Discussing the Issues Dup

Last Updated on Sat, 17 Dec 2022 | Sales Promotion

1. Describe the channel service needs of: (a) consumers buying a emnpuccr for home use; (b) retailers buying computers to resell to Individual eonsumers;

(c) purchasing agents buying computers for company use. \\'hat ehannels would :\ computer manufacturer design to satisfy these different needs?

2. What are the advantages accruing to firms that have developed vertical marketing systems? Contrast the advantages and limitations of the three major types of vertical marketing system - corporate, contractual and administered

3. Why have horizontal marketing arr.'ingcments become more common in reeent years? Surest several p;iirs of companies that you think could have successful horizontal marketing programmes.

4. Which distribution channel strategies - intensive, selective or exclusive - are used for the following products and why? (a) Piaget watches; (b) Lexus cars; (c) Yamaha motor cycles; (d) Kit Kat chocolate bars; (c) Haagen-Dazs itie cream.

5. When planning desired inventory levels, what eonscuuenecs of running out of stock need to be considered? How should retailers ensure no stock-outs?

6. 'Category killers' and discounters provide tough price eompetition to other retailers. Will large retailers' growing power in channels of distribution affect manufacturers' willingness to sell to category killers and other discounters? What policy should Sony have regarding selling to these retailers?

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Readers' Questions

  • jasmine zaragamba
    What are the three major types of vertical marketing systems?
    1 year ago
    1. Corporate Vertical Marketing System (CVMS): This type of vertical marketing system involves the participation of different levels of the distribution channel working together, including the manufacturer, wholesaler or distributor, and retailer.
    2. Contractual Vertical Marketing System (CVMS): This type of vertical marketing system involves two or more firms entering into a contract in order to create a more integrated channel, usually involving a manufacturer and a retailer or a manufacturer and distributor.
    3. Administered Vertical Marketing System (AVMS): This type of vertical marketing system involves a dominant firm using its power to control other firms in the channel. This system is often used when a firm has a high degree of power, such as a large retail chain.