Lecture_4

Service sector channels

Health services
Educational services
Entertainment services
Telecom services
Financial services

Information highway channels

Postal, mail, telegraph, fax, telephone, Radio,

TV, Cable, Satellite, Internet, Wireless..

These channels require support of Content
companies, Consumer device companies,
Components companies, and conduit
companies

Information channels

Content companies: PTC

Consumer devices companies Nokia
Component companies: ICI
Conduit companies: U-fone

Major elements of Channel design

process
Segmentation define service output

demands by segment;-(two different soft

drink buyers) Identify environmental
characteristics and constraints (poor
infrastructure)
Positioning define the optimal (numbers)
channel to serve the segment, also called
configuring the channel.
5

FOOD FOR THOUGHT

If you were happy before you knew someone, you can be happy
when they're gone. You can't be happy if you're still holding onto
people that have already moved on. Keeping baggage from the past
will leave no room for happiness in the future. Cry as much as you
want to, but just make sure when you're finished, you never cry for
the same reason again. Know your worth. Know when you have had
enough. And move on from the people who keep chipping away at
your happiness.

Channel design Process

Targeting/ focus decide what segments to

target and what segments to ignore. In a

pharma product company focus may be on A
class towns, govt. hospitals etc.

Channel Design Factors

Product mix, and nature of product

Marketing mix elements
Extent of market coverage
Service levels planned
Cost constraints / affordability
Control of channel functions

Channel Design Process

Define customer needs

Lot size
Waiting time
Spatial convenience
Product variety
Service back up

Channel Design Factors

Product mix, and nature of product

Marketing mix elements
Extent of market coverage
Service levels planned
Cost constraints / affordability
Control of channel functions

10

Channel Design Process

Define customer needs

Lot size
Waiting time
Spatial convenience
Product variety
Service back up

11

Channel Design Process

Define customer needs

Lot size
Waiting time
Spatial convenience
Product variety
Service back up

12

Channel Design process

Establish Objectives & constraints on the

basis of cost target and service output levels.

Consider product characteristics and
channel strengths & weakness.

13

Channel Design Process

Identify major channel alternatives.

Types of Intermediaries

14

If you lie to me, keep lying don't

hurt me by suddenly telling the
truth
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