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The performance of a channel can be measured across multiple dimensions. The parameters that are measured usually are effectiveness, efficiency, productivity, equity and profitability of the channel.
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In addition to an intermediary's performance in meeting supplier aims, his or her channel profitability that is concerned with his or her financial performance is also evaluated. While the channel profitability is assessed using the Strategic Profit Model from a broader perspective, Activity Based Costing and Direct Product Profit are used for detailed analysis of channel performance. Another pivotal factor for channel performance is the quality of services offered through the channel.
Thus, the success of a channel and its efficiency are determined by the efficiency of channel intermediaries in delivering goods and services to customers and the quality of services offered in the process. An effective distribution channel can provide channel services demanded by customers and extend its capacity within the constraints of the market environment.
Performance Measures in Marketing Channels
Channel Performance at a Macro Level
Channel Performance at a Micro Level
Models to Diagnose Channel Profitability
Strategic Profit Model
Economic Value Analysis
Appraisal of Channel Members'Contribution
Activity based costing
Direct product profit
Result of Channel Performance