Which are product factors that a business considers when selecting a channel of distribution?
The following factors must be considered before selecting the distribution channel. Nature of product: Nature of market: Distribution expenses: Mutual cooperation: Company considerations: Prompt payment: Popularity of goods: Price and profit: Structure of retailing: Financial resources: Factors To Consider When Selecting Communication Channels? Why a business might use more than one method of transportation to deliver its product to customer Selection of a distribution channel is determined by multiple factors but the most important one is to understand your product, is it an exclusive product or is it a normal good sp that it does not conflict with the other Ps of the product. You should know how you want to position
the product. If you want to make it exclusive then the distribution channels will be few and selected in such a way that they are most likely to be reached by the potential customers. If its highly priced then it will be available in outlets where customers with a specific income group are most likely to shop. If the nature of the product is such that it should be readily available then it should be distributed through all possible channels. Most importantly, the channel selected must match the
image of the product that the customers perceive so that there is n confusion. 1. Costs What are the general factors to consider when choosing channels of communication? Nature of Goods: The first and most factor that influences on the choice of type of channel of distribution is the nature of goods. Perishable goods like cake, breads and snakes are needed to the sold quickly are sold normally directly buy the manufacturers to the consumer through own retail outlets. Goods can be last longer can be handled by more intermediaries to insure a larger market. Size of the Market: In order to ensure that their goods are marketed as widely as possible, producers who do not want be load with the problems of managing their own retail outlets normally sale their goods to wholesalers. Thus we see that bigger the market, the larger will be the channel of distribution. Quantity of Goods Bought: Most producers are normally not willing to entertain small orders from small retailers, because of the large amount of paper work involved. However, orders from large retailer or wholesalers are normally large. Size of Firm Producing the Goods: Very big firms, which have the financial, and human resources normally not only produce the goods but also setup their own retail outlets. Smaller sized producers may prefer to concentrate on the technical aspects of the production and leave the marketing of goods to other. Fax, email, letter, memo and voice mail What are the 4 product distribution channels?There are four types of distribution channels that exist: direct selling, selling through intermediaries, dual distribution, and reverse logistics channels. Each of these channels consist of institutions whose goal is to manage the transaction and physical exchange of products.
What are the product related factors that influence the channel selection decision?The nature and type of product helps in determining a decision about channel of distribution.. (i) Price of Product:. (ii) Weight:. (iii) Standardisation:. (iv) Product Nature:. (v) After Sale Services:. (i) Market Size:. (ii) Nature of Customers:. (iii) Location of Buyers:. |