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Cooperativeness
Service Reputation
Understanding Intermediaries needs and wants Company and Intermediaries are partners in a joint effort to satisfy end users Channel Power to manage them all...
Channel Powers
Coercive PowerThreaten to withdraw Reward Power Benefits for performance Legitimate PowerWarranted Power Expert Power Cooperate to Expertise Referent Power The highly respected
A producer must periodically review and modify its channel design and arrangements to find if:
Market Expands
Product Innovative New moves into distribution later stages competition channels arises of product Emerge life cycle
No marketing channel will remain effective over the whole product life cycle
APPLE STORES
2001 - BusinessWeek published an article Sorry Steve, Heres Why Apple Stores Wont Work 2006 Apple celebrates launch of its Manhattan Showcase Store With over 175 locations Annual sales per square foot of $4032 How? Opened its own stores because of companys frustration with its poor retail presentation The move upset existing retailers, but Apple worked hard to smooth relationships
2001- Project Shakti Integrating business interests with national interests Expanding coverage to rural markets by using women members of Self-Help Groups Provides mass market products Training in basic enterprise management Spread across the country with 39,000 women members
In a Nutshell
Adding or dropping channel members requires an incremental analysis. A producer may drop an intermediary whose sales drop below a certain level Key to the Indecision Sophisticated analyses of Customer shopping information The most difficult questionWhether to revise the overall channel strategy??