What decisions do companies face in

managing their channels?

CHANNEL MANAGEMENT DECISIONS

After a company has chosen a channel system, it must train, motivate, and evaluate individual intermediaries for each channel.

1SELECTING CHANNEL MEMBERS

Consider the negative impression customers

would get if one or more than one outlets or

dealers are dirty, inefficient, or unpleasant.

2 TRAINING AND MOTIVATING CHANNEL MEMBERS

CHANNEL POWER : Ability to alter channel members; behaviour so they take actions they would not have taken otherwise.

CHANNEL PARTNERSHIP : Sophisticated companies try to forge long-term partnership with distributors.To streamline the supply chain and cut costs, many manufacturers have adopted efficient consumer response(ECR).

EVALUATING CHANNEL MEMBERS

3

Producers must periodically evaluate intermediaries performance against such standards as customer delivery time, treatment of damaged and lost goods etc.

MODIFYING CHANNEL DESIGN AND ARRANGEMENTS4

CHANNEL EVOLUTION : A new firm starts as local operation selling in a fairly circumscribed market, using a few existing intermediaries.

5CHANNEL MODIFICATION DECISIONS

A producer must periodically review and

modify its channel design and

arrangements.

6GLOBAL CHANNEL CONSIDERATIONS

To adapt to European tastes, Philadelphia-based Urban Outfitters blended American and European looks which helped them to stand out.

TESCO introduced its Fresh and Easy gourmet mini supermarkets into California after 20 years of research that included spending time with U.S. families. The retailer had gone through similar steps before entering China.

Created by NILESH RANA of IIT BHU under the guidance of Prof. SAMEER MATHUR, IIM LUCKNOWwww.iiminternship.com

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