Role of the Channel

Manager in Channel
Management:

AKDC
Roles of Channel Manager inculdes:

• Formulating firm’s channel strategy

• Designing marketing channels

• Evaluate and Select among Channel Alternatives

• Motivating and coordinating channel strategy with channel members

• Evaluation of Channel Member Performance

• Managing conflict
Formulating channel strategy

To achieve any or combination of the following with an aim for sustainability :

1. Monetary target- Weekly, monthly and annual profitability target

2. Growth in Sales volume target

3. Maintenance or improvement in market share

4. Expansion- through own Warehouse or distributor or ecommerce or modern retail formats

etc

5. Increase the Availability and Visibility of the product to larger population

6. Setting up policies
Designing marketing channels

It is based on when, where, why and by whom the products will be used and to

improve the customer consumption:

• Customer benefit approach: focus on consumer benefits- Cost, Profit and Service

• Product approach: focus on physical elements of products

• Referral approach: focus on third party recommendations

• Introductory approach: focus on Company and sales person.

Evaluation and Selecting Channel Members

Following criteria is evaluated to select the channel members

• Financial solvency

• Prior experience in distribution business

• Good reputation in the market

• Market knowledge and involvement

• Adequate and experienced staff

• Infrastructure and logistics

• Distributors personal involvement

Motivating and coordinating channel strategy with
channel members

Motivation can be in terms of

• Monetary- better margins, discount schemes, incentives on achieving targets
• Support- market research information, sales training, promotional activites

Coordination
The aim is to agree on common terms to achieve set targets or higher profits
• Fulfill all of the committed sell-through programs submitted by Channel Sales.
• Ensure that all stores are properly merchandised and detailed.
• Help coordinate the annual reseller conference.
• Help manage the reseller training and certification program.
• Maintain communication between the company and the resellers via E-mail, the Web site, and
letters.  Also help with contest and promotions.
Evaluation of Channel Member
Performance
The following are considered for channel members with review of the following:

• Market share acquired

• Current sales compared to historical sales

• Comparison of sales with other channel members

• Maintenance of adequate inventory level

• Selling capabilities

• Attitude of channel members towards a product

• Display and visibility status

Managing conflict
Here, it is necessary to be proactive as to how to resolve in times of a
conflict
• Channel audit committee- through periodic evaluation by channel
manager on emerging problems and provide crisis management
forum
• Joint goal setting- goals set by both firm (channel manager) and the
channel members
• Distribution executive- applicable to large firm. Appointing an
individual with responsibility for exploring distribution related
problem