Channels Management of Logistics

Channel Management-Key Decisions Formulating Channel Strategy Designing the Channel Structure Selecting the Channel Members Motivating the Channel Members Coordinating the Channel Strategy with the Marketing Mix Evaluating Channel Members Performance

1.Formulating Channel Strategy The most crucial aspect is the choice of the level of service by which an enterprise might seek to secure competitive advantage. The importance of channel strategy is likely to depend upon the existence of one or more conditions:-

1. Target markets demand a strong emphasis on distribution. 2 1.Target markets demand a strong emphasis on distribution. 2.Competitive parity exists in other marketing mix variables, with the need for channel strategy to provide some differential advantage. 3. Competitive vulnerability exists because of the distribution neglect. 4. Opportunities for synergy exists through channel strategy.

2.Designing a Channel Structure Can we effect distribution better than the intermediaries at an equivalent cost? Can we effect distribution as well as intermediaries at a lower cost?

3.Selecting a Channel Members Consideration need to be given to- Economic criteria Control criteria Adaptive criteria End user considerations Product characteristics Manufacturer’s capability and resources

4.Training the Channel Members Those who will seek mentoring. Training- It is the process providing the intermediaries with the specific skill for performing their task better and helping them to correct deficiencies in their sales performances. Training programmes create a Win-Win situations for both individuals and organizations.

Phases of Developing and Conducting Training Successful program consist of 4 phases- Training Assessment Program design Reinforcement Evaluation

Phases of Developing and Conducting Training Establish Program Objectives Identify who should be trained Training Assessment Identify Training Needs and Specific Goals How much training is needed?

Objectives of Training Program Increased Sales Productivity Improved Self Management Lower Turnover Sales Training Program Objectives Improved Customer Relation Higher Morale Improved Communication

P R O G A M D E S I N Who should do the training? Where should training be done? Content of training Teaching methods used in training program

WHAT SHOULD THE CONTENT OF THE TRAINING BE ? Attitude towards selling and toward training. Knowledge of the company Product knowledge and applications Knowledge of customers Knowledge of business principles Selling skills Relationship-Building Skills