The choice of channels depends on various factors, which are discussed as follows: If goods are sold through intermediaries then they decide the price and discount and promotional offers. 671 549 957. For example, economic downturns may occur and this is something that you will generally have very little control over. D. Management want to have greater control on the channel members. januari 17, 2021 . A number of factors influence this decision. A FMCG product will require different distribution than an automobile. What Demographic, Social, and Contextual Factors Influence ... (iv) What are the expectations from the channel members? Distribution Channels in International Marketing Customer's buying habits also affect channels of distribution decision. Factors Affecting Promotion Mix: Top 10 Factors Affecting ... <p>Place mix: It refers to a set of decisions that need to be taken in order to make the product available to the consumers for purchase and . Factors affecting choice of distribution channel . B. Factors that influence the channel structures and strategies available to global marketers include customer, product, middleman, and environmental characteristics. These factors are: (A) Product Considerations: The nature and type of product helps in determining a decision about channel of distribution. On the other hand, a low priced product with large number of buyers will . It has too many major alternatives. Products can be perishable or nonperishable . A company has to decide whether to adopt the same channel as that of its competitor or choose another one. 13. They greatly influence the marketing of goods. Cited by 1 — The objectives of this study were: 1. explain the factors that influence choice of distribution channel. Factor # 6. So, this Types of Distribution Channels - How to Choose The Right One article today will go thoroughly through all information that you need to know about a distribution channel including its . Please click this link to view samples of our professional work witten by our professional essay writers. Choice of appropriate channel of distribution is a very important marketing decision, which affects the performance of an organisation. Open in App. (iii) Are there any internal constraints for the exporter like finance which will influence the decision regarding choice of the distribution channel? Some of the major factors affecting selection of channel are organization objectives, type of product, nature and extent of market, existing channel for comparable product, buying habits of consumers and channel availability. Distribution channels are the methods by which companies deliver products and services to customers and end users. Channels of distribution. The products of a lower price have a long chain of distributors. Explain any five factors which affect the choice of channels of distribution. A distribution channel, in simple terms, is the flow that a good or service follows from production or manufacturing to the final consumer/buyer. the incomes of millions of small-scale businesses and (4 marks) individual sellers around the world. All these factors greatly influence the choice of distribution channel. Distribution channel could be conventional marketing system or vertical marketing system. E.g. Highlight factors that may . Lots of research indicates Generation Y is forsaking telephone communications in favor of social media and real-time messaging such as web chat and text. 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. Both B2B and B2C companies alike need to weigh the pros and cons of each channel before choosing which one to utilize. Disclaimer: This essay has been written and submitted by students and is not an example of our work. Five Mark Questions:- Choice of appropriate channel of distribution is a very important marketing decision, which affects the performance of an organisation. Three-Level Channel (Manufacturer to Agent to Wholesaler to Retailer to Customer): Three level channel of distribution involves an agent besides the wholesaler and retailer who assists in selling goods. As against this, if the buyers are dispersed in a larger area then longer channels of distribution may be used. What are the factors that affect choice of channels? Explain five ways in which warehousing facilitate trade. Explain why some products are better suited to some distribution strategies than others. Distribution is the activity that involves effecting the flow of goods and services from the point of production to the consumers. Here, I'll discuss three major alternatives. The intermediaries can be natural persons or businesses. Hybrid Distribution System: A Company must manage a hybrid distribution system to avoid chaos and maximize efficiency, Responsibilities, relationships and compensations among various channel members must be made clear. We will look at these factors in brief- 1) Promotion Budget allocation, objectives and policies- Depending on the market research done for making a product of consumer's choice, budget is allocated for various promotion activities. Manufacturers may also feel short of customer-based skills for distribution of goods. Various other factors such as size of the market, geographical concentration of buyers, quantity demanded, etc. Explain five benefits that may accrue to the country from this extension. In case the number of buyers is small, like for most industrial products, short channels are used. Explain four factors that may influence the choice of distribution channel. The most significant of these factors are: Objectives of the campaign; Budget available; Research concerning client; The product; Type of message or selling appeal; Relative cost; Clutter; The potential . The economic environment also has an impact on the choice of promotion tools. There are various constraints that are to be considered before deciding channel objectives. External Factors. Market Related Factors 2. Answer . In addition to these problems there are a number of other major factors which influence the decision of the advertiser and therefore, the same must be considered while selecting the media. If the consumer expects credit facilities, desires to purchase all necessaries at one place one desire for the personal services of the salesman, the channel may be lengthier or shorter depends upon the capacity of providing those facilities and meeting out the needs of the customers. In case the . Download. ADVERTISEMENTS: Important factors affecting the choice of channels of distribution by the manufacturer are: (A) Considerations Related to Product ADVERTISEMENTS: When a manufacturer selects some channel of distribution he/she should take care of such factors which are related to the quality and nature of the product. Why so many choices . Explain the factors that affect promotion mix or marketing communication mix. Explain how distribution patterns affect internationalmarketing? The choice of an appropriate channel of distribution, as an important marketing decision, depends on a variety of considerations like nature and type of products, nature of services to be rendered, stability of production, costs involved, and the type of promotional efforts undertaken by the marketing management. Depending on your business and your products, this series can include wholesalers, brick and mortar retailers, online marketplaces, or shipping companies that take your products directly to consumers. Here are 6 top factors that we've seen influence logistics planning and distribution management: 1. For instance, if potential buyers are concentrated in a small geographical area then, shorter channels are used. Explain five factors that may influence the choice of distribution channel for milk. . In such cases, a longer chain of distribution is profitable. Factors that influence a choice of distribution channels. If a cosmetic producer have chosen big retail store for their sale than a particular form may like to adopt door to door selling. Your distribution channel is the series of businesses, sellers, or other intermediaries your products must go through to reach your final consumers. Apart from the above factors, the environmental aspects such as econo­mies, social, and legal conditions have influence on the decision of a distribution channel. Explain at least five key factors that would influence their choice. 4 ساعت قبل . The different types of distribution channels are: Direct Indirect (Intermediary) Dual Distribution Reverse Which distribution channel(s) a business uses will be based on overall business goals and structure. Important factors affecting the choice of channels of distribution by the manufacturer are:1) Product Related Factors: The choice of channels of distribution depends upon the factors related to the product. After deciding on the channel design, management must identify, evaluate, and recruit specific sales . For instance, having insight about potential customers can allow a company to generate demand via distribution and marketing just like in the Nike, business model. Explain how intensive, exclusive, and selective distribution differ from one another. Manager has to analyze company-related factors to decide the best fit channel(s). Important factors affecting the choice . Question. Companies may also use agents or brokers to facilitate the movement of products to distributors that sell those wares to the customer. One of the first elements to consider is who the intended consumer will be and what exactly they desire. Types of Distribution Channels - 3 Other Types: Hybrid Distribution System, Wholesaler and Physical Distribution Type # 1. Market Factors: Important market factors affecting the choice of channel of distribution include size of market, geographical concentration of potential buyers and quantity purchased. Company Characteristics . Firstly in terms of the price of the competitor's brand and secondly in terms of the margin allowed to the middle-men. If the consumer expects credit facilities, desires to purchase all necessaries at one place one desire for the personal services of the salesman, the channel may be lengthier or shorter depends upon the capacity of providing those facilities and meeting out the needs of the customers. Several factors influence the channel configuration decision, including: End-user considerations; Product characteristics; Capabilities and resources of the manufacturer ; Functions and need to be performed; Availability and capabilities of channel members; Marketing Channel Management. But if the number of buyers is large, as in case of most convenience products like soft drink, toothpaste etc . • But there are some which stand out and influence channel of distribution choice in all cases. Learn about the factors influencing choice of distribution channel are:- 1. They help you reach the customer in a way to maximise your revenue and brand awareness. Choice of appropriate channel of distribution is a very important marketing decision, which affects the performance of an organisation. 14. Customer and product characteristics tend to go hand in hand. Published Date: 23 Mar 2015. 6. Selecting the best marketing channel is critical because it can mean the success or failure of your product. Menú navegación . Identifying major alternatives. Get . ADVERTISEMENTS: Such factors may be classified as factors relating to: 1. Let me give certain points that you have to considered before selection of the channel 1. In this step, the company should decide its marketing channel objectives. Transcribed image text: Question 1 (Marks: 51 There are several factors that would influence the choice of distribution which would be (5) either Direct Channel distribution or indirect Channel Distribution. Universities and institutions channel funding to effective factors and redesign or eliminate non-effective factors (Levy, 2006). Channels used for competitive products may also influence the choice of distribution channels. In case the number of buyers is small, like for most industrial products, short channels are used. Whether the product is perishable or a non-perishable. 09 de agosto de 2021 | Nenhum comentário . Medium. Important factors affecting the choice of channels of distribution by the manufacturer are:1) Product Related Factors: The choice of channels of distribution depends upon the factors related to the product. 1 . Company Factors 4. Any opinions, findings, conclusions or recommendations expressed in this material are those of the . Therefore it becomes essential that a right channel if chosen to avoid any later changes. Company's internal situations have direct impact on choice of marketing channel. If the product passes through a longer channel of distribution, the marketer will have to give more importance to advertising and less importance to personal selling. That's why distribution channels are the key factor in all the marketing strategies of any company, which will help you reach the customer in a way to maximize your revenue and brand awareness. The indirect . Inicio; César Febles; Actividades. Some of the factors firms consider include trust and commitment, adequate finance, quality, reliable delivery times, adequate logistic technological capabilities (Cox, 1999). Factor # 3. The manufacturer is the company that makes the product. Important factors relating to the selection of a particular middleman are explained as under: (a) Cost of distribution of goods: Cost of distribution . Not all products will appeal to all markets, so a business needs . Factors Determining Choice of Channels of Distribution: . Nature of the product. The results of the study revealed that most firms . A . Company Characteristics 4. Adoption of newer channels. What are the factors that affect choice of channels? The link between producers and the end consumer is normally intermediaries, such as wholesalers, retailers, or brokers. Background: During the COVID-19 crisis, an apparent growth in vaccine hesitancy has been noticed due to different factors and reasons. There is a need to understanding of the supplier selection criteria. Instead of advertising and waiting for the customer to ask for the product, conditions are created to . (d) Assess the factors that might influence a business like cs Isolated or remote areas without the infrastructure of more developed regions are difficult to penetrate. communication media choice and the use of a web-based learning tool, as well as other types of communication media such as email, telephone and face-to-face, for communication and collaboration to complete given tasks. Therefore, this scoping review was performed to determine the prevalence of intention to use COVID-19 vaccines among adults aged 18-60, and to identify the demographic, social, and contextual factors that influence the intention to use COVID-19 vaccines. Another related factor is that how much control the producers want to exercise about how, to whom and at what price a product is sold. Whether an organisation will adopt direct marketing channels or long channels involving number of intermediaries is a strategic decision. 4. To influence customers, organisations go for sales promotion like coupons, discounts on high quantity purchases, free samples, etc. . Thus, quantity and quality of marketing services provided by the company can influence the channel choice directly. 1. These agents come handy when goods need to move quickly into the market soon after the order is placed. These are summarised below: Nature of the product - Technical/complex? This research was a descriptive study involving 60 firms. A direct distribution approach often works best for a product that the end consumer wants providing to a distinct . Setting channel objectives. Environmental Factors. Company Characteristics . 2389 words (10 pages) Essay. Philips Kotler defines channel of distribution as "a set of independent organisations involved in the process of making a product or service available for use or consumption". Factor # 3. Market Factors - It includes size of market, quantity purchased etc. Unilever er Unilever when . click to download. Nevertheless, other types of flows should not be neglected in distribution channels, so that the following definition is also possible: "Channel of distribution . Explain any five factors which affect the choice of channels of distribution. answr. Customer's buying habits also affect channels of distribution decision. Age Many companies decide channel split by looking at customer demographics, particularly age. A wide variety of factors need to be considered when deciding on the most appropriate distribution channel for a product. Distribution channels and strategy looks more at creating demand for a product or service by leveraging on several strategies. Are there some specific expectations? Unit Value of the […] For example, if Nokia has selected a particular channel say Big Bazaars for sale of their hand sets, other firms like Samsung and LG have also . ADVERTISEMENTS: Company-related factors include: a. Company's Financial Position: Financially sound companies can maintain separate and well-equipped departments for distribution of products. A supply chain concerns with all the aspects that begin with sourcing raw . Environment. Explain five ways in which commercial banks help in facilitating business activities in a country. Besure to include examples along with your explanation. Upvote(0) Was this answer helpful? These customers wish to hold as little stock as possible without running out. Assessing the economy is a must in order to guard against stock outs or a buildup of excess inventory. Distribution channels can be either direct or indirect. 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