- Who should control the channel (referred to as the channel captain)?
- Should channel relationships be informal or contractual?
- Should channel members share advertising (referred to as co-op ads)?
- Should electronic methods of distribution be used?
- Are there physical distribution and logistical issues to deal with?
- What will it cost to keep an inventory of products on store shelves and in channel warehouses (referred to as filling the pipeline)?
Distribution Channel Structure.
- Management must determine structure in line with the corporate and marketing objectives, its operating philosophies, its strengths, its weakness and its infrastructure of manufacturing facilities and warehouses.
- Louis P. Bucklin (theory of channel structure) stated that the purpose of the channel is to provide consumers with the desired combinations of its outputs at minimal cost.
- Given a desired level of demand by consumers and competitive conditions the channel functional activities will evolve in a way to produce minimal channel costs. This will lead to changes in the participation of individual members. May lead to addition or deletion of channel members
