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Channel management involves the company selecting, managing and motivating individual channel members as well as evaluating their performance
The company will select channel members according to its year of experience, profitability, product lines, reputation and cooperativeness.
To motivate the channel members, the company will have a jointly planned advertising, promotion and incentives. They will deliver value to customers, have sales training and rewards
Companies will finally evaluate the channel members by checking their sales, growth potential and customer service

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A set of interdependent organisations that make a product or service available for consumption to the consumers

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A layer of intermediary that perform some work in bringing the product closer to the final buyers.
Direct marketing channel means there is no intermediary levels
Indirect marketing channel means there is at least one intermediary channel

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Channel members make it more efficient to make goods available to the final consumers
Marketing intermediaries are tasked to assort the products according to the wants of the consumers
This shortens the time needed for the good to be made available to the final consumers and makes it more convenient for consumers to access the product

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Key functions performed by channel members

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Key functions performed by channel members

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Channel members help complete transaction as well as fulfill it.
Channel members complete transaction by gathering or distributing information, promoting the product, contacting customers, shaping offers to meet the customer's needs and negotiating with the customer
Channel members fulfill transactions by transporting the goods and insuring for finance and risks when transporting the goods

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Agents have wider contacts than sales force
The fixed cost of hiring an agent is less than that of a sales force
The commission for an agent is higher than for a sales force
The firm has lesser control over agents than its own sales force
When hiring agents, a long-term contract is signed whereas for a sales force, the firm can hire and fire them at any time

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The firm ought to access the consumer's convenience factor, buying behaviour and whether or not they want product range and augmented products. This includes if the consumer is willing to travel to get the product or purchase online through phone, mail etc. The consumers may also request for a variety of product and additional services provided together with the product

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The company can hire the following intermediaries
Sales force: a company's own sales force
Agents: External independent firms who handle related products from many companies
Wholesaler: External independent firms who purchase in bulk similar or competing products, store it then resell it
Distributors: External independent firms who purchase in bulk non-competing products, store it then resell it
Retailers: External independent firms who operated in small stores or part of a large chain. The retailer buys the product from the company and sells it directly to the end consumer
The company can choose to distribute the products either intensively(distributing in many outlets), exclusively (distribute to limited outlets) or selectively(in between intensively and exclusively)

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An objective is a goal the channel aim towards. This includes delivery within a specific time
Channel objectives are influenced by the nature of the product: if the product is perishable, the objective would be to deliver it as fast as possible. Channel objectives are also influenced by the manufacturing company's characteristics, channel member's characteristics, the competitor's channel and environmental factors. Some company avoid using their competitor's channel . In addition, during a poor economical environment, companies should consider reducing the channel levels