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Chapter 9

Channel management involves administering distribution channels to secure cooperation from members in achieving a firm's objectives. Motivation refers to actions taken by manufacturers to foster cooperation, with three basic facets: 1) identifying members' needs and problems, 2) offering support consistent with these, and 3) providing leadership through effective use of power. Distributor advisory councils recognize members, provide forums to discuss mutual needs and problems, and improve communications. Support comes in cooperative programs, strategic alliances, and distribution programming covering all channel relationship aspects. Leadership challenges include loose organization, members avoiding direction, lack of single ownership, and unclear hierarchies.

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315 views2 pages

Chapter 9

Channel management involves administering distribution channels to secure cooperation from members in achieving a firm's objectives. Motivation refers to actions taken by manufacturers to foster cooperation, with three basic facets: 1) identifying members' needs and problems, 2) offering support consistent with these, and 3) providing leadership through effective use of power. Distributor advisory councils recognize members, provide forums to discuss mutual needs and problems, and improve communications. Support comes in cooperative programs, strategic alliances, and distribution programming covering all channel relationship aspects. Leadership challenges include loose organization, members avoiding direction, lack of single ownership, and unclear hierarchies.

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sherryl cao
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Chapter 9 Motivating the Channel Members

What is channel management?

Channel management can be defined as the administration of existing channels to secure the
cooperation of channel members in achieving the firms distribution objectives.

What is motivation?

Motivation refers to the actions taken by the manufacturer, producer or franchisor to foster
channel member cooperation in implementing the distribution objectives.

What are the three basic facets involved in motivation management?

1. Finding out the needs and problems of channel members.


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

What are the approaches for learning about members needs and problems?

1. Research studies of channel members


2. Research studies by outside parties
3. Marketing channel audits
4. Distributor Advisory Councils

What is Distributor Advisory Councils?

This council consists of top management representatives from the manufacturer as well as
representatives of the principals from the channel members.

What are the significant benefits of Distribution Advisory Councils?

1. Provides recognition for the channel member.


2. Provide a vehicle for identifying and discussing mutual needs and problems.
3. Results in an overall improvement of channel communications.

What are the three categories of channel member support?

1. Cooperative
2. Partnership or strategic alliance
3. Distribution programming
What is Partnership and Strategic Alliance?

This refer to the type of channel relationship that goes beyond the ad-hoc,on-gain/off-gain
interactions typical of traditional cooperative relationships between the manufacturer and its channel
members.

What is Distribution Programming?

Deals with virtually all aspects of the channel relationship. According to McCammon who
pioneered the concept of distribution, distribution programming is a comprehensive set policies for the
promotion of a product through the channel.

What are other policy options available in making channel policies?

1. Those offering price concessions to channel members

2. Those offering financial assistance

3. Those offering some kind of protection for channel members

What are the challenges in providing leadership to motivate channel members?

1. The looseness of the organization of the many channel system

2. A proclivity by channel members to avoid central direction

3. Lack of single ownership

4. No clear demarcation of a super-subordinate relationship

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