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What are the major issues in designing high-tech distribution channels?

I. Channel Structure: The set of companies involved in the flow of product from producer to end user

A. Direct channels
1. Company sales force
2. Company website
3. Company-owned retail outlets

B. Indirect channels
1. Types of intermediaries
2. Number of intermediaries (coverage; penetration)

C. Hybrid channels, dual channels, or concurrent channels
1. Multi-channel marketing

II. Channel Management: The ongoing control and leadership of channel members to manage conflict, and to encourage cooperation and coordination

A. Governance mechanisms
B. Legal issues
C. Managing gray markets (unauthorized distribution)
D. Managing conflict in multi-channel marketing

III. Channel Performance: The monitoring and assessment of performance of the overall channel as well as individual channel members; metrics include:
•    Reseller’s contribution to supplier profits
•    Reseller’s contribution to supplier sales
•    Reseller’s contribution to growth
•    Reseller’s competence
•    Reseller’s compliance
•    Reseller’s adaptability
•    Reseller’s loyalty
•    Customer satisfaction with reseller

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