Evaluation distribution channels
Managing distribution channels - a complex maintenance and corrective measures that enhance the efficiency of the channel. These measures are based primarily on the assessment of the effectiveness of distribution channel.
The main feature of this process is the need to evaluate independent of market activity. Therefore, determining the types and frequency of assessment of the distribution channel, you must first of all proceed from the general possibility of controlling their producers. So if producers and intermediary relationships based on relevant contracts, these contracts can stipulate the provision of intermediary thorough information about the activity of the channel, the exercise of almost all marketing operations, which, however, also depend on the strength of commodity positions in the market. However, even "strong" producers are not always able to set the desired control channel of distribution for many of the intermediaries do not see in this any benefit for himself, and therefore do not want to spend time and money to provide relevant information goods manufacturer.
In addition, to determine the type and frequency of assessment of the distribution channel of the following factors:
- The relative importance of a particular channel, for example, for producers who sell all their produce through intermediaries, the assessment of all participants in the distribution channel should be as complete and versatile;
- The nature of the product: the harder and more expensive product, it should be more detailed assessment of the distribution of the channel, since the loss of each order is quite significant for producers;
- The number of participants in the channel, it is less than, for example, selective, and furthermore, the exclusive distribution, the measure
There are two types of evaluation of the distribution channel - the valuation and audit.
Valuation - is, in fact, the usual daily monitoring of a channel, which is based only on the performance achieved sales (reports on the sale of goods).
Audit - a procedure for comprehensive evaluation of a channel. Typically, this procedure is carried out once a year for each participant distribution channel.
The process of auditing activities of the distribution channel consists of three phases. The first one - design criteria for performance evaluation of the channel. Over the course criteria are as follows:
1. The marketing activities of the distribution channel. It primarily subject to analysis as a commodity product sales channel participants, and marketing of products producers channel participants consumers.
Estimation of marketing activity conducted in three areas:
- Comparing current sales with the previous (as a whole and for the group of products);
- Comparing sales reached different distribution channel participants;
- Comparing actual sales of established
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2. The level of assets of the distribution channel (state material support processes storage). The main issues checks are:
- The general condition of the equipment;
- The state of equipment for specific groups, t. H. As compared with competing organizations;
- The overall level of equipment in cost and natural expression, matching its planned;
- The current system of accounting and control and status of assets.
3. The marketing potential: the number of employed workers, their qualifications, competence, personal ratings.
4. Business relationships a channel: the level of positive attitude intermediaries to producers, their loyalty to him.
5. Competition between intermediaries and between different groups of goods with them is a mediator. This makes it possible to determine the prospects of a channel in the highly competitive markets, provide them with appropriate assistance.
6. Prospects for growth of distribution channels: compliance with actual sales figures and planned overall level of commercial activity in the region; positive dynamics of indicators; the prospects for market expansion.
The second phase of the audit of the distribution channel - determining appropriate valuation parameters. There are three approaches to the evaluation activities of the distribution channel:
A. Assessment of cut (tab. AOR). To do this, take one or more controlled criteria either formally or informally together not for general evaluation activities. This approach is usually used when the total number of agents is very high, and the number of controlled criteria does not exceed three. The approach is quite simple, but first needs more information, and, secondly, makes it impossible to make general conclusions about the activities of agent, expressed a certain measure. This is particularly noticeable for the significant differences of values of controlled criteria.
B. Evaluation activities based on informal association controlled criteria. This approach is more effective against the previous one. According to him the different evaluation parameters are combined using managerial judgment that allows the overall qualitative assessment of the subject channel.
The approach is simple and flexible, because they do not require formal procedures for combining individual evaluation indicators. However, there may arise some problems and, in particular, the ranking of a test or ensure comparability of results of individual intermediaries.
B. Evaluation activities on the basis of a formal union-controlled criteria. This approach includes the following steps:
- Definition of evaluation criteria and performance indicators;
- Determination of the proportion of each criterion;
- Assessment of rating each criterion;
- Multiplying the share of each criterion on its rating;
- Determination of the total assessment of the subject channel.
These actions are carried out for each user channel.
In this example (tab. 31) total score of the subject channel (index of intermediary) is 5.95.
The third phase of the audit activities of the distribution channel - making recommendations to improve the work of intermediaries who do not meet the desired standards. Refusal to cooperate with them can be used only as an emergency measure.
It is important to find out reasons detailed above unsatisfactory performance of a mediator. It is necessary to study its problems and needs, develop specific programs corrective action.
Accuracy evaluation activities of distribution channels is largely dependent on the availability of appropriate service standards, ie sales, the share of goods in total sales in a particular market, the ratio of the volume of stocks and turnover, number of customers, performance efficiency of promotional activities and more.
Examples of service standards given in Table. 32.