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Chapter 13: Channels of Distribution 13-1 GOODYEAR & DISTRIBUTION IN THE TIRE INDUSTRY (341, 367-8) a) What can you learn about the distribution strategies of Goodyear and its competitors by exploring the following homepages? How does each company let potential customers know where to buy its products? What are the apparent similarities and differences between these companies with respect to their distribution channels? Goodyear http://www.goodyear.com Bridgestone/Firestone http://www.bridgestone-firestone.com Dunlop http://www.dunloptire.com b) Compared to the "mainstream" tire manufacturers listed above, Pirelli Tire caters to a more limited market. How would you characterize this market segment? Based on this, would you expect Pirelli's distribution channels to differ from Goodyear's? If so, describe the distribution channels Pirelli would most likely use. If not, why not? Pirelli http://www.pirelli.com
13-2 DEFINITION OF MIDDLEMAN (342-3) First, determine which of following companies are middlemen. For those that fall in this category, identify each firm as a merchant or agent middleman, and describe the primary service provided by each one. For those that cannot be described as middlemen, explain why. Ticketmaster http://www.ticketmaster.com FAO Schwarz http://www.faoschwarz.com General Cinema http://www.generalcinemas.com Brody http://www.brodywholefrag.com Which of the channels illustrated in Figure 13-3 is most apt to be used for each of the following products? Defend your choice in each case. Durex http://www.durex.com Supercuts http://www.supercuts.com National Electric Motor & Supply http://www.nemsco.com Like so many other high-tech firms, VeriFone, Inc. utilizes multiple distribution channels. As you explore the following homepage, identify and describe VeriFone's target markets and the various distribution channels used to reach each one. (Hint: VeriFone even provides a distribution channel diagram. Can you find it?) VeriFone http://www.verifone.com Why is this strategy appropriate for companies like VeriFone? For each of the following companies, identify and describe the primary factors affecting their choice of distribution channels. Be sure to address all of the following considerations: market, product, middlemen, and company. Ben & Jerry's http://www.benjerry.com Gund http://www.gund.com Valvoline http://www.valvoline.com Health Care Development Group (HCDG) provides us with a good example of exclusive distribution. First, identify the product(s) in question. Then describe the relationship between HCDG and the other organization(s) involved in this arrangement. Health Care Development Group http://www.hcdg.com What are the strategic advantages of this arrangement for all parties? What are the potential pitfalls? |
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