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Channels of Distribution and Motivating Channel Members

#1. How would you, a manufacturer of exercise equipment, benefit from the addition of another channel of distribution to the two-level channel it now uses?

#2. When motivating channel members, you have several sources of power from which to draw. List those sources and give an example of how each can be used.

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1. I would benefit from the addition of another channel because it would help me sell more equipment, allow me to charge different prices in different channels, introduce new products and help re-position my product. For instance, if the new channel were an internet site, I could charge lower prices on the site, introduce a new jogger I wanted to and help position a new brand which I have launched but is languishing.

In addition the additional channel would help me in:

- Distinctive competencies-knowledge of how to manufacture, design, or market certain products or services effectively; The feedback from a channel.
- Financial-possession of cash or the ability to raise it; Reducing the debtors cycle.
- Ability and willingness to take risk;
- The image of the firm's brand;
- People who can develop new products, services, or other offerings and run the needed supports;
- Running facilities ...

Solution Summary

The benefits of adding another distribution channel in selling equipment is discussed, including the offering of different prices and products. Different methods of motivating channel members, including coercion, reward, and power are also discussed. Approximately 613 words with 3 references.