Marketing Channel Design and Implementation

What is the fundamental principle of marketing mentioned in the text?

On what basis are segments best defined?

What is a marketing channel viewed as?

What is the term for the value-added services created by channel members and consumed by end-users?

What decision involves choosing the exact identity of the channel partner to use at each channel level?

What type of distribution involves having a product available in many retail outlets in a given market area?

What is the primary goal of the channel design process?

What is the outcome of effective channel implementation?

What is the primary focus of the channel implementation process?

What is the purpose of gap analysis in the channel design process?

What is involved in the channel design process?

What is the goal of splitting the workload in the channel design process?

The Marketing Channel Challenge

Involves two major processes: designing the right channel and implementing that design
The design process involves segmenting the market, choosing target segments, and producing channel service outputs for target end-users in the most efficient way possible

Channel Design Process

SEGMENTATION: Recognize and respond to target customers' service output demands
Decisions About Efficient Channel Response
CHANNEL STRUCTURE: Identify intermediaries in the channel, their roles, and numbers
SPLITTING THE WORKLOAD: Determine responsibilities among channel members
DEGREE OF COMMITMENT: Decide on distribution alliances, vertical integration, or ownership
GAP ANALYSIS: Identify needed changes to achieve efficient channel design

Channel Implementation Process

CHANNEL POWER: Identify sources of power for all channel members
CHANNEL CONFLICT: Identify actual and potential sources of conflict strategically, subject to legal constraints

Market Segmentation

Involves splitting a market into groups of end-users who are maximally similar within each group and maximally different between groups
Segments are best defined based on demands for the outputs of the marketing channel

Marketing Channel

Is more than just a pipe for product; it adds value to the product through service outputs
Service outputs are created by channel members and consumed by end-users along with the product purchased

Channel Member Selection

Decide whether to use independent distributors, sales representatives, trucking companies, financing companies, export management companies, etc.
Determine the exact identity of channel partners to use at each channel level
Decide on channel intensity (intensive, selective, or exclusive distribution) based on efficiency and implementation factors

This quiz covers the two major processes of designing and implementing marketing channels. It involves segmenting the market, choosing target segments, and producing channel service outputs efficiently. Test your knowledge of marketing channel design and implementation!