When a firm is selecting marketing channels, there are many factors that may be affected by this decision. The factors consist of customer characteristics, product attributes, type of organization, competition, marketing environment forces and characteristics of intermediaries. A marketing firm should consider the target-market members when selecting a channel. The correct channel should be chosen to benefit the customer. For example, a customer buying hardwood floors for commercial buildings compared with a person buying hardwood floors for there home. The person selecting the flooring for their home would probably want to talk with the producers directly. The next factor that could be affected is the product attributes. The type of product you are selling has an influence on the type of channel the firm will choose. For example if a company sells produce they would choose a short channel because their product can go bad at a faster rate than other products. Also, fragile products are usually distributed through shorter channels to reduce the risk of damage to the product. The type of organization also influences the decision to choose short or longer channels. For large firms it may be more beneficial to choose large channels and the company may be able to negotiate deals with the vendors. Supply-chain managers should take competition into consideration. Another companies failure or success given their marketing channel can give your firm an idea whether or not to use the same type of channel for your firm. Marketing environment forces play a role in channel selection also. Bad economic considerations could cause a firm to use the channel that is the most cost effective for the company. Also, the advancement of technology could cause a firm to move to a shorter channel by using technology (such as computer software/Internet). The last factor is the characteristics of intermediaries. If a company doesn't feel as though their products are being promoted, the organization may choose a new channel to change that. If you were a small business, would you use a small marketing channel or a larger one?
Indeed, it is crucial to determine the right marketing channels for any business. Since there are many different marketing platforms, it’s important to analyse which one will be most effective. In my business, regular communication with clients and customers is essential, so sms marketing is an ideal channel for us.
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