Channel Design Decisions

Channel design decisions involve the strategic choices that businesses make in distributing and delivering their products or services to customers.

It starts with understanding customer expectations regarding purchase channels.

Do the customers prefer in-person or online transactions? Are they willing to travel distances to make the purchases? Whether they seek a broad assortment or specialized products?

Considering the diversity of customer preferences, businesses need to refine their service scope by establishing channel objectives defining the desired customer service level.

Next, the business identifies the major channel alternatives, taking into account the types and number of intermediaries and the responsibilities assigned to each channel member.

In the case of multiple channel alternatives, the business must narrow the choices to the ones that are sustainable in the long run.

Feasibility is assessed based on economic viability, level of control on the channel, and adaptability criteria.

It's important to note that distribution channels and their feasibility can vary from country to country, introducing additional complexity when dealing with international marketing.