【正文】 ery channel.3) A service channel.F) The question is not whether various channel functions need to be performed but rather, who is to perform them. G) All channel functions have three things in mon:1) They use up scarce resources.2) They can often be performed better though specialization.3) They can be shifted among channel members. Review Key Definitions here: forward flow, backward flow, sales channel, delivery channel, and service channelChannel Levels The producer and the final consumer are part of every channel. Figure illustrates several consumergoods marketing channels of different lengths. A) A zerolevel channel (also called a directmarketing channel) consists of—a manufacturer selling directly to the final consumer. B) A onelevel channel contains one selling intermediary—such as a retailer. C) A twolevel channel contains two intermediaries—wholesaler and a retailer.D) A threelevel channel contains—wholesalers, jobbers, and retailers. Figure (b) shows channels monly used in industrial marketing. A) Channels normally describe a forward movement of products from source to user. B) One can also talk about reverseflow channels. C) Reverseflow channels are important in the following cases:1) To reuse products or containers.2) To refurbish products for resale.3) To recycle products.4) To dispose of products and packaging.D) Several intermediaries play a role in reverseflow channels. Service Sector Channels Marketing channels are not limited to the distribution of physical goods. Producers of services and ideas also face the problem of making their output available and accessible to target populations. A) Marketing channels also keep changing in “person” marketing. B) As the Internet and other technologies advance, service industries are taking place through new channels. CHANNELDESIGN DECISIONS Designing a marketing channel system involves analyzing customer needs, establishing channel objectives, identifying major channel alternatives, and evaluating major channel alternatives. Analyzing Customers’ Desired Service Output Levels In designing the marketing channel, the marketers must understand the service output levels desired by target customers. A) Channels produce five service outputs:1) Lot size.2) Waiting and delivery time.3) Spatial convenience.4) Product variety.5) Service backup.B) The marketingchannel designer knows that providing greater service outputs means increased channel costs and higher prices for customers. Establishing Objectives and Constraints Channel objectives should be stated in terms of targeted service output levels.A) Channel institutions should arrange their functional tasks to minimize total channel costs and still provide desired levels of service outputs. B) Planners can identify several market segments that want different service levels. C) Channel objectives vary with product characteristics.D) Channel design must take into account the strengths and weaknesses of different types of intermediaries.E) Legal regulations and restrictions also affect channel design.Identifying Major Channel Alternatives Companies can choose from a wide variety of channels for reaching customers—from sales forces, to agents, distributors, dealers, direct mail, telemarketing, and the Internet. A) Each channel has unique strengths as well as weaknesses. B) Most panies now use a mix of channels. C) Each channel hopefully reaches a different segment of buyers and delivers the right products to each at the least cost. D) A channel alternative is described by three elements:1) The types of available business intermediaries.2) The number of intermediaries needed.3) The terms and responsibilities of each channel member.Types of Intermediaries A firm needs to identify the types of intermediaries available to carry on its channel work. Table lists channel alternatives. A) Companies should search for innovative marketing channels. B) Sometimes a pany chooses an unconventional channel because of the difficulty or cost of working with the dominant channel. C) The advantage is that the pany will encounter less petition during the initial move into this channel. Price Sensitivity Companies have to decide on the number of intermediaries to use at each channel level. Three strategies are available: exclusive distribution, selective distribution, and intensive distribution. A) Exclusive distribution means severely limiting the number of intermediaries. 1) It is used when the producer wants to maintain control over the service level and outputs offered by the resellers. 2) Often it involves exclusive dealing arrangements. B) Exclusive deals between suppliers and retailers are being a mainstay for specialists looking for an edge in a business world. C) Selective distribution involves the use of more than a few, but less than all, of the intermediaries who are willing to carry a particular productD) Intensive distribution consists of the manufacturer placing goods or services in as many outlets as possible. E) Manufacturers are constantly tempted to move from exclusive or selective distribution to intensive distribution to increase coverage and sales. Review Key Definitions here: exclusive distribution, exclusive dealing, selective distribution, and intensive distributionTerms and Responsibilities of Channel Members The producer must determine the rights and responsibilities of participating channel members. A) The main elements in the “traderelations mix” are:1) Price policy. 2) Conditions of sale.3) Distributors’ territorial rights.4) Mutual services and responsibilities.Evaluating the Major Alternatives Each channel alternative needs to be evaluated against economic, control, and adaptive criteria. Economic CriteriaA) Each channel will produce a different level