This presentation describes the best and the worst strategies that one can deploy and the best practices you should implement. http://triad01.com/channel-management.php

1. The Good, the Bad
and the Ugly
3 Types of Channel Management Strategies

2. What is a Channel?
• A ‘Channel’ is the pathway through which
goods flow from the Manufacturing
Company to the End Consumer

3. What is Channel Management?
• Channel Management is finding and managing Partners to ensure a
continued supply of goods from the Company to its Consumer.
• A good Channel Strategy takes into account Competing Products,
Supply Chain health, Budget constraints and Partner Relationships.

4. Constraints of Channel Strategy
• The Goal of a Channel Strategy is to maximize Channel Sales with
the least possible expenditure of Resources.
• Available resources Finite. They are:
1. Budget
2. Manpower
3. Time Allocation
4. Merchandise and POS Material

5. Maximizing Returns
– The Crossroad
• Organizations need to ask themselves what’s more
important at any given point in time.
• Short Term goals include Quarter Sales and Cost-
Saving.
• Long Term goals include a Sustained Partner
Relationship and a well-trained Field Force
• Companies can only invest so much into one area at a
given time.

6. Effective Channel Management
• Good Channel Management is investing carefully in the
Present, by reviewing Past Performance and taking into
account Future Goals.
• A very Short-Term strategy would be to invest heavily in
Incentives and not invest in Partner Training.
• A very Long-Term strategy would be to invest exclusively
in Merchandise and not in Field Force Incentives.
• Both are extremes which should be avoided

7. The Good and the Bad
• Consistent Returns in Sales
over 1-5 years
• Mixed use of Resources
• Changing Resource Allocation
Good Channel Strategy Bad Channel Strategy
• Consistent Under-achievement
of forecasted numbers
• Uneven use of Resources
• Inflexible Resource Allocation

8. The Ugly
• Erratic Achievement
• Usually Un-changing
use of Resources
• Usually Rigid
Resource Allocation

9. Conclusion
“You can please some of the people all of the time, you
can please all of the people some of the time, but you
can’t please all of the people all of the time”
-John Lydgate
•It’s important to be versatile in employing the right Channel
Strategy.
•Different methods work for different companies and different
conditions.
•Expertise is knowing which works when.

10. Conclusion
“You can please some of the people all of the time, you
can please all of the people some of the time, but you
can’t please all of the people all of the time”
-John Lydgate
•It’s important to be versatile in employing the right Channel
Strategy.
•Different methods work for different companies and different
conditions.
•Expertise is knowing which works when.