Answers To End Of Chapter Learning Aids

Marketing Applications

1 Does Reebok pursue an intensive, an exclusive, or a selective distribution intensity strategy?

Would you suggest any changes to this strategy?

Reebok likely uses a selective distribution strategy. A selective distribution lies between the intensive

and exclusive distribution strategies; companies that engage in selective distribution use a few selected

This question asks students to consider why traditional department stores have lost their appeal. If

4 Some argue that retailers can be eliminated from the distribution channel because they only add

costs to the final product without creating any value-added services in the process. Do you agree with

this perspective? Are consumers likely to make most purchases directly from manufacturers in the near

future? Provide justification for your answers.

Students must offer an opinion of the future of retailers and therefore should think about the ways in

which retailers add value and whether manufacturers could provide such value. Students also might

5 Assume you have been given some money but told that it must be invested in a retailer’s stock.

In which type of retailer would you choose to invest? Which specific retailer? Provide a rationale for

your answers.

four Ps.

Manufacturers and retailers do work jointly to develop the 4 P’s. The manufacturer is concerned with

how the brand and product is presented in the marketplace and the retailer is concerned with driving

7 Why have so many bricks-and-mortar retailers adopted a multichannel strategy?

8 You can purchase apparel at a discount store, specialty store, category specialist, off-price

retailer, department store, or Internet-only store. From which of these types of stores do you shop?

Explain why you prefer one type store over another.

A discount store offers a broad variety of merchandise, limited service, and low prices. A specialty

store concentrates on a limited number of complementary merchandise categories and a high level of

service in relatively small stores.

9 Should Tana (a young entrepreneur), launching a new line of environmentally friendly (green)

cosmetics, sell through a physical store, catalog, or Internet? Explain two key benefits of each channel

for her business.

Stores Catalogs Internet

Browsing Convenience Broader selection

Touching and feeling Information More information

10 Search the Internet for a product you want to buy. Is there a difference in the prices, shipping

charges, or return policies among the different retailers offering the product? From which retailer

would you buy? Explain the criteria you would use to make the decision.

Answers to this question will vary by student. Students will probably find that various websites will

11 Name a retailer from which you have received personalized service, product, or promotion

Net Savvy

1 How do JCrew.com and Gap.com provide value to their customers beyond the physical products

that they sell? Why would a customer purchase online instead of going to the store? Under what

circumstances would the customer prefer a store-based experience?

Multichannel retailers sell merchandise in more than one retail channel (i.e. store, catalog, and

Internet); the question asks students to consider why.

2 Select a familiar multichannel retailer. Evaluate its website in terms of how well it provides value

to its customers. Do you believe that offering multiple selling channels to customers enhances their

shopping experience? How does it help the retailer? Explain your answer.

This question allows the student to evaluate multi-channel retailers as well as customer service.

Customers who shop at Target understand that Target will offer limited time partnership with top

2 What differentiates Target’s new retail partnership model from its longstanding partnerships with

4 Given that Apple has long operated its own retail locations, how do you explain its interest in

partnering with Target?

5 Using the factors for choosing retail partners outlined in the chapter, do you believe that Eva’s

line of green cosmetics should attempt to get placement in Target?

Department stores like Target would be an excellent retail channel for Eva’s line of environmentally

6 Develop a strategy for Target to promote Eva’s line of green cosmetics as partof its new specialty

Each Target store will feature a “store within a store” concept called Eva’s. Each mini store will be in

a prominent location in the center core of Target. It will have the signature look designed by Eva and

Additional Teaching Tips

relationships are key especially when it comes to the retailer who will make decisions on how the

The benefit to the manufacturer provided by using different channels is key and the application

questions in the chapter also give students an opportunity to apply these concepts.

Stores Catalogs Internet

This chapter is a good opportunity to stress CRM and the importance of retaining existing customers.

It is also a good chapter to mention customization of the product and the importance of an integrated

marketing effort.

On-Tip: Have students compare and contrast Internet retailer sets and evaluate the benefits. Have

them repeat this process for the same retailer’s store and catalogs.

Remember to review the Newsletter for Instructors and its accompanied PowerPoint presentation,

which integrates examples and discussion from the newsletter. Each newsletter contains over ten