Channel Challenges - Channel Microsystems
Keller Graduate School of Management Devry University

Channels of Distribution

What are the pros and cons of choosing this distributor? When selecting a channel partner, SPEAR, an acronym that describes important selection criteria, is often used to target the best candidate during a selection process. Aridi Graphics should evaluate each of the components of SPEAR in selecting a Western Europe distributor. The first element of SPEAR outlines the importance of selecting an intermediary who is knowledgeable of the Sales environment. In this case, the candidate identified at the MacWorld exposition is an ideal intermediary from a geographic perspective. This candidate has knowledge of the Western Europe geography as well as cultural factors that may impact software sales in the region. This knowledge may benefit Aridi through rapid market penetration and reduced start up cost. The next component of SPEAR, Product factors describes the level of knowledge that the intermediary may have with regards to the product and its sales requirements. The information provided in the channel challenge informs us that Aridi met this individual during the MacWorld exposition which indicates common industry interest. It’s important that during the interview process questions are posed to address and confirm the prospects level of product knowledge about the software solution, its competitors and advantages/disadvantages. This area may be viewed as a plus as well as a minus for the prospect as there may possibly be other candidates with a deeper understanding or connection to the product. However, if the prospect has strong industry connections, additional product training may be beneficial in overcoming this obstacle. Experience factors play an important role in SPEAR. In this case, as stated above we can reasonable assume that the MacWorld exposition provides at least a minimal connection within the software industry. Aridi must ensure that the prospect has experience perhaps through competitive software solutions or contacts directly within the reseller industry. Administrative factors are also a crucial aspect of SPEAR. This is an area that could potentially pose a negative impact for Aidi Graphics in relation to regional challenges. Aridi must investigate the prospects bandwidth to ensure availability of manpower as well as its ability to identify and manage challenges or issues such as inventory, cost or customer service. Risk factors represent the final component of SPEAR. According to the Channel Challenge excerpt, the prospect met for the first time at the exposition. While this is obviously an ideal place to meet individuals who have common interest it does not guarantee high business ethics, integrity, commitment, logistical requirements and dedication to customer satisfaction. These factors greatly impact the brand from a global perspective. As the saying goes, “one rotten apple spoils the entire bunch.” Therefore its critical to thoroughly investigate all risk factors in attempt to avoid factors that may negatively impact Aridi Graphics both short term and long term.

How effective are trade shows insofar as being a good venue at which to select a distributor? Trade shows provide an avenue allowing individuals with common industry goals, products and services, and customers to gather for increased visibility, engage in the sharing of best practices, and to enhance the knowledge of common industry challenges and trends. I believe trade shows offer an optimum opportunity to evaluate distributors. During a trade show distributors have the opportunity for increased visibility, face to face meetings with attendees either one on one or during group sessions and generation of leads. Additionally, in my opinion distributor selection through trade show recruiting may also increase credibility, as attendees are typically the top players within an industry. The cost involved with attendance at an exposition includes registration, booth set up and quality presentation material/product visibility. Credibility established during a trade show offers significant differentiators and therefore may be one of the best starting points for narrowing down candidate list in the channel member selection process.

References:

Pelton, Strutton, Lumpkin (2007). Marketing Channels: A Relationship Management Approach. Primis McGraw-Hill

Skyline.Com. 20 more reasons to go to trade shows; www.skyline.com/Trade-

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