Professional Documents
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Channel RMBA
Channel RMBA
TYPES OF INTERMEDIARIES
NUMBER OF INTERMEDIARIES
TERMS AND RESPONSIBILITIES OF CHANNEL MEMBERS
Channel Design Decision:
Identifying major channel alternatives
NUMBER OF INTERMEDIARIES
Exclusive distribution-severely limits the number of intermediaries.
Selective distribution-relies on only some of the intermediaries willing to
carry a particular product.
Intensive distribution- places the goods or services in as many outlets as
possible.
Channel Design Decision:
Identifying major channel alternatives
TERMS AND RESPONSIBILITIES OF CHANNEL MEMBERS
Each channel member must be treated respectfully and be given the
opportunity to be profitable. The main elements in the “trade relations mix”
are price policies, conditions of sale, territorial rights, and specific services to
be performed by each party.
Price policy
Conditions of sale
Distributors’ territorial rights
Mutual services and responsibilities
Channel Design Decision:
Evaluating major channel alternatives
Each channel alternative needs to be evaluated against economic, control,
and adaptive criteria.
ECONOMIC CRITERIA Every channel member will produce a different level of
sales and costs.
CONTROL AND ADAPTIVE CRITERIA Using a sales agency can pose a control
problem. Agents may concentrate on the customers who buy the most, not
necessarily those who buy the manufacturer’s goods.
Channel Behavior and
Organization
Channel conflict is the disagreement among marketing channel members
on goals, roles, and rewards—who should do what and for what rewards.
Horizontal conflict occurs among firms at the same level of the channel.
Vertical conflict, conflicts between different levels of the same channel,
is even more common.
Retailing