What are the channel design decisions?
Channel design is presented as a decision faced by the marketer, and it includes either setting up channels from scratch or modifying existing channels. This is sometimes referred to as re-engineering the channel and in practice is more common than setting up channels from scratch.
What factors influence the choice of international marketing channel?
1) Factors Relating to Product Characteristics:
- i) Industrial/Consumer Product: ADVERTISEMENTS:
- ii) Perishability:
- iii) Unit Value:
- iv) Style Obsolescence:
- v) Weight and Technicality:
- vi) Standardized Products:
- vii) Purchase Frequency:
- viii) Newness and Market Acceptance:
What are the factors that influence the channel decision?
The nature and type of product helps in determining a decision about channel of distribution.
- (i) Price of Product: ADVERTISEMENTS:
- (ii) Weight:
- (iii) Standardisation:
- (iv) Product Nature:
- (v) After Sale Services:
- (i) Market Size:
- (ii) Nature of Customers:
- (iii) Location of Buyers:
What is Channel decision?
Channel decision is an action or movement that a channel program or community needs to decide upon to establish the growth and success of a product or service.
How are channel decisions taken?
Channel members are evaluated on the basis of their sales, inventory level, service support, delivery time performance, complaint redressal, promotional program implementation and training performance.
What are the types of channel conflict?
We define 3 types of channel conflicts:
- Vertical Channel Conflict:
- Horizontal Channel Conflict:
- Multiple Channel Conflict:
- Chain Reaction – Brand and Product Lose Value:
- Sales Stagnation:
- Price battling can weaken the distribution channel.
What is distribution channel decision?
Distribution is the physical flow of products through distribution channels. A channel of distribution is defined as a chain of market intermediaries or middlemen used by a producer or marketer to make products and services available when and where consumers or users want them.
What is channel design?
Channel design is the strategic process that commercial organizations use to balance resources across direct and indirect channels or routes to market. Direct channels typically include field sellers and e-commerce platforms, while indirect channels can include a mix of partners, distributors and marketplaces.
What do you understand by channel conflict?
Channel conflict occurs when manufacturers (brands) disintermediate their channel partners, such as distributors, retailers, dealers, and sales representatives, by selling their products directly to consumers through general marketing methods and/or over the Internet.
Why channel design decisions are very important?
Channel design decisions are critical because they determine a product’s market presence and buyer’s accessibility to the product. Channel decisions have additional strategic significance because they entail long-term commitments. It is usually easier to change prices or promotion than to change marketing channels.
What is channel design strategy?
Channel strategy consists of selecting the type of channel, determining the desired intensity of distribution, designing the channel configuration, and managing the channel on an ongoing basis. It’s essential for product and/or service distribution to your target markets and potential customers.
What are the different types of channel conflicts?