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.
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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