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Channel - Training,, Motivation and Evaluation and Evaluation

Channel management involves selecting qualified intermediaries, motivating and managing them over time, and regularly evaluating their performance against standards. Producers vary in their ability to attract channel members, though desirable products and exclusive distribution can draw applicants. Companies foster long-term partnerships through strong relationship management and motivate members with monetary and non-monetary incentives. The performance of members is regularly checked against metrics like sales, inventory levels, and customer service, and underperforming members may be assisted or replaced.

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93 views12 pages

Channel - Training,, Motivation and Evaluation and Evaluation

Channel management involves selecting qualified intermediaries, motivating and managing them over time, and regularly evaluating their performance against standards. Producers vary in their ability to attract channel members, though desirable products and exclusive distribution can draw applicants. Companies foster long-term partnerships through strong relationship management and motivate members with monetary and non-monetary incentives. The performance of members is regularly checked against metrics like sales, inventory levels, and customer service, and underperforming members may be assisted or replaced.

Uploaded by

sagar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Channel – Training, ,Motivation

and Evaluation
Recapitulation
• Designing a marketing channel system entails factors such as analysing
customer needs, establishing channel objectives, identifying major
channel alternatives, and evaluating major channel alternatives.
• Another factor in designing a marketing channel system is that
marketers must declare their channel objectives in terms of targeted
service output levels.
• Other decisive factor in developing market channel is to recognize
alternatives. Companies may select array of channels to approach
customers, each of which has distinctive strengths as well as limitations.
Each channel alternative is explained by (i) the types of available
intermediaries (ii) the number of intermediaries needed; and (iii) the
terms and responsibilities of each channel member.
• Companies should recognize pioneering marketing channels. Number of
Intermediaries indicates that to choose intermediaries to use,
companies can adopt one of three strategies: exclusive, selective, or
intensive distribution.
• The Company must assess each alternative against suitable economic,
control, and adaptive criteria.
Learning Outcome
Learning Outcome Programme Outcome

Understand what decisions do PO2 : Foster Analytical and


companies face in managing their Critical Thinking Ability
channels?
Channel-Management Decisions

Selecting channel members

Training channel members

Motivating channel members

Evaluating channel members

Modifying channel members


Motivating channel members

To keep the channel members motivated,


companies can follow :
• Monetary incentives
• non- monetary incentives.

Monetary incentives could be in the form of


rewards, commissions, straight promotions, and
non-monetary incentives could be in the form of
sales contests and meetings, appreciation,
recognition, certificates and honors, training
programs, etcetera.
Channel Power

• Coercive
• Reward
• Legitimate
• Expert
• Referent
Channel Integration and Systems

Vertical marketing
systems
• Corporate VMS
• Administered VMS
• Contractual VMS
Horizontal marketing
systems
Multichannel systems
Evaluation of Channel Members

• Companies must evaluate their distribution


network and channel partners for assessing
the effectiveness and efficiency from time to
time with respect to achievement of sales
volume targets, outlet productivity, service
selling, developmental selling, order
placement and inventory management,
customer relationship management, etc.
• GE CustomerNet gives dealers instant online access to GE Appliances' distribution
and order-processing system, 24 hours a day, seven days a week. By logging on to
the GE CustomerNet Web site, dealers can obtain product specifications, photos,
feature lists, and side-by-side model comparisons for hundreds of GE appliance
models. They can check on product availability and prices, place orders, and
review order status. They can even create custom brochures, order point-of-
purchase materials, or download "advertising slicks"—professionally prepared GE
appliance ads ready for insertion in local media. GE promises next-day delivery on
most appliance models, so dealers need carry only display models in their stores.
This greatly reduces inventory costs, making even small dealers more price
competitive. GE CustomerNet also helps dealers to sell GE appliances more easily
and effectively. A dealer can put a computer terminal on the showroom floor,
where salespeople and customers together can use the system to dig through
detailed product specifications and check availability for GE's entire line of
appliances. Perhaps the biggest benefit to GE Appliances, however, is that the
system builds strong bonds between the company and its dealers and motivates
dealers to put more push behind the company's products
Summary
Once the company has reviewed its channel alternatives and decided on the best channel design, it must
implement and manage the chosen channel. Channel management calls for selecting, managing, and motivating
individual channel members and evaluating their performance over time.

Producers vary in their ability to attract qualified marketing intermediaries. Some producers have no trouble
signing up channel members. For example, when Toyota first introduced its Lexus line in the United States, it had no
trouble attracting new dealers. In fact, it had to turn down many would-be resellers. In some cases, the promise of
exclusive or selective distribution for a desirable product will draw plenty of applicants.
Once selected, channel members must be continuously managed and motivated to do their best. The company
must sell not only through the intermediaries but to and with them. Most companies see their intermediaries as
first-line customers and partners. They practice strong partner relationship management (PRM) to forge long-term
partnerships with channel members. This creates a marketing system that meets the needs of both the
company and its partners.

The producer must regularly check channel member performance against standards such as sales quotas, average
inventory levels, customer delivery time, treatment of damaged and lost goods, cooperation in company promotion
and training programs, and services to the customer. The company should recognize and reward intermediaries
who are performing well and adding good value for consumers. Those who are performing poorly should be
assisted or, as a last resort, replaced. A company may periodically "prequalify" its intermediaries and prune the
weaker ones.

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