Selecting the Channel of distribution

Nature of the product: Industrial products are usually sold through a direct channel as compared to consumer products which are distributed through wider distribution channel.

Life of the product: a product with a longer shelf life may use longer channel of distribution whereas products which are perishable are sold directly by the producer. Fruits and bakery products will use a short channel of distribution.

Technicality of the product: Products which need a high level of technical assistance usually are directly sold by the producers. For example, aeroplanes are sold directly by the company without having a network of retailers.

Price of the product: Expensive products are sold through a limited number of outlets to emphasise its exclusiveness and high quality.

Geographical distribution of customers: Products sold to geographically scattered customers use a network of wholesalers and retailers. They might also use Agents if the product is sold in different countries.

Frequency of purchase: Products which are purchased quite often sold through a network of wholesalers and retailers to make it available to everybody. Soaps and shampoos are purchased more often than a diamond ring.

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