Professional Documents
Culture Documents
Management 2e
Tapan K. Panda
Sunil Sahadev
Develop the levels at which each of the service outputs have to be offered. This can be achieved through
collection of information from the customer or benchmarking with the competitors.
Work back from each of the service output levels and conceive the activities that have to be performed to
fulfill these service output objectives. These activities are called the flows in a channel.
Calculate the cost incurred for performing these activities if they are performed by particular channel
entities including your organizations.
Design the ideal channel structure, which will consist of a network of members performing certain
functions so that the service output objectives are achieved at minimum cost.
Compare the ideal channel design within terms of the channel structure that is existing in reality so as to
modify the ideal channel structure.
Assess the ideal channel design within terms of the channel selection criteria like effectiveness, efficiency,
equity, scalability, and flexibility
Spatial Convenience
Waiting Time
Assortment
2. Spatial convenience There is at least one outlet for almost every 3 km radius excluding,
of course, thinly populated areas
3. Waiting time Not more than two days for any model
6. After-sales support Free for first two years, but available on payment afterwards. Also
available at every city from where the product was bought
Available
7. Consumer financing
To consume
a product Channels
Activities have
to be performed
Thus performs activities
Effectiveness
Equity
Scalability
Flexibility