The marketing manager for a producer of mattresses and box springs distributes its products through discount stores (like Costco), department stores, furniture stores, and specialty bedding stores. To avoid conflict with channel members, the manager
A) should offer purchase discounts based on the quantity of mattresses that the retailer sells.
B) assume that all channel members have a common commitment to target consumers at the end of the channel.
C) trust retailers to emphasize sales of his brand rather than the brand of some other manufacturer.
D) develop different brands or product lines for different channels.
E) expect one of the large retail chains to step up to the responsibilities of being the channel captain.

Question

Quizplus · Accepted Answer

Developing different brands or product lines for different channels is the best way to avoid channel conflict in this scenario. This strategy will allow each channel to have a unique product offering, reducing the likelihood of direct competition between the channels. Additionally, it allows the producer to tailor their product offerings to the specific needs and preferences of each channel, increasing the likelihood of success in those markets. Offering purchase discounts (A) may encourage retailers to sell more of the producer's products, but it does not address potential conflicts between channels. Assuming common commitment (B) and trusting retailers (C) may not be realistic, as each channel member has their own business objectives and priorities. Finally, relying on a single chain to act as a channel captain (E) may not be effective, as other channels may view this as favoritism and may resist.

The Marketing Manager for a Producer of Mattresses and Box