For example, an increasing number of service firms are satisfying consumers’ desire for convenience by providing home delivery. Product features, size, shape, color, durability, perishability, Value of product etc are the factors that constitute the product characteristics. 2. (a) Consumer or industrial market: 4. Factors Related to Company: Company’s internal situations have direct impact on choice of marketing channel. Factors that influence a choice of distribution channels. Producer factors: They help you reach the customer in a way to maximise your revenue and brand awareness. 2389 words (10 pages) Essay. Market considerations: The nature and type of customers is an important consideration in the choice of a channel of distribution. Market Factors. ... (Virtual Advisor, 2000).The mentioned factors along with the impeccable physical infrastructure witnessed in the European Union have helped in aiding the smooth and fast flow of goods and services in the extensive distribution channels. If the product can be marketed to more than one segment, multiple distribution channels may be required. This research was a descriptive study involving 60 firms. Distribution channels are a key element in all the marketing strategies that revolve around the product. Industrial/Consumer Product. Following factors relating to the market are particularly significant. Channels used for competitive products may also influence the choice of distribution channels. Product’s availability, ease of access, and the way it reaches the customer influence its demand at many levels. Choice of appropriate channel of distribution is a very important marketing decision, which affects the performance of an organisation. But, illegal products are distributed by direct channels for secrecy purpose. Nature of Product: The is the first and most important consideration. Middlemen Consideration 5. Environment. The selection of channel is not an easy job. Heavy and bulky products like cement, steel and electrical equipment’s are also distributed directly or through short channels. The factors influence the choice of distribution channel. ADVERTISEMENTS: Such factors may be classified as factors relating to: 1. This study sought to investigate the nature of distribution channels for small- scale manufacturing firms in Thika town and the factors, which influence the choice of these channels. Environmental factors such as economic constraints and legal policies play an important role in the choice of channel of distribution. Important factors affecting the choice of channels of distribution by the manufacturer are: Considerations Related to Product. Highlight factors that may influence the choice of a distribution channel. Product Characteristics 2. 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. A semi- structured questionnaire was used to collect the relevant data, while frequency Factor # 1. Nature of the product. Highlight factors that may influence the choice of a distribution channel. products are perishable in nature like eggs, milk etc, they are supplied directly or with the help of short channels. Quite obviously, permitted (legal) products can be distributed by any convenient channel of distribution. 5. Product Characteristics: The product characteristic plays an important role in influencing the channel selection. 2. 1. Explain five ways in which commercial banks help in facilitating business activities in a country. Let me give certain points that you have to considered before selection of the channel 1. 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