Business Studies – 3.3.3 Place | e-Consult
3.3.3 Place (1 questions)
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Recommended Distribution Channel: A combination of a direct sales force and a network of specialist distributors.
Justification:
- Direct Sales Force: A direct sales team is essential for selling to large, complex industrial customers. They can provide technical support, custom solutions, and build strong relationships. This is particularly important for high-value, specialized products.
- Specialist Distributors: Distributors with expertise in the industrial sector can provide local market knowledge, warehousing, and delivery services. They can reach a wider customer base than the direct sales force alone. Specialist distributors can also handle the specialist handling requirements of the components.
- Combined Approach: The direct sales force can focus on key accounts and strategic customers, while the distributors handle smaller orders and geographically dispersed customers. This provides a balance between control and reach.
- Logistical Expertise: Distributors often have established logistics networks and can handle the complex transportation requirements of industrial components.
- Market Knowledge: Distributors possess valuable local market knowledge and can provide insights into customer needs and competitor activity.
Alternative Channels Considered & Why Rejected:
- Retail Channels: Unsuitable for industrial components, which are typically sold to businesses, not consumers.
- Online Marketplaces: While potentially useful for some components, it's not suitable for high-value, specialized products that require technical support and custom solutions.