Managing The Channel Member

Developing the channel design, recruiting intermediaries and inducting them into company are not everyday tasks in channel management. It is the administration and management of the distribution network that constitutes the everyday task here. We shall examine task in detail.

Component Tasks in Managing the Intermediaries

The task of managing a distribution network has several components as shown in the below chart

Determining the Trade Relations Mix: Evidently, developing the trade relations mix is the first task in distribution management As shown in the chart A the trade relations mix or relations between a firm (principal) and its members revolve largely around the following four factors:

• Territory of operation
• Trade margin
• Functions which the channel member has to perform
• Functions which the firm has to perform