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Channel Management Decisions

Companies must carefully select channel members based on their characteristics. They then train and motivate channel members using various types of power like coercive, reward, legitimate, expert, and referent power. Companies also forge long-term partnerships with distributors and evaluate channel members' performance against standards, counseling or terminating underperformers. The channel design and arrangements are also modified periodically based on evolving conditions.

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Joyce Kay Azucena
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3K views7 pages

Channel Management Decisions

Companies must carefully select channel members based on their characteristics. They then train and motivate channel members using various types of power like coercive, reward, legitimate, expert, and referent power. Companies also forge long-term partnerships with distributors and evaluate channel members' performance against standards, counseling or terminating underperformers. The channel design and arrangements are also modified periodically based on evolving conditions.

Uploaded by

Joyce Kay Azucena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
  • Introduction: Introduces the topic of channel-management decisions with the author's name.
  • Selecting Channel Members: Discusses the process of choosing channel members by evaluating their characteristics to identify the best intermediaries.
  • Training and Motivating Channel Members: Explores strategies for training channel members and the concept of channel power to influence behavior.
  • Types of Power: Details the different types of power dynamics that can exist between manufacturers and intermediaries.
  • Channel Partnerships: Covers the importance of building long-term partnerships with distributors and introduces the Efficient Consumer Response model.
  • Evaluating Channel Members: Describes the evaluation process for intermediaries against performance standards and addresses managing underperforming members.
  • Modifying Channel Design and Arrangements: Discusses how channel systems evolve, including channel modification decisions and global considerations.

Channel-Management

Decisions
Joyce Kay Azucena

Selecting Channel Members


Companies

Customers

Characteristics distinguish the better intermediaries

Training and Motivating Channel


Members

A company should view intermediaries the same way it views its end
users.

Channel Power ability to alter channel members behavior so they take


actions they would not have taken otherwise.

Types of Power

Coercive power threatens to withdraw a resource or terminate a


relationship if intermediaries fail to cooperate.

Reward power offers intermediaries an extra benefit for performing a


specific acts of functions.

Legitimate power requests a behavior that is warranted under the


contract.

Expert power manufacturer has special knowledge the intermediaries


value.

Referent power manufacturers are so highly respected that


intermediaries are so proud to be associated with it.

Objective

Subjective

Channel partnerships forging a long-term partnership with distributors

Efficient Consumer Response (ECR)


1. Demand side management
2. Supply side management
3. Enablers and integrators

Evaluating Channel Members

Evaluating intermediaries performance against standards

Underperformers: should be counseled, retrained, motivated, or


terminated.

Modifying Channel Design and


Arrangements

Channel Evolution

Channel system evolves as a function of local opportunities and conditions,


emerging threats and opportunities, company resources and capabilities, and other
factors.

Channel Modification Decisions


Periodically reviewing and modifying channel design

Global Channel Considerations

International markets pose distinct challenges but opportunities at the


same time.

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