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Channel Management (Fach) / Take Aways (Lektion)

Vorderseite 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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