Distribution
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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
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
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