MKTG4354 Chapter9:MotivatingtheChannelMembers Motivation:theactionstakenbythemanufacturertofosterchannelmembercooperation inimplementingthemanufacturersdistributionobjectives MotivationManagement: 1. Findingouttheneedsandproblemsofchannelmembers a. Beforethechannelmanagercansuccessfullymotivatechannelmembers, anattemptmustbemadetolearnwhatthememberswantfromthe relationship b. Theymayperceiveneedsandfaceproblemsquitedifferentlyfromthose ofthemanufacturer c. Additionalapproachesforlearningaboutchannelmemberneedsand problems: i.

i. Researchstudiesofchannelmembersconductedbythe manufacturer ii. Researchstudiesbyoutsideparties iii. Marketingchannelaudits iv. Distributoradvisorycouncils:shouldconsistoftopmanagement representativesfromthemanufacturerandprincipalsfromthe marketchannel 1. Recognitionforthechannelmembers 2. Identifyinganddiscussingmutualneeds/problems 3. Improvementofchannelcommunications d. Themanufacturermaywanttogatherdatafromchannelmembersonwhat theirneedsandproblemsareinareassuchas: i. Pricingpolicies,marginsandallowances ii. Extentandnatureoftheproductline iii. Newproductsandtheirmarketingdevelopmentthroughpromotion iv. Servicingpoliciesandproceduressuchasinvoicing,orderdating, shipping,warehousingandothers v. Salesforceperformanceinservicingtheaccounts 2. OfferingSupporttoChannelMembers a. Supportforchannelmembersisoftenofferedonadisorganizedandad hocbasis b. Ifsuchsupportisproperlyapplied,itshouldhelptocreateamorehighly motivatedgroupofchannelmembers c. Cooperativearrangementsbetweenthemanufacturerandchannel membersatthewholesaleandretaillevelshavebeenusedasthemost commonmeansofmotivatingchannelmembers d. Partnerships/StrategicAlliances:stressacontinuingandmutually

supportiverelationshipbetweenthemanufactureranditschannelmembers inanefforttoprovideamorehghlymotivatedteam e. DistributionProgramming:mostcomprehensiveapproachforachieving ahighlymotivatedchannelteamacomprehensivesetofpoliciesforthe promotionofaproductthroughthechannel i. Firststepisananalysisbythemanufacturerofmarketing objectivesandthekindsandlevelsofsupportneededfromchannel memberstoachieveobjectives ii. Allpolicyoptionscanbecategorizedintothreemajorgroups: 1. Thoseofferingpriceconcessionstochannelmembers 2. Thoseofferingfinancialassistance 3. Thoseofferingsomekindofprotectionforchannel members 3. ProvidingLeadershiptoMotivateChannelMembers a. Evenifthechannelmanagerhasdevelopedinexcellentsystemfor learningaboutchannelmembersneedsandproblems,controlmuststillbe exercisedthrougheffectiveleadershiponacontinuingbasis b. Seldomisitpossibleforthechannelmanagertoachievetotalcontrol,no matterhowmuchpowerunderlieshisorherleadershipattempts c. Theinterorganizationalsettingofthemarketingchannelcreatesasetof conditionsthatmakesstrongleadershipmoredifficulttoachieve i. Particularlythecaseinchannelsthathaveevolvedasagroupof looselyalignedfirms Regardlessofwhichapproachthechannelmanagerusestomotivatechannel members,leadershipmuststillbeexercisedonacontinuingbasisifthemotivation programsaretooperateeffectivelyandviably.