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What decisions do companies
face in managing their channels?
CHANNEL MANAGEMENT
DECISIONS
After a company has chosen a channel
system, it must train, motivate, and evaluate
individual intermediaries for each channel.
1SELECTING
CHANNEL
MEMBERS
Consider the negative impression customers would get if
one or more than one outlets or dealers are dirty,
inefficient, or unpleasant.
2
TRAINING AND MOTIVATING
CHANNEL MEMBERS
CHANNEL POWER :Ability to alter channel members; behaviour so they take
actions they would not have taken otherwise.
CHANNEL PARTNERSHIP : Sophisticated companies try to forge long-term
partnership with distributors.To streamline the supply chain and cut costs,
many manufacturers have adopted efficient consumer response(ECR).
EVALUATING CHANNEL MEMBERS
3
Producers must periodically evaluate intermediaries performance against such
standards as customer delivery time, treatment of damaged and lost goods etc.
MODIFYING CHANNEL DESIGN AND
ARRANGEMENTS
4
CHANNEL EVOLUTION :A new firm starts as local operation selling in a fairly
circumscribed market, using a few existing intermediaries.
5
CHANNEL MODIFICATION DECISIONS
A producer must periodically
review and modify its channel
design and arrangements.
6GLOBAL CHANNEL CONSIDERATIONS
To adapt to European tastes, Philadelphia-based Urban Outfitters blended
American and European looks which helped them to stand out.
TESCO introduced its Fresh and Easy gourmet
mini supermarkets into California after 20
years of research that included spending time
with U.S. families.The retailer had gone
through similar steps before entering China.
Created by NILESH RANA of IIT BHU under the
guidance of Prof. SAMEER MATHUR, IIM
LUCKNOW	

www.iiminternship.com
Thank you !!!

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What decisions do companies face in managing their channels?