How should channels be designed ?
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Transcript of How should channels be designed ?
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How should channels be designed ?
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ANALYZING CUSTOMER NEEDS
AND WANTS
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LOT SIZE : The number of units the channel permits a typ ica l customer to purchase .
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WAITING AND DELIVERY TIME : Average time the customer waits for the receipt of goods.
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SPATIAL CONVENIENCE : The degree to which the marketing channel makes it easy for customers to purchase the product. Toyota offers better spatial convenience than Lexus because it has more dealers.
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PRODUCT VARIETY : The assortment provided by the marketing channel.
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SERVICE BACKUP : Add-on services(credit, delivery, installation, repairs) provided by the channel.
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ESTABLISHING OBJECTIVES AND CONSTRAINTS2
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The objective is to maximise the profit, minimise the costs and still provide desired levels of service.
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Designed to fuel excitement for the brand, Apple lets people touch their products. They target tech-savvy customers with in-store product presentations and workshops.
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IDENTIFYING MAJOR CHANNEL
ALTERNATIVES
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TYPES OF INTERMEDIARIES
An electronic company that produces satellite radio sells it to automobile manufacturers, through a direct sales force or distributors or company
stores or online retailers or mass merchandisers.
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NUMBER OF INTERMEDIARIES
Three strategies based on the number of intermediaries are exclusive distribution, selective distribution and intensive distribution.
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Exclusive distribution means severely limiting the number of intermediaries.
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Selective distribution relies on only some of the intermediaries willing to carry a particular product.
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Intensive distribution places the goods or services in as many outlets as possible.
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TERMS AND RESPONSIBILITIES OF CHANNEL MEMBERS
Each channel member must be treated respectfully and given the opportunity to be profitable.
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Price Policy calls for the producer to establish a price list and schedule of discounts and allowances.
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Conditions of sale refers to payment terms and producer guarantees.
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Distributors territorial rights defines the distributors territories and the terms under which the producer will enfranchise other distributors.
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EVALUATING MAJOR
CHANNEL ALTERNATIVE
S
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ECONOMIC CRITERIA : Each channel alternative will produce a different level of sales and profits.
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CONTROL AND ADAPTIVE CRITERIA : Using a sales agency may pose a control problem.
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Created by NILESH RANA of IIT BHU under the guidance of Prof. SAMEER MATHUR , IIM LUCKNOW
www.iiminternship.com
Thank you !