Channel Evaluation


Channel evaluation is a multidimensional construct and includes both performance measures of the channel and measures of contribution to consumers by th channel. These measures of channel performance have been grouped under three main dimensions also known as 3Es, i.e., Effectiveness, Efficiency, and Equity. Effectiveness is further subdivided into delivery and stimulation.

  • Delivery is defined as a short term measure of how well the channel meets the demand for service outputs placed on it by the consumption sector.
  • Stimulation is defined as a long term, goal oriented measure of how well the channel member stimulate latent demand to reach optimum levels of demand.

Efficiency is further subdivided into productivity and profitability:

  • Productivity is defined as the efficiency with which output is generated from resources and inputs used. In essence, productivity is a measure of physical efficiency.
  • Profitability is a general measure of financial efficiency of channel member, in terms of return on investment, liquidity, leverage, growth patterns in sales and profits, growth potential in sales and profits, market share, average inventory maintained, etc.

Equity is the extent to which marketing channels serve problem-ridden markets and market segments, such a disadvantaged or geographically isolated consumers.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures

Appointing a Dealer


  1. The Branch Manager perceives a need for an additional dealer in an area. Need occurs if any existing dealer leaves or is removed. It could also happen when the company expands into new territory.
  2. The Branch Manager has to convince the general manager of the division about the need for anew dealer.
  3. The selection process for the dealer begins with placing advertisements in newspapers and trade magazines inviting applications. Applications for dealership are directed to the concerned branch manager.
  4. The branch manager then reviews the application forms and prepares a shortlist if necessary. The company has not laid down any concrete guidelines for shortlisting at this stage. The branch manager is allowed to exercise his discretion.
  5. The shortlisted applicants are interviewed by the branch manager along with the regional sales manager of the division. Whatever additional information is required is obtained from the applicants during the interview. The dealers are evaluated on:
    1. Prior business record
    2. The capability of maintaining and running his own showroom
    3. Financial strength
    4. Inventory: The dealer must have enough working capital for maintaining specified level of inventory. This condition is however is applied only in the case of dealers whose territories are located considerably away from a branch office. This is because there is a company owned warehouse along with every branch office and for dealers located in the same cities there is no necessity to maintain separate inventory
    5. Contacts with customers
    6. Availability of salesforce to service customer effectively. In addition, technicians also need to be present to meet the after-sales service requirements of the products
  6. The final selection decision is made after talking with the bankers of the applicant. This is done to check the veracity of information regarding financial strength and prior business experience. It is only after the company is satisfied regarding all aspects of he information, that it sends the dealer an appointment letter
  7. The appointment letter lays down several terms of the contract that have to be fulfilled by the dealer. The company expects the dealers not to sell any competitors’ products. The dealer is also expected to conduct his business only within the clearly demarcated sales territory allocated to him by the company.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Channel Management, & Physical Distribution Management


Channel management and physical distribution management together comprise the place variable of the marketing mix. Channel management and physical distribution management, though closely related, are quite distinct from each other. While physical distribution deals with logistics, warehousing, and inventory management channel management is much broader and is concerned with the entire process of setting up and operating the channel for meeting the company’s objectives. Channel management must be well underway before the physical distribution management can even be considered.

Under channel management, the company deals with external organizations. The company uses these external organizations. The company uses these external organizations also known as intermediaries, to achieve its objectives of profitability and customer satisfaction, and in turn ensure that the channel members’ objectives are also satisfied.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures

Global Marketing Place


Several factors have forced countries to extend their economic views to events outside their own national borders. First, international agreements are being negotiated in attempt to increase trade among nations. Second, the growth of electronic commerce and related computer technologies brings previously isolated countries into their marketplace for buyers and sellers around the globe. Third, the interdependence of the world’s economies is a reality since no nation produces all of the raw material and finished goods purchased by its citizens or consumers of all its output without some exporting to other countries. Evidence of this interdependence is illustrated by the introduction of the Euro as a common currency to facilitate trade among the nations of the European Union and the creation of trade alliances.

Service firms also play a major role in today’s global marketplace. In many cases, global marketing strategies are almost identical to those used in domestic markets. Rather than creating a different promotional campaign for each country, marketers use the same ad with spectacular results.

Domestic marketing strategies may need significant changes to adapt to unique tastes or different cultural and legal requirements abroad. It is often difficult to standardize a brand name on a global basis.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Quality Insulation and Business Storms


Many companies are facing storms because they still have not learned the lesson. For these slow learners quality is regarded as something they can add to a badly designed, poorly made product to help hold it together until the buyer gets its home. However the key to survival in today’s competitive climate is real quality through every step of production and service. It is essential to the work by the lowest paid individual on the payroll or the chairman of the board. Without quality, things don’t get sent out properly or on time, and huge service departments are working flat out to repair flaws that should never have been allowed into the products in the first place.

 My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Exploiting the Yellow Pages


Many people think the yellow pages are merely a place to put their phone numbers in large type. Silly thinking! The Yellow Pages are an arena for attracting the business of active prospects. They are a place to confront prospects on a one-to-one basis. You are selling. Others are selling too what you sell. The prospect is in a buying mood. Understand that opportunity, and you’ll be able to  create yellow pages ads that translate into sales.

 

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Non-traditional Marketing


As marketing was turned to a generic activity, its application broadened far beyond its traditional boundaries. Broader appeals focus on causes, events, individuals, organizations and places is in the not-for-profit sector. In other instances, they encompass diverse groups of profit-seeking individuals, activities, and organizations. There are five major categories of non-traditional marketing: person marketing, place marketing, cause marketing, event marketing, and organization marketing.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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