Case 23
Koering Company
Case Objectives
1) To provide an illustration of an effective channel member performance evaluation
procedure.
Problem Situation
This case does not present a problem situation. The case is simply a description of one
company’s approach to channel member performance evaluation
Teaching Suggestions
A good lead into this case is to. start by supposing the Koering Company had to rely solely on
qualitative judgments about distribution performance. That is, ask your students to attempt to
Case Discussion
This case offers an example of an effective attempt to use a quantitative index to measure
channel member performance. The “Penetration Index” (annual dollar sales/annual sales quota)
and its conversion into a dealer rating ranging from 1(excellent) to 5 (poor) for each product line
do provide an initial quantitative measure of performance that makes possible valid comparisons