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

Closing the Customer Gap


The gaps model says that a service marketer must first close the customer gap between customer perceptions and expectations. To do so, the provider must close the four provider gaps, or discrepancies within the organization that inhibit delivery of quality service. The gaps model focuses on strategies and processes that firms can employ to drive service excellence.

Customer perceptions are subjective assessment of actual service experiences. Customer expectations are the standards or reference points for performance against which service experiences are compared and are often formulated in terms of what a customer believes will or should happen.

The sources of customer expectations consist of marketer-controlled factor (such as pricing, advertising, and sales promises) as well as factors that the marketer has limited ability to affect (innate personal needs, word-of-mouth communications, and competitive offerings). In a perfect world, expectations and perceptions would be identical: customers would perceive that they receive what they thought they would and should. In practice these concepts are often separated by some distance. Broadly, it is the goal of service marketing to bridge this distance.

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.

Selection of Dealers


  • The company does not advertise for new dealers. Whenever the need to appoint a new dealer for an area is felt the word is spread around. This is being used as the type of dealer who sell pumps and motors are mostly concentrated in a locality in every town or city
  • The interested dealers are asked to present before the branch manager and the group marketing manager as to how they would be able to serve the company
  • The selection is then done on the basis of following criteria:
  1. Financial Strength: The capability of the dealer to be able to hold sufficient stock as per the potential of the area, both in the present and in the future, and whether he will be able to pay the companies dues in time.
  2. Manpower: the strength of the workforce for handling sales, delivery, store handling, after sales service etc. the quality of the workforce in terms of educational qualifications, technical competency, and experience is also seen.
  3. Contacts: As the business for these types of products is done on  the basis of contacts that form a major basis for selection and include the present customers of the dealers, experience in dealing with such customers, and overall contacts in the society
  4. Floor space: Depending on the quantity of products to be stocked for the targeted sales, the floor space of the godown should be sufficient and located close to the market
  5. Location: Location and ambiance of the outlet are not important.
  • Feedback from the market is obtained through the market network and the present dealer network. The feedback is sought for things like authenticity of the claims and the reputation of the person to be appointed.
  • Appointment is given to the elected dealers after they give a security deposit. Every dealer is required to make a deposit with the company, which works out to roughly around three months of expected 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.

Discounted Cash Flow


It is a useful conception from Discounted Cash Flows that they are future cash flows expressed in terms of their present value. The discounted cash flow technique employs this reasoning by evaluating the present value of a business’s net cash flow (cash inflows minus cash outflows). A simplified view of cash flow is “cash flow from operations,” which is net income plus depreciation charges, because depreciation is a non-cash charge against sales to determine net income. The present value of a stream cash flows is obtained by selecting an interest or discount rate at which these flows are to be valued, or discounted, and the timing of each. The interest or discount rate is often defined by the opportunity cost of capital—the cost of earning opportunities forgone by investing in a business with its attendant risk as opposed to investing in risk free securities

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.

Human Resource Strategies


Human resource strategies are functional strategies, like any other—financial, information, marketing, procurement. Any functional planning effort follows a pattern complete with its variations. In many companies, long-term functional planning (for human resources, finance, information systems, technology, etc) is a mandated element of the long range business planning process.

Human resources strategies are different, however, in that they are inter-twined with all other strategies’ management of people is not a distinct function but the means by which all business strategies are implemented. If anything, human resources planning ought to be an integral part of all other strategy formulation. Where it is separate, it needs to be closely aligned..

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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