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Friday 15 February 2013

Channel

Part 2: line of products Design
Chapter 4: Supply-Side furrow
Analysisâ€"Channel Flows and
Efficiency Analysis

Channel Analysis Framework
CHANNEL DESIGN
Segmentation

Channel Structure
split up the Workload
Degree of Commitment
Gap Analysis

CHANNEL IMPLEMENTATION
Channel Power

Channel Conflict

cook/Defuse Conflict

Channel Coordination

INSIGHTS FOR SPECIFIC CHANNEL INSTITUTIONS

Channel Analysis
Channel members produce service outputs
Channel flows are the activities that produce
service outputs
motivating to know:
What flows are being performed
By which alley members
At what levels

Enables channel manager to:

Diagnose and remedy shortcomings
Design a new channel or revise an existing channel
asperse costs

Allocate profits equitably
Avoid channel conflict

Channel Flows
The octonary Generic Channel Flows
1.
2.
3.
4.
5.
6.
7.
8.

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Physical possession
Ownership
Promotion
Negotiation
Financing
Risking
Ordering
Payment

Can remove channel members but not channel flows
Redundant flows

MARKETING FLOWS IN CHANNELS
Physical
Possession

Physical
Possession

Physical
Possession

Ownership

Ownership

Ownership

Promotion

Promotion

Promotion

Negotiation

Negotiation

Negotiation

Producers

Retailers

Wholesalers

Financing

Financing

Financing

Risking

Risking

Risking

Ordering

Ordering

Ordering

Payment

Payment

Payment

Commercial Channel Subsystem

Consumers
Industrial
and
Household

Channel Flow

Costs

Physical possession stock and delivery costs
Ownership

Inventory carrying costs

Promotion

Personal selling, advertising,
sales promotion, public
relations costs

Negotiation

magazine and legal costs

Inventory
Reasons to have inventory
Demand surges
Economies of scale
Availability for quick delivery
product line stock

Uncertain supply and demand
Lead time
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