Lecture_4

2
Service sector channels
Health services
Educational services
Entertainment services
Telecom services
Financial services

3
Information highway channels
Postal, mail, telegraph, fax, telephone, Radio,
TV, Cable, Satellite, Internet, Wireless..
These channels require support of Content
companies, Consumer device companies,
Components companies, and conduit
companies
4
Information channels
Content companies: PTC

Consumer devices companies Nokia

Component companies: ICI

Conduit companies: U-fone
5
Major elements of Channel design
process
Segmentation define service output
demands by segment;-(two different soft
drink buyers) Identify environmental
characteristics and constraints (poor
infrastructure)
Positioning define the optimal (numbers)
channel to serve the segment, also called
configuring the channel.
If you were happy before you knew someone, you can be happy
when they're gone. You can't be happy if you're still holding onto
people that have already moved on. Keeping baggage from the past
will leave no room for happiness in the future. Cry as much as you
want to, but just make sure when you're finished, you never cry for
the same reason again. Know your worth. Know when you have had
enough. And move on from the people who keep chipping away at
your happiness.
FOOD FOR THOUGHT
7
Channel design Process
Targeting/ focus decide what segments to
target and what segments to ignore. In a
pharma product company focus may be on A
class towns, govt. hospitals etc.
8
Channel Design Factors
Product mix, and nature of product
Marketing mix elements
Extent of market coverage
Service levels planned
Cost constraints / affordability
Control of channel functions

9
Channel Design Process
Define customer needs
Lot size
Waiting time
Spatial convenience
Product variety
Service back up


10
Channel Design Factors
Product mix, and nature of product
Marketing mix elements
Extent of market coverage
Service levels planned
Cost constraints / affordability
Control of channel functions

11
Channel Design Process
Define customer needs
Lot size
Waiting time
Spatial convenience
Product variety
Service back up


12
Channel Design Process
Define customer needs
Lot size
Waiting time
Spatial convenience
Product variety
Service back up


13
Channel Design process
Establish Objectives & constraints on the
basis of cost target and service output levels.
Consider product characteristics and
channel strengths & weakness.


14
Channel Design Process
Identify major channel alternatives.
Types of Intermediaries




If you lie to me, keep lying don't
hurt me by suddenly telling the
truth
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