Professional Documents
Culture Documents
McGraw-Hill/Irwin
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Market information
Middlemen are often relied on for fast and accurate feedback. A high level of channel feedback is particularly important for firms in highly competitive industries. Feedback is crucial for prospectors.
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Flexibility
Firms pursuing prospector strategies in new or rapidly growing or technically turbulent product categories, consider this important. A flexible channel is one where it is relatively easy to switch channel structures or add new types of middlemen.
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The power of any firm within a distribution channel is inversely proportional to how dependent the other channel members are on that firm.
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Take-Aways
The importance of good distribution decisions in designing a marketing plan is simple: Customers wont buy your good or service unless it is conveniently available when and where they want to buy it.
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Take-Aways
Distribution channel decisions have a major economic impact because distribution costs often exceed the costs of producing a good or service.
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Take-Aways
Channel design involves decisions about the appropriate types and numbers of middlemen to include in the distribution channel in order to link the marketing strategy for the good or service to the needs of the target customers.
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Take-Aways
Distribution channels can be designed to accomplish a number of objectives, including:
Maximizing the products availability, Satisfying customer service requirements, Encouraging promotional effort, Obtaining timely market information, Minimizing distribution costs, and Maintaining flexibility.
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Take-Aways
A manufacturer or service provider can attempt to gain the support and direct the efforts of its channel partners:
Through vertical integration, By legal contracts, By providing economic incentives, and/or By developing mutually beneficial relationships based on trust and the expectation of future benefits.
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