motivation of channel member

8/3/2019 Motivation of Channel Member

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Rishabh Parekh

60243



The administration of existing channels toserve the cooperation of channel members in

achieving the firm’

s distribution objectives.

Motivation refers to the actions taken by themanufacturer to foster strong channelmember cooperation in implementing themanufacturer ’ s distribution objectives.



Finding out the needs and problems of channel members

Offering support to the channel membersthat is consistent with their needs andproblems

Providing leadership through the effectiveuse of power



Research studies of channel members

Research studies by outside parties

Marketing channel audits

Distributor advisory councils



Cooperative

Partnership or strategic allianceDistribution programming



A continuing and mutually supportiverelationship.



A comprehensive set of policies for thepromotion of a product through the channel.

The development of a planned, professionallymanaged channel.



The looseness of the organization of manychannel systems

A proclivity by channel members to avoidcentral direction

Lack of single ownershipNo clear demarcation of a superior-subordinate relationship



Push Strategies

Pull Strategies

Sales and Product(Value Offer) Training

Here are a few waysto give your new

relationship a positivefoundation.

Guidelines for Channel

Partnerships



Introduce the distributor to yourcustomers . Use press releases and other

publicity vehicles to let the world know thatyour value offers can now be purchased fromthis source.



Help the distributor take over existingaccounts . Go along on sales calls to your

biggest end user accounts to help establishthe distributor as the sources for your valueoffer or service.

Turn over any contracts or leads from thenon-functioning distributor to the presentone.



Build confidence with easy assignments. Letdistributors start by selling value offers that areeasy to sell and accounts that are easy to close.As they succeed, add in more complex valueoffers and accounts.

Provide enough product samples, literature,price sheets, and other collateral material for allof the distributor's sales personnel.



Schedule factory visits and joint sales calls tobuild enthusiasm among the ranks.

Conduct as much intensive, on-site andcustomer-call product training as thedistributor allows.

Give plenty of positive feedback on their work.



A push strategy is any marketing activity thatentices your COD to sell your value offers

rather than those of other manufacturers thechannel represents. In other words, thesetypes of promotions push your value offerthrough the channel. Push strategy examplesare:



Travel incentive programs that award an all-expense-paid trip to a domestic or foreign

destination for meeting a quota during aspecified period of time.

Merchandise programs that rewardsalespeople for performance with items suchas televisions, sporting goods, clothing andgourmet foods.



Training programs that increase thedistributor salespeople's comfort level with

your value offers, thereby making it easy tosell the value offers to their customers andreap compensation (commission, bonus)accordingly.



Monetary SPIFFS (special promotionalincentive factory funds) that draw specific

attention to certain models or groups of unitsin your value offer line.

Local COOP advertising efforts (direct mail,exhibitions, space advertising) that producelocal market quality sales leads thatmaterialize into real purchases.



Special discounts or allowances that drawspecial attention to your value offer line

through a limited-time offer. For example amanufacturer might announce that, for thenext sixty days, its channel will receive anadditional 10 percent discount off the bestpublished price on any order.



A pull strategy motivates the end user toapproach your channel of distribution and

"call out" for your value offer . . . Pull strategyexamples are:



Space advertising in leading publicationsthat generates qualified customer inquiries

that produce actual purchases of your valueoffers.

Media releases announcing new value offersor features, which cause potential end usersto request further information or ademonstration from your distributor.



Rebate programs offering a limited-time,factory-issued cash rebate to end users that

purchase your value offer form your channelof distribution.

Exhibitions where end users spend time inyour exhibit booth expressing an interest inyour displayed value offer line.



Internet exposure via a Web page illustrating the features and benefits of your

value offer line and that directs visitors tolocal distributors for further information.

Radio and television advertising thatpromotes your value offer to potential endusers that then contact your COD foradditional details and sales information.



Sales and product training programs can betremendous motivational vehicles, especially

when combined with other push strategies.

They instil your distributor salespeople withconfidence, thereby making your value offerseasier and more comfortable for them to sell.



Initial distributor start up value offer and salesindoctrination.

Ongoing value offer and sales trainingprograms.

New value offer launches.

New market penetration.



•Overall positioning of your organisation andvalue offer line/mix.

•Competitive analysis.

•Sales skills training.

•Business management skills training



Rule 1: Be Honest and Accurate —Even if It'sPainful –

Tell the truth consistently, and your distributorswill begin to respect and trust you. When you havebad news, make sure your channel hears it directlyfrom you, not from a competitor or other third

party. Share news —good or bad —promptly.



Rule 2: Communicate With Every Level of Personnel to Ensure the Most Complete and

Accurate Transmission of Your ChannelInformation FlowAll of them are your customers. Communicatewith everyone, and you create strong backers whowill enthusiastically support your value offermarketing efforts within the distributor'sorganization.



Rule 3: Consider the Needs of Your ChannelBefore You Implement New Policies

By all means avoid the "ivory tower" attitude thatfactory/manufacturer knows best. Listen to andconsider your distributor’s opinions



4: Use the Channel Telegraph Judiciously

Think through any policy or procedure before it isimplemented. Act incorrectly, and everyone soonknows.



5: Communicate With Other Friendly ChannelMarketing Managers in Your Industry orMarketplace

Sharing your insights lets you glean customer andmarketplace trend data that can help you compileaccurate sales forecasts, take advantage of market opportunities, guard against glitches,keep up on news of distributors, and gather newsof direct competitors.

motivation of channel member

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