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How to design channels

Date post: 16-Aug-2015
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Page 1: How to design channels

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Page 2: How to design channels
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Page 4: How to design channels

Channel’s 5 service outputs

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Spatial convenience

Lot size

Waiting and delivery time

Product variety

Service backup

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Number of Intermediaries

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Terms and policies

• Price policy

• Conditions of Sale

• Distributor’s Territorial Rights

• Mutual Services and Responsibilities

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Evaluating major channel alternatives

• Each channel alternative will produce a different level of sales and costs.

• So 3 steps are very Important

• Estimating how many sales each alternative

Estimating costs of selling different volumes through each channel

Comparing sales and costs

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