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Rishabh Parekh 60243

The administration of existing channels to serve the cooperation of channel members in achieving the firms distribution objectives.
Motivation refers to the actions taken by the manufacturer to foster strong channel member cooperation in implementing the manufacturers distribution objectives.

Finding out the needs and problems of channel members Offering support to the channel members that is consistent with their needs and problems
Providing leadership through the effective use of power

Research studies of channel members


Research studies by outside parties Marketing channel audits

Distributor advisory councils

Cooperative
Partnership or strategic alliance Distribution programming

Provide incentives for getting extra effort from channel members in the promotion of the products

A continuing and mutually supportive relationship.

A comprehensive set of policies for the promotion of a product through the channel. The development of a planned, professionally managed channel.

The looseness of the organization of many channel systems A proclivity by channel members to avoid central direction
Lack of single ownership No clear demarcation of a superiorsubordinate relationship

Push Strategies

Here are a few ways to give your new relationship a positive foundation.

Pull Strategies

Sales and Product (Value Offer) Training

Guidelines for Channel Partnerships

Introduce the distributor to your

customers. Use press releases and other


publicity vehicles to let the world know that your value offers can now be purchased from this source.

Help the distributor take over existing accounts. Go along on sales calls to your
biggest end user accounts to help establish the distributor as the sources for your value offer or service.

Turn over any contracts or leads from the non-functioning distributor to the present one.

Build confidence with easy assignments. Let

distributors start by selling value offers that are easy to sell and accounts that are easy to close. As they succeed, add in more complex value offers and accounts.
Provide enough product samples, literature,

price sheets, and other collateral material for all of the distributor's sales personnel.

Schedule factory visits and joint sales calls to

build enthusiasm among the ranks.


Conduct as much intensive, on-site and

customer-call product training as the distributor allows.


Give plenty of positive feedback on their work.

A push strategy is any marketing activity that entices your COD to sell your value offers rather than those of other manufacturers the channel represents. In other words, these types of promotions push your value offer through the channel. Push strategy examples are:

Travel incentive programs that award an allexpense-paid trip to a domestic or foreign destination for meeting a quota during a specified period of time.
Merchandise programs that reward salespeople for performance with items such as televisions, sporting goods, clothing and gourmet foods.

Training programs that increase the distributor salespeople's comfort level with your value offers, thereby making it easy to sell the value offers to their customers and reap compensation (commission, bonus) accordingly.

Monetary SPIFFS (special promotional incentive factory funds) that draw specific attention to certain models or groups of units in your value offer line.
Local COOP advertising efforts (direct mail, exhibitions, space advertising) that produce local market quality sales leads that materialize into real purchases.

Special discounts or allowances that draw special attention to your value offer line through a limited-time offer. For example a manufacturer might announce that, for the next sixty days, its channel will receive an additional 10 percent discount off the best published price on any order.

A pull strategy motivates the end user to approach your channel of distribution and "call out" for your value offer . . . Pull strategy examples are:

Space advertising in leading publications that generates qualified customer inquiries that produce actual purchases of your value offers.
Media releases announcing new value offers or features, which cause potential end users to request further information or a demonstration from your distributor.

Rebate programs offering a limited-time, factory-issued cash rebate to end users that purchase your value offer form your channel of distribution.
Exhibitions where end users spend time in your exhibit booth expressing an interest in your displayed value offer line.

Direct mail campaigns targeted at qualified individuals who request further contact. Telemarketing efforts that can supply your distributor with telephone qualified sales leads that will culminate in actual purchases.

Internet exposure via a Web page illustrating the features and benefits of your value offer line and that directs visitors to local distributors for further information.
Radio and television advertising that promotes your value offer to potential end users that then contact your COD for additional details and sales information.

Sales and product training programs can be tremendous motivational vehicles, especially when combined with other push strategies.
They instil your distributor salespeople with confidence, thereby making your value offers easier and more comfortable for them to sell.

Initial distributor start up value offer and sales

indoctrination.
Ongoing value offer and sales training

programs.
New value offer launches.
New market penetration.

Overall positioning of your organisation and

value offer line/mix.


Competitive analysis.
Sales skills training. Business management skills training

Rule 1: Be Honest and AccurateEven if It's Painful


Tell the truth consistently, and your distributors

will begin to respect and trust you. When you have bad news, make sure your channel hears it directly from you, not from a competitor or other third party. Share newsgood or badpromptly.

Rule 2: Communicate With Every Level of Personnel to Ensure the Most Complete and Accurate Transmission of Your Channel Information Flow
All of them are your customers. Communicate

with everyone, and you create strong backers who will enthusiastically support your value offer marketing efforts within the distributor's organization.

Rule 3: Consider the Needs of Your Channel Before You Implement New Policies
By all means avoid the "ivory tower" attitude that

factory/manufacturer knows best. Listen to and consider your distributors opinions

4: Use the Channel Telegraph Judiciously


Think through any policy or procedure before it is

implemented. Act incorrectly, and everyone soon knows.

5: Communicate With Other Friendly Channel Marketing Managers in Your Industry or Marketplace
Sharing your insights lets you glean customer and

marketplace trend data that can help you compile accurate sales forecasts, take advantage of market opportunities, guard against glitches, keep up on news of distributors, and gather news of direct competitors.

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