Managing channel partners - Abhijeet
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This document discusses managing channel partners. It defines channel partners as companies that market and sell a manufacturer's products through a co-branding relationship. It notes that channel partners include distributors, vendors, retailers, and more. It discusses that manufacturers must design suitable channels, select and train intermediaries, and monitor performance over time. It also discusses motivating partners through incentives and managing conflicts between partners. Overall, it states that effective channel management can help companies reach new markets, manage relationships, and maximize return on investment.
Managing channel partners - Abhijeet
- 1. Managing Channel Partners Submitted by :- Abhijeet V. Tiwari PGDM–IB 3rd Sem
- 2. A channel partner is a company that partners with a manufacturer or producer to market and sell the manufacturer's products, services, or technologies. This is usually done through a co-branding relationship. Channel partners may be distributors, vendors, retailers, consultants, systems integrators (SI), technology deployment consultancies, and Value Added Resellers(VARs) and other such organizations. Who are Channel Partners ?
- 3. The firm's marketing department needs to design the most suitable channels for the firm's products, then select appropriate channel members or intermediaries. The firm needs to train staff of intermediaries and motivate the intermediary to sell the firm's products. The firm should monitor the channel's performance over time and modify the channel to enhance performance. 1. Channel Motivation 2. Channel Conflicts Channel Partner Management Process
- 4. Channel motivation To motivate intermediaries the firm can use positive actions, such as offering higher margins to the intermediary, special deals, premiums and allowances for advertising or display.On the other hand, negative actions may be necessary, such as threatening to cut back on margin, or hold back delivery of product. Channel conflict Channel conflict can arise when one intermediary's actions prevent another intermediary from achieving their objectives.Vertical channel conflict occurs between the levels within a channel and horizontal channel conflict occurs between intermediaries at the same level within a channel.
- 5. This Channel Management Process gives companies an opportunity to an organization to evaluate their present strategy , to reach new markets , to cover vast geographical areas , to manage cross channel communication and conflicts as it deals with each and every part of selling process . Distribution of product and services is totally dependent on this. Insight
- 6. Improve the effectiveness of your channel relationships Implement a method to maximize the ROI(Return on investment) from your channel relationships Increase loyalty from your partners Differentiate your organization from your competition Why Channel Partner Management?
- 7. Achieve long-term, win-win channel relationships Reduce overall cost of sales Maximize your return on your investment Increase “mind share” and build partner loyalty Benefits of Channel Partner Management