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  • May 1994
  • Background Note
  • HBS Case Collection

Designing Channels of Distribution

By: V. Kasturi Rangan
  • Format:Print
  • | Pages:12
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Abstract

Presents a framework and a method for addressing the new product channel choice decision. Offers a six-step method that involves: 1) disaggregating and prioritizing a distribution channel by customers' channel function requirements; 2) obtaining and combining customers' (and key informants) evaluations of the channel functions; 3) benchmarking existing channels (own as well as competitors'); 4) identifying and constructing effective channel alternatives; 5) quantifying the short-term and long-term benefits and costs of each alternative; and 6) selecting the appropriate channel by trading off the opportunities versus constraints posed by existing channel networks (if applicable). The method requires extensive management participation to facilitate its implementation. Provides an illustrative application to demonstrate its managerial usefulness.

Keywords

Distribution Channels; Framework; Cost; Customers; Cost vs Benefits; Management

Citation

Rangan, V. Kasturi. "Designing Channels of Distribution." Harvard Business School Background Note 594-116, May 1994.
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About The Author

V. Kasturi Rangan

Marketing
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  • KaBoom! Play at Scale By: V. Kasturi Rangan, Sarah Appleby and Christine Snively
  • Transformative Social Impact: Year Up By: V. Kasturi Rangan and Sarah Appleby
  • OneTen: One Million Careers for Black Talent By: Boris Groysberg, V. Kasturi Rangan, Annelena Lobb and Kerry Herman
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