Channel Structure
The distribution and sales channels a company will use to reach customers in the target market, such as direct sales, retail, or online platforms.
Implications
The organizational design of a company�s sales or distribution channels, including the roles and relationships of intermediaries, the flow of products, and the coordination of activities, critical for achieving efficient and effective market coverage.
Example
Example: A pharmaceutical company defines its channel structure by establishing clear roles for its wholesalers, distributors, and pharmacies, ensuring that each plays a specific part in getting products to market efficiently.
Related Terms
Different from organizational structure, which refers to the overall company, channel structure focuses specifically on the arrangement and coordination of the sales and distribution network.
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