Where and through what methods are the products or service sold?
- Local, National, International,
- Internet-based, physical locations.
- Logistics, including transportation, warehousing, and order fulfillment
- How does the company plan to get the product/service to the end user?
- What channel of distribution is to be used?
- Direct—manufacturer to consumer.
- One stage—manufacturer to retailer to consumer.
- Traditional—manufacturer to wholesaler to retailer to consumer.
- Multi-stage—manufacturer to broker to wholesaler to retailer to consumer.
- Who or what company will carry out the distribution?
- How will you motivate the distribution channel?
- What will the distributor profit margins look like?
- Are commissioned salespersons to be used?
- What are the costs associated with the proposed distribution channels?
- Criteria for evaluation distributors?
- How do these channels affect delivery/production time frames?
- What are delivery terms?
Degree of Directness of the Channel
- Marketing Conditions – Are end users concentrated (direct) or dispersed (indirect) in market.
- Product Attributes – Is product large (direct) or small (indirect), bulky (direct), perishable (direct), hazardous (direct), expensive (direct).
- Cost Benefits – Considers the cost benefits in selection of channel members; many benefits (indirect) minimal or no benefit (direct).
- Venture Attributes – Financial strength, size, channel experience, and marketing strategy of venture.
Number of Channels
- Intensive – As many retailers, wholesales, etc., as possible.
- Selective – Small number of channel members based on some set of criteria or requirements
- Exclusive – Select only one wholesaler and/or retailer.
Criteria in Selection of Channel Members
- Services Provided
Number of Channels
- One channel for on target market or multiple target markets.
- Multiple channels for one target market or multiple target markets.