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1、Chapter 7Channel Policy & Participants MotivationTeoretical basis of Motivation Motivation Refers to how to get people more involved in their work based on the human behavior rule.Motivator and motivated people Mcvey (1960) published his essay - Are the channels of distribution what the textbook

2、s says? - on Journal of marketing ,which listed three reasons to explain it.Identify the Needs & Problems of Channel parcitipants Method to identify the needs & problems of channel parcitipants Channel participants study conducted by the manufacturer Outsourcing the channel participants stud

3、y to external agent channel auditingChannel AuditingFranchiser Consultant CommitteeSignificance of Channel Participants IncentiveSale TimeSale SpaceInformation CollectionInformation TransmissionMethod to Motivate Channel ParticipantsBrand and Product MotivationMaterial Motivation Participation Motiv

4、ationSpiritual Motivation) Up-growth MotivationDirect motivationIndirect motivationRebate Policy:criteria/form/timePrice Discount:amount/grade/ cash/season Promotion:goal/content/time/ expense/assessmenthelping franchiser with customer and inventory managementhelping the retailers with terminal mana

5、gement delegating the managers Methods of Channel Incentive Mutual communication Assist & Support Assist & SupportSupply channel participants with the newest products or service To show understanding of the difficulties the channel participants encounterProvide support for management philoso

6、phy & management practice Show the middle and long-term development plan of the enterprise to the channel membersFrequently exchanging operation opinion& providing operation advice Provide culture-building experience of the enterpriseRegular private contact of higher-level or middle-level ma

7、nagementConcerted effort in channel work planning, source of goods coordination & promotionProvide suggestion for products innovation or products selling knowledge Regular information exchangeBear long-term liability(higher exclusive property devotion) Provide advertising or promotion support Fr

8、equent negotiation mechanismHolding channel participants meeting periodically Personnel training Concern about channel members suggestion for channel staff in the enterprise Financing support Intensity &Effect of IncentiveUsually franchisers assess the manufacturers from the aspects listed get b

9、est-seller or notget low price or notget huge profits or notget goods distributed in advance or not get ad support or notprestige of the manufacturerget training or not can fully display its ability or notCase Study A Sanjiu Refined Chemical Co., Ltd. is a core enterprise ,which afiliated to Sanjiu

10、Group, with three main product categories involed in household , individual and car care. Because of failing to make CRM norms,it treated the more than 1000 wholesellers equally ,regardless of its size and sales,which dampened the enthusiasm of the large customers. The company began to treat the who

11、lesellers diffirently through the adjustment.It will help to train the backbone salesmen,build 15 image counters in its shopping center and provide at least 15 salesgirls for wholesellers grades as AAA with annual sales of more than 4 million. But for A,it just provide only one assistant. Case Study

12、 B In 2000 ,Kodak launched its China investement plan with 1.2 billion dollars. Faced with the small locative entrepreneurs,it promises to buy their equipment with 99, 000.Now there are more than 5600 branch stores in 250 cities In 2019 ,Hualong launched its 100 millionaires plan. Easy to be a boss

13、with only 100,000Case Study CIncentives for the wholesalers Channel Participants Incentives by a beer manufacturerProviding a foreign trip for those who have completed annual sales indexGiving 4% of actual sales to those whose annual sales reaching 1,20 0,000 boxes by the end of settlementGiving 3% of actual sales to those whose sales reaching 200,000 boxes with a timely settlementIncentives for the retailersGiving 3% of actual sales to those who complete the annual sales with a timely settlementIncentives

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