Channel levels Most businesses use third parties or intermediaries to bring their products to market. They try to forge a "distribution channel" which can be defined as "all the organisations through which a product must pass between its point of production and consumption" Why does a business give the job of selling its products to intermediaries? After all, using intermediaries means giving up some control over how products are sold and who they are sold to. The answer lies in efficiency of distribution costs. Intermediaries are specialists in selling. They have the contacts, experience and scale of operation which means that greater sales can be achieved than if the producing business tried run a sales operation itself. Channel …show more content…
Terms and Responsibilities of Channel Members * Price policies: This out the price at which middlemen will get the product from the manufactures and the discount schedule. It also mentions the price at which middlemen may sell the product. * Condition of sales: The manufacturing firm stipulates mode or payment terms. For example, some firms ask middlemen to put a deposit with them. Some other firms insist payment to reach them on the day the intermediary takes physical possession of the goods. Others may accept a letter of credit as a payment mode .Credit policy of the manufacturer stipulates the period in which it must get paid. * Territorial Rights: The manufacturer should spell out the territorial jurisdiction of each of the distributor to avoid any territory jumping. This will also help in the distributor’s evaluation. * Mutual services and responsibilities – should be spelt out, particularly in case of franchised and exclusive agency channels. Channel Management decisions After a company has chosen a channel alternative, individual intermediaries must be selected, motivated & evaluated. 1. Selecting channel members For some producers this is easy; for others it 's a pain in the ass. Anyway, in order to select them,
2) Explain the role of channel intermediaries in the product distribution process. Why is their role important?
This paper is intended to shine a light onto distribution channels, both direct and indirect, as well as, provide a better understanding of channel levels. It will also deal with the different channel organizations, including conventional, horizontal, vertical and multichannel marketing systems.
Efficient Delivery System. Company S can motivate scooter dealerships as intermediaries by ensuring dealerships get an appropriate amount of merchandise (compared to what was ordered) in a timely manner. Company S can increase the frequency of deliveries to encourage sell through of on hand stock. The advantage to increasing the frequency of deliveries is increasing the dealers experience because they never experience a shortage in stock. There is also an increase in the consumers
As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.
a. Contracts executed by the parties normally include provisions that clearly specify the enforceable rights regarding goods or services to be provided and received by the parties, the consideration to be exchanged, and the manner and terms of settlement.
| technical capability of seller, understanding of work by seller, and business type of seller.
An increase in sales will translate to profitability in the organization. This in turn translates to revenue increase in the organization and dealers. Canceling agreements to exclusive rights of sale will give all dealers similar opportunities. This means that the dealers in the market have an opportunity to reach any consumer. Additional dealers will help in leveling the playing field.
The Client hereby engages the Provider to provide services described herein under “Scope and Manner of Services.” The Provider hereby agrees to provide the Client with such services in exchange for consideration described herein under “Payment for Services Rendered.”
4. Article 2 of the UCC determines the rights of the seller, the buyer, and third
This has proved to be a very successful tactic for companies in marketing. Marketing channels are also used by companies to reach their consumers. They use three types of marketing channels which are communications, distribution and service channels. Communications is important to get the company's message out to the public and this could be in many forms such as the radio, television, the internet, posters and the like. They also need to distribute their products to the consumer and this means they will need a physical location like a store, or be a wholesaler and have others retail your products for you and also sell your products on the internet. Service channels are needed to effect transactions with the consumers and these could be banks for credit card purchases and transportation companies such as UPS to deliver the products to homes and businesses.
The company sells its products through two separate channels of distribution. Each is treated as a
the distributor, whereas there is no such risk to a sales agent. For example, distributors often
There are important characteristics that Barrett should consider while deciding which intermediaries to choose. First of all it
The company sells its products through two separate channels of distribution. Each is treated as a
The organisation that provides the product or service, including any mission statements, visions or goals.