The exposure level of the product isessential to the overall strategy and we shall be following the dual channel distribution that is to sell through two channels. Channel 1 has middlemen who have sales people that are trained to help customers select the right product whereas, Channel 2 has middlemen that offer lower prices and the price sensitive consumers prefer them.
Premeter 3 in the first period has 15 salespeople in both channels and the exposure level has been rated 5 from 1-10. The exposure level 5 means we shall be using an equal percentage of exclusive and intensive distribution. In some areas we can have exclusive distribution that is having just one dealer to sell the product, whereas in other areas we can have selective distribution to have dealers that will give special attention to our product and in other areas we shall have intensive distribution that is through all responsible and suitable dealers. Both channels are going to have an exposure level of 5 since utlising all ways of distribution will help us form an effective distribution strategy for our product. The percent non-selling time for both channels is 20% as a result. The sales commission for our salespeople is 7% on each unit sold. This analysis is for period 1 since this was our strategy as planned but there were changes that shall be discussedfurther on.
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