Channel structure and strategic choice in distribution channels essay

He is an agent employed to sell goods on credit on behalf of his principal. But in case of industrial buyers there can be less middlemen. If it is, you need to motivate the network to give preference to your products. Following factors relating to the market are particularly significant.

Development of Propositions A figure of direction research workers have putforth eventuality attacks. To ultimate consumers, goods are sold normally through middlemen.

A company that sells directly has itself to provide installation, credit, home delivery, after sale services and other facilities to customers. Evaluate how your end-users need to buy Your distribution strategy should deliver the information and service your prospects need.

You sell a product to a company who bundles it with services or other products and resells it. Firms with low degrees of integrating are more Ukely to take adifferentiation scheme. It is how a company gets its products or services to the consumers. B Considerations Related to Market Market considerations are given below: Low-priced and high turnover articles like cosmetics, hosiery goods, stationery and small accessory equipment usually flow through a long channel.

Manufacturer to Customer Manufacturer makes the goods and sells them to the consumer directly with no intermediary, such as a wholesaler, agent or retailer. He can pledge the goods and can sell goods on credit.

Types of Marketing Channels

If a product is of a technical nature, then it is better to supply it directly to the consumer. The choice of a suitable channel of distribution is one of the most important decisions in the marketing of products because channel affects the time and costs of distribution as well as the volume of sales.

When the product is very costly it is best to use small distribution channel. As discussed in the subdivision on perpendicular integrating. Government regulations regarding certain products may influence channel decision.

The difference between this scheme and the focal point scheme is the fact thatfocus dressed ores on a peculiar section.

5 Important Factors Affecting the Choice of Channels of Distribution by the Manufacturer

It also influences pricing and promoting efforts and dealer relations. Such a channel which has a possibility of large sale should be given weight age.

A factor has invaluable interest in the goods in which he deals. They smoothen the flow of goods and services. When desired type of middlemen is not available, a manufacturer may have to establish his own distribution network. General Buyers and Industrial Buyers. CHANNEL STRUCTURE AND STRATEGIC CHOICE IN DISTRIBUTION CHANNELS This article mainly talks about the importance of marketing channel of marketing channel strategy decisions, they are highlighted by: 1) term consequences and 2) the constraints andopportunities that they present paper incorporates strategic management theory into marketingchannels.

Channel of Distribution plays a very important role in achieving the marketing objectives of a company. Undoubtedly, the manufacturer of product or services creates involve utility but the distribution channels create time and place utilities. According to Drucker, “both the market and distribution channels are offer more crucial than the product.

The present paper incorporates strategic direction theory into marketingchannels literatures to analyze the impact of different channel structures onthe pick of a generic channels scheme. Distribution channels in marketing are one of the classic “4 Ps” (product, promotion, price, placement a.k.a.

Channel Structure and strategic choice in distribution channels Essay

“distribution”). They’re a key element in your entire marketing strategy — they help you expand your reach and grow revenue.

ADVERTISEMENTS: Important factors affecting the choice of channels of distribution by the manufacturer are: (A) Considerations Related to Product ADVERTISEMENTS: 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.

They are as follows: 1. Also known as a distribution channel, a distribution chain, a distribution pipeline, a supply chain, a marketing channel, a market channel, and a trade channel." (Ostrow, ).

Relationships need to be built not only with clients but also with key suppliers and.

Distribution Channel Selection Factors Channel structure and strategic choice in distribution channels essay
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Distribution Channels and Marketing Analysis |