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Distribution Channels Understanding and Managing Channels to Market

ISBN-10: 0749462698
ISBN-13: 9780749462697
Edition: 2nd 2011 (Revised)
Authors: Julian Dent
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Book details

Edition: 2nd
Copyright year: 2011
Publisher: Kogan Page, Limited
Publication date: 6/3/2011
Binding: Paperback
Pages: 416
Size: 6.25" wide x 9.25" long x 1.00" tall
Weight: 1.584
Language: English

Julian Dent is Chairman of VIA International, a specialist routes to market consultancy. He has over 25 years experience in distribution throughout the world, specializing in channel strategy and implementation, working at global corporate and regional levels. His clients have included Hewlett-Packard, Barclays Bank, BP, Esso, IBM, Microsoft, Nokia, Orange, Subway and Xerox.

Preface
Preface to second edition
Acknowledgements
Introduction
How to get the best out of this book
Who this book is for
What do we mean by business model?
How the book is set out
The business of getting products and services to market
Distribution matters
Challenging business dynamics
Business models are key to value propositions
A structured approach to positioning your value proposition
Be careful with comparisons
Distributors and wholesalers
The role of the distributor
Distributors/wholesalers
Customer role - core functions
Supplier role
Supplier role - core functions
How the distributor business model works
Role defines business model
Profit is a very small number between two very big numbers
Managing working capital is a balancing act
The measures that matter and how to manage with them
Margins and profitability
Multiple margins
Gross margin and value add
Margin mix or blended margin
Contribution margin
Net margin and operating margin
Working capital
Working capital management
Supplier credit
Inventory
Customer credit
Working capital cycle
Productivity
Earn and turn
Contribution margin return on inventory investment
Returns on working capital
Sustainability
Sustainability - longer term business health
Return on net assets and return on capital employed
Return on invested capital
Value creation
Managing value creation on an operational basis
Managing growth
Growth dynamics
Internally financed growth rate formula
Economies of scale - profitability
Economies of scale - working capital management
Risks of growth - diseconomies of scale
How to sell to distributors
What we mean by selling to distributors
The sales process
Managing the account relationship
Some rules of thumb for making compelling business cases
Summary
Final-tier trade channel players
The roles of the final-tier trade channel players
The final-tier trade channel players
The possible roles of final-tier trade channel players
Matching channel roles to channel players
Different roles command different compensation models
Customer advocates and sell-with players
Sell-with players and strategic alliances
Applying this framework to your industry sector or channel
How the business model of the final-tier trade channel players works
Role defines business model
Services come from people, either directly or indirectly (eg web-delivered)
Managing a service business
The web-based service business model
Overview of service business model measures
Sales and utilization
Sales
Utilization
Gross margin and recoverability
Gtross margin
Recoverability
Measures for the web-based service models
Working capital management
The cash-to-cash cycle
Improving working capital
Value creation and growth
Value creation and improving the numbers
Managing growth - the integrated product and service business model
How to sell to final-tier trade channel players
What we mean by selling to final-tier trade channel players
Segmenting the final-tier trade channel
What the final tier looks for in a vendor
What the final tier looks for in a distributor
Managing the account relationship
Some rules of thumb for making compelling business cases
Selling 'with' the final tier in an advocacy role
Conclusion
Retailers
The role of retailers
Retailers and retailing
Online retailing and catalogue
How the retail business model works
Role defines business model
Earn and turn
Layout and planograming
Ranging and merchandising
The measures that matter and how to manage with them
Sales (or takings or revenues)
Margins
Direct product cost (DPC) and direct product profitability (DPP)
Turns and productivity
How to sell to retailers
What we mean by selling to retailers
The sales process
Retailer challenges and their implications for suppliers
Managing retail relationships at a strategic level
Managing retail relationships at a tactical level
Selling in to the retailer's buying cycle and open-to-buy
Should you deal with retailers direct or through a wholesaler?
Summary
Franchising as a route to market
Why franchise?
What is a franchise?
What's different about franchised businesses?
Where does franchising make sense?
How the franchised business model works
The typical franchise system players and their roles
Growth and store development
Territory and operational management
The measures that matter and how to manage with them
Franchise outlet level measures
Franchise system-level measures
How to sell to franchised systems
Who's the buyer - franchisor or franchisee?
Managing franchise systems relationships at a strategic level
Managing franchise systems relationships at a tactical level
Key ratios
Glossary of technical terms
Index

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