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

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

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