Distribution and Channel Management
Distribution and Channel Management
Distribution and Channel Management
What is distribution?
À
O
1. Storage & delivery cost
1. Physical Possession 2. nventory carrying cost
2. wnership 3. Sales promotion,
3. Promotion advertising cost
4. egotiation 4. Time & legal cost
5. Financing 5. Cost of credit, T &C of
sales
6. Risking
6. nsurance, warranties,
7. rdering after sale service etc
8. Payment 7. rder processing,
transaction cost
8. Collection, bad debt
Channel Members
m
V
electing channel members
u Which characteristics are important?
Î üears in business
Î ines carried
Î Growth and profit record
Î Cooperativeness and reputation
Î Type of customer
Î ocation
Channel Management ?ecisions
îÀ
m