MANAGING SALES AND

DISTRIBUTION
BE-MBA Spring Semester Term 2
(March – May 2021)

Harjot Singh, LM TSM, TIET

4/29/2021
MANAGING CHANNEL
PARTNERS:
MOTIVATION
AND
PERFORMANCE
EVALUATION
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NEED FOR MOTIVATION OF CHANNEL
PARTNERS

UNDERSTANDING NOT ONLY CALLING

TO ACHIEVE
NEEDS AND BUT ALSO END-USERS
AMBITIOUS
REQUIREMENTS OF CONSIDERING DELIGHT IS THE
VOLUME AND
CHANNEL THEM AS AIM
GROWTH TARGETS
PARTNERS ‘PARTNERS’

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MOTIVATING CHANNEL PARTNERS
TRAINING

PROMOTIONS SUPPORT

MARKETING RESEARCH

INCREASING ROI

HELPING THEM TO SELL

WORKING ALONG WITH CHANNEL SALESPEOPLE

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POWERS OF MOTIVATION
(FRENCH & RAVEN, 1959) SUGGESTED SOME
POWERS WHICH CAN BE USED ON CHANNEL
PARTNERS TO MAKE THEM EFFECTIVE:
1) REFERENT POWER..OUT OF EMINENT POSITION
THAT THE COMPANY HOLDS IN THE
INDUSTRY..FAVOURABLE RUB-OFF..INSTANT
RECOGNITION AND RESPECT..eg MICROSOFT,
INFOSYS, HUL, TELCO
2) EXPERT POWER..SPECIAL KNOWLEDGE THAT ADDS
VALUE..SPECIALISED..TRAINING, CONTINUE TO ADD
VALUE, eg MARUTI, LG, SAMSUNG, INGRAM

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 POWERS OF MOTIVATION (Contd.)
3) LEGITIMATE POWER..ENFORCING TASK..AS PER
AGREEMENT..COMPANY EXPECTS CHANNEL TO
MAINTAIN MINIMUM STOCK LEVELS, NUMBER OF
SALESPEOPLE, NUMBER OF OUTLETS TO BE COVERED
4) SUPPORT POWER..ABILITY TO GIVE ADDITIONAL
SUPPORT..PROMOTIONS..SUBSIDIES..AWARDS..
RECOGNITION..SUPPORT IN INCREASING SALES
THROUGH COMPANY MANPOWER

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POWERS OF MOTIVATION (Contd.)
5) COMPETITION POWER..RIVALRY AMONG
CHANNEL PARTNERS..COMPETE ON PERFORMING
BETTER..SALES CONTESTS..RANKING FOR
PERFORMANCE
6) REWARD POWER..INCENTIVES..MOST
PERSUASIVE..NEW PRODUCT LAUNCHES..LIMITED
PERIOD
7) COERCIVE POWER..THREAT..TAKING AWAY SOME
SUPPORT....DECREASE CREDIT..GIVE EXTRA
STOCK..USED EXCEPTIONALLY

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EVALUATING CHANNEL MEMBERS
• PERFORMANCE OF COMPANY IS AFFECTED BY THE
EFFECTIVENESS OF ITS CHANNEL. REVIEW IS
IMPORTANT.

• EVALUATION AGAINST TARGETS , LEVEL OF

INVENTORY, CREDIT SALES, CASH SALES, CALLS PER
DAY, SERVICING EFFICIENCY

• SERVICE LEVELS

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EVALUATING CHANNEL MEMBERS
• COST EFFECTIVENESS

• QUALITY

• TIMELINESS

• PEAK OF POTENTIAL?

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EVALUATING CHANNEL MEMBERS
• PERFORMANCE MEASUREMENT

• SYSTEM..TRANSPARENT?

• FAIR AND EQUITABLE?

• MOTIVATION OF HIGH AS WELL AS LOW

PERFORMERS

• CORRECTIONS IN THE SYSTEM

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EVALUATION
• MONTHLY / QUARTERLY BASIS

• VARIOUS PARAMETERS TO
TRACK PERFORMANCE

• EXTREME STEP..TERMINATION OF PARTNER

• BEST WAY TO KILL A PARTNER IS TO APPOINT

ANOTHER WHO CAN TAKE OVER
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 THE NATURE AND SOURCES
OF CHANNEL POWER

A’s Level of Investment In:

Reward UTILITY DERIVED
Coercion BY B FROM A
Legitimacy
A’s Offering to B:
Expertise
Reference Reward Dependence
of B on A
Coercive
Legitimacy
Expertise
Referent Power of
Competitive Levels Of: SCARCITY OF B’s A over B
Reward
Coercion ALTERNATIVES TO A
Legitimacy
Expertise
Reference

B’s access to
A’s competitors
CHANNEL RELATIONSHIPS
• Perceptions of organizational power
• Dependence
• Control
• Trust
• Commitment
• Co-operation

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 COMPONENTS OF OFFERING TO CHANNELS
Manufacturer sales
force incentives

Promotional
Responsiveness
support
systems Training
Financial returns
Quality products Distributor
Technical
assistance Reliable delivery sales force
Competitive price Market incentives
Company National reputation
research
policies

Distributor firm
Incentive incentives
Capability
programmes Channel core building
elements programmes
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References
• Marketing Channels by Bert Rosenbloom, Cengage
Learning
• Basics of Distribution Management — A Logistical
approach by Satish K. Kapoor and Purva Kansal, PHI
Learning
• Distribution and Logistics Management — A Strategic
Marketing Approach by D K Agrawal, Macmillan
• Marketing Channels (MC) by
Coughlan/Anderson/Stern/El-Ansary,Pearson Education
• Google images

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SUGGESTIONS FOR TELECOM SERVICE PROVIDERS

• Telecom service providers need to put greater focus on

pre-paid consumers to prevent them from availing MNP
and churning.

• Telecom service providers need to focus more on the

functional dimension of service quality rather than the
technical dimension of service quality.

Thank You
• Service providers need to make greater efforts to retain
those customers who have been on the network for a
longer time and who have been contributing more to the
top line or bottom line.