what decisions do companies face in managing their channels?
TRANSCRIPT
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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