6 Questions
What is a key consideration in establishing channel objectives?
Determining market segments to serve
Why do perishable products require more direct marketing?
To avoid delays and dangers associated with repeated handling
What type of products are usually sold directly by company sales representatives?
Non-standardized products
Why are bulky products like building materials sold through channels that minimize shipping distance?
To reduce delays in delivery
For which type of products, like custom-built machinery, do middlemen lack the requisite knowledge?
Non-standardized products
Why are high unit value products often sold through a company sales force?
To ensure appropriate selling due to the value of the product
Study Notes
Channel Objectives and Constraints
- Channel objectives should be stated in terms of targeted service output levels, considering multiple segments with differing service output levels.
- Effective channel planning involves determining which market segments to serve and the best channels to use in each case.
- Each producer develops its channel objective in the face of several constraints.
Channel Objectives Vary with Product Characteristics
- Perishable products require more direct marketing due to the dangers associated with delays and repeated handling.
- Bulky products (e.g., building materials, soft drinks) require channels that minimize shipping distance and handling.
- Non-standardized products (e.g., custom-built machinery, specialized business forms) are sold directly by company sales representatives due to middlemen's lack of knowledge.
- Products requiring installation and/or maintenance services are usually sold and maintained by the company or exclusively franchised dealers.
- High unit value products are often sold through a company sales force rather than through middlemen.
Identifying Channel Alternatives
- After defining the target market and desired service output level, a company should identify its channel alternatives.
Learn about establishing channel objectives and constraints in marketing, including determining service output levels, identifying market segments, and choosing the best channels to use. Understand how producers develop channel objectives based on product characteristics.
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