Regarding market segmentation-exclusive distribution system

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Reference no: EM132235036

1. Regarding market segmentation:

-   a firm with multiple market segmentation is going to experience some degree of cannibalism, i.e., one of its products will take sales from another of its products.

-   a single market segment approach is generally focused on a small market away from the so-called “center” of the total market.

-   the idea of multiple market segmentation is to give each market segment the choice from among several brands from the same seller.

-   the single market segment approach is usually some form of the “me too” strategy.

2. Which is an example of a product that is being sold in the business market?

-   a mailbox to go in front of Pete’s new house.

-   a thermometer to hang on the front porch of a school bus driver’s home.

-   a truckload of sand to use on the beach being built for a lakefront resort.

-   registration fee paid for a membership in a private health club.

3. Which of these products characteristics would lengthen (increase the number of intermediaries between manufacturer and consumer) a distribution channel (supply chain):

-   product exists in many inexpensive sizes (e.g., nails).

-   product is complex (e.g., computers).

-   product is perishable (e.g., fresh fruit).

-   product requires special handling equipment (e.g., blocks of ice).

4. Which of these is a disadvantage of an exclusive distribution system:

-   Dealers are less likely to provide post-sale service.

-   Dealers are unable to carry a complete line of stock.

-   Manufacturers are less able to reduce credit losses.

-   Sales may be lost because of inconvenient retail locations.

Reference no: EM132235036

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