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Thursday, 4 October 2018

Product Consideration



1) Units Values; The unit value of a product affects the amount of funds available for distribution. Thus,the lower the unit value,the longer,usually are the channel of distribution. However,when products of low unit values are sold in large quantities or are combined with other goods that the total order is large ,shorter channels may be economically feasible.

2) Perishability; Products subjected to physical or fashion perishability must be speeded through their channels. The channels are usually short.

3) Technical Nature of a Product; An industrial product that is highly technical is often distributed directly to industrial users. The producer sales force must provide considerable resale and post sale service,wholesalers normally can not do this. Consumer product of a technical nature provide a real distribution challenge for manufacturers. Ordinarily, manufacturers can not sell the goods directly to the consumers. As much as possible, manufacturers try to sell directly to retailers, but even then,the servicing of the product often poses problems.

MIDDLEMEN CONSIDERATIONS

1) Services Provided by Middlemen; each producer should select middlemen that will provide the marketing services that the producer either is unable to provide or cannot economicaly perform.

2) Availability of Desired Middlemen; the middle men whom a producer desires may not be available.  They may be carrying competitive products and may not wish to add another line.

3) Attitude of Middlemen Towards Manufacturers Policies; sometimes, manufacturers choice of channel are limited because their marketing policies are not acceptable to certain types of middlemen. Some retailers and wholesalers, for example are interested in carrying a line only if they can get an exclusive franchise in a territory