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Channel Design Decision

By Balachandar K

Step 1:- Analyzing Consumers Desired Service Output Levels


1) 2) 3) 4) 5) Lot size No of units a customer can buy. Waiting and delivery time Spatial Convenience Ease of access. Product variety Service backup add on services

Step 2: - Establishing Objectives and Constrains Step 3:- Identifying Major Channel Alternatives
Check for types of Intermediaries Number of Intermediaries
Exclusive distribution Selective distribution Intensive distribution

Terms and responsibilities of channel members

Step 4:- Evaluating the Major Alternatives


Economic criteria
Whether to use our sales force or the distributor sales force? Which one will be economical!!

Control and adaptive criteria


Channel member should have targets.

Step 5:- Choosing the Channel Member

Channel Management Decisions


Selecting Channel Members. Training Channel Members. Motivating Channel Members. Evaluating Channel Members. Modifying Channel Arrangements.