explain the factors that influence choice of distribution channel

Transcribed image text: Question 1 (Marks: 51 There are several factors that would influence the choice of distribution which would be (5) either Direct Channel distribution or indirect Channel Distribution. They are as follows: 1. Channels used for competitive products may also influence the choice of distribution channels. To determine . Let me give certain points that you have to considered before selection of the channel 1. For instance, having insight about potential customers can allow a company to generate demand via distribution and marketing just like in the Nike, business model. ADVERTISEMENTS: Company-related factors include: a. Company's Financial Position: Financially sound companies can maintain separate and well-equipped departments for distribution of products. Explain five factors that may influence the choice of distribution channel for milk. This diversified distribution network supports unsuitable distribution channel for Unilever. Answers in a pinch from experts and . Factors Affecting Promotion Mix: Top 10 Factors Affecting ... Factor # 6. The organisations do alter the budget basis their marketing strategies. Explain five factors that may influence the choice of distribution channel for milk. (Solved) : Explain Distribution Patterns Affect ... Materials delivery, quality, cost/price, financial position, communication . Factors Affecting Choice of Distribution Channel The choice of channels depends on various factors, which are discussed as follows: Whether an organisation will adopt direct marketing channels or long channels involving number of intermediaries is a strategic decision. For instance, having insight about potential customers can allow a company to generate demand via distribution and marketing just like in the Nike, business model. (d) Assess the factors that might influence a business like cs Isolated or remote areas without the infrastructure of more developed regions are difficult to penetrate. These agents come handy when goods need to move quickly into the market soon after the order is placed. (i) Price of Product: ADVERTISEMENTS: A high priced product will have less middlemen because the number of buyers will be limited. B… Expert Answer. Question. A. Outline the benefit that saving and credit cooperative society provide to members. 5 Main Factors Influencing Channel of Distribution Assessing the economy is a must in order to guard against stock outs or a buildup of excess inventory. 4. As against this, if the buyers are dispersed in a larger area then longer channels of distribution may be used. • They may be described as under . In this step, the company should decide its marketing channel objectives. Depending on your business and your products, this series can include wholesalers, brick and mortar retailers, online marketplaces, or shipping companies that take your products directly to consumers. Background: During the COVID-19 crisis, an apparent growth in vaccine hesitancy has been noticed due to different factors and reasons. But if the number of buyers is large, as in case of most convenience products like soft drink, toothpaste etc . In case the number of buyers is small, like for most industrial products, short channels are used. Whether the product is perishable or a non-perishable. Explain five ways in which warehousing facilitate trade. Distribution channel could be conventional marketing system or vertical marketing system. Distribution channels and strategy looks more at creating demand for a product or service by leveraging on several strategies. 671 549 957. There is a need to understanding of the supplier selection criteria. 1. Market considerations: The nature and type of customers is an important consideration in the choice of a channel of distribution. Explain at least five key factors that would influence their choice. Explain why some products are better suited to some distribution strategies than others. Since most clients require several different . One of the first elements to consider is who the intended consumer will be and what exactly they desire. D. Management want to have greater control on the channel members. Internal vs. external . If the consumer expects credit facilities, desires to purchase all necessaries at one place one desire for the personal services of the salesman, the channel may be lengthier or shorter depends upon the capacity of providing those facilities and meeting out the needs of the customers. Answer to Explain how distribution patterns affect international marketing? Complex products are often sold by specialist distributors or agents - Customised? Download. The intermediaries can be natural persons or businesses. Selecting the best marketing channel is critical because it can mean the success or failure of your product. The economic environment also has an impact on the choice of promotion tools. 1 . Company Characteristics . Verified by Toppr. The indirect . . Government-related factors: Considerations related to the government also affect the selection of a channel of distribution. Age Many companies decide channel split by looking at customer demographics, particularly age. What are the factors that affect choice of channels? (iii) Are there any internal constraints for the exporter like finance which will influence the decision regarding choice of the distribution channel? Company Characteristics . Market Factors: Important market factors affecting the choice of channel of distribution include size of market, geographical concentration of potential buyers and quantity purchased. explain the factors that influence choice of distribution channel. Choice of appropriate channel of distribution is a very important marketing decision, which affects the performance of an organisation. During prosperity, we have a wider choice of channel alternatives . Factors Determining the Choice of Distribution Channels • There are a number of factors-both objective and subjective varying from company to company which govern choice or selection of channel of distribution. If the brand is . Explain how intensive, exclusive, and selective distribution differ from one another. E.g. A FMCG product will require different distribution than an automobile. A wide variety of factors need to be considered when deciding on the most appropriate distribution channel for a product. That's why distribution channels are the key factor in all the marketing strategies of any company, which will help you reach the customer in a way to maximize your revenue and brand awareness. For instance, if potential buyers are concentrated in a small geographical area then, shorter channels are used. Customer and product characteristics tend to go hand in hand. ADVERTISEMENTS: Such factors may be classified as factors relating to: 1. A semi- structured questionnaire was used to collect the relevant data, while frequency A direct distribution approach often works best for a product that the end consumer wants providing to a distinct . A company receives its distribution system in legacy . Medium. explain the factors that influence choice of distribution channel. Factor # 3. There are a number of factors to take into account, including: 1. Channel Related Factors 5. Therefore it becomes essential that a right channel if chosen to avoid any later changes. Here are 6 top factors that we've seen influence logistics planning and distribution management: 1. Several factors influence the channel configuration decision, including: End-user considerations; Product characteristics; Capabilities and resources of the manufacturer ; Functions and need to be performed; Availability and capabilities of channel members; Marketing Channel Management. Published Date: 23 Mar 2015. 4 ساعت قبل . Important factors affecting the choice of channels of distribution by the manufacturer are:1) Product Related Factors: The choice of channels of distribution depends upon the factors related to the product. Cited by 1 — The objectives of this study were: 1. Products can be perishable or nonperishable . Explain any five factors which affect the choice of channels of distribution. Therefore, this scoping review was performed to determine the prevalence of intention to use COVID-19 vaccines among adults aged 18-60, and to identify the demographic, social, and contextual factors that influence the intention to use COVID-19 vaccines. A number of factors influence this decision. Competitive Factors - The choice of channel is also affected by the channel selected by competitors in same industry. Inicio; César Febles; Actividades. Here, I'll discuss three major alternatives. (iv) What are the expectations from the channel members? Adoption of newer channels. External Factors. Describe the factors that affect a firm's channel decisions. Important factors affecting the choice . Environment. . A company has to decide whether to adopt the same channel as that of its competitor or choose another one. Internal vs. external . Policies and channels selected by the competitors also affect the choice of channels. Channels of distribution bring economy of effort. Choice of appropriate channel of distribution is a very important marketing decision, which affects the performance of an organisation. explain the factors that influence choice of distribution channel. The channel of distribution is the way in which the product gets from the manufacturer to the consumer. Customer Perspective . Market Factors - It includes size of market, quantity purchased etc. We will look at these factors in brief- 1) Promotion Budget allocation, objectives and policies- Depending on the market research done for making a product of consumer's choice, budget is allocated for various promotion activities. Apart from the above factors, the environmental aspects such as econo­mies, social, and legal conditions have influence on the decision of a distribution channel. There are various constraints that are to be considered before deciding channel objectives. This study sought to investigate the nature of distribution channels for small- scale manufacturing firms in Thika town and the factors, which influence the choice of these channels. In case of multi-point tax on the sales of products, the producers should use a shorter channel to reach the customers. Factors that influence a choice of distribution channels. A distribution channel, in simple terms, is the flow that a good or service follows from production or manufacturing to the final consumer/buyer. In such cases, a longer chain of distribution is profitable. For example, only a license holder can sell medicines in the market according to the law of the government. also affect the choice between the channels. Distribution is the activity that involves effecting the flow of goods and services from the point of production to the consumers. If a cosmetic producer have chosen big retail store for their sale a... 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A retailer or wholesaler to serve as an intermediary and channels selected by the competitors also affect the choice promotion!

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