w Comm budget in Forum Home Insert Design Layout References Mailings Review View Share X LE A Aar Po Paste B I U v ab x x Styles View Only Your account karolina.gomez1@marist.edu doesn't allow editing on a... Use Another Account Case study: TORO Company The Toro Company is a leading manufacturer of turf maintenance equipment. Toro brands are distributed via home improvement retailers including Lewes and Home Depot nationwide. As a Toro team you have chosen to focus on the following model of the brand. Toro 1800 18 Inch 12-amp Electric Curve Snow Thrower None of the retailers (resellers) have yet agreed to accept the model presented here for distribution to the potential homeowners in market to purchase snow blowers. There are more than 5000 home improvement retailers in the Unites States. Toro Sales force has been assigned the responsibility to open approximately 745 retail accounts by the end of 12 months. 1. Assignment: Calculate the Budget for Personal Selling PERSONAL SELLING AND SALES FORCE (Reference Chapter 11- lecture notes) Personal selling will be used to open and maintain and to provide service to retail accounts (customers). Based on budgetary method 7 sales representatives will assume primary responsibility of marketing TORO 1800 model. Sales force will be hired for the entire year. Additionally, $6000 has been set aside. This money will be used to top 3 sales reps who open the maximum retail accounts. a. Average compensation $56,000 Total cost for sales force = $ b. Incentives for top sales persons = $......... Total Sales force cost (Budget) = $ 2. Assignment: Calculate the budget for Trade Promotion TRADE PROMOTION (Reseller Support Program) - reference chapter 12 Trade promotion will used to build retail inventories and maintain shelf space for Toro products. Cooperative advertising allowance will be used as incentives for retailers. In addition, point of purchase displays and incentive programs for resellers will also be used. a. Cooperative advertising allowances will be offered during month of February and month of September. Condition - if any retailer spends $20,000 on advertising Toro brand in their local market, Toro company will reimburse each of them 40% of the expense on Toro Brand advertising. Advertising allowance offer will be made to all 745 resellers. But only 2% of resellers total resellers will participate in the cooperative advertising program. Number who will take advantage of co-op adv funds = Total annual cost (Budget) of this program will I be $..... b. Point of purchase (POP) displays will be offered to resellers in February. Approximately 12% of 745 retailers will agree to provide floor space for POP displays. Cost of manufacturing the POP displays is estimated to be $200 per unit. Once the retailers agree to POP display units, they will be able to use them for the entire year without any additional costs. Number of retail accounts who will agree to POP displays Budget for POP displays = $200 x resellers = $.............. Total budget for Trade promotion/ Reseller support Program = a + b = $ Page 3 of 4 625 words + 129% w Comm budget in Forum Home Insert Design Layout References Mailings Review View Share X LE A Aav Ao Paste B I Uvab x x Styles X View Only Your account karolina.gomez1@marist.edu doesn't allow editing on a... Use Another Account What to do after calculating the expenses for Sales Force and Reseller support program? 1. After calculating the budget required for sales force and reseller support program, fill in the blanks in budget allocation exhibit below: 2. Fill in the total budget for sales force and for trade promotion 3. Calculate % of total budget and fill in the information in the last column 4. Calculate the $ budget for consumer sales promotion 5. If this was your project "how much $ would you allocate for public relations activities? (fill in the $ budget and % of total budget for consumer sales promotion. Budget Allocation Exhibit Communications tool Allocated $ % of total budget Advertising $375,000 37.5% Personal Selling /sales force Trade Promotion (reseller support program) $ Consumer sales promotion $ 5.8 % Public relations $ Misc. Total $1,000,000 100% After you have completed the exhibit, Copy/paste only the budget allocation exhibit by starting a new conversation. Page 3 of 4 625 words F + 129%