channelmanagement-090912020411-phpapp02.ppt

8/14/2019 channelmanagement-090912020411-phpapp02.ppt

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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 ManagementKey Decisions


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Formulating the Channel Strategy

Designingthe 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 competitiveadvantage.

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 atan 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 Manufacturers capability and Resources


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4. Training the Channel Members

Those who seek mentoring will rule the great expanseunder heaven.

-Shu Ching, Chinese Book Of History-


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Phases Of Developing And ConductingTraining

Successful Program Consist of four phases:1.Training Assessment2. Program Design

3. Reinforcement

4. 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

Objectives

Higher

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

channelmanagement-090912020411-phpapp02.ppt

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