ABSTRACT
The distribution variable in the marketing mix, when badly designed, does not allow the firm to succeed in its objectives related to consumer satisfaction and retention. Out of necessity, firms use distributors. However, it is always important to remember that a distributor is a different firm, which most commonly has different vision, values, and
skills. Thus, to enable cooperation between two interdependent firms (supplier and distributor) you need the creation of the right set of incentives. This chapter explores ways to create cooperation and how a supplier must work towards it.
