STARTING-POINTS AND CONDITIONS FOR  BUSINESS PARTNERSHIP BETWEEN PARTICIPANTS OF DISTRIBUTION PROCESSES 
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VÝCHODISKÁ A PREDPOKLADY OBCHODNÉHO PARTNERSTVA MEDZI ÚČASTNÍKMI DISTRIBUČNÝCH PROCESOV
STARTING-POINTS AND CONDITIONS FOR BUSINESS PARTNERSHIP BETWEEN PARTICIPANTS OF DISTRIBUTION PROCESSES

Author(s): Ferdinand Daňo
Subject(s): Economy
Published by: Ekonomický ústav SAV a Prognostický ústav SAV

Summary/Abstract: If the decisions on distribution policy are to contribute to achieving the objectives set forth, at the outset of the distribution processes, a detailed analysis of the situation has to be made. In case the area subject to situation analysis is the distribution channel with all its structure, apart from other things, it is possible to examine also interactions between the producer and the distribution intermediary in terms of attractiveness of the partnership on the one hand, and the position in the channel, on the other hand. Analysis of interaction situation within the distribution channel considers in particular the facts that the producers and intermediaries are on the one hand cooperation partners--they have to jointly contribute to a distribution performance--and on the other hand, they are representatives of differing interests, and thus are competitors, each of whom tries to achieve an advantageous (if possible) cost-benefits ratio. Vertical marketing strategies determine the structure of cooperation between production and trade, they include general orientation of the producer in relation to structuring distribution channels through a suitable selection of distribution intermediaries, and in this way, to creating a suitable distribution design, to motivation strategies. These strategies are put into contraction with power strategies, as well as in relation to contracting strategies, the assumption of which is contractual arrangement of distribution design as the process of the distribution channel structuralisation. Selection of distribution channels includes stipulation of an ideal configuration, that is a kind of business (firm) form of trade, which is to be used as a distribution channel and a required distribution degree within a given form of business* further, arrangement and evaluation of existing potential distribution channels, comparison with an ideal configuration, and a decision on possible impact on the structure of distribution intermediaries, and determining business partners. When choosing targets firms, the task of the producer is to motivate the firms chosen to desirable behaviour. It is therefore necessary for the producer to make sure that the business may develop in compliance with this behaviour. Whether this activity may be achieved without any problems by the producer and to what extent, depends mainly from the power relationships within distribution channels. When choosing a business partner and after the question concerning the methods of motivating these partners, it is necessary to discuss the ways of ensuring the results in both of these areas within the framework of contracts. The success of partner relationships between the producer and the distribution intermediary is affected by several factors, which affect it favourably or unfavourably. Cooperation prevails, as a rule, between members of distribution partnership, as partner cooperation brings advantages to each of the members involved

  • Issue Year: 49/2001
  • Issue No: 06
  • Page Range: 1096-1112
  • Page Count: 17
  • Language: Slovak