Factor affecting choice of channel of the distribution, Marketing Management

Factor affecting choice of channel of the distribution: the best channel distribution is one of that works best in n the selected by the company. The channel chosen should achieve ideal market exposure and should meet target customer's needs and preferences. The channel choices are influenced by the several factors. Such factors may be classified as following:

1.       Product characteristics: the product characteristics play an important role in the influenin gthe channel selection. The marketing executive must study the uses of a product, its frequency of purchase, perishability rapidty of the fashion change, the service required, its value and its bulkiness.

2.       Purchase frequency: the more frequently purchases are made; the more feasible it is for a manufacturer to use direct distribution. This requires extensive distribution which involves a financial consideration.

3.       Perishability: perishable and fashionable products such as dairy and bakery products, fruits and vegetables or sea foods must be placed in the hands of the final users as soon as possible after the production. These usually require more direct marketing of the dangers associated with the repeated handling and delays.

4.       Weight and technicality of the product: products that are bulky, large in the size, and technically complicated are usually sold directly by the company to the consumers because of the difficulty of finding the middle man for these lines. Moreover, the products of the technical nature require after sale service to the consumers, and these must be supplied either directly or through the shortest possible route.

5.       Selling price per unit: it selling price per unit is low, the channel of the distribution may be long as in case of cigarette and watches. If the selling price is more the channel is more direct as in case of television and radio.

6.       Standardization products or ordered products: stnaderized products each unit of which is similar in the colour, weight, size, quality etc. have indirect or lengthy channel of the distribution. If products are not standardized and are produced or other, they have direct selling.

Posted Date: 9/19/2012 7:29:18 AM | Location : United States







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