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

Explain the packet marking approach, Problem (a) Why it is difficult to...

Problem (a) Why it is difficult to perform IP trace-back. (b) (i) Explain the packet marking approach to IP trace-back. (ii) What is the basic problem with this approach

Test marketing, various approaches to test marketing

various approaches to test marketing

Determine in brief about marketing communications, Determine in brief about...

Determine in brief about Marketing communications Marketing communications are a management process through which an organisation engages with its numerous audiences. By under

How is market participation extended, How is market participation extended?...

How is market participation extended? Market participation extenuation: Those who choose to license ought to maintain the options open for extending market participation.

Major challenges facing a customer centric organization, Question: "The...

Question: "The world is changing dramatically with the internet becoming increasingly the panacea for all things that touch the customer and the customer-facing processes. H

Operational beheavior.., what would you suggest to avoid delays in despatch...

what would you suggest to avoid delays in despatch of products

What are the complexity of the communications, What are the complexity of t...

What are the complexity of the communications Exchanges which organisations enter into require the formation of relationships, though tenuous or strong. Andersson (1992) looks

Canon comany, 3.2 Explain how distribution of Canon is arranged to provide ...

3.2 Explain how distribution of Canon is arranged to provide customer convenience

Define marketing mix according to philip kotler, Define marketing mix accor...

Define marketing mix according to Philip Kotler According to Philip Kotler "Marketing Mix is set of controllable variables that firm can use to influence buyer's response".  C

Describe about the direct marketing, Describe about the direct marketing ...

Describe about the direct marketing In 1990s direct marketing became a more prominent tool in mix as technology had enabled a form of communication by appealing personally and

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