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We explore what makes partnership relationship what it is as well as defining it. Often referred to more generically as Channel Management. Deliver an exceptional experience with technology built for today's most important channel relationship. Partners have more options and higher expectations. Amazon - Channel Relationship Manager ( yrs), Bangalore/Hyderabad/ Vizag, Sales,Channel Management,eCommerce,Distribution, iim.
Various academicians and practitioners have considered a shift towards establishing, building and maintaining successful relationship among the channel members. This is basically a shift from vertical marketing system VMS and authoritative control to evaluation of relationship among the channel members that involve contractual and normative controls Kalafatis, ; Weitz and Jap, A contractual and normative control refers to the set of shared implicit values; principles or norms that helps channel members in coordinating activities and governing their relationship.
Channel relationships are based on smooth information exchange and high level of commitment between the manufacturer and the channel partner. Select and Explore Before initiating a relationship, the manufacturer must have internal commitment and support with team building orientation.
This stage is the pre-relationship stage, where the manufacturer looks for potential channel partner who can perform successfully and profitably.
But to select a prospective channel partner there has to be some specified criteria. Therefore in this concern various researchers have considered logistic capabilities, marketing capabilities, relationship intensity and firm infrastructure as major dimensions for channel partner selection Cavusgil et al.
Understanding Partner Relationship Management (Chapter 2) R13 (update 18B)
Expand and Maintain After proper selection and exploration of channel partners next is to build and maintain the relationship. This also includes provision for encouraging each other for team building and collaborating for better outcomes. Evaluate Next is to evaluate the relationship status from time to time, which is popularly known as performance measurement Hu, This includes outcomes of relationship i.
Some others researchers have talked about a slightly different process of developing partner relationship. Like, Wilson has proposed a five-stage partner relationship development process that includes partner selection, defining purpose, setting relationship boundaries, creating relationship value and relationship maintenance.
In general, PRM can be understood in three contexts i. An overview of Partner Relationship Management PRM in B2B Context Rackham, Friedman and Richard has defined PRM as the partner relationship between two or more firms which takes place, when the firms agree to integrate, to jointly control their respective parts of operations, and to share mutual benefits.
Various researchers have talked about the basic aim of PRM i. Hayes and Ref have indicated that PRM improves the efficiency of business processes which results in high valued customer service and seamless partnering experience to all the channel partners. PRM has revolutionized and improvised inefficient communication tools and other ineffective techniques used in early days.
PRM has been considered important for the organizations producing such goods which require considerable level of consulting activities and service to facilitate sales. Various organizations have reviewed upon implementing CRM successfully and explained the need for integration of partner organizations in value chain which will positively help in delivering high quality products and services to customers Chakravorti, ; Day et al.
PRM has been considered important for the supply side of the value chain, just as like CRM is important for the demand side.
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There are two channels of distribution for delivering products to the end customer i. Direct channel exists when the manufacturer directly contacts the customer then CRM exists between the manufacturer and the customer.
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Indirect channel exists when distributors and retailers exists in between the process of making products available to end customer. Figure-3 above shows the existence of PRM between the manufacturer and the retailer and CRM between the retailer and customer in indirect channel of distribution. Basically PRM addresses this indirect channel i. Agarwal and Singh have mentioned an indicative list of definitions of PRM given by renowned researchers.
On this basis a summarized definition of PRM is as follows, PRM is being considered as a business strategy, as a technology, as a value-creating strategy and as a system, with the main focus on building and maintaining value-laden relationships between the manufacturer and its channel partners and its ultimate goal is to enhance customer satisfaction level and increase profitability Galbreath, ; Geyskens et al.
Some of the business strategies that a company need to follow for receiving maximum benefit of PRM practices includes streamlining of channel functions which drives out extra cost, advantageous utilization of growth opportunities and market share extension Mirani et al. Recruitment management, contract management, campaign management, lead management, referral management, partner order management, service management, inquiry and complaint management are some the major components of PRM Mirani et al.
Dealers, parts and accessory sellers, service providers are the major intermediaries existing in between the automakers and the customers. In majority of the cases an Indian automaker follows indirect channel of distribution and therefore there is an urgent need to build strong channel relationships in such cases.
Proper implementation of PRM practices with a measuring tool to assess the effectiveness of PRM will enhance the success level of the companies involved.
This industry has become a major regulator of the economic growth of the country. These all companies are involved in manufacturing commercial vehicles, passenger vehicles, three-wheelers and two-wheelers. It is being observed through literature review that PRM has been able to successfully create value-laden channel relationships at various ends but there is non-availability of a measuring tool for evaluating the effectiveness of PRM.
Also this tool will help in determining the correct set of factors contributing towards PRM. Then formulation of appropriate strategies by manufacturers and channel partners can be done to receive best outcome out of PRM practices.
PRM implementation and its effectiveness evaluation in Indian automobile sector will have various benefits for the sector as well as for the country. Therefore to cater this research scope, this study aims at developing a PRM index in B2B context specific to Indian automobile sector. These items were further reduced to 38 items on the basis of applicability and relevance to manufacturing sector.
Then a rough questionnaire has been prepared using these 38 items for carrying out depth interviews with a total of 13 manufacturers and channel partners of different automobile organizations in northern and north-central region NCR of India.
The duration of depth interview varied anywhere between 30 to 45 minutes. The purpose behind carrying out depth interviews is to identify major issues that exist while maintaining relational aspects by manufacturers with their partner organizations and vice-versa.
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The result of this exercise resulted in refinement of the items which were further reduced to 33 based on the responses from depth interview. Further to this, a pilot survey was carried out using these 33 items in the form of a questionnaire.
Final questionnaire was made using 30 items as 3 items were further eliminated as the result of pilot survey. Data Collection The final questionnaire comprised of two sections: Demographic information of the respondents Section Both online and offline modes were used for data collection from the respondents belonging to NCR and northern region of India.
The respondents of this study were the partners of different Indian automobile organizations. A potential list of respondents was made containing participants of automobile industry belonging to NCR and northern region.
Out of this, a total of complete and usable responses were received indicating response rate of These responses are subjected to statistical analysis for identifying major factors by applying reliability analysis, sampling adequacy analysis and exploratory factor analysis with the first half of the data with sample size SPSS software was used for carrying out statistical analysis mentioned above.
In subsequent phase, confirmatory factor analysis was carried out with the second half of the data with sample size to confirm the factor structure and to provide evidence of scale reliability, dimensionality and validity. AMOS-7 software was used for carrying out statistical analysis mentioned above. Next, case based method was used for the development of index.
Both the values were considered suitable for carrying out exploratory factor analysis. The demographic information of the respondents is given in Table Both channel organizations and their partners use Oracle Sales Cloud partner relationship management functionality to align their business practices so that they can more successfully close deals.
Channel organizations can also use Oracle Sales Cloud partner relationship management functionality to analyze partner performance, thus optimizing their time and financial investments in their partners. Channel Sales Job Roles Job roles provide users with access to different functions and data so they can accomplish their jobs. Channel sales utilizes several distinct job roles to accomplish these goals.
The following table lists the job roles involved with channel sales and provides a description of the general responsibilities of each role. Job Role Name Job Role Description Channel Operations Manager Manages programs and business processes to improve the productivity of the channel sales team and their channel partners in context of Oracle Sales Cloud partner relationship management functionality.
This role is also responsible for developing metrics and reports to track and measure the success of the overall channel business. Channel Account Manager Manages the business relationship between a channel partner and the brand owner.
This role is responsible for planning and supporting collaborative sales, marketing, and business processes designed to increase partner productivity and engagement.
Channel Sales Manager Manages and monitors the activities and the performance of the channel account managers. Partner Administrator Manages the company's profile and controls the users and their access to the channel organization's applications. This role is also responsible for maintaining and ensuring the company is leveraging partner programs and incentives that best suit their specific business needs.
Partner Sales Manager Manages and monitors the activities and the performance of the partner sales representatives.