CHANNEL

MANAGEMENT
Key Decisions
The learner should be able to:

Explain channel planning, organizing and controlling; and

their functions in the distribution management

Learning objective
Channel planning and marketing program should provide
production group with a more accurate forecast of needs.

In the earlier times, nothing happens until something is sold.

This idea was inspired by manufacturing approach to the
market. In the past, a car was ordered first then the customer
must wait for its production. If this idea was adhered today,
most companies would have serious marketing problems.

The competitive influence is a part of marketing planning and

is of great importance in the consideration and selection of
marketing channel strategies.

Introduction
• There are 7 steps in the marketing channel planning
process. These steps provide an overview of the process
and the sequential progression that must be followed in
order to produce a plan with integrity

Channel planning
• 1. Planning Premise or Mission Statement – establish the
direction of the planning activity
• 2. Situation Analysis – verify the planning premise and
develop an analysis of facts
• 3. Opportunities and obstacles – identify specific, viable
opportunities and obstacle plans.
• 4. Goals and objectives – determine acceptable goals and
set specific objectives

The seven steps of channel

planning process
• 5. Determination of strategies – plan of actions and
activities calculated to result in reaching specific goals
• 6. Action Plans and Activities – procedure or action plan
assignments, requirements, schedule, measurements
controls, responsibilities and support.
• 7. The profit Plan – document the financial expectations
based on reaching the plan objectives and goals and
provide the marketing budget requirements

The seven steps of channel

planning process
Channel coordination ( or supply chain coordination) aims
at improving supply chain performance by aligning the
plans and the objectives of individual enterprises. It usually
focuses on inventory management and ordering decisions.

Channel Coordinating
The work of planning and organizing a system of marketing
channel involves atleast three essential steps:
1. Identify the various jobs and sub-job that must be done in
order to sell the product and move them smoothly to the
market. It is also necessary to identify the factors that
influence the manner in which these jobs must be done.
2. Decide the types of agents or marketing units that are
expected to carry out the jobs most effectively.
3. Select and establish relationship with the individual units
most suitable

Channel Organizing
• Considerations need to be given to:
• • Economic Criteria
• • Control Criteria
• • Adaptive Criteria
• • End User Considerations
• • Product Characteristics
• • Manufacturer’s capability and Resources

Selecting the channel

Members
• TRAINING - It is a process of providing the
intermediaries with specific skills for performing their
task better and helping them to correct deficiencies in
their sales performance.

• Training Program creates a Win-Win situation for both

individual and the organization.

Training the Channel

Members
• Successful Program Consist of four phases:
• 1.Training Assessment
• 2. Program Design
• 3. Reinforcement
• 4. Evaluation

Phases Of Developing And

Conducting Training
Phases of developing and
conducting training
Objectives of the Training
program
• Attitude toward Selling and toward Training
• • Knowledge of the Company
• • Product Knowledge and Application
• • Knowledge of Competitive Products
• • Knowledge of Customers
• • Knowledge of Business Principles
• • Selling Skills
• • Relationship-Building Skills

What should the content

of the training be
What teaching methods
should be used?
• Reactions
• • Behavior
• • Learning
• • Results

Training evaluation