978-0077729028 Chapter 17 Answers To End Of Chapter

Type

Solution Manual

Book Title

Marketing 5th Edition

ISBN 13

978-0077729028

April 8, 2019

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

2 Why don’t traditional department stores have the same strong appeal to younger American

consumers that they once enjoyed during their heyday in the last half of the twentieth century? Discuss

which types of retailers are now competing with department stores.

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

3 Assume that adidas, the shoe manufacturer, has decided to sell expensive wristwatches for men

and women. What factors should it consider when developing its strategy for choosing retail partners?

This question challenges the student to consider aspect of the retail store that may impact the brand’s

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.

6 Provide examples of how manufacturers work with retailers to jointly plan and implement the

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

offerings online. What form of personalization did you receive? Did the personalization influence your

purchase decision? Explain why or why not.

Student answers will vary.

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.

Chapter Case Study: Target And Its New Generation Of Partnerships

1 Assess the role of consumer expectations in Target’s success as a major discount retailer.

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

top designers? What are the relative strengths of each?

Target’s new retail partnership with Apple is different from its relationship with other designers. Apple

3 What explains Target’s ability to attract top designers and high-end specialty shops as retail

partners?

Target is able to attract top designers because of its previous success promoting and selling high-end

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

partnering with Target?

With this new in-store venture, Apple can introduce products to new groups of customers, including

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

friendly cosmetics.

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

shop partnership program.

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

This chapter explores the issues manufacturers consider when choosing retail partners. Students

evaluate the types of retailers available for distributing products and learn how manufacturers and

retailers work together to develop strategies.

The core component of this chapter is distribution intensity of: exclusive, selective, and intensive. It

is important to also point out that the type of distribution is ALSO dependent upon the retail outlets or

multi-channels that agree to stock the product. Products with high involvement of decision making

such as cars, HD TVs, appliances take up space in the showroom and retailers do have a choice on

whether they want to give up that space to your brand or another manufacturer’s. Good channel

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

product is presented to the target market.

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

Browsing Convenience Broader selection

Touching and feeling Information More information

Personal service Safety Personalization

Cash and credit Touch and feel attributes

Entertainment and social

interaction

Instant gratification

Risk reduction

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

article abstracts on hot topics, plus a selection of current commercials and videos for you to use with

your class. The newsletter also includes a guide that explains where the articles, commercials, and

videos best fit in your Marketing course.

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