Explain any four factors affecting choice of channels of distribution.

Explain any four factors affecting choice of channels of distribution.

  • Answer – Product factors: perishable, costly, technical or specially serviced products often need shorter channels.
  • Company factors: financial strength, desired control and available selling resources affect whether direct distribution is feasible.
  • Competitive factors: competitors' channels provide useful evidence, although differentiation may justify a different route.
  • Market factors: number, location, buying habits and order size of customers influence channel length and coverage.
  • Environmental factors: economic conditions, technology and legal requirements affect channel suitability.

The chosen channel should make the product available conveniently while balancing cost, control and service.

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