Nature of Product: The is the first and most important consideration. For example, an increasing number of service firms are satisfying consumers’ desire for convenience by providing home delivery. Environmental Factors. Producer factors: Industrial/Consumer Product. 2. Market considerations: The nature and type of customers is an important consideration in the choice of a channel of distribution. Following factors relating to the market are particularly significant. ADVERTISEMENTS: Such factors may be classified as factors relating to: 1. A semi- structured questionnaire was used to collect the relevant data, while frequency Heavy and bulky products like cement, steel and electrical equipment’s are also distributed directly or through short channels. The selection of channel is not an easy job. 1. Highlight factors that may influence the choice of a distribution channel. Markets Factors/Consumer Factors 3. Channels used for competitive products may also influence the choice of distribution channels. Explain any five factors which affect the choice of channels of distribution. Middlemen Consideration 5. But, illegal products are distributed by direct channels for secrecy purpose. Explain five ways in which commercial banks help in facilitating business activities in a country. Distribution channels are a key element in all the marketing strategies that revolve around the product. ... (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. (a) Consumer or industrial market: Product Characteristics: The product characteristic plays an important role in influencing the channel selection. For example, requirement of complex legal formalities at each step of distribution induces the companies to opt for shorter channels. This study sought to investigate the nature of distribution channels for small- scale manufacturing firms in Thika town and the factors, which influence the choice of these channels. 2389 words (10 pages) Essay. products are perishable in nature like eggs, milk etc, they are supplied directly or with the help of short channels. Quite obviously, permitted (legal) products can be distributed by any convenient channel of distribution. 4. 2. Important factors affecting the choice of channels of distribution by the manufacturer are: Considerations Related to Product. They are: Characteristics of the product: If the . Product’s availability, ease of access, and the way it reaches the customer influence its demand at many levels. The factors influence the choice of distribution channel. Company Characteristics 4. Product features, size, shape, color, durability, perishability, Value of product etc are the factors that constitute the product characteristics. Answers. Choice of appropriate channel of distribution is a very important marketing decision, which affects the performance of an organisation. The factors affecting the choice of distribution channels, They may be described as under: 1. Factor # 1. Environment. Market Factors. Factors Related to Company: Company’s internal situations have direct impact on choice of marketing channel. 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. This research was a descriptive study involving 60 firms. They help you reach the customer in a way to maximise your revenue and brand awareness. Factors that influence a choice of distribution channels. Buying behavior may influence a channel decision. Nature of the product. 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