Ch. 7: SELECTING CHANNEL MEMBERS

1
Ch. 7 SELECTING CHANNEL MEMBERS

• Finding prospective channel members
• Applying selection criteria
• Securing channel members

2
FINDING PROSPECTIVE CHANNEL MEMBERS

• Field sales organization
• Trade sources
• Reseller inquiries
• Customers

• Advertising
• Trade shows
• Other sources

3
APPLYING SELECTION CRITERIA

• Sales strength
• Product lines
• Reputation
• Market coverage
• Sales performance
• Management succession

• Management ability
• Attitude
• Size
• Credit and financial condition
• Other

4
HOW TO SECURE CHANNEL MEMBERS (INDUCEMENTS)

• Product Line
• Advertising and Promotion
• Management Assistance
• Fair Dealing and Friendly Relationship

5
Chapter 8MARKET GEOGRAPHY

• BUCKLINS MODEL The Greater the distance between
  a
• producer and his markets the higher the
  probability that a
• channel structure using intermediaries will be
  less expensive
• Particularly important to keep the track of
  changes in channel structures
• There are secondary sources of data which help
  us to do that

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MARKET SIZE
The number of buyers or potential buyers
(Consumer or Industrial) in a given market. --
Bucklins Model
7
MARKET DENSITY
The buyers or potential buyers per unit of
geographical area -Concept of Efficient Congestion
8
MARKET BEHAVIOR

• When
• Where
• BUYS
• How
• Who