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Chapter 7Channel Policy & Participants Motivation
Teoretical basis of Motivation
Motivation
Refers to how to get people more involved in their work based on the human behavior rule.
Motivator and motivated people
Mcvey (1960) published his essay -- Are the channels
of distribution what the textbooks says ? -- on Journal of
marketing ,which listed three reasons to explain it.
Identify the Needs & Problems of Channel parcitipants
Method to identify the needs & problems of channel
parcitipants
Channel participants study conducted by the manufacturer
Outsourcing the channel participants study to external agent channel auditing
Channel Auditing
Franchiser Consultant Committee
Significance of Channel Participants
Incentive
Sale Time Sale Space
Information Collection Information Transmission
Method to Motivate Channel Participants
Brand and Product Motivation
Material Motivation
Participation Motivation ( Spiritual Motivation ) Up-growth Motivation
Direct motivation Indirect motivation
Rebate Policy : criteria/form/time
Price Discount : amount/grade/ cash/season
Promotion : goal/content/time/ expense/assessment
helping franchiser with customer and inventory management
helping the retailers with terminal management
delegating the managers
Methods of Channel Incentive Mutual
communication Assist & Support Assist & Support
Supply channel participants with the newest products or service
To show understanding of the difficulties the channel participants encounter
Provide support for management philosophy & management practice
Show the middle and long-term development plan of the enterprise to the channel members
Frequently exchanging operation opinion& providing operation advice
Provide culture-building experience of the enterprise
Regular private contact of higher-level or middle-level management
Concerted effort in channel work planning, source of goods coordination & promotion
Provide suggestion for products innovation or products selling knowledge
Regular information exchange Bear long-term liability(higher exclusive property devotion )
Provide advertising or promotion support
Frequent negotiation mechanism
Holding channel participants meeting periodically Personnel training
Concern about channel members’ suggestion for channel staff in the enterprise
Financing support
Intensity &Effect of Incentive
Usually franchisers assess the manufacturers from the aspects listed
get best-seller or not
get low price or not
get huge profits or not
get goods distributed in advance or not
get ad support or not
prestige of the manufacturer
get training or not
can fully display its ability or not
Case Study A
Sanjiu Refined Chemical Co., Ltd. is a core enterprise ,which afiliated to Sanjiu Group, with three main product categories involed in household , individual and car care. Because of failing to make CRM norms,it treated the more than 1000 wholesellers equally ,regardless of its size and sales,which dampened the enthusiasm of the large customers.
The company began to treat the wholesellers diffirently
through the adjustment.It will help to train the backbone salesmen,build 15 image counters in its shopping center and provide at least 15 salesgirls for wholesellers grades as AAA with annual sales of more than 4 million. But for A,it just provide only one assistant.
Case Study B
In 2000 ,Kodak launched its China investement plan with 1.2 billion dollars. Faced with the small locative entrepreneurs,it promises to buy their equipment with 99, 000.Now there are more than 5600 branch stores in 250 cities
In 1998 ,Hualong launched its 100 millionaires plan.
Easy to be a boss with only 100,000
Case Study C
Incentives for the wholesalers
Channel Participants Incentives by a beer manufacturer
Providing a foreign trip for those who have completed annual sales indexGiving 4% of actual sales to those whose annual sales reaching 1,20 0,000 boxes by the end of settlement
Giving 3% of actual sales to those whose sales reaching 200,000 boxes with a timely settlement
Incentives for the retailersGiving 3% of actual sales to those who complete the annual
sales with a timely settlement
Incentives for hotel staffGiving 3% of cash to the staff who recommend its beer to
customers with the bottle lid as evidence and Giving the hotel 10 bottles of beer once its sales reaching 1,000 bottles
Thank you for your time!
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