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 channel.
- 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 products. They target tech-savvy customers with in-store product presentations and workshops.
- 12. 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.
- 13. NUMBER OF INTERMEDIARIES Three strategies based on the number of intermediaries are exclusive distribution, selective distribution and intensive distribution.
- 14. Exclusive distribution means severely limiting the number of intermediarie
- 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 possible.
- 17. TERMS AND RESPONSIBILITIES OF CHANNEL MEMBERS Each channel member must be treated respectfully and given the opportunity to be profitable.
- 18. Price Policy calls for the producer to establish a price list and schedule of discounts and allowances.
- 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. ECONOMIC CRITERIA : Each channel alternative will produce a different level of sales and profits.
- 23. CONTROL AND ADAPTIVE CRITERIA : Using a sales agency may pose a control problem.
- 24. Created by NILESH RANA of IIT BHU under the guidance of Prof. SAMEER MATHUR , IIM LUCKNOW www.iiminternship.com Thank you !