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Selection Criteria for Channel Members

Table of Contents

Importance of using appropriate channel members1

List of evaluation criteria2

Discussion on each criterion3

Years in Business3

Lines carried3

Profit record3

Store's Customer4


Growth potential4






Selection Criteria for Channel Members

Importance of using appropriate channel members

Using right channel members ensures a well managed distribution for your product/service and you are able to reach your target market in a cost effective way. Joining hands with competitive outbound distribution channel members means that you will be able to make use of your channel member's expertise in planning, implementing and controlling the physical flow of the Car CD player. The channel member's knowledge of effective ways of distributing the product from point of manufacturing to point of consumption will prove very beneficial for the car CD manufacturer. Effective channel management leads to a reduction in cost and potential increase in profits (Frazier, 2009). Choosing right channel members is so important because it directly relates to your prospects of making a sale. The availability of several options means that if your product is not made available to the customer when he wants it, it surely will not sell. The benefits of effective distribution management include lower distribution costs and ultimately higher profits for the company. It also ensures greater customer satisfaction. The car CD manufacturer will use exclusive distribution strategy whereby only a limited number of dealers will distribute the car CD player for the company.

List of evaluation criteria

The evaluation criteria for selecting the distributor responsible for moving the product from the car CD player manufacturer to the auto makers is as follows:

Years in Business

Lines carried

Profit record

The evaluation criteria for selecting the intermediary responsible for moving the product from the car CD player manufacturer to electronic specialty stores for the end consumers is as follows:

Store's customer


Growth potential

Evaluation criteria common to both the distribution channel members include:




Discussion on each criterion

Years in Business

It is important to consider the number of years that the prospective distributor has been around in the business. The number of years shows the level of experience that the distributor can bring to polish your distribution strategies. Hence, the car CD manufacturer would like to go for the distributor that is the most experienced in the relevant field. Lines carried

The number of lines carried is again a very crucial point when selecting a distributor. Distributors that have partnered with parallel businesses will be able to share their distribution secrets or expertise with your ...
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