Channel-Management

Decisions
Joyce Kay Azucena

Selecting Channel Members

Companies

Customers

Characteristics distinguish the better intermediaries

Training and Motivating Channel

Members

A company should view intermediaries the same way it views its end
users.

Channel Power ability to alter channel members behavior so they take

actions they would not have taken otherwise.

Types of Power

Coercive power threatens to withdraw a resource or terminate a

relationship if intermediaries fail to cooperate.

Reward power offers intermediaries an extra benefit for performing a

specific acts of functions.

Legitimate power requests a behavior that is warranted under the

contract.

Expert power manufacturer has special knowledge the intermediaries

value.

Referent power manufacturers are so highly respected that

intermediaries are so proud to be associated with it.

Objective

Subjective

Channel partnerships forging a long-term partnership with distributors

Efficient Consumer Response (ECR)

1. Demand side management
2. Supply side management
3. Enablers and integrators

Evaluating Channel Members

Evaluating intermediaries performance against standards

Underperformers: should be counseled, retrained, motivated, or

terminated.

Modifying Channel Design and

Arrangements

Channel Evolution

Channel system evolves as a function of local opportunities and conditions,

emerging threats and opportunities, company resources and capabilities, and other
factors.

Channel Modification Decisions

Periodically reviewing and modifying channel design

Global Channel Considerations

International markets pose distinct challenges but opportunities at the

same time.