Coordination is difficult between firms the procurement process knez and simester more decision makers. Sales and marketing decisions sales channel and network strategy, sales pricing and promotions, order management and fulfillment process, service delivery process definitions. Market needs and preferences the cost of channel service provision incentives for channel members and methods of payment the size of the end market to be served product characteristics required, complexity of product, price, perishability, packaging. Often, the only reasonable option is some combination of thirdparty. Feb 27, 2018 may 16, 2020 channel design decisions distribution decisions, marketing management b com notes edurev is made by best teachers of b com. Channel design refers to those decisions involving the development of new marketing channels where none had existed before or to the modification of existing. This unit examines the design and integration of the various marketing channels which make available the various goods and services to the end customers globally. Channel design is also influenced by the competitors channels. The firms usually follow the below steps for designing a marketing channel analysis a channel design starts with analysing the market requirements.
They base their design decisions on other designers decisions. Channel design decisions distribution decisions, marketing. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Key factors in channel management distribution channel. The objectives clarify what is sought to be achievd by having the channels. Channel of distribution marketing channel in current competitive climate, big companies are using hybrid channels in any one area. Mkt 19 2 channel design decisions marketing 300 with x at. Channel design refers to those decisions involving the development of new marketing channels where none had existed before or to the modification of existing channels. Evaluating the variables affecting channel structure.
The minimum permissible velocity is the lowest velocity that will prevent sedimentation and vegetative growth crude estimates. Channeldesign decision evaluating major channel alternatives economic criteria estimate how many sales each alternative will generate estimate the costs of selling different volumes through each channel comparing sales and costs control and adaptive criteria sales agency. Meaning of channel design channel design decisions are critical because they determine a products market presence and buyers accessibility to the product. Channel design does outsourcing help or hinder coordination. Channel design must adapt to the larger environment.
Channel objectives are based on the requirements of the purchasers and users, the overall marketing strategy, and the longrun goals of the corporation. Marketing channel design and integration units of study. Hof and heather green, how amazon cleared that hurdle, business week february 4, 2002. Summarize results with dimensioned sketch design for different lining thickness or material the base of the channel and the sides of the channel might be. Pdf network design decisions in supply chain planning. Whether you are selling through wholesalers, distributors, brokers, dealers, agents, or resellers, your task as a channel manager is clear to provide the programs and structure to achieve your sales goals without diminishing reputation or upsetting your direct sales force. The channel manager must be very specific in describing channel tasks, and must define how these tasks will change depending upon the situation. Decisions about the selection of marketing channels require high investments and efforts, but an effective distribution system always provides additional. Design of roahlde drainage channela derigft of roadside drainage channels, the fourth in a series on hy draulic design of hlghwt. Marketing channel systems part 1 1 chapter 1 marketing channel concepts chapter 2 the channel participants. Channel design decision analyzing customer needs and wants. The longer the channel, the more difficult it is to exercise control. How are the following optimization methods used for facilityypy location and. Often, the only reasonable option is some combination of third party.
Holistic marketers guarantee that marketing decisions in all these different areas are made to jointly maximize value. Estimate height of lining above surface and freeboard 7. Channel design is a sevenstep process of which six steps are covered in this chapter and. Distort actions and decisions relationship between incentives and coordination. Channel decisions have additional strategic significance because they entail longterm commitments. Mkt 19 2 channel design decisions marketing 300 with x at saint louis university studyblue flashcards. Analyze the effect of channel management decisions on the marketing of your selected product or service. A channel is modified when o channel is not working well as planned o consumer. The goal of channel management is to establish direct communication with customers in each channel. Pdf designing a marketing channel mix researchgate. Paradigm of the channel decision seven phases or steps of channel design decision. Legal regulations and restrictions also affect channel design.
When economic conditions are depressed, producers want their goods to market using shorter channels and without services that add to the final price of the goods. Coordination is difficult at large firms decision makers too far apart decentralized decision makers too far from information centralized hinders. Recognizing the need for a channel design decision. The side slopes depend primarily on the engineering. All firms seek to realize certain common objectives by having the channel. Channel management decisions, channel design decisions. Get close to the customers acquaint with local laws and customs choose channels wisely 11. Developing possible alternative channel structures. The purpose of the model is to assist manufacturers in making effective channel decisions. As an example of international channels decisions and management the following cotton example is given, adapted from the itc training manual 1989 1. The channel manager must be very specific in describing channel tasks, and must define how these tasks will. Channel design decisions free download as powerpoint presentation. Channel management calls for choosing and motivating specific channel members and evaluating their performance over time.
Channels objectives vary with product characteristics. What are the steps involved in designing a marketing channel. Channel design decisions microeconomics business economics. Channel design for effective bidirectional relations in fmcg sector free download mom and pop stores facelift, business standardmonday, feb 19 research on distribution channel design decisions. It is usually easier to change prices or promotion than to change marketing channels. Formulating the channel objectives is the first step in designing a channel system. Distribution decisions focus on establishing a system that, at its.
This document is highly rated by b com students and has been viewed 4100 times. There are a wide variety of sources and techniques for designing stable channels that are available to the designer. Feb 10, 2017 channel design must take into account the strengths and weaknesses of different types of intermediaries. Channel design must also adapt to the larger environment. Seven phases of the paradigm of the channel design decision are discussed. Scribd is the worlds largest social reading and publishing site. A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process. This paper proposes a channel design model based on the notion that distribution functions are the basic determinants of channel structure. When conflict is chronic or acute the parties resort to one of the 3 1 university of michigan marketing 100 fall 20 designing and managing value networks and channels. Channel strategy is relevant to all six of the basic distribution decisions faced by firms. Selecting the right channel strategy matrix marketing group. Designing the marketing channel chapter objectives channel design refers to those decisions involving the development of new marketing channels where none had existed before or to the modification of existing channels.
The magnitude of change demands a strategic perspective that views channel decisions as choices from a continually changing array of alternatives for achieving market coverage and competitive advantage subject, of course, to the constraints of cost, investment, and flexibility. In deciding on channel design the following have to be considered carefully. This is the presentation on channel design decision, channel management decisions and marketing logistics for principal of marketing bba students. Check minimum permissible velocity and froude number 6. Describe a strategic framework for facility location.
The obsession with being up to date with new products, trends and styles, makes these designers powerful. Students will gain an indepth understanding of the challenges of integrating hightech electronic channels into conventional marketing channels in order to create a seamless customer. Steps involved in designing a channel system, marketing. Latoya select appropriate distribution channels for your product or service and address costs in terms of placement, shipping, and middlemen. Network design decisions are mostly trigger ed by changing market conditions. Some of the design process challenges are as follows. Review channel design and arrangements notice change in buying patterns new competition stage of product in the life cycle channel modification decisions 9. Study 51 mkt 19 2 channel design decisions flashcards from christine g. What are the factors influencing supply chain network design decisions. If the company is able to effectively achieve this goal, the management will have a better idea which marketing channel best suits that particular customer base. Unlike experience or intuition, design based on references is out of the designers comfort zone, out of what he knows or what he feels. What is the role of network design decisions in the supply chain. For example, manufacturersa reps are able to contact customers at a low cost per customers because the total cost is shared by several clients, but the selling effort per customer is less intense than if company sales reps did the.
A number of studies have been conducted on channel design. Design and selection of industrial marketing channels. Pdf designing channels of distribution researchgate. How are the following optimization methods used for facilityypy location and ca pacity allocation decisions. Horizontal conflict refers to a conflict between two or more channel members at the same level, whereas vertical conflicts involve a disagreement between two channel members on consecutive levels. Design charts for open channel flow transportation. Channel design decisions february 11, 2008 sree rama rao salesmarketing management designing a marketing channel system involves analyzing customer needs, establishing channel objectives, identifying major channel alternatives, and evaluating major channel alternatives. Further, channel decisions involve comparatively longterm commitments to other firms. A marketing channel not designed effectively fails to make an excellent product successful. May 16, 2020 channel design decisions distribution decisions, marketing management b com notes edurev is made by best teachers of b com. Channel decisions involve longterm commitments to other firms. Designing and managing marketing channels, channels.
Content includes the definition of a distribution channel, the steps in its design, functional discounting and margin allocation, the role channels play in branding, and recent trends. Paradigm of the channel decision seven phases or steps of. Basis the customer, product category, and marketing environment, the organisation has to follow the matching channel strategy exclusive. Obviously, any marketing activity that we design and implement has no value whatsoever, unless the product is placed on the shelf. The term channel management is widely used in sales marketing parlance.