Assignment This exercise will give you some practice in determining the ideal degree of market exposure for a company. Read each case carefully and then indicate: a) the product class which is involved, b) the degree of market exposure (intensive, selective, or exclusive) which you think would be ideal, and c) explain why you think the indicated degree of market exposure would be ideal. State any assumptions that you have made. Note: Ideal here means the degree of market exposure which will satisfy the target customers' needs (but not exceed them) and also will be achievable by the producer. For example, a new producer of homogeneous cookies might desire intensive distribution, but agree to sell to only a few food chains because it knows it will not be able to obtain intensive distribution with its undifferentiated cookies. So its ideal is selective distribution, and it will adjust the rest of its marketing mix accordingly. 1. Hart Dinettes, Inc. manufactures a wide line of kitchen dinette sets for sale throughout the United States. The products are distributed through retail outlets. Retailers are supposed to stock a large assortment of dinette sets, along with a large inventory of replacement parts. The tables and chairs are usually shipped to the retailers unassembled. According to a recent cost study, 30 percent of Hart's retailers account for about 80 percent of the company's sales. Product class (convenience, shopping, specialty, unsought) Why this product class Degree of market exposure (intensive, selective, or exclusive) Why this market exposure is ideal Appendix 1 - Consumer Product Classes from Chapter 8 Product class definitions Convenience products - products a consumer needs but isn't willing to spend much time or effort shopping for o Staples - products that are bought often, routinely, and without much thought. o Impulse products - products that are bought quickly-as unplanned purchases-because of a strongly felt need. o Emergency products - products that are purchased immediately when the need is great. Shopping products - products that a customer feels are worth the time and effort to compare with competing products. o Homogeneous shopping products - shopping products the customer sees as basically the same and wants at the lowest price. o Heterogeneous shopping products-shopping products the customer sees as different and wants to inspect for quality and suitability. Specialty products - consumer products that the customer really wants-and makes a special effort to find Unsought products - products that potential customers don't yet want or know they can buy. o New unsought products - products offering really new ideas those potential customers don't know about yet. Regularly unsought products - products that stay unsought but not unbought forever. 0 - Marketing Mix Considerations Consumer Behavior Consumer Product Class Convenience products Staples Maximum exposure with widespread, low. cost distribution mass selling by producen usually low price: branding is important Widespread distribution with display at point of purchase Need widespread distribution near probable point of need price sensitivity low. Routinized (habitual), low effort: frequent purchases low involvement. Unplanned purchases bought quickly Impulse Emergency Purchase made with time pressure when a need is great Shopping products Homogeneous Need enough exposure to facilitate price comparison price sensitivity high Need distribution near similar products promotion (including personal selling) to highlight product advantages less price sensitivity Price sensitivity is likely to be low limited Hithin who rantahla hecht Customers see little difference among alternatives and seek lowest price Extensive problem solving consumer may need help in making a decision (salesperson, website, etc.) Heterogeneous Specialty products Willing to expend effort to get specific di muninnt narancs