factors affecting channel of distribution Flashcards
finance available
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
desired image for the product
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)
shelf life of the product
some products need to be shipped to retailers fast as they will go out of date quickly (eg. fresh fruit)
legal restrictions
some products cant be sold through certain channels (eg. prescription medicines need to be sold through pharmacists)
stage of the product life cycle
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
technical qualities of the product
highly technical products may need to be demonstrated, which means personal selling is the ideal channel