Assessment

Answer the following questions concisely.

1. Among the number of variables, which is the most fundamental way to consider when designing
a marketing channel? Why?
a. Market variables are the most fundamental variables to consider when designing a
marketing channel. Four basic subcategories of market variables are particularly
important in influencing channel structure.
2. What are the specific inducements for securing channel members? Why?
a. Five Ways to Secure Channel Partner Loyalty
i. Offer turn-key access to the right campaigns and marketing materials. ...
ii. Make your platform visually appealing and simple to navigate. ...
iii. Give your partners options. ...
iv. Be flexible. ...
v. Give your partners professional marketing help.
3. Give at least three examples of situations that indicate the need for a channel design decision
and explain.
a. 1.Developing a new product or product line. If existing channels for other
products are not suitable for the new product or product line, a new channel may
have to be set up or the existing channels modified in some fashion.
2. Aiming an existing product at a new target market. A common example of this
situation is a firm's introduction of a product in the consumer market after it has
sold in the industrial market.
3. Making a major change in some other component of the marketing mix. For
example, a new pricing policy emphasizing lower prices may require a shift to
lower-price dealers such as discount mass merchandisers.
4. Establishing a new firm, either from scratch or as a result of mergers or
acquisitions.
5. Adapting to changing intermediary policies that may inhibit the attainment of
the firm's distribution objectives. For example, if intermediaries begin to
emphasize their own private brands, then the manufacturer may want to add new
distributors who will promote the company's products more enthusiastically.
6. Dealing with changes in availability of particular kinds of intermediaries. For
example, French manufacturers of luxury goods such as Yves St. Laurent
evening wear, Limoges china, and Christofle silverware faced channel design
decisions in the U.S. market when the number of prestigious department stores
was reduced as a result of the wave of acquisitions and mergers that occurred in
the retail sector.
7. Opening up new geographic marketing areas (territories).
8. When technological advances make new channels possible, such as Internet-
based online channels and smartphone technology that enabled mobile channels
to emerge recently from a marginal to a major channel option.
9. Meeting the challenge of conflict or other behavioral problems.For example, in
some instances conflict may become so intense that it is not possible to resolve it
without modifying the channel. A loss of power by a manufacturer to his or her
distributors may also foster the need to design an entirely new channel.8 Further,
 changing roles and communication difficulties may confront the marketer with
channel design decisions
10. Reviewing and evaluating. The regular periodic reviews and evaluations
undertaken by a firm may point to the need for changes in the existing channels
and possibly the need for new channels.
4. Why does Aspinwall’s approach contain problems?
a. A Paradigm of the Channel Design Decision The major problem with Aspinwall's
approach is that it puts too much emphasis on product characteristics as the
determinant of channel structure.
5. Explain how the paradigm of the channel design decision helps in the accomplishment of
organizational goals and objectives. Cite examples.
a. A Paradigm of the Channel Design Decision Main focus of TCA is on the cost of
conducting the transactions necessary for a firm to accomplish its distribution tasks.