Regarding Bruce Adams answer:
Your answer creates dangerous confusion. DESTDIR is intended for installs out of the root tree. It allows one to see what would be installed in the root tree if one did not specify DESTDIR. PREFIX is the base directory upon which the real installation is based.
For example, PREFIX=/usr/local indicates that the final destination of a package is /usr/local. Using DESTDIR=$HOME will install the files as if $HOME was the root (/). If, say DESTDIR, was /tmp/destdir, one could see what 'make install' would affect. In that spirit, DESTDIR should never affect the built objects.
A makefile segment to explain it:
install:
cp program $DESTDIR$PREFIX/bin/program
Programs must assume that PREFIX is the base directory of the final (i.e. production) directory. The possibility of symlinking a program installed in DESTDIR=/something only means that the program does not access files based upon PREFIX as it would simply not work. cat(1) is a program that (in its simplest form) can run from anywhere. Here is an example that won't:
prog.pseudo.in:
open("@prefix@/share/prog.db")
...
prog:
sed -e "s/@prefix@/$PREFIX/" prog.pseudo.in > prog.pseudo
compile prog.pseudo
install:
cp prog $DESTDIR$PREFIX/bin/prog
cp prog.db $DESTDIR$PREFIX/share/prog.db
If you tried to run prog from elsewhere than $PREFIX/bin/prog, prog.db would never be found as it is not in its expected location.
Finally, /etc/alternatives really does not work this way. There are symlinks to programs installed in the root tree (e.g. vi -> /usr/bin/nvi, vi -> /usr/bin/vim, etc.).