Research On Distributors Management Of Modular Instrument Manufacturers In Measurement And Control Industry

There will be some distributors’ behavior contrary to the initial cooperation agreement in the vast majority of sales channel management in different industries. For the test and measurement industry, such kind of phenomenons are endless. If a manufacturer can not formulate some strict and effective management measures to manage its sales channels, the distributors’irregularities would cause the manufacturer to suffer losses.. This paper analyzes the distributors management, according to three aspects as below. First, researches on distributors management which have been done before almost suggested that the conflicts in the sales channels were due to the uncooperative behaviors. They think that the uncooperative behaviors are made by some of the distributors who have been affected by disloyal character. But the most current researches focus on analysis on the loyalty of distributors instead of figure out any solution for improve it. Therefore, this paper analyzes the competitiveness of company N in the market through the Porter’s Five Forces Model and discusses the solutions for enhancing manufacturer’s competitiveness for the different forces.This paper also discuss the solutions for enhancing manufacturer’s competitiveness for the different forces which are its influential factors in the maket. "View of this paper is the distributor’s loyalty should be established in recognition of the extent of the proxied products. If a manufacturer can deepen its status in the market in distributors’minds according to enhancing its competitiveness, it will increase the distributors’sense of belonging effectively. A test and measurement equipment manufacturer such as company N who just spent a short time to seize a big part of market in China, develop a large number of local channel partners is essential. Because of lack of the understanding of local customs,the foreign companies are difficult to enact appropriate screening criteria. Unsatisfactory distributor selection will give distributors management a lot of trouble in the daily business activities. So the effective distributor selection criteria should be determined at early stages of the before developing a large number of distributors. Different to some other industries,the users of modular equipment manufacturers require more technical support services in test and measurement industry. Due to the product particularity of modular instruments, there will be some particularity different from the other industries on the warehousing logistics, business terms,etc. Therefore, based on the problems in daily business activities the modular instrument manufacturers might encounter in the test and measurement industry, this paper put forward the corresponding distributor selection strategy. In order to make the distributors not only act as an intermediate traders, but also bring value-added service to manufacturers and end users in the pre-sale and after-sale stages. After the manufacturers improve their technical skills and business ability, if the distributors themselves have any problems with the corporate gene, it is difficult to ensure that the individual distributors would not be any behavior that insurmountable channel management rules. Therefore, the third part of this paper put forward with the analysis of game model, in order to specify the valid rules of rewards and punishments to contain distributor channel conflict as far as possible. Second, develop mutual restriction mechanism between distributors to make sure that All the distributors have some mutual supervision and management ability in the sales channels, in addition to the manufacturer’s supervision. Finally, this paper reference Hotelling model to make every product has different irreplaceable characteristics to different customers or different areas to eliminate the transregional behavior of distributors.In order to manage the sales channel effectively, a manufacture must improve itself as much as possible. By doing so, distributors can build enough confidence and solid feeling of belonging to the brand they agent. On this basis, the manufacture can set criterions, which need to be analyzed according to different characteristics and different factories, to select distributors who meet the industry standard and product characteristics. What’s more, on the foundation of friendly cooperation, we must set a serious of incentives and punishment regulations to implement strict and effective management. And this is the deadline for a manufacture to manage partners. In conclusion, this article will discuss distributors management for a module instrument manufacture from three aspects. This is a gradual process, and we will discuss it from different aspects at different stage. Finally, we will give reasonable and effective suggestion at the end of the paper.