Enterprise factors affecting channel decisions, Marketing Management

Assignment Help:

Company of the enterprise factors: the choice of channel is also influenced by company characteristics such as its financial position, size, product mix, morale of its employers, past channel experience and executive and overall marketing policies.

1.       Financial resources: the financial strength of the company determines which marketing tasks, it can handle efficiency and which ones are to delegate to the middleman. A company having good financial resources may engage itself in the direct marketing in a profitable manner. A weak financial position may force a company to use financially strong intermediaries even if this is not profitable.

2.       Size of the company: a large company already handling a wide line of products may be in a good position to take an additional product of the same line and handle it in the same way, usually directly. But a smaller firm or one with the narrow lines would find middle man more practical.   

3.       Product mix: a fresh expression of plant capacity may require more aggressive channels. If the product mix of a company is wider, it can deal with its customers directly. Similarly, consistency in the company's product mix ensures of its marketing channel.

4.       Attitude of the company executives: the attitude of the company executives may also influence the channel selection. Their experience of working with the certain types of middle man may tend to develop channel preferences.

5.       Marketing policies: the company marketing policies such as speedy delivery, after - sale - services, heavy advertising, and uniform retail price also influence the decision of channel. If is of the view that the intermediaries can provide the services to the customers according to the company marketing policies, it can delegate to distribute its products to middle man otherwise it may engage itself in direct selling.

6.       Marketing experience and marketing managerial ability: when the enterprise has sufficient marketing experience and managerial ability, decision may be take for distributing product to the consumers. If the enterprise lacks marketing experience and managerial ability, the enterprise should decide to distribute its product through the middleman.

7.       Goodwill of the enterprise: if the product is of repute, he can select any channel of his choice because every middle man is ready to work for such a repute producer and of popular products. If the producer is new or does not enjoy such repution, he should take the advantage of the repution of middle man and should select the channel which enjoys high repution.

8.       Desire to control: producers desiring good control over the distribution of their products prefer short channels controlling is necessary to undertake aggressive promotion, to maintain the fresh stock and retail prices. If, on the other hand, manufactures do not have such a desire, he may decide a long channel.

9.       Cost of the distribution: cost of the distribution is added to the price of the product. A producer should select least expensive channel. Direct marketing is generally costly and distribution through middle man is economical.


Related Discussions:- Enterprise factors affecting channel decisions

4ps, the relationship between the 4Ps

the relationship between the 4Ps

What is the primary activates, What is the primary activates? Primary ...

What is the primary activates? Primary Activities: These activities are those activities which are involved within the physical creation of the marketing, product and af

Discuss the implications of dd''s activities, The DD drinks company was fou...

The DD drinks company was founded over one hundred years ago by a deeply religious family and has been recognised as being a good employer ever since. The company has a long histor

Determine the marketing and business objectives, Determine the marketing an...

Determine the marketing and business objectives Organisations engage with a variety of audiences in order to pursue their marketing and business objectives. Engagement refers

State the term- message content, State the term- Message content In ...

State the term- Message content In general, there is high-involvement in many business-to- business purchase decisions hence communications tend to be much more rational and

How to select an ad agency, Q. How to select an ad agency? Financially...

Q. How to select an ad agency? Financially Sound: - The ad-agencies which are monetarily sound and have good turnover have better contract with media owners. The agencies whi

Brand personality, identifing brand personality in consumers mind

identifing brand personality in consumers mind

Real option for pharmaceutical company, The management team of a four year ...

The management team of a four year old pharmaceutical company in Boston is developing an immunization against malaria. The team has just learned from the FDC that is has passed sta

Buying decision process, with reference to the purchase of a new television...

with reference to the purchase of a new television set explain the buying decision process which a typical consumer goes through demonstrate how company can formulate their marketi

Marketing as a part of total environment, Illustrates the total environment...

Illustrates the total environment in marketing? Marketing is a part of total environment: Total environment may be explained as the combination of all the resources and In

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd