CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipEnterprise Marketing3 Marks
Question
How does the nature of products affect the Distribution Mix?
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Answer
Nature of product plays an important role in Distribution Mix. This can be explained using following:
Shelf-life: Normally shorter is the shelf-life quicker is the distribution. As more and more time is consumed while distributing, more is the loss in quality and quantity of the product. Thus perishable goods are distributed quickly through direct mode whereas non-perishable items are distributed through indirect mode.
Capital goods: Goods manufactured by producers for producers are normally sold directly. Here direct mode of selling is preferred for avoiding delay in supply, for taking the maximum share of the profit and for providing efficient after sales service.
Size of product: Larger is the size of product; shorter is the channel of distribution. This is preferred for quick delivery, safe transportation and easy approach to the customers.
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