Channel Management (Fach) / Take Aways (Lektion)
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Topic #3: Channel Flows
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- Channel members engage in productive activity. These activities are called channel flows
- Every channel flow not only yields valued service output but is also associated with a cost
- The generic channel flows are:
- physical possession
- ownership
- promotion
- negotiation
- financing
- risking
- ordering
- payment
- The efficiency template describes:
- The type and amount of work, done by each channel member
- The importance of each flow to the specific service output
- The associated share of profit that each channel member shoult reach
- End users are also channel members and therefore may bear cost (which then requires compensatioin)
- A zero-based channel design is one, that meets the target market segment demands for service outputs at a minimum cost of performing the required channel flows. The purpose is to compare this to the current channel's efficiency template
- The Equity Principle states that the actual compensation in the channel system should reflect the normative profit share for each member
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