Question: What Factors Influence How You Distribute A Product?

What are the factors that influence the choice of distribution?

Factors Influencing Choice of Distribution Channel – 5 Important Factors: Product, Company, Competitive, Market and Environment Related Factors.

Deciding or selecting channels of distribution is a strategic decision for any manufacturing or trading concern..

What are the 4 channels of distribution?

While a distribution channel may seem endless at times, there are three main types of channels, all of which include the combination of a producer, wholesaler, retailer, and end consumer. The first channel is the longest because it includes all four: producer, wholesaler, retailer, and consumer.

What are the function of channel of distribution?

The basic function of a distribution channel is to provide a link between production and consumption and to create time, place and possession utilities which constitute the added value of distribution.

What are the criteria for selecting channel of distribution?

Some of the factors to consider while selecting a channel of distribution are: (1) The Nature of the Product (2) The Nature of the market (3) The Nature of Middlemen (4) The nature and size of the manufacturing unit (5) Government Regulations and Policies and (6) Competition.

What factors influence customers to use products or services?

6 Factors that Influence Customer Behavior and ChoicesDemographics and Customer Behavior. Gender, age, and stage of life influence purchase decisions significantly. … Proximity and convenience. … Technology adaptation. … Security. … Reputation. … Situational factors.

What are the main factors that influences sales?

These factors include:The product.Marketing.Availability of finance.Technology and automation.Availability of suppliers.Economic cycle.Consumers’ expectations.Laws and regulations.More items…•

How do you choose a distribution strategy?

How to Choose a Channel of DistributionConsider your competitors.Examine costs and benefits.Rank your options.Have a plan for growth.

What are the two types of distribution?

As mentioned above, the two main types of distribution strategies are direct and indirect. There are also more nuanced types of distribution that fall into these categories — intensive, selective and exclusive distribution.

How do you distribute a product?

Possible distribution channels are selling:directly to consumers;to retailers;to supermarkets;to wholesalers;to institutions and the catering trade.

What market factors influence the product?

The demand for a product will be influenced by several factors:Price. Usually viewed as the most important factor that affects demand. … Income levels. … Consumer tastes and preferences. … Competition. … Fashions.

What are examples of distribution?

Distribution is defined as the process of getting goods to consumers. An example of distribution is rice being shipped from Asia to the United States. The process of distributing or the condition of being distributed, especially: The process of marketing and supplying goods, especially to retailers.

What factors would you consider while selecting the channels of distribution for a consumer product?

Channel of Distribution: 6 Factors to Consider While Selecting a Channel of Distribution(1) The Nature of the Product:(2) The Nature of the market:(3) The Nature of Middlemen:(4) The nature and size of the manufacturing unit:(5) Government Regulations and Policies:(6) Competition:

What are the 3 types of distribution?

At the strategic level, there are three broad approaches to distribution, namely mass, selective and exclusive distribution. The number and type of intermediaries selected largely depends on the strategic approach. The overall distribution channel should add value to the consumer.

What factors influence customer value?

The data were gathered through Delphi method and questionnaires. Findings – The results of this study indicate that the factors affecting customer values include costs, relational benefits, brand perceptions, and services quality. These factors influence customer values, respectively.

What are the types of distribution strategy?

1) Indirect distribution.2) Direct distribution.3) Intensive distribution.4) Selective distribution.5) Exclusive distribution.