Channel Management

Presented by
Vishnu Sankar S

Channel Selection
Direct versus Indirect Channels
Direct appears to be better than indirect when:
1.

Information needs (often due to technical complexity) are high

2.

Product customization is important

3.

Quality assurance matters

4.

Purchase orders are large

5.

Transportation and storage are complex

In contrast, the following factors tend to point to indirect channels:

6.

One-stop shopping for many products is important

7.

Availability is important

8.

After-sales service is important

Factors to consider in choosing

between Direct and Indirect channels

Level of commitment from the potential intermediaries

Channel-manufacture Competition

Customer loyalty

Advances in information technology disrupt the channel structure of many

industries

Indirect Channel

Representatives

Wholesalers

Retailers

Channel Members as Value-Added

Intermediaries
Services provided by Channel members

Marketing research

Communications

Contact

Matching

Negotiation

Physical distribution

Financing

Risk taking

Service