The document discusses factors that affect channel selection and management of distribution channels. It outlines various considerations including product characteristics, market factors, company resources, middlemen, environmental issues, and conflicts that can arise. It also discusses strategies for evaluating channel performance and resolving conflicts through communication, negotiation, and establishing superordinate goals.
2. FACTORS AFFECTING CHANNEL SELECTION
Product Characteristics.
i. Purchase Frequency.
ii. Perishability.
iii. Weight and Technicality of Product.
iv. Selling Price Per unit.
v. Standardized Products or Ordered Products.
3. FACTORS AFFECTING CHANNEL SELECTION
Market factors or Consumer Factors.
I. Consumer or Industrial Market.
II. Number of Purchaser.
III. Geographical Distribution.
IV. Size of Orders.
V. Policies of competitors.
VI. Customer Buying Habits.
4. FACTORS AFFECTING CHANNEL SELECTION
Company or Enterprise Factors.
I. Financial Resources.
II. Size of Company.
III. Product Mix.
IV. Attitude of Company Executive.
V. Marketing Policies.
VI. Marketing Experience and Managerial Ability.
VII. Goodwill of Enterprise.
5. FACTORS AFFECTING CHANNEL SELECTION
Middlemen Consideration.
I. Services provided by Middlemen.
II. Attitude of Middlemen.
III. Availability of Middlemen.
IV. Sales Volume Potential.
V. Channel Conflicts.
6. FACTORS AFFECTING CHANNEL SELECTION
Environmental Factors.
I. Economic Consideration.
II. Legal Restriction.
III. Social and Ethical Consideration.
8. NATURE AND CAUSES OF CONFLICTS
Goal Incompatibility.
Role Ambiguity.
Difference in Perceptions of the Market.
9. MANAGING THE CONFLICTS.
Communication.
Dealer Councils.
Super ordinate Goals.
Arbitration and Mediation.
10. NEGOTIATION AS A MECHANISM FOR
RESOLVING CONFLICTS.
Negotiation strategies.
A. Competitive Or Aggressive.
B. Collaborative or Problem Solving.
C. Compromise.
D. Avoiding.
E. Accommodating.
11. CHANNEL PERFORMANCE EVALUATION.
The frequency of channel members evaluation is
based on number of factors like.
i. The degree of manufacturer has on channel
members. It is obvious that the evaluation can
only be done on channel members who are on
contract with the company like C&F agents and
distributors. There is no way that freelance or
independent channel members like wholesalers
will accept any evaluation from the company.
ii. The nature of products.
iii. The number of channel members.
iv. The category of the channel members.