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Author: | Magrath, A. J. Hardy, K. G. |
Title: | Six steps to distribution network design |
Journal: | Business Horizons
1991 : JAN-FEB, VOL. 34:1, p. 48-52 |
Index terms: | DISTRIBUTION CHANNELS NETWORKS MARKET POTENTIAL PRODUCT PREFERENCE CONSUMER CHOICE BUYING MARKET SEGMENTATION |
Language: | eng |
Abstract: | There are six steps every manufacturer should take when reviewing an existing distribution network or building a new one. One of the most complex assessments manufacturers must undertake is deciding how much distribution for their products is sufficient. In answering this question, the manufacturer should always begin with assessments of market potential by region, and follow it with a detailed analysis of customer buying preferences. From such studies the firm can gauge how many resellers are needed in each location by type of reseller channel to exploit specifically targeted segments. After defining a good distributor network setup, the manufacturer should look at how manageable such a network will be. |
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