Some factors affecting channel strategy choice

  • Service output levels desired by consumers: lot size, waiting time, spatial convenience, product variety, service back-up
  • Product characteristics (size, weight, cost, standardisation, and perishability)
  • Middlemen characteristics
  • Competitive characteristics
  • Company characteristics
  • Environmental characteristics (economical conditions, local regulations and restrictions)

Key issues in managing channels

  • Selection (most appropriate)
  • Scope (intensity)
  • Motivation
  • Control (leads to vertical and horizontal marketing systems e.g. Pepsico, banks in store etc.)
  • Conflict
  • Single or multiple distribution
  • International considerations
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