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Hello Essay

325 words - 2 pages

Channel Design Decisions
Channel design decisions requires:



Analyzing consumer needs
Setting channel objectives
Identifying major channel alternatives
Evaluating the major alternatives

1. Analyzing Consumer Needs
Designing a marketing channel starts with finding out what target customers want from
the channel
2. Setting channel objectives
Set it in terms of:
a. Targeted level of customer service
b. What segments to serve
c. Best channel to use
d. Minimizing the cost of meeting customer service requirements
Objectives are influenced by:
a. ...view middle of the document...

b.
c.
d.

Expand direct sales force
Assign outside salespeople to territories
Develop a separate sales force
Telesales

Number of marketing intermediaries to use at each level strategies:
a. Intensive distribution- is a strategy used by producers of convenience products and
common raw materials in which they stock their products in as many outlets as
possible

b. Exclusive distribution- is a strategy in which the producer gives only a limited
number of dealers the exclusive right to distribute its products in their territories
such as luxury automobiles and high-end apparel
c. Selective distribution- is a strategy when a producer uses more than one but fewer
than all of the intermediaries willing to carry the producer’s products such as
appliances and televisions.
Responsibilities of channel members
Producers and intermediaries need to agree on:



Price policies
Conditions of sale
Territorial rights
Services provided by each party

4. Evaluating the major alternatives
Each alternative should be evaluated against:
a. Economic criteria compares the likely sales costs and profitability of
different channel members
b. Control refers to channel members’ control over the marketing of the
product
c. Adaptive criteria refers to the ability to remain flexible to adapt to
environmental changes

GCOLopez UP Visayas

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