Essay - B2b Marketing Questions What Model Would You Use to Describe...


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B2B Marketing Questions

***** model would you use to describe this type of distribution channel? Why does it work for this industry?

There are two dynamics occurring in the Canadian bicycle, parts and accessories distribution channels when Cycles Lambert and Norco are considered from the perspective of exclusive reseller agreements w*****h manufacturers. In the case of the twenty seven ***** who have assigned ***** Lambert as their ***** distributor ***** Canada, the coverage of this specific distributor with bicycle shops ***** chain stores must be considered ***** ***** broadest in the Canadian market. The ability of Cycles Lambert to also serve the majority of bicycle dealers, multi-store chains and potentially even department stores through the ***** ***** insightful services programs is another major reason why these ***** seven manufacturers have enough confidence in Lambert to give them exclusivity ***** their products throughout all of Canada. Looking *****ally at those programs that attract manufacturers to opt for ***** for a large geographic region include the following: first, there needs to be aggressive use of credit terms ***** both the manufacturers and retailers; second, there is the need for price protection and inventory stock balancing that on the one hand protect the retailers' inventory from being written down when new products are introduced while at the same time allowing manufacturers to provide advance enough warning of new products so ***** ***** is not caught with a high level ***** obsolete *****; third, *****re ***** be *****n excellent order management and fulfillment system in Lambert's w*****house ***** a tight consolidation with the major dealers and chain stores. The evidence of this being the case is that sheer number of exclusive relationships and ***** continued growth of Lambert in a competitive m*****rket.

Exclusivity in indirect channel structures only happens when the d*****tributor has significant value to deliver, both in terms of service and the longevity of relationships ***** dealers, ***** and resellers. While non-exclusivity is very common, in fact more common in many ********** *****direct channel strategies, the non-exclusivity in the bike ***** and parts industry is more attributable to the highly fragmented nature of the products available, and less about ***** inherent structure of the ***** itself as defined by buying patterns of cus*****mers. The fragmentation of the product strategies and the sheer number ***** parts ***** accessories producers, all aligned with a ***** niche-oriented market in cycl*****g, is what fosters the ***** of non-exclusive d*****tribution arrangements. For Norco and their reselling of 101 brands (***** site does not delineate exclusivity or *****) the breadth ***** lines they are carrying is ***** of an indication ***** the company's focus on building a broader and more globally diverse supply chain. While exclusivity requires a much higher ***** of commitment from ***** d*****tributor to make sure the manufacturer sees continued value, in non-exclusive distribution arrangements both manufacturer and distributor are evaluating each o*****rs' ability to deliver on the commitments that made the agreement happen in the ***** place. Exclusivity implies a distributor has a very

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