The correct answer is option (3) : Advertising of the product
1. Company characteristics: The nature and characteristics of the company itself can significantly influence the choice of distribution channels. Factors such as the size of the company, its financial resources, the nature of the product, its market positioning, and its overall business strategy all play a crucial role in determining the most suitable distribution channels for the company's products or services.
2. Channel selected by competitors: The distribution channels chosen by competitors can have a substantial impact on a company's own choice of distribution channels. Observing the strategies and successes of competitors in the market can provide valuable insights into the most effective and efficient channels for reaching the target audience and gaining a competitive edge.
3. Advertising of the product: While advertising can impact consumer awareness, perception, and demand for a product, it is not directly related to the choice of distribution channels. Advertising is part of the overall marketing strategy, and it aims to create product awareness, generate interest, and persuade customers to make a purchase. However, the specific distribution channels are typically selected based on other factors, such as cost-effectiveness, the target market's preferences, and the nature of the product.
4. Size of the market & geographical concentration of potential buyers: The size of the market and the geographical concentration of potential buyers are crucial factors in determining the most suitable distribution channels. Companies need to assess the geographic locations of their target customers and the concentration of potential buyers in specific regions to choose the most efficient and cost-effective distribution channels. The characteristics of the market, including its size and distribution, can influence decisions regarding direct or indirect distribution, online or offline channels, and the need for regional or global distribution networks. |
