Let me give certain points that you have to considered before selection of the channel 1. Producer factors: Distribution channels are a key element in all the marketing strategies that revolve around the product. Environment. 2389 words (10 pages) Essay. The factors influence the choice of distribution channel. (a) Consumer or industrial market: Product Characteristics 2. The factors affecting the choice of distribution channels, They may be described as under: 1. Important factors affecting the choice of channels of distribution by the manufacturer are: Considerations Related to Product. Explain five ways in which commercial banks help in facilitating business activities in a country. Company Characteristics 4. For example, requirement of complex legal formalities at each step of distribution induces the companies to opt for shorter channels. Market considerations: The nature and type of customers is an important consideration in the choice of a channel of distribution. Channels used for competitive products may also influence the choice of distribution channels. Product’s availability, ease of access, and the way it reaches the customer influence its demand at many levels. Factors that influence a choice of distribution channels. Highlight factors that may influence the choice of a distribution channel. Nature of Product: The is the first and most important consideration. They help you reach the customer in a way to maximise your revenue and brand awareness. 5. Choice of appropriate channel of distribution is a very important marketing decision, which affects the performance of an organisation. Environmental factors such as economic constraints and legal policies play an important role in the choice of channel of distribution. This research was a descriptive study involving 60 firms. Heavy and bulky products like cement, steel and electrical equipment’s are also distributed directly or through short channels. Environmental Factors. Buying behavior may influence a channel decision. 1. Product features, size, shape, color, durability, perishability, Value of product etc are the factors that constitute the product characteristics. For example, an increasing number of service firms are satisfying consumers’ desire for convenience by providing home delivery. A semi- structured questionnaire was used to collect the relevant data, while frequency 2. They are: Characteristics of the product: If the . Following factors relating to the market are particularly significant. Answers. The selection of channel is not an easy job. Highlight factors that may influence the choice of a distribution channel. Nature of the product. Product Characteristics: The product characteristic plays an important role in influencing the channel selection. Factors Related to Company: Company’s internal situations have direct impact on choice of marketing channel. Middlemen Consideration 5. Industrial/Consumer Product. products are perishable in nature like eggs, milk etc, they are supplied directly or with the help of short channels. 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. Factor # 1. 2. 4. ... (Virtual Advisor, 2000).The mentioned factors along with the impeccable physical infrastructure witnessed in the European Union have helped in aiding the smooth and fast flow of goods and services in the extensive distribution channels. ADVERTISEMENTS: Such factors may be classified as factors relating to: 1. But, illegal products are distributed by direct channels for secrecy purpose. Quite obviously, permitted (legal) products can be distributed by any convenient channel of distribution. Explain any five factors which affect the choice of channels of distribution. 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