Amity Business School

Amity Business School

MBA 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) b)

c)
d)

Target markets demand a strong emphasis on distribution Competitive parity exists in other marketing mix variables, with the need for channel strategy to provide some differential advantage Competitive vulnerability exists because of distribution neglect 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 Manufacturers 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 Assessment 2. Program Design 3. Reinforcement 4. Evaluation

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Phases of Developing and Conducting Training

Establish program objectives Training

Identify who should be trained

Assessment

Identify training needs and specific goals

How much training is needed?

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Objectives of Training Program

Increased Sales Productivity Improved Self Management Lower Turnover

Sales Training Program Objectives

Improved Customer Relation Improved Communication Higher Morale

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Who should do the training?

Where should training be done?

Program

Content of training

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?

Discussion Cases Round table Panels

Lectures
WebBased training

Demonstrations

Teaching Methods For Presenting Information In Sales Training

On-the-job training

Mentoring

Audiocassettes

Role-Playing

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Determine how training will be reinforced

Reinforcement

What outcomes will be evaluated?

Evaluation

What measures will be used?

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Training Evaluation
Reactions Behavior Learning Results