CHANNEL DESIGN DECISIONS

Precious Khay S. Hipolito BSBA1-2

Marketing Channel Design

- designing effective marketing channels by analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating them.

A. Analyzing Consumer Needs

B. Setting Channel Objectives
(in terms of targeted levels of customer service)

also influenced by: -nature of the company -its marketing intermediaries -its competitors -the environment

C. Identifying Major Alternatives

a.) Types of Intermediaries b.) Number of Marketing Intermediaries
Strategies: 1.) Intensive Distribution- stocking the product in as many outlets as possible. 2.) Extensive Distribution- giving a limited number of dealers the exclusive right to distribute the companys products in their territories.

3.) Selective Distribution- the use of more than one, but fewer than all, of the intermediaries who are willing to carry the companys products.

c.) Responsibilities of Channel Members D. Evaluating Major Alternatives -economic criteria -control issues -adaptive criteria