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distribution through channel management
Typology: Lecture notes
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Chapter 9 Submitted by Rajni Kumari Jn
Channel management – it can be defined as the administration of existing channel to secure the cooperation of channel members in achieving the firm’s
distribution objectives.
Each member in a channel is an organization itself with its own marketing objectives. Each of these firms strive to achieve its objectives like increase in revenues, be a market leader, etc. The channel members should be viewed as customers by the manufacturer. This way the manufacturer understands the needs and challenges faced by the intermediaries and accordingly take steps that in the best interest of the manufacturer as well as the intermediaries.
For smooth functioning of operations, clear policies and procedures should be agreed upon and formally signed. If the policies and procedures are not clearly shared and formally agreed to, the possibility of conflicts is high among channel members.
Motivating channel members –An organization should sell the product to intermediaries as a customer considering their needs and wants. This helps a manufacturer achieve its objectives. It should cooperate and help the intermediaries in every possible way with training programs, market surveys, etc. to improve their performance.
The basic things require in motivation management are-
Approaches for learning about member needs and problems
Offering Supports to Channel Members