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This note addresses the issues that arise and the complexities that must be addressed when designing a channel of distribution. Content includes the definition of a distribution channel, the steps in its design, functional discounting and margin allocation, the role channels play in branding, and recent trends.
The note will help the student gain an appreciation for the range of issues that must be considered and addressed, the trade-offs that exist, and the tensions that must be balanced when designing a viable channel strategy.