What are the factors that affect distribution channels?

5 Important Factors Affecting the Choice of Channels of Distribution by the Manufacturer

What are the factors that affect distribution channels?

5 Important Factors Affecting the Choice of Channels of Distribution by the Manufacturer

  • Unit Value of the Product:
  • Standardised or Customised Product:
  • Perishability:
  • Technical Nature:
  • Number of Buyers:
  • Types of Buyers:
  • Buying Habits:
  • Buying Quantity:

What are the 3 channels of distribution?

The three types of distribution channels are wholesalers, retailers, and direct-to-consumer sales. Wholesalers are intermediary businesses that purchase bulk quantities of product from a manufacturer and then resell them to either retailers or—on some occasions—to the end consumers themselves.

What are the three 3 major channel categories?

Types of Distribution Channels – 3 Main Types: Direct, Indirect and Hybrid Channels. Channels can be long or short, single or multiple (hybrid), and can achieve intensive, selective or exclusive distribution. The length of channel could have any number of intermediaries or be direct to customers.

What are the three factors affecting channel choice?

What are the factors affecting channel choice?

  • Age. Many companies decide channel split by looking at customer demographics, particularly age.
  • Context. In an emergency where we need a fast answer, we pick up the phone, irrespective of our demographic group.
  • Personality.
  • Type of business.

What factors influence channel decisions explain?

The choice of channel of distribution is also influenced by company’s own characteristics as to its size, financial position, reputation, past channel experience, current marketing policies and product mix etc.

What are the 3 distribution strategies?

There are three distribution strategies: intensive distribution; exclusive distribution; selective distribution.

What are the factors affecting the choice of distribution channel in marketing?

Factors Influencing Choice of Distribution Channel – 5 Important Factors: Product, Company, Competitive, Market and Environment Related Factors. Deciding or selecting channels of distribution is a strategic decision for any manufacturing or trading concern.

What are the three main factors in building a channel of distribution quizlet?

Costs, coverage, and control are the three main considerations in building a channel of distribution. Transportation, storage, materials handling, delivery terms, and inventory management are the main components of a physical distribution system.

What are the 5 distribution channels?

B2B and B2C companies can sell through a single distribution channel or through multiple channels that may include:

  • Wholesaler/Distributor.
  • Direct/Internet.
  • Direct/Catalog.
  • Direct/Sales Team.
  • Value-Added Reseller (VAR)
  • Consultant.
  • Dealer.
  • Retail.

What are the factors of distribution?

We have to consider the following factors for the selection of channel of distribution:

  • (i) Product:
  • (ii) Market:
  • (iii) Middlemen:
  • (iv) Company:
  • (v) Marketing Environment:
  • (vi) Competitors:
  • (vii) Customer Characteristics:
  • (viii) Channel Compensation:

What are the 3 types of distribution intensity?

The Three Types of Distribution

  • Intensive Distribution: As many outlets as possible. The goal of intensive distribution is to penetrate as much of the market as possible.
  • Selective Distribution: Select outlets in specific locations.
  • Exclusive Distribution: Limited outlets.

What are the 3 basic functions performed by intermediaries in the supply channel?

What are the three basic functions performed by intermediaries? Intermediaries perform transactional, logistical, and facilitating functions.

What are the three basic functions channel members perform?

A channel performs three important functions: (a) transactional functions, (b) logistical functions, and (c) facilitating functions. Channel strategies are evident for service products as well as for physical products.

What are the three 3 functions of marketing channels?

Marketing channels, such as distributors, wholesalers and retailers, provide your business with three kinds of functions: buying products for resale to customers, distributing products to customers and supporting sales to customers through financing and other services.

What are three marketing channels?

The three marketing channels that are the most popular today are email, social media, and text marketing.

How many factors that are affecting channel choice and management?

What are the six 6 Factors affecting the distribution channel?

Top 6 Factors Affecting Channel Distribution

  • a. Perishability of Product:
  • b. Technical Aspects:
  • c. New v/s Existing Product:
  • d. Complexity and Risk Related to Use of Product:
  • e. Size of Product:
  • f. Divisibility of Product:
  • g. Unit Price of Product:
  • h. Legal Aspect: