Channel Management

Channel management is a term which has been revolutionized in the last decade. It has become the the nerves of the business through which the blood i.e. proper functioning flows. no business can now be imagined without managing the channels through which your product goes through and reach the ultimate consumer.
The last partner of your channel is the face of your product and thus satisfying your channel partners is very important for success of your product in the market.The ultimate goal of any organisation is to develop long term relations with the customers which will ultimately lead to success.
Channel Management forms an important part of sales as well as marketing.It is a process which forms a base to develop different marketing strategies to meets its target.It comprises of different individuals or companies which helps you in making you reach your product to the customers.

When a specific channel is formed with formatted path it makes selling and servicing customers easy.If any default arises it is easy to streamline communication between customers and the business managers.This can be done by segmenting your customers based on their needs,preferences,buying patterns etc.When all this is compiled together it leads to formation of process which can be customized according to the goals,policies,sales target,costs,marketing program etc.

There are two goals of channel management
1) to make the channel an open channel so that the customers can have a direct communication in each channel.
this goal is very important as it leads to better understanding of the market and can in real terms decide upon the various channels through which it can reach the customers.
2)   It gives a framework of the channel which can be used efficiently for desired results.When the channel and the segment gets matched it leads to determination of the products which can be best put through these channels.


Components of Channel..

It can include many of the following channel partners: ODMs (original design manufacturers), contract manufacturers, distributors, wholesalers, manufacturer's reps, re sellers, VARs and traditional retailers.

 Manufacturers are adopting specific software and solutions to help gain control over complex channel relationships,marketing programs and sales activities, and also to optimize inventory levels.

It helps to maximize revenues and reduce costs and cycle times.
Optimizing distribution channels helps you build stronger and more profitable relationships while ensuring that revenue leaks are plugged.