Channel Design

Channel design decisions are the most longterm of those in the marketing mix, therefore, continuity is crucial. Ensure that continuity by taking utmost care when choosing the type of channel. Consider the types of intermediaries available and review any environmental threats that might have an impact on the channel design. Occasionally unpredictable events cause problems, but knowing that helps a company react in a way that is more productive than destructive. For ecample, Cockspur, a rum distiller in Barbados, had high hopes for U.S. market penetration when it negotiated a distribution contract with a U.S. distributor. Yet immediately after signing, another company acquired the distributor and eliminated its beverage alcohol buisness, leaving Cockspur without a U.S. importer.

About Michael Czinkota

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