Enterprise factors affecting channel decisions, Marketing Management

Assignment Help:

Company of the enterprise factors: the choice of channel is also influenced by company characteristics such as its financial position, size, product mix, morale of its employers, past channel experience and executive and overall marketing policies.

1.       Financial resources: the financial strength of the company determines which marketing tasks, it can handle efficiency and which ones are to delegate to the middleman. A company having good financial resources may engage itself in the direct marketing in a profitable manner. A weak financial position may force a company to use financially strong intermediaries even if this is not profitable.

2.       Size of the company: a large company already handling a wide line of products may be in a good position to take an additional product of the same line and handle it in the same way, usually directly. But a smaller firm or one with the narrow lines would find middle man more practical.   

3.       Product mix: a fresh expression of plant capacity may require more aggressive channels. If the product mix of a company is wider, it can deal with its customers directly. Similarly, consistency in the company's product mix ensures of its marketing channel.

4.       Attitude of the company executives: the attitude of the company executives may also influence the channel selection. Their experience of working with the certain types of middle man may tend to develop channel preferences.

5.       Marketing policies: the company marketing policies such as speedy delivery, after - sale - services, heavy advertising, and uniform retail price also influence the decision of channel. If is of the view that the intermediaries can provide the services to the customers according to the company marketing policies, it can delegate to distribute its products to middle man otherwise it may engage itself in direct selling.

6.       Marketing experience and marketing managerial ability: when the enterprise has sufficient marketing experience and managerial ability, decision may be take for distributing product to the consumers. If the enterprise lacks marketing experience and managerial ability, the enterprise should decide to distribute its product through the middleman.

7.       Goodwill of the enterprise: if the product is of repute, he can select any channel of his choice because every middle man is ready to work for such a repute producer and of popular products. If the producer is new or does not enjoy such repution, he should take the advantage of the repution of middle man and should select the channel which enjoys high repution.

8.       Desire to control: producers desiring good control over the distribution of their products prefer short channels controlling is necessary to undertake aggressive promotion, to maintain the fresh stock and retail prices. If, on the other hand, manufactures do not have such a desire, he may decide a long channel.

9.       Cost of the distribution: cost of the distribution is added to the price of the product. A producer should select least expensive channel. Direct marketing is generally costly and distribution through middle man is economical.


Related Discussions:- Enterprise factors affecting channel decisions

Functions, discuss the four functions of marketing management analysis, pla...

discuss the four functions of marketing management analysis, planning, implementation and control

Explain the term- length of purchase decision time, Explain the term- Lengt...

Explain the term- Length of purchase decision time Length of time taken to reach a decision is much greater in organisation market. This means that intensity of any media pl

Marketing a value proposition, Marketing a value proposition: In a mar...

Marketing a value proposition: In a marketing endeavour, what the firm offers to the customer is not a mere physical product, it offers a value proposition. The product offer

What is the disadvantage of exporting in marketing, What is the disadvantag...

What is the disadvantage of exporting in marketing? The disadvantage is largely that one can be at the “ mercy ” of overseas agents and therefore the lack of control has to be

International marketing, Define international marketing and furnish its fea...

Define international marketing and furnish its features

Define the term- marketing communications, A World of Marketing Communicati...

A World of Marketing Communications All organisations - small and large, commercial, government, charities, educational and other not-for-profit organisations - need to communi

Open cover-policies, Open 'Cover: Open Cover is an insurance arrangement d...

Open 'Cover: Open Cover is an insurance arrangement designed specifically to the need of those firms which have substantial import/export turnover and frequent transactions. Such

What are requirements to make finished goods for consumers, What are the re...

What are the requirements to make finished goods for consumers? All needs to make finished goods for consumers are as given below: i. Installations: For producing any prod

TEST MARKETING, what is test marketing?explain the various approaches that ...

what is test marketing?explain the various approaches that are followed by FMCG companies in test marketing?

How is convenience of making comparisons affected, How is convenience of ma...

How is convenience of making comparisons affected in e-commerce? Convenience of making comparisons: E-commerce assists consumers to make comparisons during shopping. Aut

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd