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A wide variety of factors need to be considered when deciding on the most appropriate distribution channel for a product. These are summarised below:
Nature of the product
- Technical/complex? Complex products are often sold by specialist distributors or agents
- Customised? A direct distribution approach often works best for a product that the end consumer wants providing to a distinct specification
- Type of product – e.g. convenience, shopping, speciality
- Desired image for the product – if intermediaries are to be used, then it is essential that those chosen are suitable and relevant for the product.
- Are there traditional channels set for the market in which it is essential to participate?
- Are customers geographically spread?
- Does it involve selling overseas?
- The extent and nature of the competition – which distribution channels and intermediaries do competitors use?
- Profit margin on the product? Is there sufficient profit margin to provide adequate returns for each intermediary?
- Its size and scope – e.g. can it afford an in-house sales force?
- Its marketing objectives – revenue or profit maximisation?
- Does it have established distribution network or does it need to extend its distribution option
- How much control does it want over distribution? The longer the channel, the less control is available
- Are there limitations on sale?
- What are the risks if an intermediary sells the product to an inappropriate customer?
- Who retains legal title to the product as it passes through distribution?
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Business Studies Revision / Exam Coaching Workshops Coming Up:
Thursday 24 April 2014 - Birmingham
Friday 25 April 2014 - London (Stratford City)
Monday 20 January 2014 - London (Stratford City)
Tuesday 21 January 2014 - London (Fulham Broadway)
Wednesday 22 January 2014 - Bristol (Cribbs Causeway)
Thursday 23 January 2014 - Birmingham (Star City)
Friday 24 January 2014 - Manchester (Salford Quays)
Tuesday 25 March 2014 - London (Stratford City)
Wednesday 26 March 2014 - London (Fulham Broadway)
Thursday 27 March 2014 - Bristol (Cribbs Causeway)
Friday 28 March 2014 - Birmingham (Star City)
Tuesday 1 April 2014 - Newcastle (Metro Centre)
Wednesday 2 April 2014 - Leeds (The Light)
Thursday 3 April 2014 - Manchester (Salford Quays)
Post-Easter (BUSS1/BUSS2 Combined & BUSS4)
Monday 28 April 2014 - London (Stratford City)
Tuesday 29 April 2014 - London (Fulham Broadway)
Wednesday 30 April 2014 - Bristol (Cribbs Causeway)
Thursday 1 May 2014 - Birmingham (Star City)
Friday 2 May 2014 - Manchester (Salford Quays)
Try some of these superb starter activities for Business Studies:
- Anagram Countdown
- Beat the Teacher
- Budget Basket
- Memory Challenge
- Loop Cards
- I'm the Question
- Catchphrase - Say What You See!
- Consider All Possibilities (C.A.P)
- Teacher Talkabout
- Perfect Recall
- Pass the Buck
- What would you have invented?
- These are a few of my favourite things
- Set Your Students the 15 Word Challenge
- Topic Tennis
- What Why Depends - Developing Thinking Skills
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