Not only is it important for companies to select the appropriate intermediaries who would best distribute their products, but also to train and motivate those channel members as well. There are a number of strategies that Company S could use to motivate the dealerships to sell their new motor scooter.

Coercive Power
Coercive Power is based upon a channel member being forced into doing something that they do not one to do. An example of this would be threatening to pull their entire brand from the dealerships if they did not carry the new scooter. While this strategy is effective, it comes across in a threatening manner and “it relies on intimidation to do so and will backfire badly if used as the sole base for exerting influence (“Coercive Power”, 2011).” This motivation strategy is the easiest to evaluate it’s effectiveness as the dealerships will either respond positively and carry the new product or respond negatively and lose all of Company S’s product line.

Reward Power
Reward Power is used when a company is able to enhance an offer, deal, or situation by providing a want or need for their distributors. In the case of Company S and their distributors, they could offer a bulk discount or even grant exclusive distribution to a chain. This is a very popular way for manufacturer’s to work and usually yields more positive results in the two parties’ relationship, however the appeal of the rewards can lose it’s luster over time and if rewards are constantly offered and claimed, “people can become satisfied, such that it loses it’s effectiveness. (“French & Raven’s,” 2012). Like Coercive Power, this is a very measurable strategy as rewards and performance can be tracked over time.

Legitimate Power
Legitimate Power is a strategy that comes from the leverage gained based on contract agreements or organizational relationships as well as the