to carry on in channel work. No. of intermediaries: 3 stages are available: exclusive distribution, selective distributionand intensive distribution. Exclusive distribution means severally limiting a no. of intermediaries. Selective distribution involves the use of more than a few but less than allof the intermediaries who are willing to carry a particular of product. Intensivedistribution consists of the manufacturer placing the goods or services in as many outletsas possible.
Terms and responsibilities of channel members:
Price policy calls for the producer to establish a price list and schedule of discounts andallowance that intermediaries see as an equitable and sufficient.Condition of sale refers to payment terms and producer guarantee.Mutual service and responsibilities must be carefully spelled out, especially in franchiseand exclusive agency channels.
::: Channel management decisions1. Selecting channel members
Companies need to select their channel members carefully as they represent the companyto the customer. To facilitate channel members selection, produces should determinewhat characteristics distinguish the better intermediaries, for e.g. the no. of years in business, the growth and profit record and financial strength.
2. Training channel members
Companies need to plan and implement careful training programs for their intermediaries.
3. Motivating channel members
• Coercive power • Reward power • Legitimate power • Expert power • Referent power
4. Evaluating channel members5. Modifying channel arrangements: Channel Integration and SystemsVertical marketing system
A VMS by contrast, comprises the producer, wholesaler and retailer. Acting as a unifiedsystem.
Administered vms: It coordinates successive stages of production and distribution