They help you reach the customer in a way to maximise your revenue and brand awareness. Factors that influence a choice of distribution channels. The factors influence the choice of distribution channel. Explain any five factors which affect the choice of channels of distribution. Environmental factors such as economic constraints and legal policies play an important role in the choice of channel of distribution. products are perishable in nature like eggs, milk etc, they are supplied directly or with the help of short channels. 2389 words (10 pages) Essay. Industrial/Consumer Product. If the product can be marketed to more than one segment, multiple distribution channels may be required. Explain five ways in which commercial banks help in facilitating business activities in a country. Distribution channels are a key element in all the marketing strategies that revolve around the product. ADVERTISEMENTS: Such factors may be classified as factors relating to: 1. 4. For example, requirement of complex legal formalities at each step of distribution induces the companies to opt for shorter channels. Market Factors. This study sought to investigate the nature of distribution channels for small- scale manufacturing firms in Thika town and the factors, which influence the choice of these channels. Heavy and bulky products like cement, steel and electrical equipment’s are also distributed directly or through short channels. Market considerations: The nature and type of customers is an important consideration in the choice of a channel of distribution. Following factors relating to the market are particularly significant. 5. Highlight factors that may influence the choice of a distribution channel. 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. (a) Consumer or industrial market: ... (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. Channels used for competitive products may also influence the choice of distribution channels. Factors Related to Company: Company’s internal situations have direct impact on choice of marketing channel. Choice of appropriate channel of distribution is a very important marketing decision, which affects the performance of an organisation. Answers. 1. Nature of the product. But, illegal products are distributed by direct channels for secrecy purpose. Factor # 1. Producer factors: The selection of channel is not an easy job. Environmental Factors. Highlight factors that may influence the choice of a distribution channel. Buying behavior may influence a channel decision. Product Characteristics 2. Environment. Company Characteristics 4. Middlemen Consideration 5. Quite obviously, permitted (legal) products can be distributed by any convenient channel of distribution. 2. 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. Product’s availability, ease of access, and the way it reaches the customer influence its demand at many levels. This research was a descriptive study involving 60 firms. For example, an increasing number of service firms are satisfying consumers’ desire for convenience by providing home delivery. Product Characteristics: The product characteristic plays an important role in influencing the channel selection. Product features, size, shape, color, durability, perishability, Value of product etc are the factors that constitute the product characteristics. Markets Factors/Consumer Factors 3. They are: Characteristics of the product: If the . 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