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Channel Management
Channel Management
LESSON 27:
CHANNEL MANAGEMENT
Learning Objective
Dealer motivation
Territory of Operation
The firm must settle the issue of territory in a fair
manner.Territory has significance at wholesale as well as retail
levels.Different businesses have different requirements and
differentpractices in this regard. FMCG businesses, for example,
supplytheir products to practically all retail outlets; they do not
assignany territory as such to any retailer; they assign territories
only todistributors, redistribution stockists, and C&F agents.
Durables marketers on the contrary, operate through a limited
number ofdealers in each town. Usually in these lines, territories
areassigned to the dealers; even where territories are not
exclusivelyassigned, an understanding is often worked out.
Chart A Component Tasks in Managing the
Network
Fixing the trade relations mix
Territory of operation
Trade margin
Functions which the dealershave to perform
Functions which the firm hasto perform
Servicing the dealer
Securing shelf space andmerchandising supportfromdealers
100
11.623.2
Functions are
11.623.2
101
102
11.623.2
11.623.2
103
Notes:
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11.623.2