Q. 9

Explain the factors determining choice of channels of distribution.

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


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