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Classical Management

about any home in America, regardless of income, geo- CLASSICAL
graphic region, education, or age.
MANAGEMENT
Next, pricing must be addressed. When looking at
the cost of classic brands in comparison to their competi- SEE Management
tion, the classic brands generally fall in the median price
range of the product category. While higher in price than
the store house brands and generics, they are not usually
at the costly end of the spectrum either. In part, this is CLAYTON ANTITRUST
because in order to be well received by the masses, the ACT OF 1914
product must be neither overpriced nor undervalued.
SEE Antitrust Legislation; Interstate Commerce; Marketing
There are many quality wristwatches on the market, but
Mix; Sherman Antitrust Act of 1890
Timex, one of the least expensive, has made a name for
itself as a classic brand.
Last, a product must be adequately and appropriately
promoted to become a classic brand. Timex, for example,
has created memorable television commercials over the CLIMATE IN
years by using the same premise over and over—“Timex ORGANIZATIONS
takes a licking and keeps on ticking.” The public has SEE Organizational Behavior and Development
grown accustomed to seeing what the wristwatch can
endure and remain functional. Such a promotional idea
stems from a creative department committed to the suc-
cess of the brand through consistent promotional
processes. Promotion must also be constant. There must CLOSED MANAGEMENT
always be some kind of promotional vehicle in motion to SYSTEMS
keep the brand name in the forefront of the consumer’s
SEE Management
mind. Point-of-purchase displays, radio, television, print,
and Internet advertising, corporate sponsorships, and con-
tests are all used, often simultaneously, to maintain the
public’s awareness of the brand.
COCO (CRITERIA OF
These four traditional guidelines of product market-
ing are crucially important for classic brands, for the com- CONTROL)
petition is generally aimed directly at them. Pepsi, for SEE Internal Control Systems
example, spends millions of dollars a year targeting itself
directly against Coke. Coca-Cola cannot afford to rest on
its classic brand status—they must be constantly engaged
in maintaining the perfect balance of product, placement,
pricing, and promotion, or risk having its market share COGNITIVE
overtaken by the hungry competition. DISSONANCE
Classic brands are not likely to change over the next SEE Consumer Behavior
several generations. They will not disappear overnight or
be swept away by increasing technology. Companies for-
tunate enough to have classic brands in their product
lineup protect their esteemed place vigilantly through COLLECTIVE
careful marketing, innovative ideas, and respect for their
place in history. BARGAINING
Collective bargaining is “a process of negotiation between
SEE ALSO Marketing; Promotion
management and union representatives for the purpose of
arriving at mutually acceptable wages and working condi-
BIBLIOGRAPHY tions for employees” (Boone and Kurtz, 2006, pp. 424-
“From Soda Fountain to American Icon.” (1999, February 1) 425). Various methods may be used in the bargaining
Playthings.
process, but the desired outcome is always mutual accept-
ance by labor and management of a collective bargaining
Karen J. Puglisi agreement or contract.

120 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION