Early Warnings in the Channel

Hlavacek, James D.; Narus, James A.
March 1993
Marketing Management;1993, Vol. 1 Issue 4, p50
To become more market-driven, manufacturers are establishing or improving their distributor advisory councils (DACs). It is one of the best ways for a manufacturer relying on distributors to identify common problems and opportunities and receive valuable recommendations and field intelligence. If more than 20% to 25% of a manufacturer's sales flow through distributors, a DAC may be warranted, particularly when all parties are mutually dependent and compete in turbulent markets. Yet, many DACs fail or stagnate because of poor organization, a lack of top-management commitment, and an inability to focus attention on issues of mutual concern. Nor can a DAC address all the distribution problems confronting a manufacturer. INSETS: DACs and Antitrust.;Research Behind the Report.;EXECUTIVE BRIEFING


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