Motivating Channel Members PDF

**CHAPTER Seven** **MOTIVATING THE CHANNEL MEMBERS** A fundamental part of channel management is that of motivating the channel members. The three facets of motivation in the channel Mgt. are: A. Understand the needs and problems of the channel members, B. Developing programs to support their...

**CHAPTER Seven** **MOTIVATING THE CHANNEL MEMBERS** A fundamental part of channel management is that of motivating the channel members. The three facets of motivation in the channel Mgt. are: A. Understand the needs and problems of the channel members, B. Developing programs to support their needs, and C. Providing leadership. Good channel support programs require careful planning and fall into three areas: cooperative agreements, partnership and strategic alliances, and distribution programming. Leadership must still be exercised on a continuing basis if motivation programs are to operate effectively and viably. Channel management: "The administration of existing channels to secure the cooperation of channel members in achieving the firm's distribution objectives." First, channel management deals with existing channels. Channel design decisions are therefore viewed as separate from channel management decisions. Secondly, the phase secure the cooperation of channel members implies that channel members do not automatically cooperate merely because they are members of the channel. Administrative actions are necessary to secure their cooperation. Third, the term distribution objective is equally relevant for channel management. Carefully delineated distribution objectives are needed to guide the management of the channel. One of the most fundamental and important aspects of channel management is motivating the channel members. **Definition Motivation** Motivation: Refers to the actions taken by the manufacturer to foster channel member cooperation in implementing the manufacturer's distribution objectives. There are three basic facets involved in motivation management: - Finding out the needs and problems of channel members - Offering support to the channel members that is consistent with their needs and problems - Providing leadership through the effective use of power finding out the Needs and Problems of Channel Members Before the channel manager can successfully motivate channel members, an attempt must be made to learn what the members want for the channel relationship. Manufacturers are often unaware of or insensitive to the needs and problems of their channel members. 2. **Approaches for Learning about Channel Member Needs and Problems** All marketing channels have a flow of information running through them as part of the formal and informal communications systems that exist in the channel. Ideally, such systems would provide the manufacturer with all of the information needed on channel member needs and problems. However, most marketing channel communication systems have not been formally planned and carefully constructed to provide a comprehensive flow of timely information. **Ways of Motivation** 1. **Cooperative Arrangements:** Cooperative arrangements between the manufacturer and channel members at the wholesale and retail levels have traditionally been used as the most common means of motivating channel members**.** The underlying rationale of all such cooperative programs, from the manufacturer's point of view, is to provide incentives for getting extra effort from channel members in the promotion of the products 2. **Partnerships and Strategic Alliances** Partnerships or strategic alliances stress a continuing and mutually supportive relationship between the manufacturer and its channel members in an effort to provide a more highly motivated team, network, or alliance of channel partners. Webster points to three basic phases in the development of a "partnership" arrangement between channel members. - An explicit statement of policies should be made by the manufacturer in such areas as product availability, technical support, pricing and any other relevant areas. - An assessment should be done of all existing distributors as to their capabilities for fulfilling their roles. - The manufacturer should continually appraise the appropriateness of the policies that guide his or her relationship with channel members. 3. **Distribution Programming:** Distribution programming: "A comprehensive set of policies for the promotion of a product through the channel." The essence of this approach is the development of a planned, professionally managed channel. The first step in developing a comprehensive distribution program is an analysis by the manufacturer of marketing objectives and the kinds and levels of support needed from channel members to achieve these objectives. Further, the manufacturer must ascertain the needs and problem areas of channel members. Nevertheless, virtually all of the policy options available can be categorized into three major groups: a\. Those offering price discounts to channel members b\. Those offering financial assistance c\. Those offering some kind of protection for channel members **4. Providing Leadership to Motivate Channel Members** Control must still be exercised through effective leadership on a continuing basis to attain a well-motivated team of channel members.