You are the sales manager of „speed‟ Industries Ltd. that manufactures tyres. You are faced with the decision to choose an appropriate channel to distribute the product. Discuss the factors you consider in your choice.

  • Cost – choose channels which are not too expensive so that profits aren’t reduced.
  • Nature of my produce – Requires middlemen with tyre knowledge.
  • Size or Nature of market – if the market is large enough around the factories the short channels are chosen.
  • Marketing risks – to minimize these then middlemen will be involved
  • Government policy – If there is any directive according to the state law as to who should sell tyres.
  • Competition – If we are forcing steep competition then its advisable to market the goods ourselves to take care of our customers and convince them to buy.

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