Page 212 - DMGT408DMGT203_Marketing Management

Unit 9: Managing Marketing Channels

Sales push where the partner addresses its customers directly at the point of sale or Notes
through a direct marketing campaign, for example a partnership with a car rental
company
Promoting value where the value proposition is turned into one that generates
strong customer demand based on the partner’s unique qualities, for example the
partnership between Hypo Vereinsbank and soccer club FC Bayern in Germany
Value push where both partners ‘push’ the unique value proposition into the market,
for example the partnership between Hanse Merkur (eyewear insurance) and
Fielmann (optical store chain) in Germany

Key success factors for partnerships
In these partnerships, it is not enough to find the right partner with the right clientele and
merely offer sales commissions. Successful partnerships depend on creating the right
“trigger points” to entice new customers. The partners must build effective marketing
approaches and thoroughly plan and continuously manage the relationship.
Source: www.atkearney.com

9.1.4 Channel Management Decisions

Once the channel is selected after careful evaluation, the channel manager should develop
channel management strategy for the selected channels. The channel management decisions
involve selection, training, motivation, evaluation and modification of channel members.
Figure 9.2: Channel Management Decisions

Selection of Channel Members

Training of Channel Members

Motivation of Channel Members

Evaluation of Channel Members

Modification of Channel Arrangements

Selection of Channel Members

The ability to recruit and use intermediaries varies from producer to producer. Some powerful
brand owners can always go for stronger distributors and deeper distribution. New producers
often find it difficult to include their product assortments with established retailers. The marketing

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