CHANNEL MANAGEMENT

Prepared By,Sagar Gadekar

FACTORS AFFECTING CHANNEL SELECTION Product Characteristics.

i. Purchase Frequency.ii. Perishability.iii. Weight and Technicality of Product.iv. Selling Price Per unit.v. Standardized Products or Ordered Products.

FACTORS AFFECTING CHANNEL SELECTION Market factors or Consumer Factors.

I. Consumer or Industrial Market.II. Number of Purchaser.III. Geographical Distribution.IV. Size of Orders.V. Policies of competitors.VI. Customer Buying Habits.

FACTORS AFFECTING CHANNEL SELECTION Company or Enterprise Factors.

I. Financial Resources.II. Size of Company.III. Product Mix.IV. Attitude of Company Executive.V. Marketing Policies.VI. Marketing Experience and Managerial

Ability.VII. Goodwill of Enterprise.

FACTORS AFFECTING CHANNEL SELECTION Middlemen Consideration.

I. Services provided by Middlemen.II. Attitude of Middlemen.III. Availability of Middlemen.IV. Sales Volume Potential.V. Channel Conflicts.

FACTORS AFFECTING CHANNEL SELECTION Environmental Factors.

I. Economic Consideration.II. Legal Restriction.III. Social and Ethical Consideration.

CHANNEL CONFLICTS. Types of Channel Conflicts.

1. Vertical Level Conflicts.2. Horizontal Level Conflicts.3. Multi Channel Level Conflicts.

NATURE AND CAUSES OF CONFLICTS Goal Incompatibility.

Role Ambiguity.

Difference in Perceptions of the Market.

MANAGING THE CONFLICTS.

Communication.

Dealer Councils.

Super ordinate Goals.

Arbitration and Mediation.

NEGOTIATION AS A MECHANISM FOR RESOLVING CONFLICTS. Negotiation strategies.

A. Competitive Or Aggressive.B. Collaborative or Problem Solving.C. Compromise.D. Avoiding.E. Accommodating.

CHANNEL PERFORMANCE EVALUATION. The frequency of channel members

evaluation is based on number of factors like.i. The degree of manufacturer has on channel

members. It is obvious that the evaluation can only be done on channel members who are on contract with the company like C&F agents and distributors. There is no way that freelance or independent channel members like wholesalers will accept any evaluation from the company.

ii. The nature of products.iii. The number of channel members.iv. The category of the channel members.

THANK YOU.