Setting Channel Objectives
After analysing consumer needs, the next step is to establish clear channel objectives. It means that the company, in this step, will have to state its marketing channel objectives according to the targeted level of customer service. For this, a company has to first identify different segments of consumers who want different service levels, and then decide which segment they should serve along with the best channel for each of the selected segments. The basic motive of the company for each segment is to minimise the total channel cost of meeting the requirements of customers-service.
Other factors that influence the channel objectives of a company include the company’s nature, its products, marketing intermediaries, competitors, and the environment. For example, a company can decide between which marketing function to handle itself and which to give to the intermediaries through its size and financial situation. Besides, the companies selling perishable products may use more direct marketing so they can avoid delays and too much handling of the product.