By Michael Armstrong
Designed for simple reference, this spouse for managers and scholars includes a variety of attempted and validated instruments along new administration strategies which have been constructed within the contemporary earlier. summary: Designed for simple reference, this better half for managers and scholars incorporates a variety of attempted and established instruments along new administration strategies which have been constructed within the contemporary earlier
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Extra resources for A handbook of management techniques : a comprehensive guide to achieving managerial excellence and improved decision making
It covers the channels through which goods are sold – wholesalers, retailers, agents and so forth – as well as physical distribution (logistics). DISTRIBUTION STRATEGY The amount of market exposure required by companies formulates channel policy and the choice of channel strategy will depend on: ᔢ ᔢ ᔢ ᔢ the nature of the product or service; the technical complexity of the product; its servicing arrangements; the image the company wishes to portray to consumers. Three distribution strategies can be identified: ᔢ Intensive distribution is used by fast-moving consumer goods (FMCG) manufacturers and convenience goods manufacturers, some raw materials producers and sometimes ‘white’ (for example, refrigerators) and ‘brown’ (for example, furniture) goods manufacturers, whose aim is to stock their products in the maximum number of outlets.
2. Look at the duties that channel members must perform to ensure adequate delivery to end customers. 3. Use economic or other measures to motivate channel members to carry out their duties. 4. Look for mechanisms for dealing with conflicts that might arise between channel members. The choice includes obvious channels such as retail outlets and wholesalers, but it may also include such approaches as business format franchising and mail order, as summarized below. The internet is being increasingly used.
Although the assumption behind market-based pricing techniques is that prices are a major factor in achieving competitiveness, this can also be attained through non-price competition. Market share can be improved through customer care, the delivery of value for money, quality and high levels of service (response, delivery and after-sales service). The main market-based pricing techniques are described below. Penetration pricing Penetration pricing involves setting prices at a sufficiently low level to make them attractive to the mass market.