How should channels be designed?
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The document discusses factors to consider when designing marketing channels, including customer needs, product variety, service levels, and costs. It identifies key alternatives like the number and types of intermediaries used, and terms of trade between members. The objective is to maximize profit while providing good customer service. Evaluation criteria include sales, costs, control issues, and adaptability.
How should channels be designed?
- 1. How should channels be designed
- 3. LOT SIZE : The number of units the channel permits a typical customer to purchase.
- 4. WAITING AND DELIVERY TIME : Average time the customer waits for the receipt of goods.
- 5. 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.
- 6. PRODUCT VARIETY : The assortment provided by the marketing channe
- 7. SERVICE BACKUP : Add-on services(credit, delivery, installation, repairs) provided by the channel.
- 9. The objective is to maximise the profit, minimise the costs and still provide desired levels of service.
- 10. Designed to fuel excitement for the brand, Apple lets people touch their produ
- 12. TYPES OF INTERMEDIARIES it to automobile manufacturers, through a direct sales force or distributors or c
- 13. NUMBER OF INTERMEDIARIES n the number of intermediaries are exclusive distribution, selective distribution
- 14. Exclusive distribution means severely limiting the number of intermedia
- 15. Selective distribution relies on only some of the intermediaries willing to carry a particular product.
- 16. Intensive distribution places the goods or services in as many outlets as p
- 17. TERMS AND RESPONSIBILITIES OF CHANNEL MEMBERS hannel member must be treated respectfully and given the opportunity to be pr
- 18. y calls for the producer to establish a price list and schedule of discounts and
- 19. Conditions of sale refers to payment terms and producer guarantees.
- 20. Distributors territorial rights defines the distributors territories and the terms under which the producer will enfranchise other distributors.
- 22. C CRITERIA : Each channel alternative will produce a different level of sales a
- 23. L AND ADAPTIVE CRITERIA : Using a sales agency may pose a control prob
- 24. Created by NILESH RANA of IIT BHU under the guidance of Prof. SAMEER MATHUR , IIM LUCKNOW www.iiminternship.com Thank you !