Channel Design Considerations Distribution culture The structural linkages and functional characteristics of existing channels Competition What channe/s does the competition use? n Company objectives Determined by company objectives for market share and profitability Copyright 2001 by Harcourt, Inc. All rights reserved 13-6
Copyright © 2001 by Harcourt, Inc. All rights reserved. 13-6 Channel Design Considerations Distribution culture • The structural linkages and functional characteristics of existing channels Competition • What channels does the competition use? Company objectives • Determined by company objectives for market share and profitability
Channel Design Considerations n Character The nature of the product impacts the design of the channe the channel must match the positioning of the product in the market “ Capita describes the financial requirements for setting up a channel system “Cost is the expenditure incurred in maintaining a channe/once it is established Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 13-7 Channel Design Considerations Character • The nature of the product impacts the design of the channel. The channel must match the positioning of the product in the market. “Capital” • ... describes the financial requirements for setting up a channel system. “Cost” • … is the expenditure incurred in maintaining a channel once it is established