1. Act on behalf of a Producer in selling/marketing their products
2. Ensure producer meets product delivery requirements
3. Ensure wholesalers/retailers have adequate inventory
4. Recommend, execute retail promotions
5. Provide proof of performance
6. Handle product quality issues in the field
7. Arrange discussions between producers, wholesalers, and retailers
8. Prepare sales volume reports for producer
9. Relay local market knowledge to producers

5% branded, 3% private label

Limited number of established lines

Won't pioneer new lines until guaranteed retailer will list them

• Residential real estate
• Commercial real estate
• Financial services
• Restaurant

1. Lowers overall ad costs
2. Enables greater ad frequency and presence
3. Can invest in addition ad vehicles
4. Can expand brand awareness in more geographic areas
5. Leverages retailer's local media knowledge/connections

1. Lowers overall advertising costs
2. Enables greater ad frequency
3. Can invest money in additional ad vehicles
4. Enhances image by linking retailer with a nationally known brand

A trade promotional tool, funded by the producer, that induces the retailer to display a given item typically when a price promotion is being run.

• Salespeople
• Trade shows, factories, dealers
• Company magazines
• Product specifications
• Catalogs, manuals
• Merchandise displays in showrooms
• Electronic links
• Email
• Internet Advertisements
• Social Networking

• Trade journals
• Trade association publications
• Personal contact with third parties at social and trade meetings
• Governmental publications and individuals
• Marketing research agencies
• Libraries of businesses
• Internet
• Private investigating agencies

A producer becomes irate because a distributor takes on another line that competes directly with the producer's.

Vertical: produce is upset with distributor

There are two distributors with adjoining territories. One distributor accuses another of "poaching its customers"

Horizontal

1. Competitive Line Conflict
2. Overlapping Territories Conflict
3. Complacency conflict
4. New Channel Opening Conflict
5. Gray Market Conflict

A distributor has reached a point where he has little interest in opening new accounts or developing new product lines. This runs counter to the producer's wishes to grow sales in the channel.

Vertical

A major producer, with over 3000 independent dealers distributing its products, pursues new distribution at a major home improvement chain.

Horizontal and Vertical.

Mostly vertical because independent dealers will complain to the producer.

Horizontal between independent dealers and home improvement chain are now competing.

Due to differential pricing between distributors, a producer's goods are over-ordered by one distributor and then resold throughout the channel at significantly lower prices.

Vertical and horizontal.

Gross margin.

Retailers typically show little net margin.

1. Convenient leave behind
2. Give sales reps opportunity to make calls
3. Standardizes sales copy
4. Hardcopy + PDF downloads

1. Product name
2. Logo, tagline
3. Contact info
4. Beauty shots
5. Package shots
6. Product features
7. Product benefits
8. Case configurations & sizing is helpful

Designed to roll out product

Buyer needs info

Seller needs to communicate info

When sales become regular, one week Pepsi the next Coke

Does not add any profit to the company

• Product mix
• Pricing
• Promotions
• New Product Development
• Merchandising/shelving
• Consumer behavior & usage patterns

1. Category definition
2. Category role
3. Category assignment
4. Category performance measures
5. Category strategies
6. Category tactics
7. Plan implementation
8. Category review

19% for supermarket retailers

11% for manufacturers

Analytical skills, research, data analysis, and problem solving

Good communication and presentation skills

Selected by the retailer.

Typically the leading performer.

1. Objectively grow overall category
2. Work with retailers to create planograms and shelf-sets
3. Build relationships with the retailer & suppliers to foster trust
4. Go-to manufacturer for industry questions & recommendations

National marketing programs

National advertising support

Training

Incentive programs

1. provides in depth product knowledge--> up-to date, accurate information about the product
2. handle warranty claims--> local source for product fixes under warranty
3. stock replacement parts--> you can quickly fix is yourself
4. Occassionally offer financing
5. Offer accessories--> customize items to personal needs
6. Build relationships with customers
7. Offer convenient additional services (i.e. delivery)

1. Knowledge of the local market
2. After-sale service functions can be handled outside the company
3. Dealers can be sold larger "lot sizes"
4. Dealers can join in coop advertising and merchandising programs
5. Promoting, communicating, motivating the channel with fewer contact points
6. Additional segments can be reached

1. Fight for channel acceptance
2. Ensure adequate supply on channel members' shelves
3. Some companies hire direct intermediaries until sales are established
4. Trade discounts may be heavily employed
5. Logistics outsourced as much as possible

expand channel outlets

match supply to demand (otherwise out of stocks)

• Sales grow so intermediaries are more willing to carry
• trade discounts may be heavily employed
• logistics grow; product mix additions strain some organizations

Blunt competitive entrants

Grow multiple channel distribution

• Sales slow
• Trade increasingly concerned with carrying inventories
• Extra emphasis on motivating channel members to mitigate competitive impact
• Investigate possible changes in channel structure to extend maturity stage & possible foster new growth stage
• Logistics optimized for high-volume operations

Increase push marketing tactics (allowances, discounts, advertising)

Alter channel mix (online, mass merchants)

Allowances

discounts

advertising

• Sales decline
• phase out marginal channel members
• remaining channel members order in smaller quantities
• order fulfillment, order processing or other logistics cut or outsourced

Shut down marginal outlets

minimize shelf space

shift majority of outlets to online

1. Asia, Latin America, Middle East due to growing population and rise in literacy levels
2. United States & Europe as gift items and fashion accessories

• Flagship store in Florence
• Exclusive, Specialty Distributor--> 1 bricks and mortar/country
• Online through specialty retailers and amazon
• No prices or orders from their website

• knowledge of the market
• market coverage
• enthusiasm for the product

• Size
• Attitude
• Management ability
• Management succession
• Sales performance
• Market coverage
• Reputation
• Product lines
• Sales strength
• Credit and financial condition

Manufacturer to final user who demands from channel members who demand from manufacturer.

Commonly use ads, coupons, samples to create desire.

1. Investigate supply chain cost decreases (ingredients and packaging)
2. Keep MSRP same, product downsize
3. Reduce advertising & promotions (trade discounts)
4. Trade-up with larger quantity SKUs 

1. Switzerland

2. Spain

3. UK