Kelley Fall 2001 Marketing Management

1

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

2

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

3

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

4

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

5

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

6

Effort-Oriented Measures of Evaluating Distributors Number of sales calls made Number of checks on reseller stocks Number of inquires followed up Number of demonstrations completed