19. Designing the channel system
What activities are the
channel member
required to perform?
Which of these
activities will be
performed by which
member?
How the
accomplishment of
these activities will
enhance customer
satisfaction level?
How many channel
members are required
for each category?
Clearly defined roles
and responsibility of the
channel members or
not?
Clearly mentioned
document of the
compensation package
to the channel
member?
Compensation package
have to be fair
When and how the
performance of the
channel member is
going to be judged?
20. Designing the channel system
Variables which affect the
channel structure
Market related
Product related
Company related
Environment related
Stages in channel planning
Segmentation stage
Example:- Pharmaceutical
company
Doctor, medical store and
hospital
Positioning stage
Number and types of
intermediary is decided
Focus stage
Segment need to be
addressed
Developing the right channel
alternative
Study model of existing
company
Example: Banks want rural
kirana stores
Defining the customer needs
Lot size
Waiting time
Choice to the customer
Place utility
Service support
Defining channel objectives