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Channels of Distribution

The document discusses factors influencing the choice of distribution channels for products, including perishability, durability, distance, urgency, and cost. It emphasizes the importance of selecting appropriate channels to ensure effective and efficient delivery to consumers. An example of distributing organic honey highlights considerations such as product nature, market characteristics, budget, control requirements, and customer preferences.

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masolecaroline1
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1 views

Channels of Distribution

The document discusses factors influencing the choice of distribution channels for products, including perishability, durability, distance, urgency, and cost. It emphasizes the importance of selecting appropriate channels to ensure effective and efficient delivery to consumers. An example of distributing organic honey highlights considerations such as product nature, market characteristics, budget, control requirements, and customer preferences.

Uploaded by

masolecaroline1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Perishability: Perishable goods like fresh food, flowers, or pharmaceuticals require


fast and efficient distribution to maintain quality. Channels should minimize transit
time and ensure proper storage conditions, often using refrigerated transport and
prompt delivery to retailers or end consumers.
2. Durability: Durable goods, such as electronics, furniture, and machinery, don't need
to reach the consumer as quickly as perishable goods. Therefore, businesses can use
longer, more cost-effective channels like wholesaler-to-retailer distribution. The
robust nature of these products means they can withstand longer storage and shipping
times without degrading in quality.
3. Distance: The geographical distance between the manufacturer and the consumer
affects the choice of distribution channel. For short distances, direct selling might be
viable, while for long distances, involving multiple intermediaries like wholesalers
and regional distributors can be more effective. International distribution often
requires extensive logistics networks and partnerships with local distributors.
4. Urgency: When customers need products quickly, companies must choose channels
that can deliver promptly. E-commerce platforms with efficient logistics and express
shipping services are ideal for urgent needs. In contrast, traditional retail channels
may not be suitable for products that need immediate delivery.
5. Cost: Distribution costs can significantly impact profitability. Businesses must
balance cost efficiency with service quality. Direct channels might have higher initial
costs but eliminate intermediary fees, while indirect channels can distribute costs
across multiple players but might lead to higher overall expenses due to multiple
handlings.
By carefully considering these factors, businesses can select the most suitable distribution
channels to ensure their products reach customers effectively and efficiently.
If there's a specific product or scenario you'd like to explore further, I'm here to help!
determine a suitable channel of distribution for a given products
Let's go through an example to determine a suitable channel of distribution for a specific
product. Suppose we're dealing with high-quality organic honey produced by a local
beekeeper. Here are the considerations and the recommended channel of distribution:
Factors to Consider:
1. Nature of the Product:
o Organic honey is a food product with a long shelf life, but its quality and
purity need to be maintained.
2. Market Characteristics:
o The target market includes health-conscious consumers, gourmet food
enthusiasts, and specialty store shoppers.
3. Cost and Budget:
o The beekeeper has a limited budget for large-scale distribution but wants to
reach a broader audience.
4. Control Requirements:
o The beekeeper wants to maintain control over branding and customer
experience.
5. Customer Preferences:
o

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