Modifying Channel Arrangements

Last Updated on Thu, 04 Jan 2024 | Marketing Insight

A producer must periodically review And modify its channel arrangements. Modification becomes neeessarv when the distribution channel is not working as planned» consumer buying patterns change, the market expands, new competition arises, innovative distribution channels emerge, and the product moves into later stages in the product life cycle. Consider Apple.

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To combat Its lowly 3.4 percent share d1 the U.S. personal computer market. Apple has opened more man 75 retail locations since 2001. The stores sell Apple products exclusively and target tech-savvy customers v.'itfi in-store product presentations and workshops; a full line of Apple products, software, and accessories: and a "Genius Bar' sidled by an Apple specialist. Although the move upset existing retailers, Apple explained that Since wwrw,appie.com generated fOLig.ily ?5 percent of;ofes, its mvn retail chain was a nat-â–  oral extension.31

Nti marketing channel will remain effective over the whole product life cycle, Early buyers might be willing to pay lor high value-added channels, inn later buyers will switch So lower-cost chantre Is. Small office copiers tvere first sold by manufacturers" direct sales forces, later through office equipment dealers, still biter through mass merchandiser;, and now by mail-order firms and Internet marketers.

In competitive markets With low entry barriers, the optimal channel structure will inevitably change over time. The change could invoke addingor dropping individual channel members, adding or dropping particular market channels, or developing a totally new way to sell goods.

Adding or dropping Individual ehantiel members requires an incremental analysis, Whal would the firm's profits look like with and without this intermediary? An automobile manufacturer's decision to drop a dealer requires subtracting the dealer's sal es and estimating the possible sales loss or gain to the manufacturer's other dealers,

Sometimes a producer considers dropping all Intermediaries whose sales are below a certain amount- Look at Navistar:

A Navislar Imck c^li Ol Ute ninny nio(le-!s II'S Company produoes and sills through a Network or ttealerships Ihat have the lechnical expertise and locai contacts 1o Kecp Navistar in markets both larae and smail

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Readers' Questions

  • selassie
    How can a channel members be modified?
    1 year ago
    • Channel members can be modified by adding or removing users from the channel in the channel's settings. Depending on the platform or service being used, this can be done through a user management panel, the channel owner's profile, or the channel's settings menu. If a platform has a user management system, it may also be possible to assign different roles and permissions to each channel member.
    • salvatore
      Why do channel arrangements sometimes must be modified over time?
      1 year ago
      • Channel arrangements must be modified over time because customer needs and preferences change, new business strategies are adopted, and technological advancements create new opportunities to communicate and reach customers. Changes in the marketplace, such as increased competition, may also require changes in the channel arrangements. Companies must be responsive to the changing environment and adjust their channel strategies accordingly.
      • lena weissmuller
        Why do channel arrangemnts have to be modified?
        1 year ago
        • Channel arrangements have to be modified in order to optimize performance, reduce interference, and increase signal strength. By modifying the arrangement of channels, radio waves can be directed in the most efficient way possible, allowing for improved coverage and transmission of data. This can be especially useful for transmitting signals over large distances, or in areas with a lot of interference.
        • Robur Sackville
          How to modify channel design and arrangements?
          1 year ago
          1. Analyze the current design and arrangement. Assess the goals of the channel and how they are currently served.
          2. Brainstorm new ideas for the design and arrangement. Consider different approaches, features, and aesthetics.
          3. Create a working prototype of the new design and arrangement. This prototype should include user testing and feedback.
          4. Test the design and arrangement with real users to identify any areas of improvement.
          5. Refine the design and arrangement based on user feedback.
          6. Deploy the new design and arrangement to the channel. Monitor the performance of the new design and arrangement and make further adjustments as needed.
          • Darcy Campbell
            How a market can modify it's channel arrangements?
            1 year ago
            • A market can modify its channel arrangements by reassessing its current customer base, identifying the needs of their target customers, and developing strategies to meet those needs. This might include changes in the way products are distributed and sold, expanding into other types of channels, creating incentive programs with channel partners, offering additional customer service and support, and tweaking its pricing structure. Additionally, a market can investigate new technology and services that could enhance the customer experience and buying process.
            • emma
              How a market can modify its channel arrangement?
              1 year ago
              • A market can modify its channel arrangement by either adding or removing suppliers, distributors, retailers, and other intermediaries in the channel. They can also modify the roles and responsibilities of the intermediaries or alter the pricing or promotion strategies. Additionally, they can seek to create more customized solutions for customers, improve customer service, and make investments in technology to strengthen their channel.
              • JONNA
                How to modify channel arrangement?
                1 year ago
                • To modify a channel arrangement, you need to access the settings in the media player or streaming device you are using. Depending on what type of device it is, the steps and menus may vary. Generally, you will find an option to edit the channel arrangement or select a different layout. This can be done through the audio settings menu or a similar section of the device. Once you have accessed the settings, you should be able to rearrange the channels according to your preference.