We have to consider the following factors for the selection of channel of distribution:

• (i) Product:
• (ii) Market:
• (iii) Middlemen:
• (iv) Company:
• (v) Marketing Environment:
• (vi) Competitors:
• (vii) Customer Characteristics:
• (viii) Channel Compensation:

  What are the channels of distribution for industrial goods?

  The three types of distribution channels are wholesalers, retailers, and direct-to-consumer sales. Wholesalers are intermediary businesses that purchase bulk quantities of product from a manufacturer and then resell them to either retailers or—on some occasions—to the end consumers themselves.

  What are the factor affecting distribution channel?

  Factors Influencing Choice of Distribution Channel – 5 Important Factors: Product, Company, Competitive, Market and Environment Related Factors. Deciding or selecting channels of distribution is a strategic decision for any manufacturing or trading concern.

  What is distribution of products?

  Distribution is the process of making a product or service available for the consumer or business user who needs it. This can be done directly by the producer or service provider or using indirect channels with distributors or intermediaries.

  What are the two types of distribution channels?

  There are two types of distribution channels: direct and indirect. As the names would imply, direct distribution is a direct sale between the manufacturer and the consumer, and indirect distribution is when a manufacturer utilizes a wholesaler or retailer to sell their products.

  What are the factors that affect the channel of distribution?

  The following factors concerning the product, affect the selection of the channel of distribution: i. Price of the Product – The products of a lower price have a long chain of distributors. As against it, the products having higher price have a smaller chain. Very often, the producer himself has to sell the products to the consumers directly. ii.

  What makes an industrial distribution channel so unique?

  Industrial distribution is unique as there are several different methods of channeling the products and services to industrial consumers. The type of product, the selling price of the product and technical knowledge required to sell the product all play a considerable role in selecting the proper sales or distribution channel.

  What are the factors governing the choice of distribution?

  Factors governing the choice ofFactors governing the choice of channel of distributionchannel of distribution FACTORS Products factors Market factors Institutional factors Unit factors Environmental factors 17. PRODUCT FACTORSPRODUCT FACTORS 1. Product nature. 2. Technical nature: simple or complex. 3. The length of product line. 4.

  Which is an important factor in channel selection?

  The selection of a proper channel of distribution is very important. A number of factors influence this decision. The nature and type of product helps in determining a decision about channel of distribution. A high priced product will have less middlemen because the number of buyers will be limited.