Channel Design and Implementation

1. Channel Design and Implementation Channel Access Formats

2. Producer-Based Channel Formats Retailer-Based Channel Formats Facilitator - Service-Provider-Based Channel Formats Third-Party Influencer Formats Buyer-Initiated Formats Point-of-Consumption Merchandising Formats

3. 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. Channel Access Formats:

4. Contract Warehousing. Sub-processor. Cross Docking. Integration of Truck and Rail (Intermodal). Outsourcing. Direct Mailer. Bartering. Facilitator - Service-Provider-Based Channel Formats

5. 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. Facilitator - Service-Provider-Based Channel Formats

6. 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. Other Channel Formats

7. 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. Buyer-Initiated Formats

8. 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 on-line), but they have significantly altered the service and information flow by uncoupling them from the product. Point-of-Consumption Merchandising Formats.

9. 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. Third-Party Influencer Formats.

10. Specialty Catalogue. Organisational (Institutional/Business-to-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 in-store 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. Catalogue and Technology-Aided Formats.