7/31/2019 Channel Design Decisions

1/5

Channel Design Decision

By Balachandar K

7/31/2019 Channel Design Decisions

2/5

Step 1:- Analyzing Consumers Desired

Service Output Levels

1) Lot size No of units a customer can buy.

2) Waiting and delivery time3) Spatial Convenience Ease of access.

4) Product variety -

5) Service backup add on services

7/31/2019 Channel Design Decisions

3/5

Step 2: - Establishing Objectives and

Constrains

Step 3:- Identifying Major Channel

Alternatives

Check for types of Intermediaries

Number of Intermediaries

Exclusive distribution

Selective distribution

Intensive distribution Terms and responsibilities of channel members

7/31/2019 Channel Design Decisions

4/5

Step 4:- Evaluating the Major Alternatives

Economic criteria

Whether to use our sales force or the distributor sales

force?Which one will be economical!!

Control and adaptive criteria

Channel member should have targets.

Step 5:- Choosing the Channel Member

7/31/2019 Channel Design Decisions

5/5

Channel Management Decisions

Selecting Channel Members.

Training Channel Members.

Motivating Channel Members. Evaluating Channel Members.

Modifying Channel Arrangements.