Many of the theoretical arguments about channels therefore revolve around cost.

On
theother hand, most of the practical decisions are concerned with control of the consumer. Thesmall
company has no alternative but to use intermediaries, often several layers of them, butlarge companies
'do' have the choice.H o w e v e r , m a n y s u p p l i e r s s e e m t o a s s u m e t h a t o n c e t h e i r
product has been sold into
thec h a n n e l , i n t o t h e b e g i n n i n g o f t h e d i s t r i b u t i o n c h a i n , t h e i r j o b i s
f i n i s h e d . Y e t t h a t distribution chain is merely assuming a part of the supplier's
responsibility; and, if he hasany aspirations to be market-oriented, his job should really be
extended to managing, albeitvery indirectly, all the processes involved in that chain, until
the product or service arriveswith the end-user. This may involve a number of decisions on the
part of the supplier:Channel membershipChannel motivationMonitoring and managing channels
Channel membership
Intensive distribution - Where the majority of resellers stock the 'product' (with convenience products,
for example, and particularly the brand leaders in consumer goods markets) pricecompetition may be
evident.Selective distribution - This is the normal pattern (in both consumer and industrial
markets)where 'suitable' resellers stock the product.Exclusive distribution - Only specially selected
resellers or authorized dealers (typicallyonly one per geographical area) are allowed to sell the
'product'. Often this form of distribution stipulates the contracted resellers cannot offer competing
products.
Channel motivation
It is difficult enough to motivate direct employees to provide the necessary sales and
services u p p o r t .
Motivating the owners and e mplo ye es of the independent organizations in ad
istribution chain requires even greater effort. There are many devices for achieving
suchm o t i v a t i o n . P e r h a p s t h e m o s t u s u a l i s ` i n c e n t i v e ' : t h e s u p p l i e r o f f e r s a
better margin, tot e m p t t h e o w n e r s i n t h e c h a n n e l t o p u s h t h e p r o d u c t
r a t h e r t h a n i t s c o m p e t i t o r s ; o r a competition is offered to the distributors'
sales personnel, so that they are tempted to push the product. At the other end of the spectrum
is the almost symbiotic relationship that the alltoo rare supplier in the computer field develops with its
agents; where the agent's personnel,support as well as sales, are trained to almost the same standard as
the supplier's own staff.