Alternative Channel Management Techniques - Research Paper Example

Partner relationships can be effective, but they need to be implemented correctly. The channel partner needs to be viewed as an integrated extension of the producer's internal sales organization (Wardley 2006 p.2). There must be a high degree of cooperation between the manufacturer and the distributor to have an effective relationship, and this necessitates a financial commitment to the partnership. Both parties need to have a sense of investment and an opportunity to gain from the relationship.

These opportunities may be in the form of exploiting overlapping strategies such as marketing or advertising. Other areas of mutual concern and benefit may be in the service or support areas. With a partnership relationship, these issues become of more concern to the distribution channel when they have a financial stake in the overall process. The goal of getting a quality product to the most end users is a mutually shared objective. Though developing a channel partnership relationship has its advantages, it also has its difficulties.

One of the first concerns of the process is that the manufacturer may have other channels that compete with the partner. Competing for the same customers is not only one of the biggest obstacles to a partnership, but it can also double the cost of attracting and retaining customers (Wardley 2006 p.4). The manufacturer may also have other partners who are competing for the same retail outlets. Another obstacle to effective channel partnerships is getting access to the channel's information and technology.