TEACHING NOTES
FOR THE INTRODUCTORY CASE
The introductory case covered Gateway as it changed its headquarters from the Midwest to California and and then considered changing its marketing program also. The skills exercise asks students to put themselves into the shoes of those making such a decision for Gateway and to consider the merits of brainstorming for the decision. The following contain the questions for the wrap-up as well as the skills exercise questions.
The wrap-up for the case has the following questions.
1. List three alternatives for handling competition that GatewayÆs management might consider before making a decision to abandon its popular marketing campaign.
Student answers will vary but the case implied certain possibilities, such as segmenting the market into business and consumers and using separate marketing campaigns targeted at each segment, or using pricing strategies. Other possibilities students might mention could include using varied distribution strategies here in the United States and overseas which range from direct sales to varied retail outlets.
2. What information would management need in order to evaluate these three alternatives?
The company must first understand what the customer wants, the customerÆs perceptions in using each alternative, the extent to which some customers may be both business customers as well buyers for home use, and the impact of each alternative on how each alternative would impact on the organizations, including the organizationÆs employee morale.
3. Do you think you would enjoy making this decision of whether to abandon the advertising campaign at Gateway? Explain.
Student answers will vary.
The skills exercise asks students to brainstorm as many alternatives as possible of how to improve market share in a highly profitable business market and then to list three disadvantages and three advantages of using brainstorming to solve how to improve market share. The...