Market factors or consumer factor affecting channel decision, Marketing Management

Market factors or consumer factors: the following market or supply characteristics influence the channel decision:

A.      Consumer or industrial market: the producer of consumer product may choose a long channel invoving wholesaler and the retailers depending upon the nature of the product. In case of industrial product the channel is comparitevly short because retailers' services are not required in such cases.

B.      Geographical distribution: where of customers are geographically dispersed. If the channel may be long. In contract, if they are concentrated, the direct selling may be done.

C.      Number of purchases: when the number of consumers is large, the channel may be indirect and services of the wholesalers and retailers become necessary. But, if customers are few, direct sale can be entertained through representatives.

D.      Size of the orders: where customers are purchase small quantities frequently and reguraly. Length their marketing channels are indicated. If the size of the order from the customer is large, the channel may be shorter.

E.       Policies of competitions: the channel decision is also affected by the policies of the competitors in this regard. If most of the competitors are distributing their products through middle man, the enterprise should also decide to do so. If the competitors do not engage any middle man, company should also distribute its goods direct to the consumers.

F.       Customer buying habits: customer's buying habits also affect the channel decision. If the customers expect credit facilities, desire to purchase all necessaries at one place or desires for the personal services of the salesman, the channel may be lengthier or shorter dependent upon the capacity of providing those facilities and meeting out of the needs of the customers. Producer can afford those facilities, the channel will be shorter otherwise lengthier. 

Posted Date: 9/19/2012 7:30:47 AM | Location : United States







Related Discussions:- Market factors or consumer factor affecting channel decision, Assignment Help, Ask Question on Market factors or consumer factor affecting channel decision, Get Answer, Expert's Help, Market factors or consumer factor affecting channel decision Discussions

Write discussion on Market factors or consumer factor affecting channel decision
Your posts are moderated
Related Questions
What is Technological Environment Technology? Technological Environment Technology: The knowledge of how to achieve tasks and objectives. Forces, those create new technolo

What is Line Filling in Product Line? Line Filling: A product line can also be length though adding more items into present product range there are a few reasons for li

Define nature and impact of change    1.      Identify enterprise aims and objectives of the change 2.      Identify opportunities for implementation of change within team an

Question 1: It is commonly said that political risks are among the most important ones to consider when a firm is considering to commit itself to invest in a foreign country. F

What decisions do companies face in designing a sales force? How can marketing decision support system help marketing manager towards making better decisions?

1. what are the importans 2. For whom use marketing managment

State The Concept of Marketing as an Exchange Concept of exchange, according to most marketing academics and practitioners, is central to our understanding of marketing. For a

THE CENTER OF THE CIRCLE PASSING THROUGH THE POINT (0,1)AND TOUCHING THE CURV y=x2 at point (2,4)

The assessment for this module is to produce the elements of a sales plan. The case study assesses your understanding and ability to construct a sales presentation plan and correct

To play a certain lottery, a person has to correctly select 6 out of 53 numbers, paying $1 for each six-number selection. If the six numbers picked are the same as the ones drawn