Channel Management Decisions and Training of Channel Members

1. Channel Management

2.  Channel Management is defined as a process where the company
develops various marketing techniques as well as sales strategies to
reach the widest possible customer base.
 It is defined as to how and where a product has to be used and how
the product and the customer will interact.
 It is a process of recognising the potential customer, interacting
with them and sustaining and continuing to create value for
customers.

3.  Managers must consider certain key factors in order to manage
channels effectively such as recruiting, selecting, motivating and
evaluating channel members.
 The channels are nothing but ways or outlets to market and sell
products.
 The ultimate aim of any organization is to develop a better
relationship between the customer and the product.

4.  Distribution channels include many of the following channel
partners:
 Manufacturers
 Distributors
 Wholesalers
 Resellers
 Retailers

5. Channel Management
Decisions

6. Selection of Channel Members
Motivation of channel Members
Modifying the channel Arrangement
Recruitment of Channel Members
Training of Channel Members
Evaluation of Channel Members
Managing the Relationships in Channel

7. Recruitment of Channel Members
 The recruitment of channel members is the most important aspect
of expanding or developing a successful channel member program
which would result in achieving increased revenue generation and
success.
 While recruiting new channel members it is vital to establish clear
and fixed parameters that define standards for identification,
qualification, and recruitment of new members.
 Such defined standards helps to confirm that the targeted members
for recruitment are suitable for the parent company.

8. .
Selection of Channel Members
 There are large number of wholesalers and distributors available in
the market from which the marketer needs to select their channel
intermediaries.
 Different manufactures have different abilities to select qualified
intermediaries
 The factors that is need to be analysed are business experience,
profit and growth records, cooperation level, creditworthiness and
reputation.

9.  In the case of sales agents as an intermediaries, the manufactures
must evaluate the character, quality and size of their sales force.
 If intermediaries are department stores then the manufacturer
must intend scrutinise the location, types of clients and further sales
growth.

10. Selection Process of Channel Members
 Identifying the potential channel members
The channel manager has a wide range of sources available to find
the potential channel members. some of the sources are :
Trade Sources – Sources like trade associations, directories, and
trade publication provide information regarding intermediaries.
Customers – Customer give an honest opinion about intermediaries
who work for them. The formal or informal survey helps to gain
information.

11. Advertising - The approach to find potential channel members to
publish advertisements in trade journals.
Trade Shows – Effective way of finding potential channel members
 Selection Criteria for channel members
After identifying the needs of customers to be fulfilled, the type of
channel structure is determined.
For the selection of intermediaries there are two major criteria
• The intermediaries must have a good knowledge of market.
• The market Coverage

12.  Finalising the Channel Members
• A selection process is a mutual decision of two parties. It is not
only the manufactures who is involved in the selection process but
also the intermediaries at the wholesale and retail levels.
• The management can use various inducements to secure the
services of channel members.

13.  Training Of Channel Members
• The selected intermediaries must be provided effective and careful
training sessions because the intermediaries are considered as the
company by the customers.
• It is the responsibility of intermediaries to maintain a good and
high image of the company they are representing.

14. Types of Training for Channel Members
• Field Training
The channel sales people are provided on the job training regarding
achieving sales and collecting payments from the market.
• Class Room Training
The distributors and his staff members are given classroom training
on the company’s product line, the competition level and the ways to
handle the competition so as to gain large market share.

15. • Orientation Programs
Orientation Programs are special meetings which are organised to
launch a new product and the way in which the product has to be
launched.
• Training for Paper work
Intermediaries are trained to prepare reports and maintain records.
• Servicing Training
Servicing training are given especially for engineering products
such as automobiles.

16. Motivation of channel Members
• In order to receive the desired results the channel members must
be kept highly motivated.
• Channel members can be motivated through training programs,
capacity building programs, promotional support, and marketing
research.
• The manufactures use positive motivators like special deals, high
margins, premium , display allowances, Advertising allowances,
and sales contests.
• The manufacturers also use negative ways like threaten to reduce
margins or terminate the relationship.

17. Evaluation of Channel Members
• The evaluation of channel members is crucial for determining the
retention, training, and motivation decisions. Through evaluation
necessary information regarding the channel member is attained.
• It is essential to evaluate the performance of the channel member
on periodic basis.
• A channel member may have been efficient earlier, but may not
be performing well in the present scenario.
•The reason behind can be dissatisfaction or having inadequate
skills and resource to perform. Thus the costs associated and
performance levels of members should be evaluated.

18. Modifying the Channel Arrangement
• Once the channel members are finalised the companies usually do
not re-evaluate the intermediaries. This cause potential harm to
marketing of the firms.
So it becomes necessary for a company to keep modifying the
marketing channels as per the changing needs of the market.
• Some of the major factors are changes in customer preference,
competition, market share, and environment factors

19. .
Managing the Relationships in Channel
 One of the key aspects to maximise the revenue and profit is the
management of relationships with the channel members.
 The factors influencing the channel relationship are :
 Channel Corporation and Coordination.
 Channel power
 Channel conflict

20.  Channel Corporation and Coordination
• Corporation and Coordination are the complimentary terms which
exist together. The success of a product to a great extend depends
on the marketing channel adopted by the firm.
• It is impossible for a channel to be efficient without coordinating
with each other, and for improving Cooperation among the channel
members is very important.

21.  Channel Power
Channel power can be defined as the capability of a channel
member that allow him to control the decisions of other channel
members in the same marketing channel.
 Channel Conflict
Channel conflict refers to a situation when one channel member
compete with the other. This arises when a channel member feels
obstructed by another channel member.

22. Reference
• Marketing Management – Arun Kumar, N. Meenakshi
• Takur Publications
• The economictimes.com/channel management

23. Thank You