Channel design decisions

Analyzing customers desired service output level (at retailer)

Lot size Waiting time Spatial convenience Product variety Service back up

 Establishing objectives and constraints Identifying major channel alternatives

Type of intermediary
Company sales force Manufacturers agency Industrial distributors

Number of intermediaries
Exclusive distribution Selective distribution Intensive distribution

Terms and responsibilities of intermediaries

 Evaluating the major alternatives

Economic criteria Control criteria Adaptive criteria

Thank you.

Economic criteria

Manufacturers sales agency

Sales cost

Co.s sales force

Level of sales