Ret urned goods. Physical flow of goods 2. Tit le flow of goods negot iation, ow nership and risk sharing also 3. Payment flows financing and payment 4. Information flow about goods, orders placed and orders execut ed 5. Direct Distribution Company to consumers or retailers w it hout use of intermediaries. Also includes reaching Inst it ut ional buyers. Wholesalers are required t o fill t he gaps Hundreds of small companies w ho cannot afford t o set up dist ribut ion net works — need t o depend on w holesalers In food grains, fruit s and veget ables — hardly any organised dist ribut ion net w ork.
Distributor Is a w holesaler nominat ed by a company t o exclusively re-dist ribut e t he company product s t o it s cust omers in a designat ed t errit ory. Does not sell from his premises. Ext ends credit select ively. Dealers in indust rial product s may have bet ter defined roles. Sells from his premises. FM CG is t he most complex.
Has the capacit y to maximize sales and market shares. Can charge penalt y if product s do not do w ell New development s in IT help t hem run operat ions optimally and keep t rack of loyal customers.
Also helps t hem ident ify profit able store locations. Element s dist inguish bet w een stores and include: St ore ambience. The number of each cat egory of int ermediary is also decided based on t he number of cust omers to be serviced in each segment. Channel Objectives Defines w hat t he channel syst em is supposed t o do t o support customer service. Cust omer needs could include: Lot size convenience M inimum wait ing t ime Variet y and assort ment Place ut ilit y The product charact erist ics and t he market profile also impact t he object ives.
If t he ROI is more, addit ional tasks are given If t he ROI is less, t he company may provide addit ional support Post evaluat ion t asks include counseling, ret raining and mot ivat ing. In ext reme cases it may result in t erminat ion. Performance Evaluation On pre-agreed tasks only. No surprises. Specific t arget s on periodical basis are set. The company does t he w ork of product ion, branding and dist ribut ion.
If t he organizat ion does t he work of product ion, branding and dist ribut ion, it is said to be vert ically integrated. The pow er equat ions bet w een t hem keep t hem w orking t oget her.
There are basically 5 t ypes of pow er bases — reward, coercion, expert, reference and legitimacy. Ext ent of dependence defines t he pow er base w hich is appropriate. It is not a one-sided equat ion. Bot h t he channel member and t he principal can have influence on each ot her. Result s from int erdependence w it hin t he channel syst em. I m really curious that there aren t more people here in this forum expressing an issue with this.
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Document Information click to expand document information Description: Xx. Did you find this document useful? Is this content inappropriate? Report this Document. Description: Xx. Flag for inappropriate content. Download now. Related titles. Carousel Previous Carousel Next. Free with an apple account, iBooks has tons of tools and lets you manage all your projects from a central location. It includes easy-to-use tools and lots of different template formats.
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