Designing and managing integrated

marketing channels

SHUBHAM VERMA

IIT GUWAHATI

How should channels be

designed ?

Analysing customer needs and wants

Establishing objectives and constraints

Indentifying Major Channel Alternatives

Types of intermediaries

Number of intermediaries

Terms and responsibilities

of channel members

Evaluating major channel alternatives

Control of Channels

Analysing customer

needs and wants

Channels produce 5 service outputs

LOT SIZE

Customers don’t like waiting longer for receipt of

goods.

Convenience

VARIETY

Establishing objectives

and constraints

THESE require different channels than THESE

Depression in economic conditions leads to shorter channels

to reduce costs .

Identifying major

channel alternatives

Every channel has its weakness and

strength.

Indentify appropriate channel to minimize

costs

3 types of channel alternatives :

• Types of intermediates

• Number of intermediates

• Terms and responsibilities of

channel members

Types of intermediaries

Choosing a new unconventional channel because of difficulty , cost and ineffectiveness of working with dominant channel

Number of Intermediaries

3 strategies based on no of intermediaries

• Exclusive distribution -> Distribution to limited number of intermediaries

• .• Selective distribution -> relies on more

than a few but less than all of the available intermediaries

• Intensive Distribution – places goods/products to all available outlets

Evaluating major channel

alternatives

• Economic

• Control

• Adaptive

Photo of break even cost chart

LEVEL OF SALES

SELLING

COSTS

Manufacturer’s sale agency

Company sales force

Break Even Cost chart for the choice between a company sales force and a manufacturer’s Sales Agency

"These slides were created by Shubham Verma( IIT Guwahati ) as part of an internship done under the guidance of Prof. Sameer Mathur(www.IIMInternship.com)"