Channel Design and Implementation
Channel Access Formats
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Producer-Based
Channel
Formats
Retailer-Based
Channel
Formats
Third-Party
Influencer Formats
Facilitator Service-ProviderBased Channel
Formats
Buyer-Initiated
Formats
Point-of-Consumption
Merchandising
Formats
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Channel Access Formats:
Producer-Based Channel Formats
Producer Direct.
•Producer-Owned Full-Service
Wholesaler-Distributor.
•Company Store–Producer Outlet.
•License.
•Consignment–Locker Stock.
•Broker.
Retailer-Based Channel Formats
Franchise.
•Dealer Direct.
•Buying Club.
•Warehouse Club–Wholesale Club.
•Mail Order –
•Food Retailer.
•Department Store.
•Mass-Merchandiser. Specialty Store.
•Specialty Discounter–Category
Killer.
•Convenience Store.
•Hypermarket.
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Facilitator - Service-Provider-Based Channel
Formats
•Contract Warehousing.
•Sub-processor.
•Cross Docking. Integration of Truck
and Rail (Intermodal).
•Outsourcing.
•Direct Mailer.
•Bartering.
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Facilitator - Service-Provider-Based Channel
Formats
Value-Added Reseller (VAR).
Designers, engineers, or consultants
for a variety of service industries that
joint venture or have arrangements
with producers of value offers that
are used in their designs.
.
•Influencer–Specifier.
•Similar to a VAR, but these
organisations generally design highly
complex, large projects (commercial
buildings), do not take title to
product, and have a group of
suppliers whose value offers can be
specified into the design. Selling
effort is focused on both the ultimate
customer and the specifier.
•Financial Service Provider.
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Other Channel Formats
Door-to-Door Formats:
•Individual On-Site.
•Route (Van Sales).
•Home Party.
•Multilevel (Pyramid) Marketing.
Service Merchandising –"Rack
Jobbing."
Similar to a route but expanded to
provide a variety of service activities
with the value offer. Originally, the
rack jobber sold small consumer
items to grocery stores, merchandised
the product, and owned the inventory,
merely paying the retailer a
commission for the space.
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Buyer-Initiated Formats
•Co-op. Organisations •Dealer-Owned Co-op.
•Buying Group.
Point-of-Consumption
Merchandising Formats.
•Vending–Kiosk.
Kiosks have historically been very
small retail locations that carry a very
narrow product line. Through
interactive video, on-line ordering
technology, and artificial intelligence,
this format has been significantly
enhanced and can operate unattended.
It is also being used for point-of-use
dispensing of maintenance supplies
and tools.
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Point-of-Consumption Merchandising
Formats.
Pay-Per-Serving Point of
Dispensing.
Product is prepared or dispensed by
vending machine at the time of
purchase.
Vending machines for soup and
coffee, soft drinks, and candy or food
are usual uses of this format, but it is
expanding to include such foods as
pizza and pasta.
Computer Access Information.
Many of the computer access
information formats have not
necessarily altered the product flow
(value offers are not available online), but they have significantly
altered the service and information
flow by uncoupling them from the
product.
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Third-Party Influencer Formats.
Charity.
This format typically involves sales of
products in which the sponsoring
charitable organization receives a
commission on the sale. All types of
value offers can be included and can be
shipped direct or outsourced. Sales force
may be non-paid volunteers.
Company-Sponsored Program.
Employers contract with organisations for
value offers for their employees or
segments of employees on an as-needed
basis. The provider has access to the
employee base. Examples: Health care
and drug services, car maintenance
•Premium and Gift Market.
Organisations buy value offers
customized with organisational logos or
names for sale or distribution
•Product Promotion Mailing with
Normal Correspondence.
•Promotion of value offers is done by
mailing to customers with letters and
perhaps phone call follow-up. Typically
involves promotional inserts with credit
card and other billings. Logistics and
order fulfilment activities may be handled
by others.
•Customer List Cross-Selling.
•An unusual format in that the customer
list is sold by one company to another. In
effect, the marketing function is
circumvented. Started in the customer
industry but is migrating to the
commercial and industrial segments.
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Catalogue and Technology-Aided Formats.
Specialty Catalogue.
Organisational (Institutional/Businessto-Business) Catalogue. Similar to
specialty catalogues except that the
product and customer focus is on
business.
•Television Home Shopping and
Satellite Networks.
•Interactive Merchandising. Could
embody many of the attributes of
television home shopping, except that this
format allows extensive interactive instore capabilities, as well as on-line
ordering. It may offer inventory checking
or physical modelling capabilities and
unusually extensive communication
linkages.
•Third-Party Catalogue Service.
Catalogue selling format in which one or
more suppliers provide a combined
catalogue for a group of customers
frequenting a certain place.
•Trade Show. A format used in some
segments for direct sales order activities.
Suppliers sell from booths at major trade
shows or conventions. Also used for retail
applications.
•Database Marketing. Databases of
customer buying habits and
demographics are analyzed to enable the
company to target customers for future
mailing. Also used for retail applications.
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