The Specific Features of Marketing Channel Design
The Specific Features of Marketing Channel Design

Summary/Abstract: Marketing channels in nowadays market might be the decision determining the failure for enterprise if it is made without evaluation of every aspect connected with the design of marketing channel. Thus enterprise in planning its marketing complex must pay considerable attention to the decisions of product distribution. Distribution as one of four elements of marketing complex is inseparable part of marketing decisions, which involves all the decisions about distribution of products to the end user. The issues of distribution were analysed by a number of Lithuanian (Čaplikas, 1997; Balkevičius, 2000; Pajuodis, Pranulis, 2000; Gudonavičienė, Bučiūnienė, 2003; Gerikaitė, Sadauskaitė, 2005) and foreign marketing specialists (Berman, 1999; Kim, 1996; Delton, 1997; Frazier, 1999; Kotler, 2003; Rosenbloom, 1999; Stern, 2006; etc.), paying a big attention to the elaboration of the procedures of marketing channel design. Every enterprise that acts at the conditions of market economy pays a big attention to organization and optimisation of the process of product distribution to the end user. The production performance, success of sales programme and position of the enterprise in the target market depends on product realization. Often the competitive advantage of the enterprise, which is obtained at the level of product distribution, determines the future success in the market. This article reveals various models of marketing channel formation, analyses their advantages and proposes the new conceptual model for marketing channel design, created by the authors with reference to Stern, Coughlan, El-Ansary (2002) and Rosenbloom (1999). The proposed model is tested empirically by designing the marketing channel for product of the group of enterprises “Perfetti Van Melle“ that distributes the chewing gum “Mentos Ice“. The suggested model recommends performing the design of marketing channel in the following manner: 1. to describe the existing marketing channel, by assessing the influence of environmental and enterprise factors; 2. to identify the “ideal” marketing channel, by determining the needs of consumers and the goals of marketing channel; 3. to determine the gap between “ideal” and “restricted by factors” marketing channel, to perform the formation of alternative marketing channels, an evaluation of alternatives and to select the intermediaries of marketing channel. The model for marketing channel design proposed in this article suggests to begin with the analysis of influencing factors; adjust channel goals to general strategy and politics of enterprise; considering the gaps and the goals of marketing channel to foresee the alternative structures of marketing channel, making decisions about channel type and distribution strategy; to end the formation of marketing channel by selecting the most appropriate intermediaries.

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