To evaluate channel alternatives using the 3 criteria, first the company should identify the main channel alternatives in terms of types of intermediaries, number of marketing intermediaries and finally responsibility for each member of the channel. We say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay. First of all, the types of intermediaries. A company should identify the types of channel members available to perform its channel work. There are 5 types of channel intermediaries; wholesalers, distributors, agents, retailers and internet intermediaries. Wholesalers break down the “bulk” into smaller packages for resale by a retailer. They purchase goods from manufacturers and resell them to retailers and take ownership or title, while agents do not. Wholesalers also often reduce the costs of physical contact between producer and consumer. For example; cost of customer service and cost of sales force. An example; wholesalers buy rice in bulk from rice plantations, then break it into smaller quantities to sell to distributors. Distributors are like wholesalers who carry non-competing goods or lines. They also split the products into large quantities, but beyond that they offer a value-added service to the product, such as bulk delivery, such as credit duration and contract maintenance. For example; Distributors can then divide the bags of rice into smaller bags and then sell them to retailers such as Giant, NTUC and Sheng Siong. After that, the agents are mainly used in the international market. They secure an order and accept a commission, however, unlike wholesalers, they do not take ownership of the goods. Furthermore, training agents can be very expensive as it is difficult to keep them under control due to the physical distances involved, so they are laborious to motivate. For example, a rice plantation in Japan might look for its local agents who have international contacts to try to find wholesalers or distributors in other countries. Furthermore, retailers are people who have a stronger personal relationship with the consumer. Retailers will carry several other brands. A customer will expect to be exposed to many products. Retailers have the right to independently promote and advertise the products and services and also to provide consumers with the final selling price of the product. For example; Retailers often have a strong “brand” themselves. For example Wall-Mart in USA, NTUC in Singapore. Finally, a new entity that is not usually found in traditional channels: Internet intermediaries. Since the Internet has a geographic market, the main advantage of the Internet is that niche products reach a wider audience. The Internet can be used as a direct distribution channel (using your own website) or indirect, such as the niche website Amazone.com, etc. Therefore, using Internet intermediaries, people can use e-commerce technology for payment, etc. Next, to determine the number of channel members to use at each level. There are 3 strategies available: intensive distribution, exclusive distribution and selective distribution. Intensive distribution is a strategy where they stock their products in many outlets. Therefore, according to the example I gave above. Rice farmers can sell their products at many outlets such as NTUC outlets in Woods, Jurong, Bishan etc. Conversely, these manufacturers may purposely limit the number of intermediaries handling their products. This is called.
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