Question
In: Finance
What are the factors a firm should consider when developing its distribution policy and explain the...
What are the factors a firm should consider when developing its distribution policy and explain the importance of each factor and why?
Solutions
Expert Solution
Factors when the firm should be considering while development of distribution policy are as follows-
A. Target market buying behaviour- target market buying behaviour is one of the important factors while looking for the distribution policy decided by the firm because it will be looking after the behaviour of the customers in the market.
B. Product and service characteristics are also to be looked into before selection of a distribution channel because they will be determining the distribution policy of the company.
C. Market geographical location is another factor which is very important in determination of distribution policy of the firm because geographical location access is highly important in determination of the efficiency of the overall distribution channel.
D. Competition is another factor which must be looked into before determination of overall distribution policy which is adapted into the company because it should be influenced by the various competitors in the market.
E. Local business practices and legislation will also be accounted for before determination of a proper distribution policy because they will be helpful in order to determine the overall local inclination for selection of distribution channels.
F. Consumer support services will also be important in determination of the overall distribution policy because consumer support service will be determining the efficiency of the distribution channel.
G. Cost as well as market coverage are also important in determination of the overall distribution policy of the company because that will be helpful in order to cover the overall market.
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