It is complicated enough to motivate direct employees to provide the needed sales and service support. Motivating the owners and employees of the autonomous organizations in a distribution chain needs even greater effort. There are many devices for attaining such motivation. Perhaps the most traditional is `incentive’: the supplier offers a better margin, to excite the owners in the channel to push the product more willingly than its competitors; or a competition is offered to the distributors’ sales personnel, in order that they are tempted to push the product. At the other end of the spectrum is the more or less symbiotic relationship that the all too uncommon supplier in the computer field develops with its agents; where the agent’s staff, support as well as sales, are trained to almost the same way as the supplier’s own staff.

Vertical Marketing | Contractual System | Vertical Integration | Horizontal Marketing | Demand-based Pricing |