distribution channel structure

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    DISTRIBUTION

    CHANNEL

    STRUCTURE: AN

    OVERVIEW OF

    DETERMINANTS

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    Introduction

    Distribution problem has an enormousimportance in the marketing literatureand managerial contexts today.

    Stern and Reve (198! said" channeltheory is divided into t#o orientations$ aneconomic approach and other behavioral. %irst one analy&es the e'ciency o the

    channel

    )he second one is sociological oriented

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    Introduction (contd.!

    Structure o channels re*uires a

    set o strategic decisions)he appropriate intermediary

    Distribution intensity)ype o intermediary

    )he coverage o the market)he kind o distribution (direct or

    indirect!

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    )he channel design issue

    +hannel is not easy selected.

    +onstraints,)he availability o good middlemen.

    )raditional channel patterns.

    -roduct characteristics.

    +ompany nances. +ompetitive strategies.

    +ustomer dispersion *uestion.

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    )he channel design issue(+ontd.!

    +hoice o a channel , considerable

    reedom o action in matters omarketing policy.

    +hannel choice is a cost / nancialdecision" and has control aspects o

    channels and their adaptability.+urrent channels literature can0t

    explain channel structure came to beand ho# it #ill change over time.

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    )he uestion is 2

    %irms are able to choose or only adapt in

    a given channel structure3 4hat actorsbeneath it3

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    %actors Determining DistributionStructure

    )he channel varies rom direct toindirect based in the ollo#ingactors$

    Si&e o the rm.

    Si&e o average order.

    )echnical,purchase complexity.Stage in the product lie cycle.

    Degree o standardi&ation.

    -urchase re*uency.

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    Di5erent distribution intensity inthe same category o products

    uality.

    %ocus or a brand.coordination e5orts.

    Inverse relationship.

    Support programs.

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    In6uencing actors o achannel structure.

    +onsumer.

    7arket.7arketing mix.

    )he lie cycle o a product.

    )he number o products produced.

    )he pricing actor.

    )he promotion strategy.

    )he mass media.

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    %actors DeterminingDistribution Structure

    uying ehavior

    )ypes o oods

    -roduct +haracteristics

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    %actors Determining IndustrialDistribution

    eographic concentration

    Intensity o competition

    %re*uency o purchase

    :vailability

    -roduct Di5erentiation

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    )he rame#ork analysis +onsumer ;abits

    -roduct +haracteristics

    7arket %actors

    +ompany %actors

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    +onclusionDistribution Intensity has received little attention bymarketing researchers lately. :ter a literature revie##e built a rame#ork #ith several items to betested by empirical studies.

    %urther research must be set to accomplish moreunderstanding about channel design. 4e also kno##hat actors determine a given channel structure.