DESMAN L4 CHANNEL MANAGEMENT

Channel Management

The process of implementing and managing the chosen distribution channel and working with selected channel members to manage and motivate them.

Selecting Channel Members

Choosing intermediaries with characteristics that make them suitable and effective channel members.

Channel Member Selection Criteria

Years in business, other lines carried, growth and profit record, cooperativeness, and reputation.

Years in Business

Indicates the intermediary’s experience and stability.

Other Lines Carried

Refers to the other products or brands currently handled by the intermediary.

Growth and Profit Record

Measures the intermediary’s business performance and growth.

Cooperativeness

The intermediary’s willingness to work with the company.

Reputation

The intermediary’s image and credibility in the market.

Sales Agent Selection Criteria

Number and character of other lines carried, plus the size and quality of the sales force.

Retail Store Selection Criteria

The store’s customers, location, and future growth potential.

Customers

Whether the retail store attracts the company’s target market.

Location

Whether the retail store is strategically located and accessible.

Future Growth Potential

The ability of a retail store to expand and attract more customers.

Managing and Motivating Channel Members

Continuously managing and motivating selected channel members to perform at their best.

Intermediaries as Partners

Channel members are treated as partners that work with the company to achieve shared goals.

Partner Relationship Management (PRM)

The practice of building and maintaining long-term partnerships with channel members.

Value Delivery System

A system created through strong partnerships that meets the needs of both the company and its marketing partners.

PRM and SCM Technology

Technology used to recruit, train, organize, manage, motivate, and evaluate channel partner relationships.

Evaluating Channel Members

Regularly checking channel member performance against established standards.

Rewarding Channel Members

Recognizing and rewarding intermediaries that perform well and add value for consumers.

Poor-Performing Channel Members

Channel members that should first be assisted to improve and may be replaced if performance does not improve.

Public Policy and Distribution Decisions

Distribution practices involving exclusive distribution, exclusive dealing, territorial agreements, and tying agreements.

Exclusive Distribution

When the seller allows only certain outlets to carry its products.

Exclusive Dealing

When the seller requires dealers not to handle competitors’ products.

Exclusive Territorial Agreements

Agreements in which the producer limits selling to a specific geographic territory.

Full-Line Forcing / Tying Agreements

When a strong brand is sold to dealers only if they agree to take some or all of the seller’s other products