Question
International Tractor, Inc. (ITI) manufactures a full line of farm machinery-including tractors, graders, and materials-handling equipment. ITI farm products are distributed through over 500 independent
International Tractor, Inc. (ITI) manufactures a full line of farm machinery-including tractors, graders, and materials-handling equipment. ITI farm products are distributed through over 500 independent dealers scattered throughout the United States. Typically, there is only one ITI dealer near any rural community, although there may be several other dealers who sell competing equipment. Many of ITI's dealerships are quite small, and the company lacks adequate dealers in several key market areas. To further complicate matters, price wars between dealerships are becoming common as industry sales continue to decline. In fact, some ITI dealers often find themselves competing directly with other IT dealers - since many farmers travel 100 miles or more to purchase new equipment.
(a) the product class, which is involved,
(b) the degree of market exposure (intensive, selective, or exclusive) that you think would be "ideal."
(c) explain why you think the indicated degree of market exposure would be ideal. State any assumptions that you have made.
EconoStore, Inc. makes and sells a low-priced line of file cabinets for use in offices. One style of cabinets is designed to store standard-size business papers, and another style is designed for computer output. The files are sold directly to universities and other institutions and indirectly through wholesalers to office equipment dealers. EconoStore's files sell to final customers (not the intermediaries) at prices ranging from about $90 to $300. Most dealers handle several competing brands of file cabinets, including some "high-quality" brands that sell for as much as $1,000.
(a) the product class, which is involved,
(b) the degree of market exposure (intensive, selective, or exclusive) that you think would be "ideal."
(c) explain why you think the indicated degree of market exposure would be ideal. State any assumptions that you have made.
Ciao Footwear designs and manufactures a high-quality line of fashionable shoes that are popular among young professional women. The line is quite expensive, and it is sold through specialty shops that handle only this type of fashion shoe (including competing brands). Ciao will only work with retailers who agree to stock a large variety of sizes and colors of Ciao shoes. They also must agree to promote the Ciao line very aggressively. In return, ciao agrees not to distribute its line to other retailers within the specialty shop's immediate trading area. Since continuing promotion seems to be necessary in this highly competitive market, advertisements for Ciao shoes appear regularly in fashion magazines targeted at professional women and on select cable TV broadcasts, including broadcasts of women's tennis tournaments.
(a) the product class, which is involved,
(b) the degree of market exposure (intensive, selective, or exclusive) that you think would be "ideal."
(c) explain why you think the indicated degree of market exposure would be ideal. State any assumptions that you have made.
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