concepts
Joe’s lumberyard sells this type of product
What is homogeneous?
The owner of Hanratty Company
Who is Joe Hanratty?
The time Joe has been in the lumber business
What is 20 years?
The growing market Joe is considering entering
What is the retrofit market?
Residential windows are this type of product
What is heterogeneous?
A large manufacturer of windows, raised-panel doors, and accessories
What is Arbor Door and Window Co.?
The markup on Joe’s lumber
What is 4-6%?
The two submarkets of the window market
What is commercial and residential construction?
The channels that Joe uses to generate sales
What are emails and phone calls?
A representative that reached out to Joe
Who is Amy Balderas?
The sales commission Joe would receive on residential windows
What is 5%?
The reason Joe is concerned about accepting Amy’s offer
What is the sales effort that will be needed?
The indirect environment causing Joe’s lumberyard customers to go out of business
What is the competitive environment?
The place Joe’s prices are widely publicized
What is the Internet?
Joe could earn a third of his current income from this lumberyard residential window business percentage
What is 20-30 percent?
The advantages Joe has that made Amy approach him
What are Joe’s connections to local lumber yards/many years in business?
The psychological variable that Joe has with the local lumberyard buyers
What is trust?
The competitive advantage that national home improvement chains have
What are low prices, available inventory, and one-stop shopping?
Arbor Door and Window Co offers variations in this increment
What is 1/8th inch?
Joe’s three options going forward
What are
1. Take Amy’s offer and sell both window and lumber products
2. Take Amy’s offer and drop lumber products
3. Stay strictly with lumber and reject the offer?