This document discusses designing and managing integrated marketing channels. It states that marketers should analyze customer needs, establish channel objectives and constraints, and identify and evaluate major channel alternatives. It notes that channels produce five service outputs: lot size, waiting and delivery time, spatial convenience, product variety, and service backup. Objectives and constraints vary based on market segments, product characteristics, and the larger environment. When identifying alternatives, each channel has unique strengths and weaknesses, and alternatives differ in types of intermediaries, number of intermediaries, and terms and responsibilities. Evaluation of alternatives considers the different levels of sales and costs each will produce.

1. Marketing Management
A South Asian Perspective
Chapter 14: Designing and Managing Integrated Marketing Channels

2. How should
channels be
designed?

3. To design a marketing channel system, marketers analyze customer
needs and wants, establish channel objectives and constraints, and
identify and evaluate major channel alternatives

4. Channels produce
Channels produce five service outputs:
Lot
size
Waiting
and
delivery
time
Spatial
convenience
Product
variety Service
backup

5. 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.

6. 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*

7. There are three strategies based on
number of intermediaries
Exclusive
distribution
Selective
distribution
Intensive distribution

8. 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

9. 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.

10. thank you
Priti Verma
LSR