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Passage 1 ● Read the text taken from a book on marketing management. ● Choose the best sentence to fill in each of the gaps. ● For each gap 9-14, mark one letter A-H on your Answer sheet. ● Do not mark any letter twice. ● There is an example at the beginning. From 1900 until 1940s, approximately 400 shoe manufacturers were operating in New England; by 1985, only 10 percent remained. Griffth Shoes-making Company survived by producing a premium-quality product that was difficult to duplicate and that appealed to a narrow market segment willing to pay high prices for Griffth Shoes-making Company quality. As fashion became a more important component of men’s shoe purchasing behavior and casual styles became more popular, the company broadened its product line to include several fashionable and lightweight styles that retained the famous Griffth Shoes-making Company quality. (9)______ In 1985, the men’s premium shoe market was considered to include brands with a price range of $75 or higher. Griffth Shoes-making Company, Inc. Johnston & Murphy, E. T. Wright & Company, Allen Edmonds, and Florsheim were the major domestic manufacturers producing premium shoes. Measuring market share within the industry was difficult because so many of the manufacturers were private companies, like Griffth Shoes-making Company. (10)______ Allen Edmonds, headquartered in Wisconsin, relied primarily on nonproprietary retail outlets for its distribution. Its advertising was sizable, with expenditures in the $1 million to $2 million range. (11)______ Allen Edmonds also operated a small direct mail catalog business, the majority of whose costs were handled by Edmonds’ retail accounts. E. T. Wright & Company, headquartered in Massachusetts, operated an extensive direct mail business and, like Griffth Shoes-making Company, relied on nonproprietary distribution. (12)______ Florsheim’s product line covered several price points, including those in the premium market. Florsheim was, by far, the strongest competitor, with an estimated market share of 18 percent and both nonproprietary retail distribution channels. Hanover, a medium-priced shoe manufacturer, also was noted for its direct distribution system. (13)______ Imports accounted for a 50 percent share of the total men’s shoe market. Bally, the strongest competitor was the leading imported brand in this market before 1975 and maintained a market share of close to 25 percent at that time. By 1985, other imported brands included Baker Benjes, Cole Haln, Ferragamo, Bruno Magli, and Church’s. (14)______ Most of the imported brands were lighter in weight and designed to appeal to more fashion-conscious consumers. A. The imported products differed from the domestic premium brands, however. B. Nonetheless, Griffth Shoes-making Company faced several strong domestic competitors and unrelenting price competition from imports. C. The continued labor intensity of shoe manufacturing made the industry vulnerable to lower-priced imports. D. In addition, these companies were not always in direct competition because distribution channels differed. E. Despite the market pressures, Griffth Shoes-making Company remained profitable and had even diversified its distribution channels by establishing direct mail cataloging in the late 1970s. F. Johnston & Murphy, on the other hand, operated proprietary retail outlets and experimented in the mail order business for both men’s and ladies’ premium shoes. G. Most of this was spent promoting brand name awareness to consumers. H. The company owned over 100 proprietary retail stores, operated a successful mail order business, and produced private label footwear for J. C. Penney & Sears, Roebuck department stores.
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