AST1 Task 2.docx AST1 Task 2 Importance of Choosing Appropriate Channel Members Selec

AST1 Task 2.docx    AST1 Task 2  Importance of Choosing Appropriate Channel Members  Selecting distribution channels and channel members is an important aspect when it comes to building a competitive advantage. The right distribution channels help to ensure that consumers around the country, as well as around the world, have access to the product as well as the service to go along with it. These decisions will allow the company to expand their reach, customer base, and control who sells their product.   Evaluating Intermediaries  1.Financial Strength   2.Number of years in business   3.Other lines carried  4.Growth and Profit record   5.Service Reputation  6.Cooperativeness   Criteria for Evaluating Intermediaries  First Criteria €“ Financial Strength  It is crucial to find out whether each intermediary has the financial resources available to floor plan inventory, market and promote the inventory, and service the product effectively.  It is also important to research how well they pay their current suppliers.  This will give a good indication as to how they will pay.     Second Criteria €“ Number of Years in Business  The number of years in business is a great indicator of how responsible the intermediary has conducted their business.  Potential channel partners that have been in business for a number of years have typically taken care of their suppliers.  If a business has a history of channel partner success, there is a high probability that they will be successful.    Third Criteria €“ Oth