Page 404 - Foundations of Marketing

Marketing Channels and Supply-Chain Management | Chapter 13 371

Figure 13.4 Selecting Marketing Channels

Customer
characteristics

Characteristics Product
of attributes
intermediaries

MARKETING
CHANNEL
SELECTION

Marketing
Type of
environmental organization
forces

Competition

From Pride/Ferrell, Marketing 2014, 17E. 2014 Cengage Learning.

are spread across a state or nation, distribution through multiple intermediaries is likely to
be more efficient.

Product Attributes
The attributes of a product can have a strong influence on the choice of marketing channels.
Marketers of complex and expensive products, such as automobiles, will likely employ short
channels, as will marketers of perishable products, such as dairy and produce. Less-expensive,
standardized products with long shelf lives, like soft drinks and canned goods, can go through
longer channels with many intermediaries. Fragile products that require special handling are
more likely to be distributed through short channels to minimize the amount of handling and
risk of damage.

Type of Organization

The characteristics of the organization will have a great impact on the distribution channels
chosen. Owing to their size, larger firms are in a better position to deal with vendors or other
channel members. They are also likely to have more distribution centers, which reduce deliv-
ery times to customers. Large companies can also use an extensive product mix as a competi-
tive tool. A smaller company that uses regional or local channel members might be in a strong
position to cater its marketing mix to serve customers in that particular area, compared with
a larger, less-flexible organization. However, smaller firms may not have the resources to
develop their own sales force, ship their products long distances, maintain a large inventory,
or extend credit. In such cases, they may have to include other channel members that have the
resources to provide these services to customers.

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