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Factors considered when selecting channels of distribution in marketing

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i) Type of the product- perishable commodities should use the shortest channels of
distribution. Cash crops should be marketed through long channels involving co-operative societies and marketing board
-products with lesser unit value and higher turnover are distributed by employing
longer channels of distribution e,g household products such as utensils, cloth etc
ii) Capital base of the producer- if the producer is strong financially, he can involve his
own agents in the channel of distribution
iii) Geographic concentration of the market:- Where the customers are concentrated at
one particular place or market, distribution channel will be short and the manufacturer
can directly supply the goods in that area by opening his own shops or sales depots. If
the targeted customers are widely distributed, then channels with wholesalers and
retailers would be appropriate
iv) Middlemen:- availability, services, size and reputation of the intermediaries
would matter. Producers should avoid relying on large scale retailers only. They
should use both large and small scale retailers given that large scale retailers such as
supermarkets and big malls requests producers for long credit term periods which
makes the producer to suffer lack of enough working capital.
-Middlemen with good reputation have advantage in that they have large customer
flow and usually carry out advertisement of their stock helping the producer to move
the goods much faster
v) Marketing Environment:- market stability and government regulations are other
factors influencing the choice of distribution channels e.g in Kenya the manufacturers
are not allowed to carry out the distribution activities. This explains why must
manufactures in Kenya franchise their distribution aspect e.g Bata shoe company
vi) Competitors- it is advisable that the manufacturer of a new product uses the same
channels being used by the competitors so the a prospective customer can compare
vii) Customer Characteristics:- If the customers are large in size, then direct channel
(zero level) should be used. Farm input manufacturers may sell their products directly
to large scale farmers. If the customers are small in size and scattered in the market,
longer channels are appropriate
viii) Buying habits of customers. This includes preferences, likes and dislikes of
customers. Customers also expect certain services like credit, personal attention and
after sales services. All these influence the choice of channels of distribution.

Titany answered the question on November 12, 2021 at 08:33

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Factors considered when selecting channels of distribution in marketing

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