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Chapter Code: IMC12
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Though some industrial products do not require any intermediaries, other goods and services need intermediaries for marketing them to the customers. The design of marketing channels is a systematic process that takes into account channel objectives and goals, environmental constraints, and the cost of various channel structures that differ in terms of channel length and channel intensity. |
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The criteria for selecting an intermediary are - product line coverage, after-sales service, pricing strategy, sales, size, experience of the intermediary, and risks involved in selecting the intermediary. Another main topic discussed in this chapter is conflicts in the channel. Channel conflicts arise due to many factors like goal incompatibility, clash over domains, and performance of channel functions.
Conflicts may be either pre-contractual or post-contractual. Conflicts may occur within and between different levels of a channel, or between two parallel channels. Channel conflicts can be solved by applying various strategies like negotiation and bargaining, persuasion mechanisms, problem-solving strategies, political strategies, and cooptation.
Introduction to Channel Structures
Need for Industrial Channels and Intermediaries
Characteristics of Industrial Distributors
Channel Design
Channel Length
Channel Intensity
Steps in Channel Design
Channel Intermediaries and their Functions
Serving the Industrial Supplier
Serving the Industrial Customer
Types of Channel Intermediaries
Manufacturer's Wholesalers
Value Added Resellers
Merchant Intermediaries
Agent Intermediaries
Brokers
Market Makers
Criteria for Selecting Channel Intermediaries
Product, Service and Pricing Factors
Experience Factors
Sales & Size Factors
Risk Factors
Managing Channel Relationships
Channel Conflicts and their Management
Sources of Conflicts
Types of Conflicts
Conflict Management Strategies
