factors affecting channel of distribution

Question 1

finance available

Answer 1

a manufacturer may not have the finance available to set up e-commerce or print catalogues to sell direct, so using wholesalers or retailers are the only options

Question 2

desired image for the product

Answer 2

certain products have images that dictate where they can be sold (eg Hugo Boss only sell in retailers that have built up a good reputation over at least 5 years)

Question 3

shelf life of the product

Answer 3

some products need to be shipped to retailers fast as they will go out of date quickly (eg. fresh fruit)

Question 4

legal restrictions

Answer 4

some products cant be sold through certain channels (eg. prescription medicines need to be sold through pharmacists)

Question 5

stage of the product life cycle

Answer 5

products may only be sold in exclusive outlets at the beginning of a products life cycle, but may be sold in discount stores during their decline stage to encourage sales

Question 6

technical qualities of the product

Answer 6

highly technical products may need to be demonstrated, which means personal selling is the ideal channel