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    sales distribution

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    1 views10 pages

    Channel Management Sales Distri

    Uploaded by

    Ajay
    sales distribution

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 10
    ARE YOU TOUGI! EXOUGITO MANAGE YOUR CHIANNELS? 1s tezhnological developments aceelerae hae! evalition, Dain networks ae already enabling end users to bypass Laditional channels and deal Gireetly with manvfacturere ane terviee providers. The use of online ‘spabiltes instead of travel agents in booking airline reservations is one example a his disiniermediation Ih addition, ogists innovations sch as reliable overnight delivery servi Oot information ystems shit irk {he inventories ofl the desire ina gee | putters beginning to ate acl | Tennant probs or part of, PK ‘obsolete, paving the way for the re- Bettae COLSIE IEG] Soviet cs som (@/G|OJO (a) contncine te merge in insets sae OOOO] Mes ne ‘Despite the sale and importance ofthese opportunities, few companies manage ¢o take full sévaninge of them, For every successful chanel innovater, there are a dozen eompaiies that either fail to esognize an opportunity in time or make a botched attempt 10 improve ebanne performance. Why does an area of such strategie aod tactical significance hve such a poor management track record? Two factors stand out st Cannel opportunites are extremely dificult (identify: second, chanel ecisions (end to be governed nat by reason, bul by emotion, Opportunities hard to spot ‘There ave several easons why detecting channel opportunities is so slic For one, consumer buying habits da not ehange overnight: they shit gicaly overtime. Consumers in most counirics were slow to eeept ATM in banking. foisted he move ping bills by phone or PC Warehouse clubs now represent over $25 billion of US spending 09 aroceres and packaged good, bul it his ken tiem nesely two deeades to [ARE YOU TOUGH ENOUGH TO MANAGE YOUR CHANNELS? reach this lve. The few manufacturers that spotted their potential early ere able fo apturecens of millions of dolirs of ineremental revenue Without exonibulizing more profile business From traditional channels {Industrial consumers change their habits equally slowy Buying groups are evolving only gradually umong hospitals fr example, despite the enormous Pressures 0 ealtheare cost, (Other factors compoiind the intense difclty of recognieing market shifts Since companies that use external channels lack contact with end users, they often have to rely on these channels to fed them information about ‘he market. This makes them dependent on thei intermediaries sensitivity to emerging consumer trends. A conflict of interests may arise, with channels understandably rlustant to share information about market developments ‘Winning companies Sir understand the restrictions ‘and know how to For companis seeking @ comprehensive, a Amen a (0 Asialed, and up-to-date understanding of narket developments, there is no subtiute for direct consumer contact. Even when executives are customers for their ‘own company’s products and services, thor experiences seldom resemble those of ordnsry consumers. Take automotive executives: since they etjoy the privilege of special purchasing programs and never have to negotiste ith car dealers, they have litle experienee of what buying wc i ike for ‘most people Emotional bias Decisions about channel opportunities tend o below on feets and high on ‘aston Ons cephon cary deeded nesta operas fe ‘isteaby aching “he tal tconel he one ster procs” Fes tai pte he norte of maining some dopo of conmuet Sue butts lkorsthng use bbe any andere pena fe ong cel ake Shue as traeeonty ee ot Eaeaepeiseaye aul te wee complain that is impessible saernched relationships often make a businesses reluctant to exit unprofite 10 hansen top undepe fring ine Adie, her ae el eens top Scie in chun soning ba wang entrained ees ‘sre wl nut kn vere te tere They tn iSite’ haggle pale when er prior and fade sopman or open nasorneg cea ‘estes quneEhy was muaucas 107 NE YOU TOUGHT ENOUGILTO MANAGE YOUR CHANNELS? Losing companies, on he other hand, tend to thcow up thelr hands ané complain tat is mmpossibe to change channels Signs of latent opporeunity ‘There ure six telltale symptoms that poiat to a developing

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