3.3.4 Making marketing decisions: Factors Influencing the Method of Distribution.

Question 1

Outline the factors influencing the method of distribution.

Answer 1

Size of the retailer.
Type of product. 
Technology.
Geography of the market.
Complexity of the product.
Degree of control desired by the manufacturer.

Question 2

Outline the size of the retailer as an influencing factor.

Answer 2

Large retailers will want to bypass the wholesaler.

Question 3

Outline the type of product as an influencing factor.

Answer 3

For perishable products it may be desirable to bypass the wholesaler, but for items such as newspapers there is more need for a wholesaler. As with a wholesaler, the number of journeys of different, for example newspapers, to the amount of chosen newsagents would significantly decrease with a wholesaler.

Question 4

Outline technology as an influencing factor.

Answer 4

More and more products are being sold through the internet, effectively bypassing the wholesaler and retailer.

Question 5

Outline the geography of the market as an influencing factor.

Answer 5

In a remote rural area, it is less likely to be cost-effective for a manufacturer to deliver directly.

Question 6

Outline the complexity of the product as an influencing factor.

Answer 6

If a product is highly complex, direct contact with the producer or an expert retailer may be important.

Question 7

Outline the degree of control desired by the manufacturer as an influencing factor.

Answer 7

Some firms only deliver directly to selected retailers in order to control quality and to protect their reputation.