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
Advertising is frequently criticized for its excessive persuasiveness. It creates unnecessary want for the products which buyers don't need or can't afford. Occasionally by promoti


Explain about the Company’s Macroenvironment in brief. The Company’s Macroenvironment: The larger societal forces influence the entire microenvironment demographic, natura

What is comprised in green or environmental marketing? Green or environmental marketing comprised all activities designed to generate and assist any exchanges intended to sat

Question 1 (i) What is meant by ‘power' in organisations? (ii) Examine the main sources of power in organisations. (iii) In what ways might organizational sub-units ge

Explain the relationship between Frederick Herzberg's dual (two) factor motivation theory and job enrichment. Hygiene factors contain pay, status, working conditions, rules and

Statistics show that rates of CKD are continuing to rise in Australia and worldwide. Global and national economies and health politics affect the health budget.  A nephrology se

explain what you understand by market segmentation?

I have done a part 1 of my business plan but clueless of how to do the business plan 2 part that i need done. If i send my part 1 of the business plan is it anyway that you can do

Objectives/Learning Outcomes The module coursework assessment is designed to enable you to partially demonstrate the learning outcomes required for the successful completion of