Must pay attention to both the demand side and the supply side in designing their channel to a void these gaps.
But gaps also can arise because of bounds placed on the best – intentioned chanel manager . That is, managers seeking to design a zero-besed chanel for the company’s product may face certain constraints on their actions that prevent the establishment of the best chanel design. Before diagnosing the types of gaps, then,it is useful to discuss the bounds that create these gaps. We concentrate on twe such
Sources : environmental bounds and managerial bounds.
Environmental Bounds
Characteristics of the marketplace environment in which the channel operates can constrain the establishment of a zero-based channel . These environmental bounds in turn create channel gaps . Two key instance of environmental bounds are local legal
Conatrants and the sophistication of the local physical and retailing infrastructure.