5.1 What is Channel Design?
- 1) Market Variables Market variables are the most fundamental variables to consider when designing a marketing channel. Including: market geography, market size, market density, and market behavior. ...
- 2) Product Variables: Product variables such as bulk and weight, perishability, unit value, technical versus nontechnical, and newness affect alternative channel structures.
- Nature of Product: The nature of the product has a bearing on the choice of distribution channel. ...
- Nature of Market: ...
- Size of Business: ...
- Cost of Channel: ...
- Nature of Middlemen: ...
- Distribution Intensity: ...
- Time of Distribution: ...
- Government Policy:
What factors influence the design and selection of marketing channels?
The following factors influence the design and selection of marketing channels: 1. Nature of the product 2. Buyer behavior 3. Environment 4. Competition 5. Organization. Factor # 1. Nature of the Product:
What are the key variables affecting channel design?
Company dimensions: The most important company variables affecting channel design are: size Financial capacity Managerial Expertise Objectives and Strategies 7. 4. Intermediary Dimensions: The key intermediary variables related to channel structure are: Availability. Cost Services 8. 5.
What are the factors to consider when choosing a distribution channel?
Factors Pertaining to the Middlemen 4. Factors Pertaining to the Producer or Company B. Factors to Consider When Choosing a Distribution Channel 1. Environmental Factors 2. Financial Factors 3. External Factors C. Criteria for Selection of Distribution Channel 1. Nature of the Market 2. Nature of the Product 3. Degree of Competition 4.
What are the 5 factors that determine the length of Channel?
Marketing Channels – 5 Factors Determining the Length of the Channel: Size of the Market, Order Lot Size, Service Requirements, Product Variety and Type of Product When deciding the length of the channel there are several factors that need to be taken into consideration.
What are the three factors affecting channel choice?
What are the factors affecting channel choice?Age. Many companies decide channel split by looking at customer demographics, particularly age. ... Context. In an emergency where we need a fast answer, we pick up the phone, irrespective of our demographic group. ... Personality. ... Type of business.
What are the factors that influence distribution?
The main factors determining population distribution are : climate, landforms, topography, soil, energy and mineral resources, accessibility like distance from sea coast, natural harbours, navigable rivers or canals, cultural factors, political boundaries, controls on migration and trade, government policies.
What are the 5 factors that influence distribution management?
6 Top Factors Influencing Distribution ManagementCustomer Perspective. ... Distributor Perspective. ... Communication. ... Planning & Measuring: Creating a Culture. ... Training & Commitment. ... Implementing the Right Tools: Warehousing and Distribution.
What is channel design?
Channel design is the strategic process that commercial organizations use to balance resources across direct and indirect channels or routes to market. Direct channels typically include field sellers and e-commerce platforms, while indirect channels can include a mix of partners, distributors and marketplaces.
What are the 4 channels of distribution?
Distribution channels include wholesalers, retailers, distributors, and the Internet. In a direct distribution channel, the manufacturer sells directly to the consumer. Indirect channels involve multiple intermediaries before the product ends up in the hands of the consumer.
What are the three main factors in building a channel of distribution?
Key factors in designing a distribution channel. - Adapting the marketing mix to your strategy: product, price, place and promotion.
How do transport factors affect distribution?
High outbound transport costs will drive companies to decentralised distribution structures, and high inventory costs towards the opposite. Changes in, amongst others, interest rates and unit transport costs will influence this trade-off (Ashayeri & Rongen, 1997.