Building distribution channels based on customer satisfaction levels – using the example of construction material manufacturers – part 1
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The purpose of this article is to present the factors influencing the satisfaction level of a construction company. Based on this, an appropriate material supply model was developed. The study utilizes rank correlation coefficients as well as mean deviation to determine the degree of dependency between the distributor’s actions and the contractor’s expectations. Attention is drawn to the role of individual participants in the investment process. Each of them has a significant share in shaping the contractor’s satisfaction level. This increases sales dynamics. Conversely, a lack of commitment from all partners leads to a decrease in turnover.
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In conditions of intense competition and rapid environmental changes, a company must adopt an appropriate strategy that enables the achievement of <\/div>
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The purpose of this article is to present the factors influencing the satisfaction level of a construction company. Based on this, an appropriate material supply model was developed. The study utilizes rank correlation coefficients as well as mean deviation to determine the degree of dependency between the distributor’s actions and the contractor’s expectations. Attention is drawn to the role of individual participants in the investment process. Each of them has a significant share in shaping the contractor’s satisfaction level. This increases sales dynamics. Conversely, a lack of commitment from all partners leads to a decrease in turnover.
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In conditions of intense competition and rapid environmental changes, a company must adopt an appropriate strategy that enables the achievement of <\/div>
competitive advantage (Porter M. E. 1992). Porter’s strategies are considered in three basic planes: cost leadership, differentiation, and focus on a specific market niche. The suggested solutions are based on an in-depth analysis of the environment, of which the actions of buyers and competitors are considered key (Johanson G., Scholes K. 1993). Based on this, the company creates its network of relationships with entities in the selected market niche. One of the essential elements of the relationship network is distribution channels. They allow the company to achieve a specific position and contribute to the implementation of the chosen strategy. In the subject literature, significant attention is paid to distribution channels. For example, Ph. Kotler’s proposals concern a close relationship between the adopted strategy and market supply principles (Kotler Ph. 1994). According to K. Ohmae, the success of Japanese companies should be largely attributed to effective distribution channels. They enable the acquisition of a relative advantage over competitors, both in relation to existing products and those just entering the market (Ohmae K. 1982).
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A significant contribution to creating a system of relationships with entities in a selected market niche are the proposals of K. Obłój. Although they refer to Porter’s concepts, they focus on selected thematic groups. They assume acting against the competition or focusing attention on the buyer (Obłój K. 1997). Both the frontal attack strategy, bypassing competition (linear), and satisfying needs (lateral) rely on gaining an advantage by isolating a market segment and permanently linking it to the company. Similar solutions appear in H. J. Ansoff’s growth strategies. None of the four typical product-market strategies can be implemented without an effective distribution channel (Ansoff H. J. et al. 1998). The company’s basic efforts are directed at intensive sales and promotion. These two areas of activity are consistent with each other and allow for:
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A significant contribution to creating a system of relationships with entities in a selected market niche are the proposals of K. Obłój. Although they refer to Porter’s concepts, they focus on selected thematic groups. They assume acting against the competition or focusing attention on the buyer (Obłój K. 1997). Both the frontal attack strategy, bypassing competition (linear), and satisfying needs (lateral) rely on gaining an advantage by isolating a market segment and permanently linking it to the company. Similar solutions appear in H. J. Ansoff’s growth strategies. None of the four typical product-market strategies can be implemented without an effective distribution channel (Ansoff H. J. et al. 1998). The company’s basic efforts are directed at intensive sales and promotion. These two areas of activity are consistent with each other and allow for:
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• retaining existing customers
• reaching target customer groups
• limiting market penetration by competitors (Ansoff H. J., op. cit).
In light of the presented theories, the choice of a distribution channel is a strategic matter for every company. Adopting an erroneous supply system leads to a drop in turnover and, consequently, market share. The consequences are poorer financial results, and maintaining such a state in the long term will cause a threat of liquidation. The above process applies to all product groups, including construction materials (Mawhinney M. 2001). Even a manufacturer of attractive products, but without an effective connection with the customer, is doomed to failure. When choosing a distribution strategy, whether intensive, selective, or exclusive, the supplier must pay attention not only to product features but also to the requirements of the final recipient (Tull P., Howkins P. 1990). Customer decisions are the final verifier of the adopted company management principles, including market supplies. A high level of customer satisfaction offsets even shortcomings in the market relationship system (Malhotra N. 1993).
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The main goal of the work is to present a model for creating construction material distribution channels based on buyer expectations. Customer expectations are confirmed by an appropriate level of satisfaction. Recipients are more willing to cooperate with those suppliers who ensure the highest level of satisfaction. A lack of satisfaction or a low level thereof causes a limitation of trade relations. The assessment is based on objective criteria. For this reason, the second important goal is to identify the basic factors influencing the satisfaction level of construction material recipients. Based on the identified factors, a proposal for creating distribution channels will be presented.
The article comes from the journal “Logistyka”, No. 5/2005.<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>
• reaching target customer groups
• limiting market penetration by competitors (Ansoff H. J., op. cit).
In light of the presented theories, the choice of a distribution channel is a strategic matter for every company. Adopting an erroneous supply system leads to a drop in turnover and, consequently, market share. The consequences are poorer financial results, and maintaining such a state in the long term will cause a threat of liquidation. The above process applies to all product groups, including construction materials (Mawhinney M. 2001). Even a manufacturer of attractive products, but without an effective connection with the customer, is doomed to failure. When choosing a distribution strategy, whether intensive, selective, or exclusive, the supplier must pay attention not only to product features but also to the requirements of the final recipient (Tull P., Howkins P. 1990). Customer decisions are the final verifier of the adopted company management principles, including market supplies. A high level of customer satisfaction offsets even shortcomings in the market relationship system (Malhotra N. 1993).
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The main goal of the work is to present a model for creating construction material distribution channels based on buyer expectations. Customer expectations are confirmed by an appropriate level of satisfaction. Recipients are more willing to cooperate with those suppliers who ensure the highest level of satisfaction. A lack of satisfaction or a low level thereof causes a limitation of trade relations. The assessment is based on objective criteria. For this reason, the second important goal is to identify the basic factors influencing the satisfaction level of construction material recipients. Based on the identified factors, a proposal for creating distribution channels will be presented.
The article comes from the journal “Logistyka”, No. 5/2005.<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>
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L2005-5s22.pdf<\/a>
L2005-5s22.pdf<\/a>