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DESIGN AND
IMPLEMENTATIO
N Prateek Kumar (CM15224)
Vaishali Verma (CM15234)
INTRODUCTION
What is a channel?
market geography
market size
market density
market behaviour
2. PRODUCT DIMENSIONS
3. COMPANY DIMENSIONS
Size
Financial capacity
Managerial expertise
Objectives and strategies
4. INTERMEDIARY DIMENSIONS
Availability
Cost
Services
5. ENVIRONMENTAL DIMENSIONS
PROCESS OF CHANNEL DESIGN
Defining the customer needs
Channel alternatives
It includes:
Product information
Product customisation
Product quality assurance
Lot size
Product variety
Spacial convenience
Waiting and delivery time
After sales service
logistics
2. DEFINING CHANNEL OBJECTIVES:
Perishable product requires more direct marketing.
Bulky products, such as buildings materials require channels that minimize the
shipping distance and amount of handling.
Non-standard products such as custom built machinery and specialised business
forms, are sold directly by company sales representatives.
High-unit value products such as generators and turbines are often sold through a
company sales force rather than intermediaries.
3. CHANNEL ALTERNATIVES:
Economic criteria
Control criteria
Adaptive criteria
With the completion of forgoing steps, the number of alternatives would have
narrowed down considerably. The firm must evaluate, design and chose the best
among them.
IMPLEMENTATION
IDENTIFY POWER SOURCES
When one channel member’s actions prevents the channel from achieving its goals:
Goal conflict
Domain conflict
Perceptual conflict
GOAL OF CHANNEL COORDINATION
The company must sell not only through the intermediaries but also
to/with them
3. MOTIVATING CHANNEL MEMBERS
What is working?