Channel relationship management

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channel relationship management

Alternative terms for marketing channel include ' distribution channel ' or . Overall, the management of channel partnership relationships as well as the. We explore what makes partnership relationship what it is as well as defining it. Often referred to more generically as Channel Management. The Impact of Channel Relationship Management on the Channel Partners of Telecom Industry- A Case Study of Reliance Communications in Western Uttar.

Producers may have the choice of utilizing a direct channel to approach the ultimate customers but indirect channel of distribution has its own importance.

These challenges have made the companies to focus on their core competencies and core processes and on the other hand outsourcing the sub-processes. Due to this, partner relationship management PRM as a relationship building and maintaining concept between manufacturer and its channel partners has emerged.

Understanding Partner Relationship Management (Chapter 2) R13 (update 18B)

The importance for building long-term sustainable relationships between manufacturer and its channel partners has increased over the years Morgan and Hunt, ; Sheth and Parvatiyar, ; Payen et al. PRM works as a business process integrator while supporting seamless real-time information flow to all the business partners, scheduling business processes, ease collaboration among partners etc.

The basic aim of building and maintaining such relationships is to create value and enhance the level of benefits for all the parties involved Agariya and Singh, There are many ways to create value in relationship between manufacturer and channel partners like cost reduction, lead time improvements etc. Efficient and appropriate utilization of distribution channels can result in reduction in cost of maintaining inventories and improvement in lead-time.

channel relationship management

But to utilize distribution channels efficiently one must keep and maintain a sound system of information exchange and proper coordination of all the business processes. There are few things that explain the importance of building and maintaining channel relationships. Firstly, it is important that each of the channel partners of the distribution channel must play their role in the most appropriate manner because it has got some benefits for the channel partner itself and for others as well.

But to make the channel partners to perform their roles, there is a strong need for building sound channel relationships.

Partner Relationship Management

Wang and Kess have explored the role of the distributor which is not just limited to selling the product but also to provide services against the product to customers, to provide information about the current customer needs and market trends, etc.

Lin and Chen, ; Mudambi and Aggarwal, ; Paun, On the other hand the manufacturer must seriously and accurately incorporate all the information provided by the distributors.

Secondly, the channel partners must focus on removing asymmetry existing in the distribution channel that creates irregularity in distribution process.

As explained by Anderson and Weitzasymmetry brings instability and low profitability atleast for one channel member in the relationship. This can only happen if strong channel relationship exists. Thirdly, due to the change in market trends and customer expectations, a manufacturer needs to offer a broad range of products, specialized products etc.

But to make this broad range of products available to customers, a manufacturer needs to have strong channel relationship with increased number of distributors which can regulate the sales process Vlachopoulou et al.

Literature revealed a strong need for building sound channel relationships in Indian context. Dabas has explained about a comparison study showing data of ten countries, where India stood in last position. This comparison study has evaluated ten countries in three measures i. Some significant reasons behind are transportation difficulties, delayed deliveries, uncontrollable factors and these reasons can be resolved by business processes focused strategies and strong channel relationships.

Various academicians and practitioners have considered a shift towards establishing, building and maintaining successful relationship among the channel members. This is basically a shift from vertical marketing system VMS and authoritative control to evaluation of relationship among the channel members that involve contractual and normative controls Kalafatis, ; Weitz and Jap, A contractual and normative control refers to the set of shared implicit values; principles or norms that helps channel members in coordinating activities and governing their relationship.

Channel relationships are based on smooth information exchange and high level of commitment between the manufacturer and the channel partner.

Relationships Management

Select and Explore Before initiating a relationship, the manufacturer must have internal commitment and support with team building orientation. This stage is the pre-relationship stage, where the manufacturer looks for potential channel partner who can perform successfully and profitably. But to select a prospective channel partner there has to be some specified criteria. Therefore in this concern various researchers have considered logistic capabilities, marketing capabilities, relationship intensity and firm infrastructure as major dimensions for channel partner selection Cavusgil et al.

Expand and Maintain After proper selection and exploration of channel partners next is to build and maintain the relationship.

This also includes provision for encouraging each other for team building and collaborating for better outcomes. Evaluate Next is to evaluate the relationship status from time to time, which is popularly known as performance measurement Hu, This includes outcomes of relationship i. Some others researchers have talked about a slightly different process of developing partner relationship.

Like, Wilson has proposed a five-stage partner relationship development process that includes partner selection, defining purpose, setting relationship boundaries, creating relationship value and relationship maintenance.

In general, PRM can be understood in three contexts i. An overview of Partner Relationship Management PRM in B2B Context Rackham, Friedman and Richard has defined PRM as the partner relationship between two or more firms which takes place, when the firms agree to integrate, to jointly control their respective parts of operations, and to share mutual benefits.

channel relationship management

Various researchers have talked about the basic aim of PRM i. Hayes and Ref have indicated that PRM improves the efficiency of business processes which results in high valued customer service and seamless partnering experience to all the channel partners.

PRM has revolutionized and improvised inefficient communication tools and other ineffective techniques used in early days. PRM has been considered important for the organizations producing such goods which require considerable level of consulting activities and service to facilitate sales. Various organizations have reviewed upon implementing CRM successfully and explained the need for integration of partner organizations in value chain which will positively help in delivering high quality products and services to customers Chakravorti, ; Day et al.

PRM has been considered important for the supply side of the value chain, just as like CRM is important for the demand side. There are two channels of distribution for delivering products to the end customer i. Direct channel exists when the manufacturer directly contacts the customer then CRM exists between the manufacturer and the customer.

Indirect channel exists when distributors and retailers exists in between the process of making products available to end customer. Figure-3 above shows the existence of PRM between the manufacturer and the retailer and CRM between the retailer and customer in indirect channel of distribution.

Basically PRM addresses this indirect channel i. Agarwal and Singh have mentioned an indicative list of definitions of PRM given by renowned researchers. On this basis a summarized definition of PRM is as follows, PRM is being considered as a business strategy, as a technology, as a value-creating strategy and as a system, with the main focus on building and maintaining value-laden relationships between the manufacturer and its channel partners and its ultimate goal is to enhance customer satisfaction level and increase profitability Galbreath, ; Geyskens et al.

Some of the business strategies that a company need to follow for receiving maximum benefit of PRM practices includes streamlining of channel functions which drives out extra cost, advantageous utilization of growth opportunities and market share extension Mirani et al. Recruitment management, contract management, campaign management, lead management, referral management, partner order management, service management, inquiry and complaint management are some the major components of PRM Mirani et al.

Dealers, parts and accessory sellers, service providers are the major intermediaries existing in between the automakers and the customers.

channel relationship management

In majority of the cases an Indian automaker follows indirect channel of distribution and therefore there is an urgent need to build strong channel relationships in such cases. Proper implementation of PRM practices with a measuring tool to assess the effectiveness of PRM will enhance the success level of the companies involved.

This industry has become a major regulator of the economic growth of the country. These all companies are involved in manufacturing commercial vehicles, passenger vehicles, three-wheelers and two-wheelers.

It is being observed through literature review that PRM has been able to successfully create value-laden channel relationships at various ends but there is non-availability of a measuring tool for evaluating the effectiveness of PRM.

Creating Channel Sales Users Discusses the ways to create channel sales users and provides steps for each creation method. Configuring Oracle Sales Cloud for Channel Sales Describes the business objects that need to be configured to handle channel sales, including: Setting Up Sales Territories and Assignment for Channel Sales Discusses how to configure partner territories and territory assignment for channel sales.

Configuring Business Intelligence for Channel Sales Describes how to configure audit reporting and how to expose the Reports tab on Channel Sales pages. Expanding Your Channel Sales Capabilities Provides steps to configure additional business objects for channel sales use. Additional Learning Resources Provides a list of locations to find additional documentation, tutorials, support articles, and other resources.

Overview Channel sales involves a channel organization working to recruit channel partners and sell the channel organization's products and services through these partners to grow their business.

Both channel organizations and their partners use Oracle Sales Cloud partner relationship management functionality to align their business practices so that they can more successfully close deals. Channel organizations can also use Oracle Sales Cloud partner relationship management functionality to analyze partner performance, thus optimizing their time and financial investments in their partners.

Channel Sales Job Roles Job roles provide users with access to different functions and data so they can accomplish their jobs.

Channel sales utilizes several distinct job roles to accomplish these goals. The following table lists the job roles involved with channel sales and provides a description of the general responsibilities of each role.

Job Role Name Job Role Description Channel Operations Manager Manages programs and business processes to improve the productivity of the channel sales team and their channel partners in context of Oracle Sales Cloud partner relationship management functionality.