Question

What factors does a cosmetics company need to consider when designing its marketing channel for a new low-priced line of cosmetics?

* I also need a reference for this answer.

Answer 1

For a firm or company's main objective is to maximum revenue with consumer satisfaction. The channel analysis & channel design decision plays a vital role in it. In fact the marketing channel designing deals with renovation of marketing and positioning strategy of the company which includes

· To make a systematic channel in which participants together undertake integrated and coordinated actions.
· Including of agencies and institutions that take place as participants in marketing channels
· Functions of marketing channel members.
· Establishing Connections between suppliers and buyers, and
· Marketing tasks in the process of connecting producers and consumers

This channel design calls on analyzing consumer needs, setting channel objectives, identifying major alternatives, evaluating those alternatives.

Lovreta, Končar, Petković, 2018 argue that organizing marketing channels is done in two steps: designing marketing channel in accordance to defined goals and plans, and then structuring channels through determination of adequate relationships between participants in the channel.

Rosenbloom (2013) determines seven phases in marketing channel design:

1. Recognizing the need for a channel design decision

2. Setting and coordinating distribution objectives

3. Specifying distribution tasks

4. Developing possible alternative channel design

5. Evaluating the variables affecting channel structure

6. Choosing the best channel structure

7. Selecting the channel members

According to Profesor Kasturi (1994) of Harvard Business School there are eight generic channel functions:

1. Product information
2. Product quality assurance
3. Lot size
4. Assortment
5. Availability
6. After sales services
7. Logistics

Except above there were some other things that should be conceder while designing a new channel for business as mode of cannel way of direction etc.