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Vector Marketing Corporation, is a multi-level marketing group which builds its work force through advertising via newspapers, direct marketing, word-of-mouth, posted advertisements, letters and various mediums on the internet. Their fliers advertising "student work" are a common sight in many high schools and college campuses across the United States and Canada. Students are hired to market Cutco products (mainly kitchen knives) to customers, typically their friends and family members via one-on-one demonstrations.

Cutco offers different types of cutlery, fishing knives and gardening tools, but is best known for its kitchen cutlery. As the sole distributor of Cutco, Vector Marketing has offices across the United States and Canada. The company belongs to the Direct Selling Association.

The company has more than 250 offices in the U.S. and Canada and works with approximately 60,000 sales representatives yearly, some 80% of which are college students.

Company History

Both Vector Marketing Corporation and Cutco Cutlery Corporation are wholly owned subsidiaries of Cutco Corporation. Formerly known as Alcas Corporation, the company was created as a joint venture between ALCOA and Case Cutlery. The factory in Olean, NY was completed in 1949 and the first set of CUTCO Cutlery was shipped to New Kensington, Pennsylvania that same year. ALCOA purchased Case's share of the company in 1972.

In 1982 several managers purchased the company from ALCOA in a management buyout. The company remains privately held today, and is one of the largest employers in Cattaraugus County, New York.

Vector began as an independent distributor of CUTCO Cutlery in 1981, with sales eventually eclipsing all other independent Cutco distributors. As a result, Vector was named CUTCO's sole distributor and was purchased by Alcas (now Cutco Corporation) in 1985. Vector Marketing expanded into Canada in 1990.

Organizational Structure

Cutco Corporation is the parent company of Cutco Cutlery Corporation, which operates Vector Marketing Corporation. Cutco Corporation is also the parent company for Cutco International, Inc. which markets Cutco Cutlery internationally, and Ka-Bar Knives, Inc., manufacturer of the Ka-Bar line of sporting and military knives.

Vector Marketing is divided into 6 regions in the United States (Northeast, Midwest, Eastern, Central, Southwest, Western, and Canada).

Vector Marketing is broken into three operational sectors: Vector East, Vector West, and Canada. Vector East is further divided into three regions: Northeast, Eastern, and Midwest, and Vector West is also divided into three regions: Western, Southwest, and Central. Regions are further divided up into divisions, and then district offices. District offices are local sales offices that are operated on a continuous year-round schedule. Branch offices are sales offices designed to be open strictly for the summer months. At the conclusion of the summer, branch offices close. Depending on demographics and company goals, a branch office may or may not open in the same location the following summer.

Sales Representatives

Sales representatives work as contractors to sell Vector Marketing’s product, Cutco Cutlery, via base pay per appointment, or on a commission basis. Students represent 80% of this force. Commissions range from 10% for new representatives, to 50% for top earners, with students who commit to the sales program for the entire summer earning an average of $3,000 to $5,000 (estimate described in Wall Street Journal, 2008). To demonstrate the product, sales representatives lease a set of knives from the company. To obtain a sample kit of knives, the potential sales representative must place a security deposit for the knives with Vector, which in 2008 was $135.

Controversy & Critism

Some of Vector Marketing former independent contractors have accused Vector Marketing of unsavory business practices. Vector frequently advertises in newspapers and on fliers posted on bulletin boards at college campuses, but seldom do those advertisements explain the nature of the job.

Vector Marketing requires sales representatives in 44 states (excluding Wisconsin, Oregon, Iowa, Illinois, Pennsylvania, and New Jersey) to make a security deposit of approximately $150 (25% of the samples' market value, plus tax where applicable) in order to procure a set of knives for demonstrations, prompting some to complain about this policy (the deposit is refundable if a representative chooses to quit or the contract is terminated and the sample kit is returned). Students who work for Vector Marketing are considered independent contractors and are not reimbursed by the company for money they spend on gasoline used while working or for the time they spend at training sessions. However, these independent contractors are not required to travel large distances, as they can choose to set appointments only with locals. In the 2008 case Vector Marketing Corporation v. New Hampshire Department of Revenue Administration, the Supreme Court of New Hampshire ruled that Vector employees are independent contractors and Vector is thus exempt from the state business profit tax.

Vector was sued in 1990 by the Arizona Attorney General and in 1999 by the Australian Competition and Consumer Commission. In 1994, the state of Wisconsin ordered Vector to stop providing dishonest information to recruits.

In 2008, Alicia Harris filed a federal class action lawsuit against Vector. Harris alleged that Vector violated California and federal labor law by failing to pay adequate wages and illegally coerced employees into patronizing the company. The case, Harris v. Vector Marketing Corporation, is pending before Judge Edward M. Chen.

Memberships in Business and Collegiate Accreditation Organizations

Vector Marketing has been a Better Business Bureau Accredited Business since 1990 and currently has an A+ rating. In addition, it has been a member in good standing of the Direct Selling Association (DSA) since 1981, and the Direct Selling Education Foundation (DSEF). The DSEF was created in 1973 by leaders of the DSA. During the 2009-2010 year, three Vector executives sat on the board of directors of the DSEF: Jim Stitt, Chairman, CEO and President of Cutco Corporation, Vector’s parent company, chaired the DSEF for the 2009-2010 year; Sarah Baker Andrus, Vector’s Director of Academic Programs and External Relations held the position of Vice Chair; while Albert DiLeonardo, Vector East President contributed as a DSEF board member. Vector Marketing is a member of the National Association of Colleges and Employers (NACE), along with the six regional associations. Helen Brown, Northeast Region Campus Relations Manager for Vector, served as President of the Eastern division of NACE from 2009-2010.

Partnerships with Academic Organizations

Vector Marketing provides financial support and sponsorship of several organizations and academic institutions throughout North America. Vector is a corporate sponsor of several organizations for 2010-2011, including the following.

Distributive Education Clubs of America (DECA)

Vector Marketing’s partnership with DECA was initiated in 2006. Vector Managers serve as guest speakers, mentors and judges for the organization.

American Marketing Association Collegiate Division (AMA)

Vector Marketing began sponsoring the American Marketing Association (AMA) Collegiate Division in 2002, and is one of five national sponsors. The AMA is one of the largest professional associations for marketers, and offers professional development and networking opportunities to its members.

Pi Sigma Epsilon (PSE)

Vector Marketing's partnership with Pi Sigma Epsilon was initiated in 1992. The company is the sponsor of the Pro-AM Sell-A-Thon held annually at the six fall regional conferences and PSE's annual national conference. The Pro-AM is a sales competition that provides PSE collegiate members with the opportunity to experience the salesperson's role in a simulated business-to-business sales environment, with coaching from sales professionals. PSE is the only national professional fraternity in marketing, sales, management and selling. Members consist of collegians, alumni, educators, professionals and associates who are connected in some way to the marketing and sales profession.

Academy of Marketing Sciences (AMS)

Vector Marketing began its sponsorship of AMS in 2001 with an endowment gift referred to as The Cutco/Vector Endowment for Excellence in Marketing Education. The AMS Distinguished Marketing Educator of the Year Award is supported through the Endowment and recognizes a faculty member for his/her role in the “advancement of marketing and sales education and in the preparation of students for productive careers in business.” AMS, devoted exclusively to the marketing professorate, is on the forefront of the marketing discipline and provides outstanding value to its members.

Relationships with Academia

Vector Marketing in the Classroom

Several university professors have adapted part of Vector Marketing’s sales program into their coursework. In these courses, students participate in Vector’s training program on campus, and sell Cutco as part of a sales class. Students in these classes get the experience of working as a sales representative for Vector, and are paid on Vector’s base/per appointment and incentive commission program. Purdue University has participated in the program since the early 1990s. Several other schools, including Michigan State University, Illinois State University and the University of Dayton have incorporated the program into the classroom. Students donate the proceeds of this work to a charity of their choice, rather than keeping the income.

Selling Smiles 101

Founded in 2005, Selling Smiles 101 gives students the opportunity to apply classroom concepts to the real world while contributing to the local community. Currently, the University of Calgary, in Calgary, Ontario offers this course each semester, lead by Dr. Derek Hassay. Selling Smiles 101 requires students to apply the concepts, theories and techniques that they typically learn through lectures, role plays, cases and job shadowing. Specifically, the course requires students to adopt and achieve a sales goal that requires them to prospect, qualify, present and close real sales. In the process students learn presentation skills, how to cope with ambiguity and to accept responsibility, recognize the efforts of others, and how to motivate themselves and others.

References

1. "Company History". Vector Marketing. Retrieved 2010-11-22.
2. "Executive Board". Vector Marketing. Retrieved 2010-11-22.
3. "Region Managers". Vector Marketing. Retrieved 2010-11-22.
4. ^ Deal, A. Matthew (2006-09-26). "High wages for student work - but beware". Campus News. The Carolinian. p. 1. Retrieved 2008-06-05.
5. Summer Job: Nice Pay, if You Can Cut It, Wall Street Journal, August 5, 2008
6. Episode 10. Street Cents, January 14, 2002
7. "About Cutco Cutlery & Vector Marketing". Cutco Corporation. Retrieved 2010-11-22.
8. "Public Members". Direct Selling Association. Retrieved 2010-11-22.
9. "About Vector Marketing". Vector Marketing. Retrieved 2010-11-22.
10. "Direct-sales jobs giving young work force needed skills". New York Daily News. Retrieved 2010-11-22.
11. "CUTCO Cutlery:History". Cutco Corporation. Retrieved 2010-11-22.
12. "Major Employers". City of Olean Community Development. Retrieved 2010-11-22.
13. "Company History". Vector Marketing. Retrieved 2010-11-22.
14. "About Cutco Cutlery & Vector Marketing". Cutco Corporation. Retrieved 2010-11-22.
15. "About Vector". Vector Marketing. Retrieved 2010-11-22.
16. "Organization". Vector Marketing. Retrieved 2010-11-22.
17. "Summer Job: Nice Pay, if You Can Cut It". The Wall Street Journal. Retrieved 2010-11-22.
18. ^ Lucchesi, Nick (2004-02-04). "Vector Marketing targets unaware college students". News. The Journal. p. 2. Retrieved 2008-06-05.
19. ^ da Costa, Polyana (August 21, 2004). "Firm misled sales recruits to sell knives, students say". Salem Statesman-Journal. Archived from the original on July 4, 2008.
20. Holt, Shirleen (February 22, 2004). "Help-wanted pitch may have surprise curve". The Seattle Times. Retrieved July 24, 2010.
21. Anderson, Matt (2004-10-06). "Vector policies questionable". News. Sidelines. p. 1. Retrieved 2008-06-05.
22. Vector Marketing Corporation v. New Hampshire Department of Revenue Administration, New Hampshire Supreme Court case no. 2007-0330.
23. "Student Group Wants to Slice Up Vector". Consumeraffairs.com. August 12, 2003. Retrieved May 21, 2010.
24. Chen, Edward M. (September 4, 2009), "Order Granting in Part and Denying in Part Defendant's Motion for Summary Judgment", Harris v. Vector Marketing Corporation, United States District Court for the Northern District of California
25. "BBB Business Review Reliability Report for Vector Marketing Corporation". Better Business Bureau for Upper New York. Retrieved 2010-11-22.
26. "Direct Selling Organization Membership". Direct Selling Association. Retrieved 2010-11-22.
27. "Ethics, Empowerment, Education". Direct Selling Education Foundation. Retrieved 2010-11-22.
28. "Board of Directors". Direct Selling Education Foundation. Retrieved 2010-11-22.
29. "About NACE". National Association of Colleges and Employers. Retrieved 2010-11-22.
30. "Past Presidents". Eastern Association of Colleges and Employers. Retrieved 2010-11-22.
31. "Philanthropy". Vector Marketing. Retrieved 2010-11-22.
32. "DECA Partners, Vector Marketing". Distributive Education Clubs of America. Retrieved 2010-11-22.
33. "Sponsorships". Vector Marketing. Retrieved 2010-11-22.
34. "AMA Marketing Week". American Marketing Association. Retrieved 2010-11-22.
35. "Sponsorships". Vector Marketing. Retrieved 2010-11-22.
36. "PSE Pro-Am Sell-a-Thon celebrates our 18th Year 1992-2010, Presented by". Pi Sigma Epsilon. Retrieved 2010-11-22.
37. "2010 Annual Conference" (PDF). Academy of Marketing Science. Retrieved 2010-11-22.
38. "Sponsorships". Vector Marketing. Retrieved 2010-11-22.
39. "Vector in the Classroom". Vector Marketing. Retrieved 2010-11-22.
40. "Selling Smiles". Vector Marketing. Retrieved 2010-11-22.
41. "Selling Smiles 101 – Two Special Wishes, One Incredible Initiative". Children’s Wish Foundation. Retrieved 2010-11-22.

External links

• Vector Marketing site

• Misplaced Pages neutral point of view disputes from December 2010
• Companies based in Cattaraugus County, New York
• Companies established in 1981
• Multi-level marketing