The document discusses factors to consider when designing marketing channels, including customer needs, product variety, service levels, and costs. It identifies key alternatives like the number and types of intermediaries used, and terms of trade between members. The objective is to maximize profit while providing good customer service. Evaluation criteria include sales, costs, control issues, and adaptability.

1. How should channels be designed

2. ANALYZING
CUSTOMER NEEDS
AND WANTS

3. LOT SIZE : The number of units the channel permits a typical customer to
purchase.

4. WAITING AND DELIVERY TIME : Average time the customer waits for
the receipt of goods.

5. SPATIAL CONVENIENCE : The degree to which the marketing channel
makes it easy for customers to purchase the product. Toyota offers better
spatial convenience than Lexus because it has more dealers.

6. PRODUCT VARIETY : The assortment provided by the marketing channe

7. SERVICE BACKUP : Add-on services(credit,
delivery, installation, repairs) provided by the
channel.

8. ESTABLISHING OBJECTIVES AND
CONSTRAINTS

9. The objective is to maximise the profit, minimise the costs and still provide
desired levels of service.

10. Designed to fuel excitement for the brand, Apple lets people touch their produ

11. IDENTIFYING MAJOR
CHANNEL
ALTERNATIVES

12. TYPES OF INTERMEDIARIES
it to automobile manufacturers, through a direct sales force or distributors or c

13. NUMBER OF INTERMEDIARIES
n the number of intermediaries are exclusive distribution, selective distribution

14. Exclusive distribution means severely limiting the number of intermedia

15. Selective distribution relies on only some of the intermediaries willing to
carry a particular product.

16. Intensive distribution places the goods or services in as many outlets as p

17. TERMS AND RESPONSIBILITIES
OF CHANNEL MEMBERS
hannel member must be treated respectfully and given the opportunity to be pr

18. y calls for the producer to establish a price list and schedule of discounts and

19. Conditions of sale refers to payment terms and producer guarantees.

20. Distributors territorial rights defines the distributors territories and the
terms under which the producer will enfranchise other distributors.

21. EVALUATING
MAJOR
CHANNEL
ALTERNATIVES

22. C CRITERIA : Each channel alternative will produce a different level of sales a

23. L AND ADAPTIVE CRITERIA : Using a sales agency may pose a control prob

24. Created by NILESH RANA of IIT BHU under the guidance of
Prof. SAMEER MATHUR , IIM LUCKNOW
www.iiminternship.com
Thank you !