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annel Behavior and Organization 12 ? Step 1: Analyzing Consumer Needs ? Cost and feasibility of meeting needs must be considered ? Step 2: Setting Channel Objectives ? Set channel objectives in terms of targeted level of customer service ? Many factors influence channel objectives Channel Design Decisions 13 ? Step 3: Identifying Major Alternatives ? Types of intermediaries ? Company sales force, manufacturer’s agency, industrial distributors ? Number of marketing intermediaries ? Intensive, selective, and exclusive distribution ? Responsibilities of channel members Channel Design Decisions 14 ? Step 4: Evaluating Major Alternatives ? Economic criteria ? Control issues ? Adaptive criteria Channel Design Decisions 15 ? Designing International Distribution Channels ? Global marketers usually adapt their channel strategies to structures that exist within foreign countries ? Key challenges: ? May be plex or hard to perate ? May be scattered, inefficient, or totally lacking Channel Design Decisions 16 ? Selecting Channel Members ? Identify characteristics that distinguish the best channel members ? Managing and Motivating Channel Members ? Partner relationship management (PRM) is key ? Evaluating Channel Members ? Performance should be checked against standards ? Channel members should be rewarded or replaced as dictated by performance Channel Management Decisions 17 ? Exclusive distribution ? Only certain outlets are allowed to carry a firm’s products ? Exclusive dealing ? Exclusive territorial agreements ? Tying agreements Public Policy and Distributi