how should channels be designed
TRANSCRIPT
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Marketing Management A South Asian Perspective
Chapter 14: Designing and Managing Integrated Marketing Channels
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How should channels be designed?
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To design a marketing channel system, marketers analyze customer needs and wants, establish channel objectives and constraints, and identify and evaluate major channel alternatives
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Channels produce
Channels produce five service outputs:
Lot size
Waiting and delivery
time
Spatial convenience
Product variety Service
backup
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Establishing objectives and constraints
•Planners can identify several market segments based on desired service and choose the best channels for each.
•Channel objectives vary with product characteristics.
•Marketers must adapt their channel objectives to the larger environment.
•In entering new markets, firms should closely observe what other firms are doing.
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Identifying Major Channel Alternatives
Each channel has unique strengths and weaknesses.
Channel alternatives differ in three ways:•Types of intermediaries•Number of intermediaries*•Terms and responsibilities of channel members*
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There are three strategies based on number of intermediaries
Exclusive distribution
Selective distribution
Intensive distribution
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Terms and responsibility of channel members
Main elements of “trade-relations mix” are :
•Price policy•Conditions of sale•Distributors’ territorial rights•Mutual services and responsibility
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Evaluating Major Channel Alternatives
Each channel alternative will produce a different level of sales and costs. Firms would have to evaluate the costs and benefits and then arrive at a decision.
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thank you
Priti VermaLSR
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