Académique Documents
Professionnel Documents
Culture Documents
Introduction
Factors
M2
M3
Service objectives at each channel element. Each segment has different expectation
P2
Doctors in all A cat towns Chemists located in the main markets of A P3 towns Only big govt and private hospitals
Waiting time
Difference of Desire to purchase
channel objectives
Industrial products require direct-marketing by the company Consumer products should be available in large no of outlets Frozen desert and ice-cream products need cold storage facilities Seeds selling will need rural distribution Multi level marketing will require their distributors to appoint further distributors
Alternatives study
Business intermediaries currently available The no and type of intermediaries required Any new member to be specially developed Roles of each channel member
of channel system
Margins of the channel partners Cost of transportation of goods between the co and the end user Cost of order booking and execution Cost of stock returns/ date expired stocks taken back Cost of reverse logistics required (getting empties back)
intermediaries
Ready channel partners may be already available. These can be further utilized
Distributors or redistribution: stockiest of some other companies C&F agents: can be further utilized for collections and other work Logistics service providers: will undertake distribution activities. Manufacturers agents, stockiest, guarantors provide financial support Financial agencies can be used to finance your customers.
of intermediaries
Should be adequate for expected coverage of the target markets at the same time should not be too much to dilute the effort and add to the costs. Its not easy to get rid of channel members
Cost:
Every channel will have different costs associated with
Adaptability
Sensitivity of channel to addition, elimination of products, additional service, new territory coverage, generating leads, handling price change, stock rationing
Past experience
As a C&FA for a similar company As a transporter should have access to a good warehouse Should have handled similar but non-competing companies Ability to maintain confidentiality of transactions
..conti
Current business portfolio Financial strength/ asset ownership including personal assets of partners No of sales people Qualifications, background, experience Products handled, volume handled Should be of similar products but non-competitive Product quality, compatibility and complimentary Leadership in the market Integrity, fairness in dealings Territory/ intensity Regularity, reliability Relationship, productivity Beat plan adherence Value of institutional business handled if any
Current business
Reputation
Market coverage
Selecting Distributor Credit extended in the market % of outlets & of current business Bad debts, if any Stock distribution Ready stocks or order booking Infrastructure availability Warehouse Distribution vans Hardware/ personal computers/ connectivity Sales performance On current business Awards, prizes, certificates won on performance Management of business Educational backgroun, qualification of partmenrs Market working Efforts on merchandising, displays Handling sales promotions Past experience Inventory management Adherence to stock norms recommended by the company
On the job training Class room training Special meetings to launch new products Training on submitting reports Statutory requirements Product related responsibilities of channel members Training on technicalities Training on specifications, installments, repair and maintenance Training on after sales service
in designing capacity building programmes Training Promotional support Marketing research Working along with company people
Channel power
Referent Expert
company company company
power: Power out of eminent position of the power: Power of legal agreement with power: Comparison with other channel
power: Power out of special knowledge of the power: Support in the form of promotions,
Legitimate Support
members
Competition Reward
Efficiency: Input versus output Effectiveness: How well channel meets its objectives Capacity: How effectively channel can handle changes in
volume
Vertical
integration- Owing the channel Own the channel or outsource? How much of vertical integration? Why vertical integration Outsourcing distribution