This document discusses key considerations for designing a marketing channel system: 1) Analyzing customer needs including desired service output levels in terms of factors like lot size, waiting time, convenience, product variety, and service backup. 2) Establishing channel objectives and identifying major channel alternatives to evaluate. 3) Evaluating alternatives involves assessing factors like service output levels, costs, and prices as increased service requires higher channel costs and product prices.

1. 17/10/2012 Channel design decisions - MBA Notes World
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Firewall produce five service outputs:-
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a)lot size:- the lot size is the number of units that the marketing channel permits a typical
customers to buy on a buying occasion. The smaller is the lot size, the greater the service
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output level that the channel must provide.
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b)Waiting time:- waiting time is the average time that customer of That channel wait for
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receipt of the goods. Customers normally prefer fast delivery Channels. Faster service
requires a great service output level.
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c)special convenience:- special convenience expresses the degree to which the marketing
channel makes it easy for customers to purchase the product.
d)product variety:- product variety represents the assortment breath provided by the
marketing channel. Normally customers prefer greater Assortment breadth because it
increases the chance of exactly meeting their need.
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e)service backup:- service backup represents the add-on service (credit,delievery,
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installation, repairsI) provided by the channel. The greater the service. backup, the greater
the work provided by the channel. Factors influencing consumer behaviour
Consumer purchases are influenced strongly by or
there are four factors. 01. Cultural Factor 02. Social
Factor 03. Personal Factor ...
The marketing manager must know the service output desired by the target customers
provided increased levels of service output means increased costs for the channel and Product Mix & Product Line
higher prices for customers. Product Line A product line is a group of products
that are closely related because they function in a
similar manner, are sold to the same...
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2. 17/10/2012 Channel design decisions - MBA Notes World
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