Amity Business School

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Amity Business SchoolMBA Class of 2010, Semester II

Distribution & Logistics Management

Ms.Vandana Gupta

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Channel Management – Key Decisions

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Formulating the Channel Strategy

Designing the Channel Structure

Selecting the Channel Members

Motivating the Channel Members

Co-ordinating the channel strategy with the marketing mix

Evaluating channel member performance

Decision areas in Channel Management

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1. Formulating Channel Strategy

The most crucial aspect is the choice of a level of service by which an enterprise might seek to secure competitive advantage.

The importance of channel strategy is likely to depend upon the existence of one or more of following conditions:

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a) Target markets demand a strong emphasis on distribution

b) Competitive parity exists in other marketing mix variables, with the need for channel strategy to provide some differential advantage

c) Competitive vulnerability exists because of distribution neglect

d) Opportunities for synergy exist through channel strategy

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2. Designing the channel Structure

• Can we effect distribution better than intermediaries at an equivalent cost?

• Can we effect distribution as well as intermediaries at a lower cost?

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3. Selecting the channel Members

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

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4. Training the Channel Members

Those who seek mentoring will rule the great expanse under heaven.

-Shu Ching, Chinese Book Of History-

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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.

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Phases Of Developing And Conducting Training

Successful Program Consist of four phases:1.Training Assessment2. Program Design3. Reinforcement4. Evaluation

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Phases of Developing and Conducting Training

Establish program objectives

Identify who should be trained

Identify training needs and specific goals

How much training is needed?

Training

Assessment

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Sales Training Program

ObjectivesHigher Morale

Lower Turnover

Increased Sales Productivity

Improved Communication

Improved Customer Relation

Improved Self Management

Objectives of Training Program

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Where should training be done?

Who should do the training?

Content of training

Program

Design

Teaching methods used in training program

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What Should The Content Of The Training Be?

• 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

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What Teaching Methods Should Be Used?

Teaching Methods For Presenting Information In Sales

Training

Discussion•Cases

•Round table• Panels DemonstrationsLectures

Web-Based

training

Audiocassettes Role-PlayingOn-the-job

training

Mentoring

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Determine how training will be reinforced

What outcomes will be evaluated?

What measures will be used?

Reinforcement

Evaluation

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Training Evaluation

• Reactions

• Behavior

• Learning

• Results