Consists of three steps : Finding prospective channel members Applying the selection criteria to determine the suitability of prospective channel members Securing the prospective channel members
Contd.
13. Does he maintain stable prices? 14.Does he disclose the annual sales figure for the past five years? 15.What territory does the distributor actually cover with his sales force? 16. Are the distributors sales people trained? 17. How many field personnel does he have? 18. How many internal employees he has? 19. Does the distributor believe in active co operation, sales training & sales promotion? 20. What facilities does he have for these activities? Hlavacek & Mc Cuistion augmented this by emphasizing that the coverage should be not only be in geographical terms but also in market segment terms. Also according to them financial capacity should not be over emphasized as at times less financed but more hungry ones also prove better.
Pegrams criteria
Sales strength
Product lines
Reputation
Market coverage