Discussing the Issues

1. Describe the channel service needs of: (a) consumers buying a emperor for home use; (b) retailers buying computers to resell to Individual consumers; (c) purchasing agents buying computers for company use. \\'hat channels 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 are. 'incents become more common in recent years? Surest several pairs of companies that you think could have successful horizontal marketing programmers.

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 tie cream.

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

6. 'Category killers' and discounters provide tough price competition 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?