2. • Analyze The Customer
• Immediate Purchaser vs Ultimate User
• Establish The Channel Objective
• Risk/Reward vs Strategy/Goals
• Specify Distribution Tasks
• Cooperation vs Delegation
• Evaluate And Select Intermediaries
• Intense vs Selective vs Exclusive
• Evaluate Channel-Member Performance
• Review/Reward vs Restructure/Replace
The Process
(Hiam, A., & Rastelli, L.
G. (2007). )
3. • User
• High Expectations
• Highly Demanding
• Researches Options
• Reviews Retailers
• Purchaser
• Direct Channel = Ultimate User
• Retailer
• Wholesaler
• Middleman
Immediate Purchaser vs Ultimate User
4. • Channel Objectives
• Takes Precedence over Long-term Goals and Strategy
• Growth Oriented
• Co-Operative Effort
Risk/Reward vs Strategy/Goals
5. • Interdependency not Independency
• Institutions not Individuals
Cooperation vs Delegation
6. • Intensity and Excitement = lower retail but more possibility.
• Selective and Exclusive = Higher margin of quality and
profitability but less exposure and smaller consumer pools.
Intense vs Select vs Exclusive
7. • The Channel-Management Process is an involved one
• Channel-Management Process is continuous
• Requires constant monitoring and reappraisal
Review/Reward vs Restructure/Replace
8. • (2016, April 7). Retrieved from Economic Times:
http://economictimes.indiatimes.com/c/channel-management/articleshow/51724713.cms
• Hiam, A., & Rastelli, L. G. (2007). Marketing. (B. Tripmacher, Ed.) Hoboken, New Jersey, US:
John Wiley & Sons, Inc. Retrieved 4 23, 2016
References
Editor's Notes
The Channel-Management Process, “is defined as a process where the company develops various marketing techniques as well as sales strategies to reach the widest possible customer base. The channels are…ways or outlets to market and sell products…ultimately to develop a better relationship between the customer and the product.”(economictimes.com,2016)
Knowing who your customers are is vital in the success of any business. No buyers = No sales. The best products in the world will still end up on a discount rack if its not directed towards the appropriate audience. Ice cubes wouldn’t sell well on Antarctica, but fleece gloves would probably never stay stocked. If we aren’t very specific about who, when and where we advertise our customer base will probably not buy for a hand full of reasons.
Lack of Advertising may leave your product on a shelf with hordes of similar products; out of sight out of mind. Yet according to a business model and long-term goals laid out previously, our product should be on that shelf with all the similar products so that consumers have options. Conflicting with all our planning, Channel-Management bullies its way to the top, landing our new product on an end cap with a lot more exposure to the public. This co-operative, you pat my back and I’ll pat yours, Is exactly what has kept small business around the world open for business.
Now I’m saying that it cant be done by a few friends or an isolated channel of Independents. Team-work, collaboration, the collections of Invested businesses; the benefits of experience and wisdom is priceless. Especially considering Channel Management is possibly the most costly to implement but done properly, pays for itself time and time again.
We’ve established the fact that solo probably isn’t the best way to go. Now we’re left with a stack of options of who to Bring onboard is as important as what they could possibly bring to the collective Channel. Each of our three options, Intense, Selective or Exclusive each has its share of bonus and bogus points but the wrong approach could be the end of our channel or the start of a corporation.
Finally no system is without it’s share of ups and downs, The Channel-Management Process simply checks and rechecks the steps over and over. Ultimately funneling products from manufacturers to consumers directly or by committee with as few steps as possible. This helps keep quality products affordable when in todays market so many imitators rule the shelves.
