6.5 Channel Management Decisions

	Just as in other management practices, channel management requires identifying, organizing, motivating and evaluating the performance of channel members for a better outcome.
	Identifying and selecting Channel Members

		The issue of identifying channel members can take two dimensions.
		The first dimension is that a renowned producer will get intermediaries lining up to be its distributors, when the need arises.
		Here the company will try to identify the best distributor and engage it with the task of selling the product.
		Some companies can have many distributors to their clients.
		The second dimension is that a company tries to line up for the qualified distributors or normal intermediaries for a certain product.
		In this situation, a product of the company might go through other intermediaries to get their product sold and attain the sales and profits expected more than in the normal intermediaries.

6.5 Channel Management Decisions

Managing and Motivating Channel Members

		Identifying and selecting intermediaries only is not enough for the continuing survival and success of the company.
		There is always the need to manage and encourage channel members through motivations and incentives to carry out their duty amicably and successfully to the expected level and beyond.
		Companies that establish good relationship and recognise intermediaries as partners are likely to attain their goals more than companies that treat intermediaries as ordinary second or third parties.
		Partnership management approach could deliver value to the customer easily and at affordable prices.

Evaluating Channel Members

		The essence of evaluation of channel members is to make sure they follow standards, serve the clients well, reduce and minimize damages, report the unsold inventories, signal the need of the markets etc.
		Evaluation also allows companies to reward the good performer so as to motivate them and encourage the underperforming channel members to work hard as well.