Choice of right distributors & channel logistics

Choosing the right distributor

Assigning marketing function Product line coverage Distributor size Distributor type Exclusive or multiple distribution Distribution policies

Assigning marketing functions

Local inventory to be carried to serve the market. Dividing existing potential customers into two broad categories 1. DIRECT SALES FORCE { Except for emergency shipments} 2. Or those that will be served entirely by distributor {except technical support by manf }

 According to geographical market According to credit liability Other responsibilities { repairs, warranty service}

Product line coverage

Fragmented channels {product line} Minimize fragmentation Specialized products

Distributor size
Major decision Combined volume and cost effectiveness Lower selling cost Increase sales & market share More compatibility two firm Compensate the weaknesses

Distributors Type
Carrying inventory, selling & providing credit Number of product line carried Amount of time spent v/s. maintenance selling

 Market /customer coverage

Market development Product concentration

Exclusive or multiple distribution

Problem to avoid
Mixture of distributors in multiple markets

Distribution policies
Duties & goals
Rights &protection

Other channel participants

Brokers
Value added resellers

THANK YOU