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Construction Worker

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Submitted By beam711
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ServiSoft Software 1. Should ServiSoft cave in to the distributors, or go around them and go direct using independent reps?

I would recommend that ServiSoft use the independent representatives’ distribution channel and sell to retailers, first and foremost. In looking at distributing the product through the wholesalers, margin would definitely decrease and retailer price may have to increase to make up for this. But more importantly is how ServiSoft wants to penetrate the market and how fast. Using the wholesale distribution channel provides an established path of delivering this product to a network of retailers and mass merchants, but at a price. They have a very liberal return policy that can cut into sales drastically. They will screen the product to make sure it meets their standard of quality and marketability. Also, ServiSoft’s computer product may not match up to their quality and with that being said, if this path is taken may delay the product launch even further. Finally, the wholesaler is not interested in ServiSoft’s benefits and features of this product. They are interested in if they can create more volume, incremental sales or margin. Therefore, they are in acting in the best interest of ServiSoft. They are out for themselves.

ServiSoft needs to promote their product to a certain market segment or niche to differentiate themselves from the rest of the marketplace. One advantage to their software is that it has an open platform, meaning it is compatible with both Mac’s and other PC’s, so it does not limit them to a certain computer market segment. By using individual representatives, ServiSoft can target the market niche, promote the value, benefits and features that this software offers and determine the appropriate price. To determine which distribution channel will be more strategically suitable for this software

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