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Distribution Objectives and Related Marketing Strategies

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  1. Account Development Distributor Support Increase availability relative to competitors Gain access to new segments Increase ability to buy Increase inventory Increase consumption rate Reduce competitive opportunities Increase promotional support Distribution Objectives and Related Marketing Strategies Kelley Fall 2001 Marketing Management

  2. Account maintenance Account penetration Assure user satisfaction Reduce competitive opportunities Simplification Increase consumption rate and purchase volume Head-to-head competition Complementary product sales Distribution Objectives and Related Marketing Strategies Kelley Fall 2001 Marketing Management

  3. Reward Coercive Expert Ability to offer product with low prices, quantity discounts Ability to withdraw product Ability to offer superior or needed technical assistance Power Bases in Distribution Kelley Fall 2001 Marketing Management

  4. Referent Legitimate Ability to offer prestige brand name Contractual provision that requires distributor to carry full line Power Bases in Distribution Kelley Fall 2001 Marketing Management

  5. Results-Oriented Measures of Evaluating Distributors • Sales volume • Sales volume as a percentage of quota • Sales profitability • Number of new accounts • Number of stockouts • Percentage volume increase in key accounts • Number of customer complaints • Number of lost accounts Kelley Fall 2001 Marketing Management

  6. Effort-Oriented Measures of Evaluating Distributors • Number of sales calls made • Number of checks on reseller stocks • Number of inquires followed up • Number of demonstrations completed Kelley Fall 2001 Marketing Management