Baines et al.: Fundamentals of Marketing
Chapter 10: Managing Channels and Distribution
Worksheet 10.1:
Chapter Reference
Chapter 10: Managing Channels and Distribution
Overview
This worksheet will help you to understand how managers choose between different types of channel structures, how they select the appropriate channel intermediary and the advantages and disadvantages of alternative channel structures when deciding what type of retailer to use.
Learning Outcomes
After completing this worksheet you should be able to:
· select the appropriate channel structure (direct, indirect or hybrid);
· select the appropriate intermediary (for example, agent, franchise, wholesaler or retailer);
· state the advantages and disadvantages of alternative channel strategies.
Worksheet
Sony operates both a ‘push’ marketing strategy and a ‘pull’ marketing strategy for its premium-priced electronic products. But which strategy should a manufacturer of low-cost flat-screen TVs use?
Below, suggest which channel strategy is most appropriate for the distribution of a low-cost flat-screen TV: direct, indirect or hybrid? Why do you think this?
Most appropriate channel strategy:Now suggest which intermediary is most appropriate for the distribution of a low-cost flat-screen TV? Why do you think this?
Most appropriate intermediary:Finally, choose three of the retailer types that you think are most appropriate for a low-cost flat-screen TV. Why do you think this? What are the advantages and disadvantages of each retailer type?
Retailer type 1:Retailer type 2:
Retailer type 3:
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