Top 10 Issues Facing Channel Management

1. Change in Customer Behavior

  • On-line tools and information are making the customer more informed

2. Product Commoditization

  • Often forcing companies to find new "value added" channels & solutions

3. Service Competition

  • With commoditization, quality of customer service becomes a differentiator

4. Developments in IT, Production Technology & Logistics

  • Provides more options and strategies for channel models

5. Motivating and Recruiting Channels to Take on New Products and Services

  • Lack of investment from channel

6. Competitive Pressures

  • Continue trend of margin squeeze
  • Dealers carrying multiple brands

7. Regulatory Pressures

  • Motivating & training the channel to perform according to regulatory requirements

8. Emergence of New Routes to Market

  • Globalization of market opportunities

9. Shorter Product Life Cycles

  • Increasing rates for technological change
  • Increased evolution of products

10. Need to improve Channel Efficiency and Effectiveness of Channel Systems

  • Order process, removing layers of distribution, redefinition of roles between supplier and distributor, and channel remuneration


"A Review of Current and Future Issues Facing Channel Managers"
-Dr. Stuart Hanmer-Lloyd & Paul Hopkinson (Study commissioned by RTMA)