Question: This exercise will give you some practice in determining the ideal degree of market exposure for a company. There are cases are presented below -
This exercise will give you some practice in determining the "ideal" degree of market exposure for a company. There are cases are presented belowwith the first serving as an example. Read each case carefully and then indicate a the product class which is involved, and b the degree of market exposure intensive selective, or exclusive which you think would be "ideal." Then in part 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.
Rockwell 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, percent of Rockwell's retailers account for about percent of the company's sales.
a Product class: Heterogeneous shopping products
b "Ideal" market exposure: Selective distribution
c Why? The recent cost study shows that a small percentage of retailers are producing most of the business. These middlemen might do an even better job if given more assistance and less direct competition from retailers carrying the same products. Since customers are willing to shop around, reducing the number of outlets would be possibleand might benefit consumers through larger retail inventories and increased customer service.
Ciao Footwear designs and manufactures a highquality line of fashionable shoes that are popular among young professional women. The line is quite expensiveand it is sold through specialty shops that handle only this type of fashion shoe including competing brands Ciao will only work with retailers who agree to stock a large variety of sizes and colors of Ciao shoes. They also must agree to promote the Ciao line very aggressively. In return, Ciao agrees not to distribute its line to other retailers within the specialty shop's immediate trading area. Since continuing promotion seems to be necessary for this highly competitive market, advertisements for Ciao shoes appear regularly in fashion magazines targeted at professional women and on select cable TV broadcasts, including broadcasts of women's tennis tournaments.
a Product class:
b "Ideal" market exposure:
c Why?
James River Paper JRP recently introduced Absorb, a new doublethick paper towel aimed at families with children. Primarily an industrial products manufacturer, JRP had produced paper towels for a few large grocery chains to sell as their own dealer brand. But Absorb was its first attempt at marketing a consumer product under its own brand. So far, the results are not encouraging. Only a few wholesalers have taken on the line. Most are very reluctant to handle Absorb, claiming that retail shelves are already overcrowded with paper towels.
a Product class:
b "Ideal" market exposure:
c Why?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
