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

Describe the phases in the evolution of retail market, Problem 1: Descr...

Problem 1: Describe the phases in the evolution of retail market - Detail explanation on ‘Evolution of Retail in India'. Problem 2: What are the tasks handled by a p

Method of determining prices or setting price, Method of determining prices...

Method of determining prices or setting price: Cost of the production of a product is the most important determinant of its price. They may be many types of costs such as fi

Explain the Cognitive response - marketing communications, Definition conce...

Definition concerns the cognitive response This refers to outcomes of the communication process, and is a measure of whether a communication event has been successful. Audience

Effectiveness of the distribution channels, Effectiveness of the distributi...

Effectiveness of the distribution channels: the main problem is to decide which of the alternatives would best satisfy the long term objectives of the firm taking in view the fact

Decision making model in organisations, Question 1 "Negotiation is a po...

Question 1 "Negotiation is a powerful method for resolving conflict which needs skill, and experience. Negotiation will be viewed as either hard or soft. It will be a positi

Marketing, in context of marketing, explain three approaches that were use ...

in context of marketing, explain three approaches that were use in early days

Determine about the industrial goods, Determine about the Industrial Goods ...

Determine about the Industrial Goods   Goods meant for consumption or use as inputs in production of other products or provision of some services are called as 'industrial go

Explain innate and acquired needs, Question: (a) "Consumers have both i...

Question: (a) "Consumers have both innate and acquired needs." With reference to examples you are familiar with, differentiate between these two types of needs. (b) "Tho

The project be completed or abandoned, The government has undertaken a high...

The government has undertaken a highway bridge project that was originally projected to cost $2 million and provide benefits of $2.5 million.  Unfortunately, the costs have been mu

What is advertising agency, Q. What is Advertising Agency? Advertising ...

Q. What is Advertising Agency? Advertising Industry engages three major components. Advertiser, Media and advertising agency. The person who makes a decision to advertise the p

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