Toyota Motor Corporation took extraordinary care in developing the channel and selecting the dealers for its Lexus luxury cars. The attention to detail in setting up the channel for the Lexus is reminiscent of the kind of care Toyota gives to the building of its cars. In fact, standards for the dealerships cover such minute details as setting specifications for doorknob designs and the grade of rice paper for sohji screens used to decorate the dealerships. It would seem that everything had been so carefully planned that the Lexus dealerships should virtually run themselves. Comment on this situation in terms of the need for channel management and the motivation of channel members.
Answer to relevant QuestionsThe product, price, promotion and logistics variables may be viewed by the channel manager as resources in helping secure a higher level of channel member cooperation. Discuss the statement. Discuss the product life cycle stages and the basic implications of each stage for channel management. Toddler University Inc. is the name of a shoe company that makes children’s footwear. The company grew from almost nothing to sales exceeding $25 million. The secret of Toddler University’s success, according to some ...Free riding, though profitable for some types of dealers, can be detrimental for manufacturers, full-service dealers and even consumers. Do you agree or disagree? Explain. Apple CEO Steve Jobs has been quoted as saying: “We don’t know how to build a sub-$500 computer that is not a piece of junk.” Job’s disdain for the under $500 price point for personal computers reflects his belief ...
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