Directorate of distance education

Lack of Commitment From Members
Members can become disloyal members in the blink of an eye. This 
behavior exhibits why it is important that members “buy into” the vision 
for the group, have a developed trust for all members, and understand the 
need for sharing information and managing the group dynamics in the 
cooperative marketing organization. 
This issue is sometimes addressed by signing a marketing agreement 
or contract with the organization that outlines the repercussions that will 
occur should you, as a member, breach your contract/agreement with the 
organization. If you are not agreeable to signing the agreement, then I 
contend that one of the three above challenges has not been resolved for 
you as a member.
Take a step back, readdress the situation, and let members know 
what your hesitations are before signing an agreement to market through 

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the organization. This is necessary for the success of the organization. 
Human nature tells us that a member will sell outside the organization if 
he or she can make a dollar more. A large majority of producers would 
choose to market only with the organization when it can benefit the 
member.
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Lesson 2.4 - Product Issues in Channel Management
Learning Objectives
After reading this lesson you will be able to 
➢ Understand product issues in channel management
➢ Understand the concept of product life cycle and product planning
➢ Indentify pricing issues in channel management
➢ Understand the concept of push and pull strategies
Product Issues in Channel Management
A key question is whether the producer has the resources to 
perform the functions of the channel? For example a producer may not 
have the resources to recruit, train and equip a sales team. If so, the only 
option may be to use agents and/or other distributors.
The nature of the product often dictates the distribution options 
available especially if the product requires special handling. For instance, 
companies selling delicate or fragile products, such as flowers, look for 
shipping arrangements that are different than those sought for companies 
selling extremely tough or durable products, such as steel beams.
Producers may also feel that they do not possess the customer-
based skills to distribute their products. Many channel intermediaries 
focus heavily on the customer interface as a way of creating competitive 
advantage and cementing the relationship with their supplying producers.
Another factor is the extent to which producers want to maintain 
control over how, to whom and at what price a product is sold. If a 
manufacturer sells via a retailer, they effective lose control over the final 
consumer price, since the retailer sets the price and any relevant discounts 
or promotional offers. 

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