Exploring Sure Foot: The High-Quality Adventure
1. How are Sure Foot's shoes seen by most of its target market?
A. Impulse products
B. Staple products
C. Heterogeneous shopping products
D. Homogeneous shopping products
E. Specialty products
2. Assuming that Sure Foot wants to be in only the "better" stores and mainly in large metropolitan areas, it seems to be seeking:
A. selective distribution
B. exclusive distribution
C. intensive distribution
3. Sure Foot's "field reps" are:
A. selling agents
B. missionary salespeople
C. brokers
D. manufacturers' agents
E. merchant wholesalers
4. In the Sure Foot case, the nature of competition in the hiking shoe market is:
A. monopolistic competition
B. monopoly
C. oligopoly
D. pure competition
E. None of these is a good answer
5. Sure Foot's geographic terms are probably:
A. F.O.B. freight allowed
B. F.O.B. buyer's factory
C. F.O.B. shipping point
D. F.O.B. delivered
E. None of these--Sure Foot uses zone pricing
6. "Credit terms" of 2/10, net 30 mean that Sure Foot is offering customers a:
A. functional discount
B. quantity discount
C. seasonal discount
D. cash discount
E. cooperative advertising allowance
7. Sure Foot is probably in what stage of the product life cycle in the "high quality" market?
A. Market maturity
B. Market growth
C. Market introduction
D. Sales decline
1. Homogeneous Shopping Products
2. Selective Distribution
3. Manufacturers' Agents
4. Oligopoly
5. F.O.B. Shipping Point
6. Cash Discount
7. Market Maturity
Sure Foot's shoes are seen by most of its target market as homogeneous shopping products. This means that customers perceive Sure Foot's shoes to be similar to the offerings of other competitors in terms of quality, features, and price. In the hiking shoe market, customers have various options from different manufacturers, and although the materials, styles, prices, and promotions may differ, the overall perception is that the products are relatively similar. Customers typically engage in a shopping process where they compare different brands before making a purchase decision. Sure Foot falls into this category, as it competes with other firms in the market but offers a more limited range of materials, styles, and prices due to the smaller "high-quality" segment of the market.
Sure Foot seems to be seeking selective distribution, as it aims to be present only in "better" stores, primarily in large metropolitan areas. This strategy involves carefully choosing retail partners that align with the brand's positioning and target customer base. By focusing on selective distribution, Sure Foot can maintain a perceived level of exclusivity and ensure that its products are available in locations where they are
Sure Foot's "field reps" act as manufacturers' agents. They are responsible for selling Sure Foot's products and receive a 5 percent commission on all sales. These field reps cover specific territories and primarily target small stores in or near major cities. Their role is to promote and sell Sure Foot's products, acting as intermediaries between the company and the retailers.
The nature of competition in the hiking shoe market, including Sure Foot's segment, is oligopoly. Oligopoly refers to a market structure where a few large firms dominate the industry. In this case, there are seven large firms supplying the walking shoe market, and Sure Foot is the largest among the five firms supplying the "high-quality" segment. While there is competition among these firms, they offer a more limited assortment of materials, styles, and prices compared to the larger market.
Sure Foot's geographic terms are most likely F.O.B. shipping point. This means that the responsibility for shipping and any related costs transfers from Sure Foot to the buyer at the point of shipment. The buyer bears the freight charges from Sure Foot's plant in Maine to their desired location.
The credit terms of 2/10, net 30 mean that Sure Foot is offering customers a cash discount. This discount allows customers to deduct 2 percent from the invoice total if payment is made within 10 days. If the full payment is not made within the discount period, the net amount is due within 30 days.
Sure Foot is likely in the market maturity stage of the product life cycle in the "high quality" market. At this stage, the market has reached saturation, and there is limited potential for further growth. Sure Foot, being the largest firm in the "high-quality" segment, indicates that the market has already experienced growth and is now characterized by intense competition and a focus on maintaining market share.