Samenvatting

Managing the channel network brings challenges each distributing manufacturer will have to face business life. As the ultimate goal of both manufacturer and intermediaries is to maximize their profitability in the market, it takes mutual understanding and serious devotion, close teamwork and effective communication for its achievement. The third parties' motivation to actively market a relevant product is greatly dependant on its relations with the manufacturing company. This means that the manufacturer is to incessantly nurture the relationship by encouraging and stimulating the intermediary to continue believing in the great benefits of their collaboration. One of the aspects that define a healthy relationship is a satisfactory customer service, where channel partners are provided with personal attention, rapid and effective assistance concerning questions, support and other issues. Moreover, the communication with and through the channel should be of optimal level, consisting of a constant and transparent flow and exchange of information from and to the channel partners.

Numerous factors can decrease the motivation of the channel. Businesses should prevent in any way for their channels to reach this stage, because the consequences will directly affect them. An optional choice to keep the channel motivated is Deal Registration Programs. Through these programs conducted by the manufacturing company, channel partners are provided with unique opportunities for realizing one or more deals in a pre-defined period of time. The deal contains, among others, detailed information about the number and type product and financial objectives that need to be accomplished within a specific time frame. Specific requirements are set, determent whether a channel member is eligible to apply for such programs. In most cases, the latter has been delivering a satisfying performance in the sale of a product and is rewarded with a membership into the programs. In other words, the programs are accessible only to the elite group of the distribution channel. Deals are time- defined and never ongoing. Vendors that have achieved the agreed objectives can either extend their deal program with a maximum of a year or re-register for a new deal. Successful vendors are rewarded with incentives, marketing funds, (fixed) discounts, or additional margin points for the deal but always in proportion with the performance of the vendor. Not only will there be a closer work relation, better communication and trust between parties; most importantly, businesses will be fully benefiting their channels because of a motivated and sales-driven network.