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The Channel Intermediary Selection Decision: A Model and an Application

V. Kasturi Rangan, Andris A. Zoltners, Robert J. Becker

Management Science · 1986 · Volume 32 · Issue 9

DOI: 10.1287/mnsc.32.9.1114

Abstract

Distribution channel design is a complex decision involving (a) the strategic choice of the appropriate channel structure, and (b) the tactical selection of the appropriate intermediaries. This paper presents a decision framework and a model to aid management in the tactical selection of the channel intermediaries and the target markets they should serve. The proposed model-based decision approach is illustrated with an actual industrial marketing application. The optimal intermediary network selected by the model is compared to an intuitive network recommended by sales management.

Keywords

marketing, distribution, intermediary selection

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