Factors - nature of distribution channels

Nature of products/services Expectations from the system Location and nature of customers Intensity of distribution required Nature of target market Nature of competition

Channel design and planning Segmentation Positioning Focus Development

Defining customer needs

Lot size Waiting time Choice of consumer Place utility Service support

Defining channel objectives

Channel alternatives

Present business intermediaries Requirement – no. and type of

intermediary New channel members Individual role of channel memebers

Cost of channel system

Margins of channel partners Transportation cost Order booking and execution cost Stock return cost Reverse logistics cost

Channel intermediaries

Distributors C& F agents Logistics service provider Agents , guarantors