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Channel Management

Q. What is channel management?

Channel management is a process by which a company creates formalized programs for selling and servicing customers within a specific channel.

Q. What is channel width & depth?

Channel width refers to selling stocks to more outlets, whereas channel depth means selling more to every out-serviced.

Q. What are business investment, credit cycle, stocking norms, and cost of money?

Business investment refers to the initial amount of capital.

The credit cycle is the time taken to sell the products from the time of investment.

Stocking norms and the cost of money in the market are crucial while calculating the return on investment.

Forecasting

Q. What is forecasting?

Sales forecasting is the process of a company predicting what its future sales will be. This forecast is done for a particular period of time in the near future, usually the next fiscal year. The four most important processes that affect the sales forecast that are typically not taken into account are:

• Valuation of POS transactions
• Inventory control
• Sales channel reporting analytics
• Channel-forecast reporting alignment

Stages Of Channel Growth

The strength and performance of a channel partner play a vital role in the success of any organization.

Channels go through multiple stages of growth, which are listed as follows:

1. Incubation: Needs hand-holding, coaching, and guidance
2. Performance: Needs constant support to grow beyond the initial stages
3. Sustainability: Once the channel starts performing, sustaining the volume of growth apart from value is critical for the business partner to stay motivated.
4. Retention: At this stage, the channel partner feels that there is no more to achieve and the market is saturated.

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