Directorate of distance education

Motivating Intermediaries
It is frequently necessary to motivate channel members. This is 
so because of the differing needs of intermediaries and producers: these 
needs do not necessarily coincide (e.g., a manufacturer may seek exclusive 
distribution of its products at high prices, whereas a retailer may be 
pursuing a strategy of market penetration through budget pricing of a 
wide range of goods). The situation is further complicated by the fact that 
intermediaries and producers often have 
different perceptions 
about their 
own roles in the supply chain.

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Notes
79
Doyle suggests 
two levels of motivator
: promotional and 
partnership. Promotional channel motivators are usually short-term 
inducements to support the supplier’s goods (e.g. trade discounts for large 
order volumes or providing point-of-sale display materials). Partnership 
motivators, on the other hand, seek to build a longer-term relationship 
between suppliers and channel participants (e.g. through sharing of market 
research information and providing training to a distributor’s sales staff).
Evaluation and Control of Intermediaries
Evaluation 
of channel performance is necessary to decide which 
intermediaries to retain and which to motivate, or even, where necessary, 
to discard. Criteria for evaluation are obviously similar to those used in 
the initial selection decision (see above). Once the relationship between 
organisations has been established, criteria can include: the sales volume 
and value of the producer’s goods that are generated through the 
intermediary’s outlets, the profitability of servicing that intermediary, 
the stock levels the intermediary is prepared to hold, the quality of 
customer service offered, feedback provided about the marketplace and 
the intermediary’s attitude to inter-channel co-operation. However, the 
scope for evaluation may be severely limited if power lies with the channel 
member rather than the producer.