IDENTIFICATION OF ALTERNATIVES CHANNEL & SELECTION OF THE ONE THAT SUITS THE FIRM BEST: Two important considerations

are cost and efficiency. Often though not necessarily they are directly proportional. The channel that its efficient but relatively less expensive has to be chosen. Two types of evaluations an economic evaluation and a conceptual evaluation may be necessary. The firm should also examine whether the channel member s in the desire alternatives would be willing to work enthusiastically for the firm and the product.

ANALYSING THE PRODUCT CHARACTERSTICS AND LINKING CHANNEL TO THE PRODUCT:

The firm should analyze the characteristics of the product and choose the channel designee that is most suited to the product. Within each of these broad categories of product channel choice can vary in relation to specific products/product types. The products futures, after all changes in a graded manner as on move through the spectrum from the simplest consumer soft to the most complex among industrial equipment. Consumer products Vs Industrial products.: Consumer Products: Products bought from retail stores for personal, family, or household use. Industrial products: Products companies purchase to make other products, which they then sell.

The product must have a sizable customer base.: I;e the product must be as per the requirement of the customer. It must be standardized to a reasonable extent. It must be stock able items, I;e the product must be like that which can be stored and can not be spoiled when stored for long time. The unite value should not be too high, I;e the cost of the product must be affordable its unit cost is not too much high.

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