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Establishing Channel Relationship

Establishing Channel Relationship Assignment / Homework Help
When a marketer decides to include channel members in the distribution chain of his product the first and foremost step is to convince the resellers to handle his product. He has to take care of the needs of the channel members along with the needs of his consumer, giving equal importance to both. The needs of the channel members are very different from those of the consumers. The resellers always look for products which they feel will interest their consumers.

Apart from this there are several other issues which are the following:

  • Delivery
  • To avoid the situation of inventory out-of-stock the resellers always expect the marketer to deliver product in-time and in good condition.

  • Profit Margin
  • The resellers will handle a marketer's product only when he can make some profit out each product being sold. The difference or margin between the cost for acquiring the product from the supplier and the price at which the product is sold to the end user should be sufficient to reach their profit objectives.

  • Other incentives
  • The resellers are often on the lookout for other incentives which will lure them into handling a manufacturer's product, specially, in cases where the reseller is putting in extra effort for the sale of the product. These other incentives may include additional free products, free trips or bonuses for reaching sales targets.

  • Packaging
  • Resellers are very particular about packaging of the products as good packaging ensures product safety. Along with safety packaging should also keep in mind the reseller's storage capacity and convenience. The product should be easily storable on his store's shelf. The shipping package should be easily storable in his warehouse or receiving dock area. Also identification tags on the products add to the reseller's convenience as it helps in easier inventory tracking.

  • Training
  • The reseller might need to be trained about certain product to satisfy consumer queries. He might be needed to demonstrate the product in front of potential buyers. In such cases the reseller needs to have a strong knowledge of the product.

  • Promotional Help
  • The marketer's help in promoting his product might be sought by the reseller. This may be in the form of funds for advertising, promotional product materials or product demonstrations for the store.

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