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Assignment
On
(i) Motivating Channel Members
And
(ii)Determining the size of Sales force
Submitted by:
Pranav Jain(UM10504)
Nitesh Bhardwaj(UM10503)
Akshey Goel(UM10301)
DATE: -1/12/2014
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offering support to the channel members that matches with their needs and problems.
Cooperative Arrangements
Partnerships & Strategic Alliances
Distribution Programming
1) Cooperative Arrangement:
It focuses on channel member needs & problems. It is a simple & straightforward method that
conveys a clear sense of mutual benefit. It includes:
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3) Distribution Programming:
This method includes comprehensive set of policies for the promotion of a product through
the channel. It develops as a joint effort between the manufacturer and the channel members
to incorporate the needs of both.
Steps for developing a program:
1. Analysis of marketing objectives & the kinds of levels of support needed from channel
members i.e. Ascertains channel members needs & problem areas
2. Formulate specific channel policies that offer:
Price concessions to channel members
Financial advice
Some kind of protection for channel members
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3. Channel power:
It is defined as the ability to alter channel members behavior so that they take actions they
would not have taken otherwise. It becomes sometimes necessary for manufactures to use
such powers to efficiently manage the distribution channel.
Following type of power can be drawn by manufacturer to get continued cooperation:
CORCEIVE POWER
REWARD POWER
The manufacturer offers intermediaries an extra benefit for performing specific acts or
functions.
It typically produces better results than coercive power , but can be overrated.
Intermediaries may come to expect a reward every time the manufacturer wants a
certain behavior to occur.
LEGITIMATE POWER
The manufacturer requires a behavior that is warranted under the contract.
As long as intermediaries view the manufacturer as a legitimate leader, legitimate
power works
EXPERT POWER
The manufacturer has special knowledge that the intermediaries value.
However when expertise passes on to intermediaries this power weakens.
REFERENT POWER
The manufacturer is so highly respected that intermediaries are proud to be associated
with it.
Companies such as IBM, Caterpillar and HP(Hewlett-Packard) have high referent
power
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Motivational tools helps to ensure that channel members give preference to companys
product over competitors product
Motivation plays an important role in winning channel members mind share.
By winning mind share, channel member recommend or actively promote companys product
over competitors product
Improve performance
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Work load approach: This method to determine sales force was given by Philip Kotler and is
as follow:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
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