Part 1
Motivating the Channel Members
2
Clipping 1
3H K DANGI3Clipping 1Situation of leadership Use of reward and
coercive power by leaderA project leader need to be good
negotiatorOptimism, Confidence, and determination are important
trait of project leader
4
Clipping 2
5H K DANGI5Clipping 2Opportunity in adversity Dream BIG
Resistance to change Fear of unknown
6
Clipping 3
7H K DANGI7Clipping 3Lead by example. Lead from front. Analogy
with existing practices.Appreciation and motivation.Small at the
beginning of project is very important for motivating team
member
8
Clipping 4
9H K DANGI9Clipping 4Alignment of individual goal with
organization.At times people resort to trusted member for
confirmation Use of reference powerStrength and weakness of
potential team member
10
Clipping 5
11H K DANGI11Clipping 5 right person for right jobConflict
resolution Empowerment of team memberTreating each member as
special and differentTeam building is like recruitment
12
Clipping 6
13H K DANGI13Clipping 6 A leader need to be assertive.A leader
need to review the decision A leader need to be well informed
Knowing skills of each team member and having confidence in
themThere should be no discrimination on the basis of cast, creed
and gender
14
Clipping 7
15H K DANGI15Clipping 7There is always hope in bleak situation
Risk pays
16
Clipping 8
17H K DANGI17Clipping 8Leading by exampleConfidence Fortune
favors brave.Never overestimate oneself and underestimate
othersFair play
Channel Management
9
Objective 1:
The administration of existing channels to secure the
cooperation of channel members in achieving the firms distribution
objectives
Channel Management:
Motivation Management:9
Motivation Management
The actions taken by the manufacturers tofoster channel member
cooperation inimplementing the manufacturers distribution
objectives
9
Channel Management versusChannel Design
Objective 2:Setting up the channel
Channel DesignChannel Management
Running the channel
9
Motivating Channel Members
Objective 3: Basic Framework
1.Find out the needs and problems of channel members.2.Offer
support to the channel members that is consistent with their needs
and problems.3.Provide leadership through the effective use of
power.
9
Channel Member Needs & Problems
Objective 4:
Research studies of channel membersResearch studies by outside
partiesMarketing channel auditsDistributor advisory
councilsApproaches for learning about member needs &
problems:
9
Research Studies of Channel MembersLess than 1 percent of
manufacturers researchbudgets is spent on channel member
research!BUT:
Manufacturer-initiated research can be usefulbecause certain
types of needs or problems may not be at all obvious.
9
Research Studies by Outside Parties
Why use outside parties to conduct research?
They provide a higher assurance of objectivity.
They provide a level of expertise that the manufacturer may
notpossess.
Marketing Channel Audits9
Focus of channel managers approach:
Gather data on how channel membersperceive the manufacturers
marketingprogram and its component parts.
Locate the strengths and weaknessesin the relationships.
Learn what is expected of manufacturersto make the channel
relationship viable and optimal.
9
Marketing Channel Audits
What makes marketing channel audits most effective?It should
identify and definein detail the issuesrelevant to the
manufacturer-wholesalerand/or manufacturer-retailer
relationship.Issues chosen forthe audit should be cross-referenced
to any relevant variables.It mustbe conductedperiodically soas to
capture trends &patterns.
9
Distributor Advisory Councils
Who is involved?Top management representatives from the
manufacturer and from the channel members
What are the benefits? Provides recognition for the channel
members Provides a vehicle for identifying and discussingmutual
needs and problems Results in an overall improvement of
channelcommunications
Supporting Channel Members
9
Objective 5:3 Types of Programs
2. Partnership or strategic alliance3. Distribution
programming1. Cooperative
9
Cooperative Arrangements
Focuses on channel member needs & problemsSimple &
straightforwardConveys a clear sense of mutual benefit
9
Cooperative Arrangements
Typical types of cooperative programsprovided by Manufacturers
to channel membersCooperative advertising allowancesPayments for
interior displaysContests for buyers, salespeople, etc.Allowances
for warehousing functionsPayments for window display spaceDetail
men who check inventoryDemonstratorsCoupon-handling allowanceFree
goods
9
Partnerships & Strategic Alliances
Focus on a continuing and mutuallysupportive relationship
between themanufacturer and its channel members in an effort to
provide a more highly motivatedteam, network, or alliance of
channel members
Partnerships & Strategic Alliances
9
Three basic phasesManufacturer should make explicit statement
ofpolicies in areas such as product availability,technical support,
pricing, etc.Manufacturer should assess all existing distributors
as to their capabilities for fulfilling their roles3. Manufacturer
should continually appraise the appropriateness of the policies
guiding his or her relationship with the channel members
Distribution Programming
9
A comprehensive set of policies for the promotionof a product
through the channel
Developed as a joint effort between the manufacturer and the
channel membersto incorporate the needs of both
Distribution Programming
9
Steps for developing a program:
Manufacturer develops analysis of marketingobjectives & the
kinds of levels of support neededfrom channel members Ascertains
channel members needs & problem areas
Formulate specific channel policies that offer: Price
concessions to channel members Financial advice Some kind of
protection for channel members
Relationship Differences
9
Objective 6:Cooperative Arrangements
Intermittent interactions between manufacturer& channel
membersPartnerships & Strategic Alliances
Continuing & mutually supportive relationshipDistribution
Programming
Deals with virtually all aspects of the channel relationship
9
The Selective Use of Power
Objective 7:
The channel managermust exercise effective leadership on a
continuing basis to attain a well-motivatedteam of members.
9
Limited Control
Objective 8:
Interorganizational System
Loosely arranged firms = few advantages from central
directionReward & penalty system not precise Overall planning
uncoordinatedDiffused perspective necessary to maximize total
system effort
