In this strategy, the focus is on the end customer, and intermediaries play a secondary role. The end consumer is the main goal. The company strives to make the image of the brand and the product as attractive as possible, real users become brand ambassadors and demand that intermediaries start selling its products.
That is, dealers are forced to cooperate through buyers, who are used as a pump to pump up demand. When customer demand reaches a certain level, resellers and retailers are drawn into the distribution channel.
Typically, companies use both strategies or combine them into a system.
Distribution Channel Management
Responsibilities for managing sales employment database channels and stimulating sales usually fall on the shoulders of commercial directors and specialized deputy managers. To successfully perform this activity, you need to have all the information about sales in the company.
Managing distribution channels (whether two-level, single-level or more complex) consists of several functions.
Planning the work of the entire channel and the interaction of its links
The supplier can do this independently or involve dealers in the process. Usually the second option takes place, especially if the enterprise does not have the opportunity to freely choose contractors and has to actively interest salespeople. In any case, planning should correspond to the adopted strategy.
Distribution Channel Management
Incentives for intermediaries
It is possible to motivate counterparties in the distribution line of goods using incentive methods (bonuses, discounts), or using partnership methods (focus on mutually beneficial fruitful cooperation over many years).
If the vendor treats the chain participants as partners, then all the work of the channel is planned jointly, the terms of cooperation are special for them, they are provided with advertising support, even assistance in training sales personnel is possible, etc.
If we are talking about medium-sized businesses, then such companies benefit most from training events and dealer conventions, as well as developing their own rules for displaying goods for merchandisers.
Incentives for intermediaries