ABSTRACT
Chapter 10 focuses on understanding and explaining how end-users and their demands dictate the design of marketing channels. This chapter distinguishes between channel and market segmentation and outlines how a market can be divided into channel segments. It describes the notion of service outputs and explains how to identify and analyze them. The service outputs described include bulk-breaking, spatial convenience, waiting time, variety and assortment, customer service, and information sharing. The chapter discusses which channel segments a business should target to optimize sales and profits. It describes the relationship between service output demands and solutions to overall channel design problems. The chapter closes with a look at omni-channels and end-user segments. Templates to identify service output segments are also provided.
