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Factors for Selecting Channel Members in Product Distribution

      

Factors for Selecting Channel Members in Product Distribution

  

Answers


Faith
1. Customer Characteristics
This may include, the size of market, type of customer, geographic dispersion of the buyers, customer buying habits, amount of quantity purchased per periods, the outlets that they purchase from among others.
2 Product Characteristics
The important factors here include the perishability of products and products’ usage (industrial or household). Perishable products distributed using shorter channels whereas, durable products can be distributed using the longest channels especially if they are purchased frequently etc..
3. Company Characteristics
This includes, company objectives, financial status, product mix, past channel experience and the desired degree of channel control.
4. Middleman Characteristics
The marketers are concerned with the markets served by the middlemen, their financial standing, the services they offer, storage capacity, their availability, e.t.c.
5. Competitive Characteristics
Marketers choose channel members used by other competitors in the industry, for example, retail shops like Uchumi. They must therefore, avail products where competitors’ products are in order to encourage fair competition.
6. Environmental Characteristics
These include factors like, economic, political, legal, social —cultural factor, et.c. The environmental factors may also affect channel selection. For example, sometime in Kenya, sugar was distributed through KNTC, Cereals distributed through NCPB, Coffee through Coffee Board of Kenya among others. Where a certain law prevails, a marketer has no choice, but to distribute through the already existing channels.
7. Intensity of Distribution.
Once the producer has decided on the general channels to be used he/she must then determine the channels that will be used at each level.
Titany answered the question on October 6, 2021 at 13:32


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