Explain the factors determine choice of channels of distribution.

Explanation

One of the important decisions of marketing involves the choice regarding which channel of distribution to opt for. The following factors determine the choice of channels:


`i)` Product Type:

The choice of channel of distribution is based on the type of the product that is produced. It is important to check whether the product is perishable or non-perishable, whether it is an industrial or a consumer product, whether its unit value is high or low and also, the degree of complexity of the product. For instance, if a good is perishable then short channels should be used rather than the long ones. Similarly, if a product has a low unit value then longer channel are preferred. In a similar manner, consumer products are distributed through long channels while industrial products are distributed through short channels.


`ii)` Characteristics of the Company:


...