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Establishing Channel Relationship
When a marketer decides to include channel members in the distribution chain of his product
the first and foremost step is to convince the resellers to handle his product. He has to
take care of the needs of the channel members along with the needs of his consumer, giving
equal importance to both. The needs of the channel members are very different from those of
the consumers. The resellers always look for products which they feel will interest their
consumers.
Apart from this there are several other issues which are the following:
Apart from this there are several other issues which are the following:
- Delivery
- Profit Margin
- Other incentives
- Packaging
- Training
- Promotional Help
To avoid the situation of inventory out-of-stock the resellers always expect the marketer
to deliver product in-time and in good condition.
The resellers will handle a marketer's product only when he can make some profit out each
product being sold. The difference or margin between the cost for acquiring the product from
the supplier and the price at which the product is sold to the end user should be sufficient
to reach their profit objectives.
The resellers are often on the lookout for other incentives which will lure them into handling a
manufacturer's product, specially, in cases where the reseller is putting in extra effort for the
sale of the product. These other incentives may include additional free products, free trips or
bonuses for reaching sales targets.
Resellers are very particular about packaging of the products as good packaging ensures
product safety. Along with safety packaging should also keep in mind the reseller's storage
capacity and convenience. The product should be easily storable on his store's shelf. The
shipping package should be easily storable in his warehouse or receiving dock area. Also
identification tags on the products add to the reseller's convenience as it helps in easier
inventory tracking.
The reseller might need to be trained about certain product to satisfy consumer queries.
He might be needed to demonstrate the product in front of potential buyers. In such cases
the reseller needs to have a strong knowledge of the product.
The marketer's help in promoting his product might be sought by the reseller. This may be in
the form of funds for advertising, promotional product materials or product demonstrations
for the store.
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