Class 12 Business Studies - Chapter Marketing NCERT Solutions | Explain the factors determining the choi
Explain the factors determining the choice of channel of distribution.
The choice of channels depends on various factors which are categorized as:
1. Product related factors
- Nature of the product: While industrial goods are usually technical, made to order and expensive products purchased by few buyers, they require shorter channels, whereas, consumer goods which are standardized, non-expensive, less bulky and frequently demanded, require longer and indirect distribution channels.
- Perishability: Perishable and dairy products also use direct channels, while durable products require longer channels to reach widespread markets.
- Unit value of the product: At the same time, goods whose unit value is low, prefer longer channels, whereas, high value products are directly distributed.
- Product complexity: Similarly, complex products requiring technical details prefer direct channels, while non-complex products usually prefer longer channels.
2. Company related factors
- Financial strength of the firm: Direct selling involves a lot of funds to be invested in fixed assets for starting its own retail outlets. Therefore, if the financial position of the company is strong, it may use direct channels and vice-versa.
- Degree of control: If the management wants to have greater control over distribution, shorter or direct channels will be preferred, and vice-versa.
3. Competitive factors: Sometimes, a firm may choose such channel, which has been adopted by the competitors. In some case however, they may avoid the channel as adopted by the competing firm. Thus, it will depend upon the policy of the firm, whether it wants to go with the competitors or be different from them.
4. Market factors
- Number of buyers: When the number of buyers is small and concentrated in a small place, shorter channels may be used. But, if the number of buyers is large and market is widespread, longer channels should be preferred.
- Size of the order: Similarly, if the size of order is small, longer channels may be used, but if the size of order is large, shorter or direct channels must be used.
- Geographical concentration of buyers: If the buyers are concentrated in a small area shorted channels may be used, but if the consumers are widely spread over a large geographical area, longer channel may be used.
5. Environmental factors: Environmental factors such as economic condition and legal constraints also affect the choice of channels. E.g. in a depressed economy, marketers use shorter channels to distribute their goods in an economical way.
More Questions From Class 12 Business Studies - Chapter Marketing
- Q:-
What are the factors affecting determination of the price of a product or service? Explain.
- Q:-
A marketer of colour TV having 20% of the current market share of the country aims at enhancing the market share to 50 per cent in next three years. For achieving this objective he specified an action programme. Name the function of marketing being discussed above. (Ans. Marketing planning.)
- Q:-
What is marketing mix? What are its main elements? Explain.
- Q:-
For buyers of consumer durable products, what ‘customer care services’ would you plan as a manager of a firm marketing new brand of motorcycle. Discuss.
- Q:-
How does branding help in differential pricing?
- Q:-
Discuss the role of intermediaries in the distribution of consumer non-durable products.
- Q:-
Distinguish between convenience product and shopping product.
- Q:-
What are industrial products? How are they different from consumer products? Explain.
- Q:-
What information is generally placed on the package of a food product? Design a label for one of the food products of your choice.
- Q:-
Product is a bundle of utilities. Explain.
Popular Questions of Class 12 Business Studies
- Q:-
How does planning provide direction?
- Q:-
What is meant by staffing?
- Q:-
Identify the network of social relationships which arises spontaneously due to interaction at work.
- Q:-
What is informal communication?
- Q:-
State the meaning of controlling.
- Q:-
What is meant by capital structure?v
- Q:-
What is meant by management?
- Q:-
What is a Treasury Bill?
- Q:-
What makes principles of management flexible?
- Q:-
Under which consumer right does a business firm set up consumer grievance cell?
Recently Viewed Questions of Class 12 Business Studies
- Q:-
How does working capital affect both the liquidity as well as profitability of a business?
- Q:-
Why is the working capital management important, and what factors affect it?
- Q:-
Explain how planning provides direction and reduces the risk of uncertainty in an organization.
- Q:-
What is meant by ‘management by exception’?
- Q:-
Financial management is based on three broad financial decisions. What are these?
- Q:-
A production manager at top level in a reputed corporate, Mr. Rathore holds the responsibility for ordering raw material for the firm. While deciding on the supplier for the financial year 2017-18, he gave the order to his cousin at a higher price per unit instead of the firm’s usual supplier who was willing to lower the rates for the order. Which principle of management was violated by Mr. Rathore? What are the positive impacts of following the above identified principle?
- Q:-
Company X is facing a lot of problems these days. It manufactures white goods like washing machines, microwave ovens, refrigerators and air conditioners. The company’s margins are under pressure and the profits and market share are declining. The production department blames marketing for not meeting sales targets and marketing blames production department for producing goods, which are not of good quality meeting customers’ expectations. The finance department blames both production and marketing for declining return on investment and bad marketing. State the quality of management that the company is lacking? What quality of management do you think the company is lacking? Explain briefly. What steps should the company management take to bring the company back on track?
- Q:-
Discuss Maslow’s Need Hierarchy theory of motivation.
- Q:-
Why it is important for business enterprises to understand their environment? Explain.
- Q:-
Discuss the relationship between planning and controlling.
- All Chapters Of Class 12 Business Studies
- All Subjects Of Class 12