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INTERNET MARKETINGNorth America Market Mear 15 atcarIu 47+ 5.27 400 10,Coo 3,000 442 Om (105.00)Europe-Africa Market Year 15 Hoarc 4,6+ 5.67Latin America AsiaaFacif...

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INTERNET MARKETINGNorth America Market Mear 15 atcarIu 47+ 5.27 400 10,Coo 3,000 442 Om (105.00)Europe-Africa Market Year 15 Hoarc 4,6+ 5.67Latin America AsiaaFacific Market Year 15 Year 16_ Yenr 15 Hcar6 4,6+ 5.67 4,57 427 400 9,000 3,000 95,00 91.00 46%6 10082 2,500 2500S/Q Raling Hr Mntt Modcls Avallablc Mtantedavtuo Brand Advertising enntal Retall Prlce (per Gft Relall Price Exceed s Wholesale Price bY Scarch Englno Advertlsing (oxa) Free Shipping {ron warhoue %o bjyE] Cclcbrity Appca CancoA

INTERNET MARKETING North America Market Mear 15 atcarIu 47+ 5.27 400 10,Coo 3,000 442 Om (105.00) Europe-Africa Market Year 15 Hoarc 4,6+ 5.67 Latin America AsiaaFacific Market Year 15 Year 16_ Yenr 15 Hcar6 4,6+ 5.67 4,57 427 400 9,000 3,000 95,00 91.00 46%6 10082 2,500 2500 S/Q Raling Hr Mntt Modcls Avallablc Mtantedavtuo Brand Advertising enntal Retall Prlce (per Gft Relall Price Exceed s Wholesale Price bY Scarch Englno Advertlsing (oxa) Free Shipping {ron warhoue %o bjyE] Cclcbrity Appca CancoAseeuoncccr Brano Acoutaton Ink-Vune METcl p-u pidugoc Oetln 9,500 3,000 94.00 4576 2,500 2500 Internet Marketing Decisions 2,500 (3000 Vakaling Jm J00 {Pronycar Yri NercieU Actuall Rrojecied 2n Projecied Yckuli Rojclu 8.196 9.580 44-592 11.390 12.596 11.290 0,056 0.096 308 Internet Market Share Fctl DJenniatnlnT Internot Salos Volumo ICO 0t pinecldjo ontro curotersi Loo0s Spalr 33.810 105.00 0.O0 33.810 105.00 So00s Epalr 30,667 91.00 0.00 30,6o7 91-vo 4213 1250 34,880 103.50 802 43.92 4,044 14.67 6.702 19-89 2010 6,414 19.03 18.490 Kpoos Apalr 28,028 91.00 2.05 28,659 93.05 3,850 1250 32,509 105.55 28 40 4,198 13.83 5,583 18.13 1845 5.99_ 9,031 29.32 27,890 EO0s Kpalr 0.00 0CO 0.00 00Q_ 0.00 0.00 0.C0 Revenue: Cost; and Proflt Prolections Year 16 Gross Inlcrnet Revenucs Exchange Rale Adjustments Adlmateo Cross Jevenmes Shipping Fces cuncner Net Internet Revonues Cost = Pairs Sold Warehouse Expenbe5 Marketing Expenses Administrative Expense$ Operating Prolit (Loss) Operating Prolit Margin 33.810 105.00 13.096 40.67 4.322 13.42 5,949 18.48 JA9OE 5.99 _ 8.515 26.44 25.290 00 _ 0.00 0.036 Henhmnnt undetn S/Q Rating Hct [e E Models Avallable alon oren PEJo_ Brand Advertising (soucal Compelilive Retail Price #Pd per) Aesumotone Search Engine Advertising (to0Cal Fre Shipping hlzr ontaco Celebrity Appeal EknertetEee ENITE-at Inen Ouncoee Brand Reputatlon 5.0# 4.8* 326 7,700 L78.70 Seo gome 4.8+ 49+ 312 7,375 010 S(Gsooo - (Most 8.500 7960= s([S700 - Some - 7,800 1480- SC5O Some



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Classification of costs, service sector. Market Focus is a marketing research firm that organizes fo cus groups for consumer-product companies. Each focus group has eight individuals who are paid $\$ 60$ per session to provide comments on new products. These focus groups meet in hotels and are led by a trained independent marketing specialist hired by Market Focus. Each specialistis paid a fixed retainer to conductt a minimum number of sessions and a per session fee of $\$ 2,200$. A Market Focus staff member attends each session to ensure that all the logistical aspects run smoothly. Classify each cost item (A-H) as follows: a. Direct or indirect (D o r I) costs of each individual focus group b. Variable or fixed (V or F) costs of how the total costs of Market Focus change as the number of focus groups conducted changes. (If in doubt, select on the basis of whether the total costs will change sub stantially if there is a large change in the number of groups conducted. You will have two answers (D or l; V or F) for each of the following items: Cost Item. A. Payment to individuals in each focus group to provide comments on new products. B. Annual subscription of Market Focus to Consumer Reports magazine. C. Phone calls made by Market Focus staff member to confirm individuals will attend a focus group session (Records of individual calls are not kept.) D. Retainer paid to focus group leader to conduct 18 focus groups per year on new medical products. E. Recruiting cost to hire marketing specialists. F. Lease payment by Market Focus for corporate office. G. cost of tapes used to record comments made by individuals in a focus group session (These tapes are sent to the company whose products are being tested.) H. Gasoline costs of Market Focus staff for company-owned vehicles (Staff members submit monthly bills with no mileage breakdowns.) I. costs incurred to improve the design of focus groups to make them more effective.

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