Lecture_4

Service sector channels

 Health services
 Educational services
 Entertainment services
 Telecom services
 Financial services

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 Information highway channels

 Postal, mail, telegraph, fax, telephone, Radio,

TV, Cable, Satellite, Internet, Wireless…..
 These channels require support of Content
companies, Consumer device companies,
Components companies, and conduit
companies

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 Information channels

 Content companies: PTC ,U-fone,Mobi…etc

 Consumer devices companies Nokia, Samsung

 Component companies: ICI, TIP

 Conduit companies: AT&T, Turn key CO,s

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 Major elements of Channel design
process

 Segmentation –define service output

demands by segment;-(two different soft
drink buyers) Identify environmental
characteristics and constraints (poor
infrastructure)
 Positioning –define the optimal (numbers)
channel to serve the segment, also called
configuring the channel.

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 FOOD FOR THOUGHT

If you were happy before you knew someone, you can be happy
when they're gone. You can't be happy if you're still holding onto
people that have already moved on. Keeping baggage from the past
will leave no room for happiness in the future. Cry as much as you
want to, but just make sure when you're finished, you never cry for
the same reason again. Know your worth. Know when you have had
enough. And move on from the people who keep chipping away at
your happiness.
 Channel design Process

 Targeting/ focus –decide what segments to

target and what segments to ignore. In a
pharma product company focus may be on A
class towns, govt. hospitals etc.

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 Channel Design Factors

 Product mix, and nature of product

 Marketing mix elements
 Extent of market coverage
 Service levels planned
 Cost constraints / affordability
 Control of channel functions

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 Channel Design Process

 Define customer needs

Lot size
Waiting time
Spatial convenience
Product variety
Service back up

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 Channel Design Factors

 Product mix, and nature of product

 Marketing mix elements
 Extent of market coverage
 Service levels planned
 Cost constraints / affordability
 Control of channel functions

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 Channel Design Process

 Define customer needs

Lot size
Waiting time
Spatial convenience
Product variety
Service back up

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 Channel Design Process

 Define customer needs

Lot size
Waiting time
Spatial convenience
Product variety
Service back up

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 Channel Design process

 Establish Objectives & constraints on the

basis of cost target and service output levels.
 Consider product characteristics and
channel strengths & weakness.

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 Channel Design Process

 Identify major channel alternatives.

Types of Intermediaries

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If you lie to me, keep lying don't
hurt me by suddenly telling the
truth
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