ObjectivesWorkPerformedbyMarketingChannelsChannel-DesignDecisionsChannel-ManagementDecisionsChannelDynamicsHowaDistributorReducestheNumberofChannelTransactions=Customer=ManufacturerA.NumberofcontactswithoutadistributorMxC=3X3=9132456789HowaDistributorReducestheNumberofChannelTransactions=Distributor=Customer=ManufacturerB.NumberofcontactswithadistributorMxC=3+3=6Store123456DistributionChannelFunctionsOrderingPaymentsCommunicationTransferNegotiationFinancingRiskTakingPhysicalDistributionInformationCustomers’DesiredServiceLevelsLotsizeWaitingtimeSpatialconvenienceProductvarietyServicebackupChannelManagementDecisionsSelectingFEEDBACKMotivatingTrainingEvaluatingTypesofVerticalMarketingSystemsCorporateCommonOwnershipatDifferentLevelsoftheChannelContractualContractualAgreementAmongChannelMembersAdministeredLeadershipisAssumedbyOneoraFewDominantMembersConventionalDistributionChannelvs.VerticalMarketingSystemsVerticalmarketingchannelManufacturerRetailerConventionalmarketingchannelConsumerManufacturerConsumerRetailerWholesalerWholesalerCausesofChannelConflictIncompatibilityDifferenceinPerceptionDependenceLegal&EthicalIssuesinChannelRelationsExclusiveDealingExclusiveTerritoriesTyingAgreementsDealers’Rights