Factors effecting selection of distribution channels

May 1, 2023 1

FACTORS AFFECTING SELECTION OF DISTRIBUTION

CHANNELPresented BY:Rupinderjit Singh (3083)Sandeep Kaur (3087)Shubhanjali (3092)

Presented To:Mr. Rajan Dhir(HOD Business Faculty)

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Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries.

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A DISTRIBUTION CHANNEL in marketing refers to the path

or route through which goods and services travel to get from

the place of production or manufacture to the final

users.

Goods can be distributed using two main types of

channels:• Direct Distribution Channels

• Indirect Distribution Channels.

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MARKET INTERMEDIARIES

Middlemen

Agent or Broker

Wholesaler

Retailer

Distributer

Value-added Resellers

Merchants

Facilitating Agents

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Factors affecting Selection of Distribution Channel

•Nature of the Product: Physical Charactera)Perishabilityb)Size and weight of the productc) Unit value of a productd)Standardizatione)Technical Nature of product

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•Nature of the Market: In the words of Lazo and Corbin “Marketing managements select channels on the basis of customer wants-how, where and under what circumstances.” a) Consumer of Industrial Marketb) Number of prospective Buyersc) Size of the Orderd) Geographical Distributione) Buying Habits of Customers

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a. Cost of Distribution of Goodsb. Availability of desired Middlemen c. Unsuitable Marketing Policies for Middlemend. Services provided by Middlemene. Ensuring greater Volume of Salesf. Reputation and Financial Soundness

•Nature of Middlemen:

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•Nature of Manufacturing Unit:a. Manufacturer Reputation and Financial

Stabilityb. Ability and Experience of the Undertakingc. Desire for Control of Channeld. Industrial Conventions

•Competition

•Government Regulations and Policies: may impose certain restrictions on the wholesale trade of a particular product arid takeover the distribution of certain products.

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Conclusion:

•Distribution Channel is vital in today’s market, not only it benefits the consumer by getting goods on to your table but also benefits the producers and intermediaries. •A distribution Channel can be as short as being direct from the vendor to the consumer or may include several Intermediaries.•In today’s world the distribution channel has become short due to the introduction of Online Marketing.

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REFERENCE

• http://www.webivore.com/press_release_distribution_service.htm• https://en.wikipedia.org/wiki/Distribution_(business)• http://study.com/academy/lesson/distribution-channels-in-marketi

ng-definition-types-examples.html• http://www.slideshare.net/shomaa05/distribution-network-manag

ement• http://www.gcpindustrial.com/blog/middlemen• http://worldartsme.com/manufacturing-plant-clipart.html#gal_pos

t_55604_manufacturing-plant-clipart-1.jpg• http://www.newstarservice.it/contatti/

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