FACTORS to BE CONSIDERED WHEN SELECTING a DISTRIBUTION CHANNEL

Principles and Practices of Marketing
  1. Customer characteristics-this include type of customer,geographic dispersionĀ  of buyers ie location to manufacturers,customer buying habits and the outlets they purchase from.
  2. Product characteristics-this includes perishability,product usage(industrial-direct or household-indirect).
  3. Company characteristics-this includes a company objectives,financial status ,past channel experiences and the desired degree of channel control.
  4. Middle men characteristics-this includes financial status,storage capacity,availability and the services they offer.
  5. Competitive characteristics-for some products,it is preferable to useĀ  the channels that are used other competitors e.g. fast moving consumer goods.
  6. Environmental characteristics-this includes economic,political,legal,social,cultural and technological factors that may affect the channel selection.
  7. Nature of the goods ie heavy, bulkyetc
  8. The number of terminals
  9. Transportation cost
  10. The distance to be covered ie water and air are mainly used for long distance products.
  11. Speed and urgency of the goods.
  12. The packaging requirements
  13. Availability of the channel
  14. Flexibility of the channel to be used ie can it be used in the interior regions?.



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