Motivated to sell your product among a range of others. This is another factor influencing the choice of a proper channel of distribution. Resources, like information, equipment and expertise, are shared. In such cases, a longer chain of distribution is profitable. The nature and size of manufacturing unit has a great impact on the selection of a distribution channel.
They greatly influence the marketing of goods. Intensive with mass distribution into all outlets as in the case of confectionery ; Selective with carefully chosen distributors e. Some of the factors to consider while selecting a channel of distribution are: Meaning the goods that are made in the manufacture are directly delivered to the consumer.
The distribution of perishable goods even in distant markets becomes a reality due to cold storage facilities in transport and warehousing. A large company may have shorter channel.
For example, in case automobile rubber products this practice is followed. Important factors relating to the selection of a particular middleman are explained as under: It involves a careful study and consideration of many factors stated below.
A manufacturer would like to appoint that middlemen who assure greater sales volume over the long run. Under such circumstances the manufacturer has to make his own arrangements by opening his branches or sales depots to distribute the goods to the consumers.
A manufacturer producing different products in the same lines sells directly or through retailers and lesser time is consumed in their distribution.
What are the factors that affect distribution channels in marketing?
Is it dependant on one key player? B Ability and Experience of the Undertaking: Controlling the flow of products and services from producer to customer requires careful consideration.
A Manufacturer Reputation and Financial Stability: It involvesmaking specific items for sale only to specific geographicalmarkets.
During recession or depression, shorter and cheaper channel is preferred. A financially weaker unit cannot operate without the help of middlemen. Government policies and regulations also influence the choice of distribution channels.
Distribution of goods is as important as production. Organization objectives - If company objective is to have mass appeal and rapid market penetration. Would you like to merge this question into it? What is the relationship between channels of distribution and logistics How does geographical location affect your selection of distribution channels?
Thirdly, delivery is seen as part of the product influencing customer satisfaction.
In fact the money spent on financial incentives is often spent more effectively when the sales person is rewarded with a plaque, a gold pen or a holiday in the Bahamas rather than just the cash which tends to get soaked up and lost in a sea of ordinary household daily expenditure.
Keeping the intermediary stimulated is important. Distribution Cost Analysis is a fast growing and perhaps the most rewarding area in marketing cost analysis and control.
If the blood sugar is low, the body mightsignal a need for sweet foods. The retailer recommends and offers your pen as superior. MERGE exists and is an alternate of.
They have lesser dependence on undertaking intermediaries. Delay in distribution of these products will deteriorate their quality. On the other hand, products like jewellery having high product value are directly sold to the consumers by the jewellers. Deciding a proper channel of distribution is not an easy task.
Reputed and financially sound manufacturing concerns can easily engage middlemen as compared to lesser reputed and newly established units.What two factors can help determine the distribution channel for bananas laser pointers and shoes are these products similar to or different from the current market.
Some of the factors to consider while selecting channels of distribution are as follows: (i) Product (ii) Market (iii) Middlemen (iv) Company (v) Marketing Environment (vi) Competitors (vii) Customer Characteristics (viii) Channel Compensation.
Some of the factors to consider while selecting a channel of distribution are: (1) The Nature of the Product (2) The Nature of the market (3) The Nature of Middlemen (4) The nature and size of the manufacturing unit (5) Government Regulations and.
Discuss the role of marketing channels in supply chains.
For each of the following products, list and explain two factors that would determine the distribution channel: bananas, laser pointers, and shoes. Factors Determining the Choice of Distribution Channels • There are a number of factors-both objective and subjective varying from company to company which govern choice or selection of channel of distribution.
Exlain two factors that would determine the distribution channel on bananas, laser printer, and ultimedescente.com are these products similar to or different from the current market channel and related intermediaries from product other product service.Download