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Embed code for: 21.21 Distribution Planning
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DO NOT WRITE ON THE PAPER! 1 CHAPTER 21.2 Channels of Distribution Marketing Application 2 DIRECTIONS: For each of the following scenarios, identify the current channel of distribution being used. Then recommend a channel of distribution or multiple channels for the product. Indicate the intensity of distribution desired for the product. Provide rationale for both recommendations. Scenario #1 A manufacturer of home health care products has just developed a new home blood pressure machine. At present the company sells the majority of its other consumer health care products through mass merchandisers, like Wal-Mart and Target, as well as through drug store chains, like CVS and Walgreens. Over the years, solid relationships have been established with these retailers. 1. What is the current channel of distribution being used by this company for its consumer health products? 2. What channel(s) of distribution do you recommend for its new home blood pressure machine? Why? 3. What intensity of distribution do you recommend: intensive, selective, exclusive? Why? Scenario #2 A small importer of specially designed bags of all sizes and purposes is seeking national exposure. Some of the highly specialized bags are designed for laptop computers, while other bags are designed to keep food warm and are marketed to food catering and food delivery businesses (i.e. pizza restaurants that deliver). Other personal use (duffel) bags are designed for use as promotional gifts for clients or as employee prizes for outstanding performance. All bags are unique in that they are designed specifically for the client, and in many cases, include the client’s logo. At present, the owner does all of the business-to-business selling herself. How can this business owner increase sales while controlling selling expenses? 4. What channel of distribution is being used currently by this importer of specialty bags? 5. What channel(s) of distribution do you recommend for these products? Why? 6. Discuss the additional selling expenses that will be incurred with your plan and how your plan keeps those expenses in line with sales.