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Factors affecting choice of Distribution Channels, Principles of Marketing Video Lecture | Principles of Marketing - B Com
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FAQs on Factors affecting choice of Distribution Channels, Principles of Marketing Video Lecture - Principles of Marketing - B Com
| 1. What are the factors that influence the choice of distribution channels? |  |
Ans. The factors that affect the choice of distribution channels include the nature of the product, target market characteristics, competition, company resources, and desired level of control. The nature of the product determines whether it is a consumer or industrial product, perishable or non-perishable, and the level of customer service required. Target market characteristics such as geographic dispersion, size, and buying behavior also impact the choice of distribution channels. Competition in the market and the resources available to the company play a role in determining the most suitable distribution channels. Additionally, the desired level of control over the distribution process influences the choice of channels.
| 2. How does the nature of the product influence the choice of distribution channels? | |
Ans. The nature of the product influences the choice of distribution channels in several ways. For consumer products, convenience goods like snacks or beverages may require widespread distribution through multiple channels such as supermarkets, convenience stores, and online platforms. On the other hand, specialty goods like luxury items or high-end electronics may be better suited for exclusive distribution channels to maintain a sense of uniqueness and control pricing. Industrial products, on the other hand, may require direct distribution channels to reach the target market efficiently. The nature of the product also affects factors like packaging, storage, transportation, and customer service requirements, all of which impact the choice of distribution channels.
| 3. How do target market characteristics impact the choice of distribution channels? | |
Ans. Target market characteristics play a significant role in determining the appropriate distribution channels. The geographic dispersion of the target market influences whether a company should opt for intensive, selective, or exclusive distribution. For example, if the target market is widely dispersed, a company may opt for multiple distribution channels to ensure maximum accessibility. The size of the target market also affects channel choice. A larger market may require a mix of direct and indirect channels to reach a wider customer base. Additionally, the buying behavior of the target market, such as preferences for online shopping or in-store experiences, will impact the choice of distribution channels.
| 4. How does competition affect the choice of distribution channels? | |
Ans. Competition in the market can impact the choice of distribution channels. If competitors are already using specific distribution channels effectively, a company may choose to adopt similar channels to remain competitive. On the other hand, if competitors have not explored certain distribution channels, it may present an opportunity for a company to differentiate itself and gain a competitive advantage. The level of competition can also influence the number and type of distribution channels chosen. In highly competitive markets, companies may opt for extensive distribution channels to maximize their market reach, while in niche markets, selective or exclusive distribution channels may be more appropriate.
| 5. How does the desired level of control impact the choice of distribution channels? | |
Ans. The desired level of control over the distribution process is an essential factor in choosing distribution channels. Companies that want to maintain complete control over the marketing mix elements, such as pricing, promotion, and customer service, may prefer direct distribution channels. Direct channels allow companies to have direct contact with customers and closely monitor their brand image and customer experience. In contrast, companies that are willing to relinquish some control and rely on intermediaries may choose indirect distribution channels like wholesalers, retailers, or online marketplaces. The desired level of control also depends on the company's available resources and capabilities to manage the distribution process effectively.
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Oct 25, 2024 Last updated |
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