Sales channels

The sales strategy needs to decide what product to be sold in which sales market representing the sales location in the value chain network. New markets needs to be evaluated for their attractiveness and the own competitive position with respect to existing products or the capabilities in the development of new products for the respective demand. Sales business rules include decisions on the strategic share of contracted business volumes vs. flexible spot business volumes. These business rules often depend on sales channels and frame contracts with customers. The sales strategy can be matched with classical marketing mix decisions on products, prices, promotion and communication, as well as sales channel decisions. 

Thus, it is highly desirable that key buyers and sales channels have already been locked up by the time of product launch. Inevitably, customers, process engineers, financial officers, and other stakeholders request various design changes. Proper change control is essential to avoid unacceptable delays and cost overruns. 

Sales Channels. Prescription drugs can only be purchased by the public at a pharmacy with a physician s prescription. OTC drugs are available at convenience stores. Most OTC drugs are generics. 

Gregory Nelson is group vice-president and president, service, equipment, and alternate sales channels at Nalco. Previously he worked at Sun Chemical, Union Carbide, and Dow Chemical in senior procurement and supply chain positions, and for 20 years at Exxon in a range of roles. Gregory Nelson holds a BS in mechanical engineering from Cornell University. 

Sales and marketing 163-172. see also Customer-centric marketing cross-selling opportunities 191 customer portfolio strategies 164—167 customer relationships 167-169 e-commerce 79-92 micro-market management 170-172 sales generation process 169-170 Sales channels 79, 127, 164 Sales force 82, 90, 169-170 SciQuest 79-80... 

Figure 2.12 Distribution of sales channels for organic food in various European countries in 2000 (Hamm et ai. 2002)...

Also in a small number of cases, prices show a remarkable variability within the same kind of breeding, in relation to the different sale channels utilized. 

Pricing How much should your product cost What is the appropriate price point Sales channels Should you sell direct or via distributors How your products/ services reach the market is based upon your business model and the nature of your product. 

The service value netwoik in an e-pharmacy setting is hereby defined as acollaborative network of supply chain partners (such as pharmacists, drug companies, distributors, beauty care suppliers, health and natural product suppliers, medical practitioners) sales channels (Web site e-sales, direct over-the-counter sales, and referrals) and operational and network administration personnel, working with and serving the needs of its customers and its online e-customers. 

Despite these changes in industry supply chains. Acme maintained a one-size-fits-all supply chain approach based on its historic direct-sales channel from Acme to the aircraft manufacturer. There were no accommodations for emerging industry segments such as developing an activity system for a sphere designed to distributors requirements. Lack of innovative products and ignoring new supply chains caused most of Acme s... 

Dell Computer Corporation (now Dell, Inc.) pioneered direct sales channels for personal computers. Dell s methods, labeled its secret sauce, are copied widely in other industries. At the time of writing, Dell had become the world s largest personal computer manufacturer and the most profitable. 

Sales channel Martin Pultrusion Group Twinsburg, Ohio, USA... 

Finally, we note that other topics may be particularly pertinent to firms operating on the Internet as a sales channel. For example, this channel may compete with a given firm s traditional retail channel, so considering these simultaneously for pricing and production strategies may be important. 

The Dell Computer Corporation is famous of its direct business model (see Dell and Fredman, 1999) that assembles customized computer systems based on customer orders, and ships directly from the factory to the customers. Based on Kraemer, et. al. (2000), Dell basically segments its customers into Transaction, Relationship, and Public/Intemational customer segments, in which more refined sales channels, including Home Home Office, Small Business, Medium Large Business, State Local Government, Federal Government, Education, Healthcare, are offered at Dell. By doing so, Dell is able to satisfy special needs in each customer channel. 

Profitability and Priority - In general, a manufacturer prefers higher profit orders in terms of quantity, unit price, or both. However, in the short term other priority considerations may sometimes supersede purely profit-based criteria, particularly under B2B and partnership-based relationships. A well-designed customer response space, e.g. employing differentiated sales channels, can be used to effectively balance the tradeoffs between profitability and priority criteria. 

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