Channel management decisions consists of:

  1. Selecting channel members – based on characteristics
    • Length of business
    • Other lines carried
    • Growth and profit record
    • Cooperativeness
    • Reputation
  2. Motivating individual channel members
    • Positive – higher margins, discounts, premium, special deals, cooperative advertising allowances etc.
    • Negative – Reduce margins, slow-down etc.
  3. Evaluating their performance over time – standards
    • Delivery time
    • Treatment of damaged goods and lost goods
    • Cooperation in company promotion
    • Training programs
    • Customer service
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