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Marketing Channels 8th edition Rosenbloom - Solutions
In November of 2010, Lowe’s, the nation’s second largest home improvement retailer, ran a day after Thanksgiving Black Friday promotion merchandise was offered to Lowe’s’ Facebook fans and was limited to the first 100 consumers that checked out with the items at Lowes.com. Lowe’s believed
“I just can’t get these guys to feature our new fresh pasta products the way they should,” remarked Alice DeMarco, a product manager for a major manufacturer that had ventured into the new growth field of fresh refrigerated foods. Fresh pasta was to be one of the company’s key products in
Sales through department stores account for about one-third of the $170 billion world market for cosmetics. One of the major reasons— perhaps the most important reason—for department stores’ ability to hold their own in the sale of cosmetics despite heavy competition from mass merchandisers,
Push type promotions are not limited to the supermarket or the Chevrolet dealer. Some manufacturers of “highbrow” products also do their share of push promotion. For instance, Steinway & Sons, the almost 150-year-old manufacturer of fine concert pianos, has had a policy for many years of
Retail carpet dealers are in an industry that is deluged with manufacturers’ push promotions on an almost daily basis, making it difficult for any particular carpet manufacturer to attract retailers’ attention with promotional programs. So when Mohawk Industries, one of the largest U.S. carpet
Logistics is much more than simply shipping products to customers. Explain.
Why might it be necessary to sell the channel members on a proposed logistics program? What kinds of appeals might be used?
Computer-to-computer ordering systems and EDI have dramatically improved ordering efficiency. What might be the danger in uncritically accepting this statement? Discuss.
Discuss how the just-in-time inventory (JIT) system works. Why has this development had such a profound effect on logistics and channel management?
Logistics programs in recent years have incorporated many sophisticated developments closely associated with computer technology. Some of these logistics programs have been described in the literature in very optimistic terms, to say the least. Discuss the implications of this statement in terms of
Discuss the key distinctions between the “traditional” approach to logistics and the more recent supply chain management emphasis.
What is the essential role of logistics in the channel? Explain.
Discuss the systems concept and the total cost approach as they apply to logistics management.
Briefly describe the basic components of any logistics system.
What is the key issue involved in measuring the output of the logistics system? How does this relate to logistics service standards and gaining a competitive advantage?
Discuss the relationship between channel management and logistics management. Is one of these areas more important than the other? Explain why or why not.
Identify and discuss the four major areas of interface between channel management and logistics management.
Why is the task of defining logistics service standards for channel members a channel management issue as well as a logistics issue?
Barnes & Noble introduced its electronic book reader, the Nook, in mid-October 2009. Within days it became Barnes & Noble’s fastest selling product. In fact, sales were so good that Barnes & Noble announced in mid-November that customers ordering the Nook would not receive it until the first week
Timberland Company is one of the world’s best known manufacturers of casual shoes and sports boots. For many years the company’s logistical system was geared to large orders. Hence priority was given to major department stores and retail chains that purchased in large quantities. But market
U.S. Jaguar dealers used to wait at least one week to receive parts from England. Parts were shipped in bulk by Jaguar to a U.S. warehouse where they were split up, repackaged and then shipped to individual dealers. Working closely with Federal Express, Jaguar initiated a new logistics system that
East Coast Auto Supply, a distributor of auto parts located in the New England area, received much of its inventory of rebuilt auto parts from a Los Angeles wholesaler that imports the remanufactured parts from several Asian countries where labor costs are low. East Coast Auto Supply received most
Farouk Systems Inc. is a manufacturer of high quality, hand-held hair care products such as hair dryers, hair irons and professional quality shampoos and hair colorings. The company has annual sales volume in excess of $1 billion and sells its products in over 100 countries. But what is unusual
Cross docking, or flow-through distribution, which eliminates storage in the warehouse and the subsequent need to pick stock to fill orders, can dramatically reduce labor and inventory carrying costs. The concept seems simple enough: Instead of unloading merchandise and putting it into the
Walmart is contacting all of the manufacturers that supply its more than 4,000 U.S. stores with a logistics proposition: The world’s largest retailer wants to use its own fleet of trucks to pick up products directly from manufacturers and deliver the merchandise to Walmart’s stores. In short,
OfficeMax, with about 900 stores and annual sales of just under $10 billion, is the number two player in the office supply superstore channel. Holding first and third place are Staples and Office Depot. Even though OfficeMax has locations that are as good as or superior to those of its rivals, the
Explain why the evaluation of channel member performance is (or is not) just as important as the evaluation of employees working within the firms.
Discuss the pros and cons of the three major approaches for applying performance evaluation criteria to measure channel member performance.
Discuss the major factors affecting the scope and frequency of channel member performance evaluations.
Discuss the distinction between channel member performance evaluation and day-to-day monitoring of channel member performance. Is this distinction always clear-cut in practice? Explain why or why not.
Are sales to the channel member during a given period typically a good measure of the sales made by the channel member during the period? Discuss.
What kinds of sales data should the channel manager try to obtain to measure sales performance? What kinds of information are provided by these data?
Why should the channel manager be concerned about the failure of channel members to live up to inventory stocking agreements?
The only real measure of a channel member’s selling capabilities is the sales achieved for the manufacturer’s product. Do you agree or disagree? Discuss.
Discuss the rationale for including customer service and technical support capabilities of channel members as performance criteria.
What kinds of questions should the channel manager seek to answer in appraising the general growth prospects of channel members?
Southland’s 7-11 stores consist mostly of independent franchisees. Even though the franchisees are independent businesses, Southland is able to get detailed performance data on all phases of their operations on a daily basis. Franchisees that do not measure up to Southland’s performance
Black & Decker’s industrial products division requires its distributors to maintain an adequate inventory by stocking tools and accessories of a variety and quantity commensurate with markets served and the highest standards of customer service. The exact quantity and variety of products carried
Applying performance criteria can be difficult because so many factors may be involved an may change over time. Moreover, some performance criteria may apply differentially to particular channel members in varying circumstances. Given these difficulties, is it possible to have truly fair and
Midas Inc., best known for its automobile muffler repair business, provides its products and services through hundreds of franchised dealers throughout the U.S. Although Midas offers other auto services, such as brake replacement and suspension system repair, mufflers still account for the majority
Holiday Inn, a division of Inter Continental Hotels Group PLC, recently terminated 700 Holiday Inn franchise channel members. According to Holiday Inn, these channel members failed to meet Holiday Inn’s minimum standards. Over the years, the channel members did not make regular renovations and
What was meant by the claim that the “Internet changes everything?”
What are the key advantages of electronic marketing channels?
What are the key disadvantages of electronic marketing channels?
Discuss some implications of electronic marketing channels for the major areas of channel decision-making.
Have electronic marketing channels fundamentally changed marketing channel strategy an management? Discuss.
Define the meaning and key points in the definition of “electronic marketing channels” and discuss the key points in the definition.
Will the increasing use of electronic marketing channels necessarily result in more disintermediation? Explain.
Discuss the five flows in marketing channels and how these relate to the use of the Internet as an electronic marketing channel.
From the standpoint of customer demand, can virtual channel structure usually replace physical channel structure? Explain.
Based on the survey data discussed in this chapter, what have been some key developments and trends in electronic marketing channels as they have affected consumers?
The Internet electronically links many thousands of manufacturers to millions of consumers, thereby eliminating the need for middlemen in the twenty-first century. Who needs intermediaries if customers can go online and manufacturers all have Web site that can be visited by customers from literally
Maytag Corp. is famous for what are arguably the best washing machines and dishwashers in the world. The brand recognition and brand equity levels of Maytag products among consumers are among the highest of any consumer product. About 400,000 consumers visit Maytag’s Web site each month. But
Office Depot has almost 1,000 office superstores and a giant catalog of office supplies that it offers via mail order. Yet Office Depot also enables its customers to shop on the Internet. Its Web site offers virtually all of the products Office Depot carries in its stores and catalog and guarantees
Online channels provide consumers with 24/7 access to a vast array of products and services that can be ordered at any time at the leisure of the online shopper. But online channels can also be used to create a sense of urgency for customers to buy immediately or lose out on wonderful bargains they
One of the potentially powerful advantages of m-commerce is the ability of sellers to target of fers to consumers when they are in close proximity to the seller. This is made possible based on smart phone technology that tracks the exact geographical locations of their users. For example, if a
1-800 Flowers.com has been on Facebook almost from the first day the social networking site appeared. The online flower retailer uses Facebook to keep in touch with its many customers and to establish a forum to foster a continued dialogue with customers and potential customers. But by the middle
What is the difference between a product distribution franchise and a business format franchise?
Discuss the channel structure of a single-unit franchise versus a multi-unit franchise.
Is a franchise fee the same thing as a royalty fee? Discuss.
How important are franchise channels in terms of sales, jobs, and payroll generated?
Discuss the outlook for growth in franchise channels in the United States.
Discuss the rationale for franchising from the franchisor’s and franchisee’s point of view.
Are there some downsides to franchise channels? What are they from the perspectives of franchisor and franchisee?
What key implication does the channel manager need to think about with regard to franchise channels when designing marketing channels?
Snap-on Tools is the franchisor for a unique business format franchise that uses franchisees in mobile vans to sell high quality tools and equipment to professional mechanics. The franchisees bring the tools and equipment to the mechanics at their worksites so that the mechanics do not lose time
7-Eleven, Inc. operates the world’s largest convenience store retailer franchise. In business for over eight decades, 7-Eleven has thousands of stores all over the world and boasts that it has an instantly recognizable, world-famous trademark. Yet 7- Eleven says that it can provide prospective
The Federal Trade Commission in a pamphlet it publishesentitled, Buying aFranchise A Consumer Guide, point sout that when people buy afranchise they often get to sell goods and services that have instant name recognition. The FTC also says that prospective franchisees should expect to receive
Jose Fernandez recently became a franchisee in the Cartridge World franchise. Cartridge World specializes in selling replacement cartridges for printers and fax machine cartridges. Jose was pleased to be one of the almost 1700 franchisees in the Cartridge World franchise (the world’s largest
H&R Block is by far the largest franchisor of tax preparation services with over 4,500 franchisees. Startup costs range from about $35,000 to$100,000 and there is no franchise fee. But the royalty rate on all revenues generated by the franchisees is 30 percent—one of the highest rates in
Franchise channels are just a particular type of marketing channel. Discuss this statement.
Discuss the paradox the channel manager faces when selecting prospective channel members for franchise channels.
How might the motivation of franchise channel members differ compared with conventional channels?
Discuss how the channel manager’s “hands are tied” when managing the marketing mix in franchise channels.
What is the caveat the channel manager should be aware of when evaluating the performance of franchise channel members?
Discuss the role of business format franchising in providing services on a consistent or standardized basis.
Does the lack of a product flow alter the design and management of marketing channels for services as compared to marketing channels designed by manufacturers? Explain.
Briefly discuss the five generally acknowledged distinguishing characteristics of services in terms of contrasts between services and products.
What role can marketing channels play in helping the service provider to tangibilize the service? How does this relate to the other strategic components of the marketing mix?
Discuss the problem of standardizing services as it relates to channel design and management.
Should customer involvement in providing services be avoided if at all possible in the design and management of the channel to deliver the service? Discuss.
Do the generally shorter channels used to distribute services usually make it more or less complicated to design marketing channels? Why?
Firms of all sizes have developed many kinds of social-networking tools, instant messaging programs, and text messaging systems to deal with customer service inquiries. But a recent survey by American Express Co. found that almost 90 percent of the respondents said they still want their inquiries
House calls by doctors is a type of medical service that has all but disappeared. But it may be making a comeback. A medical firm in Seattle called Carew a has started to send doctors to the homes of Microsoft employees who are covered by Microsoft’s medical insurance program. Microsoft decided
OpenTable.com Inc., with more than 13,000 participating restaurants, is the market leader in online restaurant reservations service providers. Restaurants pay a monthly fee as well as $1.00 per head for reservations made by diners throughOpenTable.com. But Open Table also charges 25 cents per head
Late one Thursday afternoon George Mitchell went to the airline ticket counter of a major carrier that had recently launched an ad campaign challenging customers to “find out how good we really are.” Mitchell needed to reschedule his flight in order to reach a client by 9:00 Friday morning. Not
Automated teller machines (ATMs) and, more recently, online banking, were thought to provide such a valuable service alternative that customers would need far fewer personal banking services with human tellers in traditional bank branches. In short, these new technologies were supposed to reduce
Discuss some of the major factors that have made growing numbers of U.S. firms seriously consider international marketing.
Why is it typically more difficult to exercise leadership in foreign channels than in domestic ones?
The basic concepts and approaches to channel management all change drastically when the firm ventures into foreign markets. Do you agree or disagree? Explain.
Nobody, and especially executives involved in channel management, could be expected to know everything about the foreign environments into which their firms’ channels extend. If this is true, what can they be expected to know about foreign environments?
Economic, competitive, sociocultural, technological, and legal/political environmental variables operate throughout the world. Provide examples in terms of changes for any three of these categories in any country (or countries) other than the United States.
“Business and social relationships don’t mix very well.” How does this statement hold up outside of the U.S. environment? Discuss.
“Getting right down to business and getting things done quickly and efficiently are universal virtues.” Discuss this statement in terms of some other cultures around the world.
Briefly discuss the channel design paradigm presented in Chapter 6 in terms of its application to the design of international marketing channels.
Explain the difference between indirect exporting and direct exporting.
The motivation of foreign channel members can proceed in essentially the same way as in the domestic setting. Analyze this statement in terms of basic approaches versus actual methods and procedures.
Dunkin Donuts first entered the Russian market in 1996 using Russian franchisees. But after three years of sustaining heavy losses, Dunkin Donuts meat pies and liquor along with donuts and coffee! But by the spring of 2010, Dunkin Donuts embarked on another attempt to crack the Russian market by
Dell Inc. in an attempt to gain penetration in the Chinese market decided to augment its direct sales channel model with indirect retail store channels. Two desk tops and two laptops both low priced and specially designed for emerging markets will be sold through 2700 Gome and Suning consumer
Ethan Allen Interiors Inc., one of the leading U.S. furniture manufacturers, is restructuring its Japanese marketing channels. Originally, Ethan Allen sold its products in department stores and they, in turn, bought the furniture from local Japanese distributors. The department stores allocated
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