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Nature of Distribution Channels

This document discusses factors to consider when designing distribution channels, including the nature of products and services, customer expectations and location, and intensity of distribution required. It also covers segmenting and positioning the target market, defining customer needs and channel objectives, evaluating channel alternatives and their associated costs, and selecting appropriate channel intermediaries such as distributors, agents, and logistics providers.

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100% found this document useful (1 vote)
7K views

Nature of Distribution Channels

This document discusses factors to consider when designing distribution channels, including the nature of products and services, customer expectations and location, and intensity of distribution required. It also covers segmenting and positioning the target market, defining customer needs and channel objectives, evaluating channel alternatives and their associated costs, and selecting appropriate channel intermediaries such as distributors, agents, and logistics providers.

Uploaded by

jonyshakya
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Factors - nature of distribution

channels
 Nature of products/services
 Expectations from the system
 Location and nature of customers
 Intensity of distribution required
 Nature of target market
 Nature of competition
Channel design and planning

 Segmentation
 Positioning
 Focus
 Development

Defining customer needs

 Lot size
 Waiting time
 Choice of consumer
 Place utility
 Service support
Defining channel objectives
Channel alternatives

 Present business intermediaries


 Requirement – no. and type of
intermediary
 New channel members
 Individual role of channel memebers

Cost of channel system

 Margins of channel partners


 Transportation cost
 Order booking and execution cost
 Stock return cost
 Reverse logistics cost

Channel intermediaries

 Distributors
 C& F agents
 Logistics service provider
 Agents , guarantors

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