How should channels be designed

1. Designing and managing integrated
marketing channels
SHUBHAM VERMA
IIT GUWAHATI
How should channels be
designed ?

2. Analysing customer needs and wants
Establishing objectives and constraints
Indentifying Major Channel Alternatives
Types of
intermediaries
Number of
intermediaries
Terms and responsibilities
of channel members
Evaluating major channel alternatives
Control of Channels

3. Analysing customer
needs and wants

5. Channels produce 5 service outputs

6. LOT SIZE

7. Customers don’t like waiting longer for receipt of
goods.

8. Convenience

9. VARIETY

11. Establishing objectives
and constraints

12. THESE require different
channels than THESE

13. Depression in economic conditions leads to shorter channels
to reduce costs .

14. Identifying major
channel alternatives

15. Every channel has its weakness and
strength.
Indentify appropriate channel to minimize
costs

16. 3 types of channel alternatives :
• Types of intermediates
• Number of intermediates
• Terms and responsibilities of
channel members

17. Types of intermediaries
Choosing a new unconventional channel
because of difficulty , cost and ineffectiveness
of working with dominant channel

18. Number of Intermediaries
3 strategies based on no of intermediaries
• Exclusive distribution -> Distribution to
limited number of intermediaries
• .
• Selective distribution -> relies on more
than a few but less than all of the available
intermediaries
• Intensive Distribution – places
goods/products to all available outlets

19. Evaluating major channel
alternatives
• Economic
• Control
• Adaptive

21. Photo of break even cost chart
LEVEL OF SALES
S
E
L
L
I
N
G
C
O
S
T
S
Manufacturer’s sale
agency
Company sales
force
Break Even Cost chart for the
choice between a company
sales force and a
manufacturer’s Sales Agency

23. "These slides were created by
Shubham Verma( IIT Guwahati ) as
part of an internship done under
the guidance of Prof. Sameer
Mathur
(www.IIMInternship.com)"