small electronics company manufactures a line of low- to moderate-quality stereo components that are distributed through wholesalers to mass-market retailers such as Walmart.The electronics company has begun production of a small line of high-quality,professional studio-model components.How should the small electronics company best distribute its new products?

Question

Quizplus · Accepted Answer

Distributing through agents who sell to specialty electronics stores that will feature the new line is the best choice for the small electronics company. This strategy allows the company to target a more specific audience of customers who are interested in high-quality professional studio-model components. Specialty electronics stores are likely to attract these customers, and working with agents can help the company establish relationships and gain access to these stores. Unlike option A, which relies on the established indirect marketing channel, option C offers a more targeted approach that can help the company achieve success with its new product line. Options B, D, and E can be costly and time-consuming for the company, especially as it seeks to establish itself in a new market segment.

Small Electronics Company Manufactures a Line of Low- to Moderate-Quality