Chapter 7: Selecting the Channel Members

Question 1

What are the 3 steps for selecting channel members?

Answer 1

1. Finding prospective channel members
2. Applying selection criteria to determine the suitability of prospective channel members
3. Securing the prospective channel members as actual channel members

Question 2

What are the 7 sources used in finding prospective channel members?

Answer 2

1. Field sales organization
2. Trade sources
3. Reseller inquiries
4. Customers
5. Advertising
6. Trade shows
7. Other sources

Question 3

Having developed a list of prospective channel members, the next step is to appraise these prospects in light of selection criteria. If a firm has not developed a set of criteria for selecting channel members, it should develop one?

Answer 3

• True

Question 4

Who Developed a list of 20 key questions for industrial firms to ask their prospective channel members?

Answer 4

• Brendel

Question 5

Selection Criteria provided by Shipley, 12 criteria grouped into 3 basic categories?

Answer 5

(1) sales and market factors
(2) product and service factors
(3) risk and uncertainty factors

Question 6

They argue that for technical products sold in the industrial market, manufacturers should select distributors who carry a small rather than large array of products?

Answer 6

• Hlavacek and McCuistion

Question 7

It is important to remember that the selection process is a two-way street. It is not only the producer or manufacturer who does the selecting, but also the intermediaries at both the wholesale and retail levels?

Answer 7

• True

Question 8

Pegram used a larger number and broader range of firms (more than 200 U.S. and Canadian manufacturers)?

Answer 8

• True

Question 9

What are the 4 possible incentives manufacturers can offer to their prospective channel members?

Answer 9

(1) good, profitable product line
(2) advertising and promotional support
(3) management assistance
(4) fair dealing policies and friendly relationships.