ABSTRACT

Finding and managing distributors and dealers around the world can be a time consuming task for a B2B marketing manager. On the other hand, the distribution network is a key strategic resource that provides a strong competitive advantage. This chapter describes the process of discovering and managing channel partners in a global setting. Strategic advantage can be derived from the way distributors serve customers. Setting up the right channels for getting the product from its source to the customer involves a combination of direct selling and the use of various intermediaries and facilitators. Most firms use multiple distribution channels to reach customers in order to deliver the required satisfaction to any particular customer segment. In selecting a distributor, the first step is to use the partner profile. Channel management can be carried out by cooperation and negotiation or it can be carried out by the most powerful member laying down rules that weaker members have to follow.