10.4: Channel Management Decisions

Question 1

What are the key aspects of marketing channel management?

Answer 1

The key aspects of marketing channel management are selecting, managing, and motivating individual channel members and evaluating their performance over time.

Question 2

What factors should a company consider when selecting intermediaries?

Answer 2

When selecting intermediaries, a company should consider factors such as years in business, other lines carried, location, growth and profit record, cooperativeness, and reputation.

Question 3

How do companies manage and motivate channel members?

Answer 3

Companies manage and motivate channel members by

treating them as first-line customers and partners,

practicing strong partner relationship management,

forging long-term partnerships with them,

and working closely together to create a cohesive value delivery system that benefits both parties.

Question 4

What is the purpose of partnership relationship management (PRM) systems?

Answer 4

The purpose of partnership relationship management (PRM) systems is to coordinate whole-channel marketing efforts by helping companies recruit, train, organize, manage, motivate, and evaluate relationships with channel partners, similar to how customer relationship management (CRM) software systems manage relationships with important customers.

Question 5

What factors should a company consider when evaluating channel member performance?

Answer 5

A company should consider factors such as

sales quotas

average inventory levels,

customer delivery time,

treatment of damaged and lost goods,

cooperation in company promotion and training programs,

and services to the customer when evaluating channel member performance.