NRSG 121 Lecture Notes - Lecture 17: Longrun, Vertical Integration, Gross Margin
Document Summary
Channel design refers to those decisions involving the development of new marketing channels where none had existed before or to the modification of existing channels. Channel design is a seven-step process of which six steps are covered in this chapter and the seventh or final step is covered in chapter 7. Channel design: those decisions involving the development of new marketing channels where none had existed before, or the modification of existing channels. Channel design is presented as a decision faced by the marketer, and it includes either setting up channels from scratch or modifying existing channels. This is sometimes referred to as reengineering the channel and in practice is more common than setting up channels from scratch. The term design implies that the marketer is consciously and actively allocating the distribution tasks to develop an efficient channel, and the term selection means the actual selection of channel members.