How to design channels
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Channel’s 5 service outputs
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Spatial convenience
Lot size
Waiting and delivery time
Product variety
Service backup
Number of Intermediaries
Terms and policies
• Price policy
• Conditions of Sale
• Distributor’s Territorial Rights
• Mutual Services and Responsibilities
Evaluating major channel alternatives
• Each channel alternative will produce a different level of sales and costs.
• So 3 steps are very Important
• Estimating how many sales each alternative
Estimating costs of selling different volumes through each channel
Comparing sales and costs
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