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1、Chapter 12 Channel Situation & Performance EvaluationChannel Performance Evaluation Defined Channel Performance Evaluation The process that the manufacturers objectively examine and evaluate the efficiencies and effects of the marketing channel system by systematical methods. Identifying the tot

2、al sale targetSetting channel evaluation indexSetting performance evaluation system Idenfitying the gap & making a channel behavior planChannel Performance Evaluation Procedure Identifying the operative goal of the enterprise in detail anddecomposing them with a serise of sales goals,such as the

3、corporate goal, the business unit goal and the sale goal. Identifying the total sale targetCPE based on the perspective of SocietyEffectivenessEfficiencyIncentiveProductivityProfitablityDeliveryPerformance Evaluation Equity3E Model by Louis. W. Stern Based on the perspective of the corporate,the man

4、ufacturer could inspect the whole channel chain in four aspects that are the channel management organization ,the channel operating conditions ,the channel service quality and the channel economic effects. The first three are mainly the quality analysis and the last one the quantity analysis based o

5、n the fiance. CPE based on the perspective of CorporateThe channel management organizationInspection on the managersqualities & abilities in the channel systemIn one distribution system, the ratio that the regional managers who have three years working experience with a education diploma account

6、s for is highly positive related with the qualities and abilities of the sale management of the channel oraganization.Inspection on the managers qualities & abilities in the channel systemThe manufacturers must know whether the branch agency has a self-controlled retailing terminal or not.If it

7、does have,the manufacturere must identify the its sales ratio accounting for the locative market.Exterior FactorsInterior FactorsOperating ConditionsConsumer FeaturesNeeds Level Economical ConditionTechnology DevelopmentCompetition PressurePolicy & LegislationMembers QuantityMembers PrestigeCapi

8、tal StrengthMkting AbilityEffortSmoothnessCoverageFlow capability & UtilizationConflictThe Channel Operating ConditionsThe Channel Service Quality EvaluationCustomer complaints handlingPromotion EfficiencyPhysical Distribution EfficiencyInformation CommunicationFinancial Performance Evaluation T

9、he distribution management can evaluate the economic benefits with the five performance evaluation tools. Assets Management AnalysisSales AnalysisMarket Share AnalysisDistribution Costs AnalysisProfitability AnalysisEvaulation of Channel Members FactorsQuantity of channel membersProducts FeatureImpo

10、rtance of the channel membersThe extent that the manufacturers control the channelEvaulation of Channel MembersStandardsSales of the channel membersStocks the channel members are holdingSelling capabilities of the salespersonAttitudes of the channel membersCompetition the channel members are facingG

11、eneral development Prospect of the channel membersPerformance Audting Implementation After setting a series of evaluation standards,the distribution management will evaluate the channel members with them.General Methods Performance Audting ImplementationIndependent Performance Evaluation MethodInfor

12、mal Combination of Multiple criteria evaluation method Formal Combination of Multiple criteria evaluation method Financial Performance Method ofPerformance Audting(Contribution Rate Method)Factors consideredFixed CostVariable CostDirect Cost Indirect CostChannel Warning System Warning SignalsCredit deterioration Bad relationship with the customers Many unoccupied distribution channelsSustainable gorwth of channel costsInertia distributorsBackward custome

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