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Distribution Objectives and Related Marketing Strategies Account Development Distributor Support Increase availability relative to competitors Gain access to new segments Increase ability to buy Increase inventory Increase consumption rate Reduce competitive opportunities Increase promotional support Kelley Fall 2001 Marketing Management 1 Distribution Objectives and Related Marketing Strategies Account maintenance Account penetration Assure user satisfaction Reduce competitive opportunities Simplification Increase consumption rate and purchase volume Head-to-head competition Complementary product sales Kelley Fall 2001 Marketing Management 2 Power Bases in Distribution Reward Coercive Expert Ability to offer product with low prices, quantity discounts Ability to withdraw product Ability to offer superior or needed technical assistance Kelley Fall 2001 Marketing Management 3 Power Bases in Distribution Referent Legitimate Ability to offer prestige brand name Contractual provision that requires distributor to carry full line Kelley Fall 2001 Marketing Management 4 Results-Oriented Measures of Evaluating Distributors Sales volume Sales volume as a percentage of quota Sales profitability Number of new accounts Number of stockouts Percentage volume increase in key accounts Number of customer complaints Number of lost accounts Kelley Fall 2001 Marketing Management 5 Effort-Oriented Measures of Evaluating Distributors Number Number Number Number of of of of sales calls made checks on reseller stocks inquires followed up demonstrations completed Kelley Fall 2001 Marketing Management 6