Channel Motivation

Every retail outlet has unique characteristics that influence a brand’s success. These include the location of the outlet, the type of shopper who frequents the outlet, the cost of doing business through the outlet, and outlet policies governing the product category in which you compete. Outlet policies include how much shelf space they allocate to the product category, how they allocate shelf space among brands, whether they carry a broad or narrow line, their willingness to carry in-store point-of-purchase promotional displays, etc.

Why is shelf space such an important measure? How do you think a brand—especially a new brand—gains shelf space? What motivates channels of distribution to sell a product?

Sample Solution