Tuesday, 15 March 2011

CHANNEL DESIGN DECISIONS AND CHANNEL DEVELOPMENT

A new firm typically starts as a local operation selling in a limited market. It usually uses existing intermediaries. The problem might be to convince the available intermediaries to handle the firm’s line.
A short distribution channel gives the greatest control to producers. Some products have an image of high quality, and if they were to appear in discount stores and low-quality department stores, their ability to stimulate exchange would diminish.

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