Channel management is an important subject which could not be ignored by the manufacturers from various sectors. For some sectors (particularly the retail business), the channel functions gradually become to the rival of the manufacturer, or has more leading powers (such as price setting), while for the other sectors, the development and expansion of channel are very immature, so that the relation between channel and manufacturer is unclear. Also, for some enterprises which are focused on direct sale, they have realized the limitations of their business mode, so as to develop the channels in a large scale.
Digitized channel distribution or selection system
The channel management personnel in the enterprise have to spend 1/3 of working time on developing the channels and maintaining the channel relations. For the new enterprises or enterprises with fast growth, it is important and critical to develop the channels. It should be put into the first place of agenda Here, the channel development should be focused on the distribution/selection of channel, which is directly related to the key items of channel such as marketing investment, annual business achievement and performance assessment. The distribution and selection of channel are both perceptual and rational. Perceptual section: the marketing channel may be a kind of relationship marketing (particularly for commercial products and services); also, the enterprise’s channel management mainly depends on the relationship management. Rational section: the enterprise should plan the channel coverage rationally, so as to avoid the bad conditions more or less.
Digitized channel management system
After the channel is developed, the channel management at the next stage will become more arduous. A typical channel management system shall at least including the factors as below: financial credit management, channel-related commercial management, channel-related sales management, channel-related market management, channel-related service management, channel-related inventory management, channel-related client management and commercial decision-making management. Also, for the special sectors, the channel management factors with industrial characteristics will be available such as the secondhand car channel management and component management in the automobile industry; channel funds or cash back management in the IT industry. Such management-related systems, regulations, rules and procedures should be classified, implemented and fulfilled through a set of perfect channel management system.
Digitized inventory management system
Currently, both the market price and original cost become more and more transparent. The channel-oriented supply chain management has been turned into the focal point competed by many enterprises. So, there is no wonder that for the latest finance management concept, the supply chain management has become the third largest profit source besides sources broadening and withholding, while the inventory management is the critical point of the supply chain management.
Digitized marketing management system
As another key point of channel management, marketing support & management will support the channel substantially in terms of marketing and be fully reflected through the channel performance, channel marketing support, channel sales support, channel sales encouragement/client data acquisition and sales clue digging.
Digitized marketing supervision system
Besides offering the support for channel management, the enterprise should also take some measures to achieve the remote supervision and monitoring on the channel. For example, the “Carrot-and-Stick Policy” is adopted, so as to realize the completeness and systematicness of channel management.
Digitized commercial decision-making system
Generally speaking, as the enterprise’s business develops to certain level as well as the business system and data accumulation are available, the commercial decision-making system and supporting system (commercial intelligence system & commercial intelligence center) shall be established. The database at the enterprise level (or data market at the department level) could be set up through the extraction of relevant data stored in the enterprise’s different commercial systems as well as by means of ETCL mode. Then, the statements and OLAP could be adopted to guide the specific business, or based on the built-in data digging module, the relevant commercial theme model could be established to assist the management’s decision-making in a more accurate way.
Author: Tiger Li, Director of Marketing & Product development, Business Decision Solution, Sinotrust Automotive Marketing Solutions
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