Describe the Factors That Influence a Firm's Choice of a Marketing

Question

Examlex · Accepted Answer

The Answer is The factors that influence a firm's choice of a marketing channel strategy are:
1. Market factors: Business purchasers usually prefer to deal directly with manufacturers, but most consumers make their purchases from retailers. Marketers often sell products that serve both business users and consumers through more than one channel.
2. Product factors: Perishable goods, trendy or seasonal fashions, complex products, such as custom-made installations and computer equipment, move through short channels. In general, relatively standardized items that are also nonperishable with low unit cost pass through comparatively long channels.
3. Organizational and competitive factors: Companies with strong financial, management, and marketing resources feel less need for help from intermediaries. A large, financially strong manufacturer can hire its own sales force, warehouse its own goods, and extend credit to retailers or consumers. But a small firm with fewer resources may do better with the aid of intermediaries. The manufacturer's desire for control over marketing its products also influences channel selection.
4. Competitive factors: Marketers sometimes choose distribution channels to either avoid competitors or compete with them head-to-head. Sometimes businesses will only work with distributors who offer exclusivity, meaning they will not carry a competitor's line. In many categories, this is not possible, as wholesalers often carry most major brands so that they can provide the best assortment to their retail customers.
Businesses that explore new distribution channels must be careful to avoid upsetting their channel intermediaries. Distribution channels work smoothly only when members cooperate in well-organized efforts to achieve maximum operating efficiencies. Two types of conflict - horizontal and vertical - can hinder the normal functioning of a distribution channel.
5. Intensity factors: Another key channel strategy decision is the intensity of distribution. Distribution intensity refers to the number or percentage of intermediaries (usually retailers) through which a manufacturer distributes its goods in a particular market. Optimal distribution intensity should ensure adequate market coverage for a product. Adequate market coverage varies depending on the goals of the individual firm, the type of product, and the consumer segments in its target market. In general, distribution intensity varies along a continuum with three general categories: intensive distribution, selective distribution, and exclusive distribution.

Describe the Factors That Influence a Firm's Choice of a Marketing

Essay

Correct Answer:
Verified

Describe the Factors That Influence a Firm's Choice of a Marketing

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified