Factors to be considered before choosing a particular channel of distribution board. - SS1 Commerce Past Questions and Answers - page 1
What factor should be considered when choosing a distribution channel based on the characteristics of the target market?
Cost considerations
Competitive landscape
Product characteristics
Which factor involves evaluating the financial implications of different distribution channels?
Cost considerations
Cost considerations
Scalability and growth potential
Which factor relates to the ability of a distribution channel to accommodate future expansion?
Legal and regulatory considerations
Competitive landscape
Scalability and growth potential
Why is it important to consider the target market's characteristics when choosing a distribution channel?
The target market's characteristics provide insights into factors such as demographics, geographic location, buying habits, and accessibility, which influence the choice of distribution channels. Understanding the target market helps determine the most effective way to reach and serve customers.
How does considering cost considerations contribute to the selection of a distribution channel?
Evaluating cost considerations helps businesses assess the financial implications associated with different distribution channels. It involves analyzing factors such as transportation costs, inventory holding costs, fees or commissions, and marketing expenses. Considering costs helps determine the most cost-effective and efficient channel that aligns with the company's resources and objectives.