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.
A two- level distribution channel contains two intermediaries. This can be the manufacturer and the retailer. If the manufacturer of exercise equipments adds another channel of distribution like a wholesaler it would have to focus less on the distribution of its products and can be able to concentrate more on the production operations. Thus it can be able to save from time. In this way the manufacturer can also be able to decrease its inventory costs and save
The agreement between manufacturer and a specific member of a distribution channel marks the beginning of a relationship that will be mutually beneficial if it operates successfully. Once agreement is reached, a successful, profitable working relationship becomes the objective, in other words, channel members must be encouraged or motivated and their performance continually monitored. The properly motivated channel member will operate more effectively in ways important to the achievement of marketing goals: better sales; more effective service to the customer; greater receptivity to new product development; ...
The 607 word solution explains the two-level distribution channel including motivators to influence channel members.