Outline the factors that affect selection of distribution channels.

      

Outline the factors that affect selection of distribution channels.

  

Answers


Lellah
1. Organizational factors:
• Objectives such as same day delivery . Companies with wide product mixes can sell more directly to the retailers, have more promotional skills etc.
• Other factors include market coverage , value ,quantity and profit margins available as well as maximizing customer satisfaction through intensive distribution , selective distribution or exclusive distribution.
2. Capabilities such as financial and other resources will determine whether to have direct marketing or other channels.
3. Market Characteristics, Geography, greater distance use more intermediaries, market density, clustering, market size, remoteness etc
4. Product Attributes, e.g. ., industrial vs. consumer ,perishability, standardization, storage requirements, space, fashion, size (reduce handling), complexity, value.
5. Middlemen characteristics – channel design reflects the strengths and weakness of different types intermediaries in handling various tasks such as promotion , negotiation , storage , contact and credit facilities.
6. Competitive characteristics: selection is influenced by the competitor’s channel. The producer may want to compete in the same outlets carrying the competitors ‘ products. Decisions have to be made on whether to use the same channels as those of the competitors
7. Environmental Forces: the changing environment creates new problems and opportunities for channel design, e.g. technological advances such as on-line systems and economic conditions make producers to distribute their products using shorter channels.

Lellah answered the question on November 8, 2021 at 05:30


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