What are the factors influencing a channel of distribution? Explain an

1.	What are the factors influencing a channel of distribution? Explain any five?
Answer» The factors affecting a channel of distribution are as follows: 1. Product Characteristics: Seasonal products are distributed through less layer of middlemen. Non standardized products that are made according to customer specifications may be delivered directly. 2. Market Characteristics: The size of the market for the goods is a major factor while selecting the route for distribution of products. 3. Number of Consumers: Large purchases made by few consumers require centrelised distribution. 4. Middlemen factor: Middlemen who are experienced and have produced more sales are wanted by all producers. Long channel naturally increases the cost and price of the product. 5. Capacity of the Manufacturer: A financially strong producer may select a high technology oriented channel which will reduce cost in the long run.

What are the factors influencing a channel of distribution? Explain any five?

Answer»

The factors affecting a channel of distribution are as follows:

1. Product Characteristics: Seasonal products are distributed through less layer of middlemen. Non standardized products that are made according to customer specifications may be delivered directly.

2. Market Characteristics: The size of the market for the goods is a major factor while selecting the route for distribution of products.

3. Number of Consumers: Large purchases made by few consumers require centrelised distribution.

4. Middlemen factor: Middlemen who are experienced and have produced more sales are wanted by all producers. Long channel naturally increases the cost and price of the product.

5. Capacity of the Manufacturer: A financially strong producer may select a high technology oriented channel which will reduce cost in the long run.

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