Ø Analyzing customer needs Lot size Waiting and delivery time Spatial convenience Product variety Service backup Ø Establishing channel objectives Channel objectives should be stated in terms of targeted service output levels. Channel design must take into account the strengths and weaknesses of different types of intermediaries. Ø Identifying major channel alternatives A channel alternative is described by three elements : (a)the types of available business intermediaries, (b) the number of intermediaries needed, (c) and the terms and responsibilities of each channel member. Evaluating major channel alternatives Analyzing customer needs (a) Lot size : q In buying cars for its fleet, Hertz prefers a channel from which it can buy a large lot size. q A Household wants a channel that permits buying a lot size of one. b) Waiting and delivery time...