Directorate of distance education

particularly product consumables, have the least need for intermediaries. 
They are well-enough positioned in the market to deal directly with retail 
outlets. Smaller companies with smaller product lines have a greater need 
for the market distribution strengths of intermediaries.
Products that are perishable, time sensitive (such as fashions), 
heavy and bulky, or are highly unique in nature (such as those requiring 
specialized training) generally have short channels of distribution. On 
the other hand, standardized products often move through several 
intermediaries in the distribution process.
There are several issues in evaluating channel alternatives. One 
issue is choosing the most economically effective channel alternative. 
Companies must evaluate channel intermediaries based on those that 
have the largest level of sales per unit of selling cost. 
Other issues concern the extent to which marketing management 
control will be lost by including a sales agency or other sales broker in the 
marketing channel. A final variable is choosing a channel intermediary that 
will still allow the producer to maintain maximum marketing flexibility in 
fast moving markets.
Several Issues are Important in Channel Management
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Choosing the most effective channel alternatives.
Management 
must determine what the characteristics are the most effective 
channel intermediaries. Having done this, management must 
develop strategies for attracting these channel intermediaries to the 
marketing channel.

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Maximizing channel member effectiveness.
Management must 
motivate channel members to create the most cost-effective market 
distribution system for the company.
➢
Evaluating the effectiveness of intermediaries.
Management must 
develop channel member evaluation systems. While seeking the 
cooperation of channel members, it is still essential to determine 
what profit standards must be used as the basis for evaluation.