Amity Business School

Amity Business School

Selection of Channel Partners
Swati Bhatnagar

the intermediaries are “selected” only to the extent that they have the probability of paying the bills. • In an intensive distribution pattern .Amity Business School Channel Member Selection • This is the last phase of channel design. the greater the intensity of distribution. . • Choice between merchants. the less the emphasis on selection. • On the other hand. agents & facilitators • Generally. in case of selective distribution the selection decisions become more critical & are carefully scrutinised.

The Selection Process Amity Business School Consists of three steps : Finding prospective channel members  Applying the selection criteria to determine the suitability of prospective channel members  Securing the prospective channel members .

Reseller enquiries 4. . Trade sources 3.Amity Business School Finding prospective channel members Variety of sources in order of importance are:1. business databases. Others(Internet. independent consultants etc. Field sales force 2. Advertising 6. Customers 5. Trade shows 7.

Some flexibility can also be adopted certain times. of which most prominent one’s are those of Brendel. is adequate for a firm under all conditions. The most classic & famous are those of Brendel & Pegram . Hlavacek & Mc Cuistion. no matter how carefully developed.Amity Business School Applying the selection criteria • Here the appraisal of the prospects happen in light of the selection criteria. • However . David Shipley & Pegram. no list of criteria. • Lot of attempts have been made to specify the same.

What is his reputation with his customers? 4. What other allied lines does the distributor handle? 7. Is he or she aggressive? 6. To what important customers does the distributor sell? 12. How well established is he or she? 3.Amity Business School Brendel’s list of 20 selection questions 1. Has he the ability to discount his bills? 9. What is the size of his plant (facilities)? 10. To which one does he not sell? . Does the distributor really want our line or is he or she after it just because of present day shortages ? 2. Will he maintain adequate inventory for services? 11. What is his reputation among manufacturers? 5. What is the distributor’s financial position? 8.

Does he disclose the annual sales figure for the past five years? 15. Amity Business School 13. How many internal employees he has? 19. Does he maintain stable prices? 14. What facilities does he have for these activities? Hlavacek & Mc Cuistion augmented this by emphasizing that the coverage should be not only be in geographical terms but also in market segment terms. . Does the distributor believe in active co operation. sales training & sales promotion? 20. Also according to them financial capacity should not be over emphasized as at times less financed but more “ hungry ” ones also prove better. Are the distributor’s sales people trained? 17.Contd. How many field personnel does he have? 18.What territory does the distributor actually cover with his sales force? 16.

Pegram’s criteria Amity Business School Sales strength Quality Quantity Competency Product lines Reputation Management succession Market coverage Sales performance Competitive Compatible Complementary Quality .

Synder’s Ad . Good profitable product line 2. Fair dealing policies & friendly relationships ( not just an economic /business relationship but a human relationship as well 3M Ad. the distributor sells& each is dependent on the other.Amity Business School Securing the prospective channel members The supplier produces . Advertising & Promotional support 3. Most of them would fall within the following 4 areas :1. Together they form a team and team work is essential for the association to become mutually beneficial Specific inducements for securing channel members Prospective channel members are always keen to know “ what is in it for them” if they join the manufacturer’s marketing channel. Management Assistance 4.