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