Transcript Distribution Objectives and Related Marketing Strategies

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