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P&G- Scope Case Analysis

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CUTCO & Vector Marketing

1. What is direct selling?

Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Modern direct selling includes sales made through party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales. A textbook definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs.” While direct sales proves to be quite effective for Cutco, the industry also has its negatives. Many times there is very little advertising and because the company is not well known, it may lack legitimacy.

2. How would you respectively characterize Cutco and Vector Marketing?

CUTCO cutlery has always been historically marketed through direct selling. This is viewed as a distinct advantage by the company because it allows the quality and performance features of the product to be explained and demonstrated directly to potential customers. Direct selling sets the company apart from its major competitors. These sales are made through in-home presentations in which sales representatives validate and prove the superiority of CUTCO cutlery through demonstrations. 3. How is Cutco cutlery marketed?

Vector Marketing Company & Sales Representatives In 1985, CUTCO acquired Vector Marketing Corporation to have greater control over its sales efforts. organized into six geographical regions of which are divided into Vector East and Vector West. Each of the six regions is headed by a regional sales manager, which in one region is an executive vice president. Within each region are divisions and finally “branch offices”. These branch offices are summer offices that operate for about 17 weeks every summer. The individuals actually selling CUTCO cutlery are independent contractors

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