Explain the factors determining choice of channels of distribution.

Question

Philoid · Accepted Answer

The factors determining the choice of channels of distribution are –

1) Product related

i) Unit

ii) Value

iii) Nature of product

iv) Size of product

v) Standardization

vi) Technical nature

vii) Product line and

viii) Age of Product

2) Market related

i) Type of market

ii) Buyers

iii) Order

iv) Buying habits

3) Company related

i) Market standing of the company

ii) Financial status of the company

iii) Management of company

iv) Volume of production

v) Desired control over distribution

vi) Services offered

4) Intermediary related

i) Availability of middlemen

ii) Attitude

iii) Services offered by middle men

iv) Sale potential

v) Cost

vi) Competition

vii) Legal constraint