Reference no: EM132235036
1. Regarding market segmentation:
- a firm with multiple market segmentation is going to experience some degree of cannibalism, i.e., one of its products will take sales from another of its products.
- a single market segment approach is generally focused on a small market away from the so-called “center” of the total market.
- the idea of multiple market segmentation is to give each market segment the choice from among several brands from the same seller.
- the single market segment approach is usually some form of the “me too” strategy.
2. Which is an example of a product that is being sold in the business market?
- a mailbox to go in front of Pete’s new house.
- a thermometer to hang on the front porch of a school bus driver’s home.
- a truckload of sand to use on the beach being built for a lakefront resort.
- registration fee paid for a membership in a private health club.
3. Which of these products characteristics would lengthen (increase the number of intermediaries between manufacturer and consumer) a distribution channel (supply chain):
- product exists in many inexpensive sizes (e.g., nails).
- product is complex (e.g., computers).
- product is perishable (e.g., fresh fruit).
- product requires special handling equipment (e.g., blocks of ice).
4. Which of these is a disadvantage of an exclusive distribution system:
- Dealers are less likely to provide post-sale service.
- Dealers are unable to carry a complete line of stock.
- Manufacturers are less able to reduce credit losses.
- Sales may be lost because of inconvenient retail locations.