---
title: "Sales Personnel Growth: Regional Market Channel Management"
description: "Building key regional markets has become a consensus in corporate marketing, and forming regional advantageous markets is the only way for many small and medium-sized enterprises to concentrate superior resources against big brands; with a 'base area', they can advance or retreat, supporting the survival and growth of the enterprise. Classic marketing textbooks tell us that the main contents of marketing channels include: channel design, channel structure, channel selection, motivation, evaluation, channel conflict resolution, channel management, optimization, channel promotion, etc. In terms of channel management alone, it includes five major aspects: the first aspect..."
author: "蒋军"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-03-26"
language: "en"
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# Sales Personnel Growth: Regional Market Channel Management

> Building key regional markets has become a consensus in corporate marketing, and forming regional advantageous markets is the only way for many small and medium-sized enterprises to concentrate superior resources against big brands; with a 'base area', they can advance or retreat, supporting the survival and growth of the enterprise. Classic marketing textbooks tell us that the main contents of marketing channels include: channel design, channel structure, channel selection, motivation, evaluation, channel conflict resolution, channel management, optimization, channel promotion, etc. In terms of channel management alone, it includes five major aspects: the first aspect...

Building key regional markets has become a consensus in corporate marketing, and forming regional advantageous markets is also the only way for many small and medium-sized enterprises to concentrate superior resources to compete against big brands; with a 'base area', they can advance or retreat, supporting the survival and growth of the enterprise.
Classic marketing textbooks tell us that the main contents of marketing channels include: channel design, channel structure, channel selection, motivation, evaluation, channel conflict resolution, channel management, optimization, channel promotion, etc. In terms of channel management alone, it includes five major aspects: the first aspect: channel flow management; the second aspect: channel member management; the third aspect: channel relationship management; the fourth aspect: channel performance management; the fifth aspect: channel difficulty management.
Let's first talk about how the relatively theoretical channel management is carried out. What are the specific contents of channel flow management? Mainly five aspects: commercial flow, logistics, capital flow, information flow, and promotion flow. If these five aspects are managed well, at least the market will not be chaotic. Only when the basic market management is problem-free can there be 'long-term stability'.
For example, commercial flow: some sales personnel may not be very clear about this concept. Commercial flow refers to the transfer of ownership, which is also a very important standard for distinguishing agents from distributors. But it is not limited to this. After the distributor pays and goods are shipped, how do we assist the distributor in developing the market, establishing distribution and terminal networks, and ultimately form assistance, guidance, and control over the distributor?
Next, look at logistics. E-commerce is very popular now, but the essence of e-commerce is logistics. Taobao and Tmall are powerful, but without logistics support, how can sales be achieved? On Double 11, Alipay transaction volume reached 19.1 billion yuan, but delayed shipments, more than a week late, were common. JD's self-built logistics and Suning's self-built logistics are the core competitiveness of B2C e-commerce. For another example, in the beer industry competition, why ultimately implement cross-province mergers and consolidations? Because beer's radiation capacity is very weak, and generally non-adjacent provinces are difficult to penetrate.
Capital flow: everyone should be clear about this. How to manage cash flow, payment time, whether it is cash on delivery or shipment first, or credit. Generally, it is now payment before shipment; but for some key customers, due to long-term cooperation, an authorized credit limit can be given, and within the credit period, payment can be delayed; accounts receivable are mostly formed this way.
Information flow: the collection, sorting, and feedback of information must form a system, and there must be replies and feedback. We see many sales managers treat market information collection as a formality, and daily and weekly meetings also become a formality. Over time, without feedback, collection stops. In this regard, many Chinese companies do very poorly and are very inadequate.
Promotion flow: planning, implementation, control, and evaluation of promotions. Promotion is a very important part of corporate sales. A good promotion activity can not only increase sales and train the team, but also enhance brand influence, improve relationships with channel partners and terminals, and stimulate team cohesion. In the promotion process, there are various stages such as expense application, review, execution, and reimbursement. How do we ensure that expenses are actually used? Whether the distributor advances the cost or the company pays first, and how to reimburse, all need to be considered. Finally, there is the evaluation of the activity, including sales target completion, expenses, personnel, activity response, shortcomings, and improvement measures.
The second aspect is channel member management. It also has five aspects: selecting channel members, training channel members, motivating channel members, evaluating channel members, and adjusting channel members. The selection of channel members, first is the selection of distributors, and the only standard is suitability. How to determine suitability depends on the market and company situation. The basic requirements are to cooperate with the manufacturer's marketing work, actively develop and maintain the market; have certain funds, networks, warehousing, and personnel. For new markets, distributors are required to have market development capabilities and downstream networks, and higher requirements for the team; if it is a mature product, strong financial strength and distribution capabilities are needed. These all need to be treated according to specific circumstances. The role of distributors is very important for the channel. If chosen improperly, the consequences are endless.
Next, there is also the selection of second-tier distributors (special second-tier distributors) and even third-tier wholesalers, and network construction. The distribution network should be extensive, direct, and effective, allowing products to quickly cover terminals and consumers to conveniently purchase products.
The third aspect is channel relationship management. This mainly discusses channel conflicts, three types of conflicts: first, vertical conflicts, conflicts between manufacturers and distributors, and between distributors and their sub-distributors; such as payment, discount rates, incentive policies, product supply in peak and off-peak seasons, market promotion support, and channel adjustments. Second, horizontal conflicts, relationships among channel members at the same level, such as conflicts caused by different regional divisions, incentives, and promotion policies among distributors. For example: price confusion, unbalanced product supply, different promotion methods, encroaching on territory, and cross-regional selling. Third, cross-relationships, conflicts between different types of channels. Such as inconsistent prices, cross-regional selling, etc.
The fourth aspect is channel performance management. In fact, it is the motivation, assessment, and improvement of channel members. First, of course, is the assessment and motivation of distributors; distributor management is the top priority of regional market channel management. The key point is: the formulation of result and process indicators must be reasonable, and we must not only focus on results and ignore processes. Channel chaos: one market, hundreds of goods can destroy it, many cases are still vivid. The indicators of channel performance management can be roughly divided into: 1. Sales volume (sales amount) indicators: should be divided by product, channel, terminal, and assigned to specific people; 2. Network construction: distribution network, terminal network coverage; 3. Payment collection; 4. Distribution, price control, healthy market development; 5. Various purchase rewards, year-end rebates; 6. Promotion and promotional activity execution; 7. Team building, etc., all must have specific assessment weights and monthly evaluations.
The fifth aspect is channel difficulty management. Mainly three points: first is payment collection and credit period; second is regional management; third is terminal management. Involving financial indicators, payment collection is the primary issue for the smooth operation of the company, and how to design the credit limit for distributors scientifically and safely is also a test of wisdom. Regional management: the region is the distributor's rice bowl; without a region, there is no living space. The issue of regional size also needs careful consideration. How to achieve effective coverage without conflicts, and not under-develop, giving opportunities to competitors. Finally, terminal management: the terminal is where the product comes into contact with consumers and completes the value exchange process. Channel management continuously lowers the center of gravity to the terminal, completing the final step of sales.
The above are the five major aspects of regional market channel management taught by classic marketing theory. If combined with specific regional market cases, what should a grassroots salesperson and supervisor do?
First, manage core distributors.
In channel management in regional market management, a very important content is to grasp core distributors and key second-tier wholesalers. Relying solely on the enterprise's own strength, it is difficult to effectively control terminals. Sales personnel should find and cultivate core distributors according to the characteristics of the regional market, form reasonable distribution and segmentation in the region, ensure that distributors are profitable and have development space, but at the same time, the enterprise should also form a balance of power among distributors in the region. A large region can be divided into several small regions, implementing exclusive distribution in small regions, and separate distributors can be set up in counties and towns.
Second, establish a distribution network around core distributors.
Establishing a distribution network around core distributors can first help distributors grow, and also to thoroughly penetrate the market, increase sales, and enhance market control. The channel continues to sink, resisting the erosion of the market by competing brands.
The power of distribution is one of the most core winning factors for FMCG. Each region must establish a progress plan for the regional distribution network, evaluate and optimize it.
Form a competitive channel model.
The channel model determines the channel strategy. There is always a model that is the main channel model for your enterprise's regional market. Some use general distribution; some use exclusive distribution in small regions; some use office platform + assisting distributor distribution; some use office platform + distributor direct supply to terminals (deep distribution). Generally, the latter two are more common and more conducive to deep market development.
Develop special channels at a deeper level.
If the development of conventional channels enters a stable period and the market potential has been tapped to a deep level, you can selectively enter special channels. What are special channels? They are special channels other than conventional wholesale circulation, hypermarkets, chain supermarkets, convenience stores, small shops, catering, etc., divided into airports, docks, factories, residential areas, internet cafes, and other channels. These channels are more difficult at the beginning, but once cooperation is established, sales are stable, more conducive to long-term stable cooperation.
Form an overall channel assessment and incentive mechanism.
The stability and improvement of the channel require not only selection and cultivation, but also benefit distribution and guidance. Only with institutional guarantees can there be sustained and healthy development. Channel assessment is divided into sales target completion assessment, distribution network construction, effective outlets, new product promotion, distribution capability, team, business awareness, cooperation, service level, etc.; channel incentives are divided into rebates (can be based on task volume, or year-end fuzzy rebates), purchase tier rewards, team personnel support, material support, prepayment purchase rewards, etc. Of course, various processes and systems also need to be constrained and motivated. Those who complete have rewards, and those who do not complete must have penalties.
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