Product’s availability, ease of access, and the way it reaches the customer influence its demand at many levels. Explain any five factors which affect the choice of channels of distribution. Let me give certain points that you have to considered before selection of the channel 1. Factors that influence a choice of distribution channels. Product Characteristics 2. But, illegal products are distributed by direct channels for secrecy purpose. ... (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. Answers. Highlight factors that may influence the choice of a distribution channel. Highlight factors that may influence the choice of a distribution channel. For example, an increasing number of service firms are satisfying consumers’ desire for convenience by providing home delivery. 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. Factors Related to Company: Company’s internal situations have direct impact on choice of marketing channel. Following factors relating to the market are particularly significant. 4. Nature of the product. Important factors affecting the choice of channels of distribution by the manufacturer are: Considerations Related to Product. Product features, size, shape, color, durability, perishability, Value of product etc are the factors that constitute the product characteristics. Quite obviously, permitted (legal) products can be distributed by any convenient channel of distribution. For example, requirement of complex legal formalities at each step of distribution induces the companies to opt for shorter channels. Environmental Factors. 5. If the product can be marketed to more than one segment, multiple distribution channels may be required. Factor # 1. The selection of channel is not an easy job. products are perishable in nature like eggs, milk etc, they are supplied directly or with the help of short channels. Distribution channels are a key element in all the marketing strategies that revolve around the product. A semi- structured questionnaire was used to collect the relevant data, while frequency Middlemen Consideration 5. Channels used for competitive products may also influence the choice of distribution 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. 2389 words (10 pages) Essay. Industrial/Consumer Product. Environmental factors such as economic constraints and legal policies play an important role in the choice of channel of distribution. Company Characteristics 4. ADVERTISEMENTS: Such factors may be classified as factors relating to: 1. 1. 2. This research was a descriptive study involving 60 firms. 2. The factors influence the choice of distribution channel. The factors affecting the choice of distribution channels, They may be described as under: 1. Product Characteristics: The product characteristic plays an important role in influencing the channel selection. Environment. Market Factors. (a) Consumer or industrial market: 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. Explain five ways in which commercial banks help in facilitating business activities in a country. They are: Characteristics of the product: If the . 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