Individual On-Site.
Very effective for generating new business for
high-margin products requiring a high level of interaction with customers.
Examples: Fuller Brush, Electrolux, bottled water, newspapers.
b.
Route.
Used to service routine repetitious purchases that do not need to be
resold on each call. Sometimes price is negotiated once and only changed on
an exception basis. This concept was historically more prevalent in consumer
lines (e.g., milk deliveries) but has recently spread to a variety of commercial
and industrial segments.
Examples: Office deliveries of copier paper and toner.
c.
Home Party.
Similar to individual on-site sales, this format takes the prod-
uct to a group of individuals.
Examples: Tupperware, Snap-On Tools.
d.
Multi-Level Marketing.
Salesperson not only sells products but recruits
other salespeople who become a leveraged sales force that gives the original
salesperson a commission on sales. Channel can be used for “high-sizzle,”
high-margin, fast-growth opportunities in branded differentiated products.
Examples: Amway, Shaklee, NuSkin, plumbing products, cosmetics, other
general merchandise.
e.
Service Merchandising/“Rack Jobbing.”
Similar to a route but expanded
to provide a variety of services with the product. Originally, the rack jobber
sold small consumer items to grocery stores, merchandised the product, and
owned the inventory, merely paying the retailer a commission for the space.
This concept is expanding to commercial, industrial, and home markets in
a variety of niches: maintaining a stockroom of office supplies, maintaining
repair parts stock, servicing replenishable items in the home such as chemi-
cals, purified water, salt, and so on.
Examples: Specialty items and gadgets or novelties, paperback books, magazines.
The OmnI-ChAnnel eCOsysTem
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2.
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