American Eagle Outfitters opened in 1977 in Pittsburgh, Pennsylvania by Mark and Jerry
Silverman. Mark and Jerry Silverman were already owners of Silvermans Menswear and
decided to create a more modern, popular store. With growing success, in the
1. Expertise and economies of scale in production do not necessarily translate into expertise and
economies of scale and/or scope in distribution. Explain this statement.
It means that just because a company is efficient at k
2. What is the difference between a product distribution franchise and a business format franchise?
A product distribution franchise provides the rights to sell the franchisors product or services and that is
basically it. Th
3. Has a selection process really occurred in the case of very intensive distribution where all possible
outlets are used in the channel design? Discuss.
I dont really think it has. The book states that the more selective
2. Even if a marketing channel has been carefully designed in such a way that its structure reflects a
near-optimal allocation of distribution tasks, the channel cannot be expected to run by itself.
Discuss this statement.
1. How does channel strategy relate to marketing strategy?
Channel strategy is related to marketing strategy because the channel is a small piece of the whole
marketing strategy. Once the marketing manager decides on
Chapters 12 & 13
Chapter 12 3. Regardless of the specific promotional strategies that the manufacturer uses, a higher
level of channel member cooperation is more likely to be gained if these strategies are part of an
overall program of cha
Assignment # 5
6. Discuss the issues involved in channel pricing to account for margin variations on different models
in a product line, price points and product variations.
The issue is that prices need to also reflect the variation in th