What Factors Influence the Choice of Distribution Channels?
Several factors can influence the choice of distribution channels:
- Product Type: Perishable goods often require shorter, more direct channels, while durable goods can use longer channels. - Market Characteristics: The geographic spread and demographics of the target market can determine the choice of channels. - Company Goals: A company's objectives, such as market penetration or brand positioning, can influence channel selection. - Cost Considerations: The cost of maintaining different channels and the potential return on investment are crucial factors. - Control: Companies may prefer direct channels if they wish to maintain more control over the customer experience and pricing.