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Selection of a Company's Distribution Mix

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List and explain the impacts of the three major factors impacting the selection of a company's distribution mix.

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Lists and explains the impact of the three major factors impacting the selection of a company's distribution mix.

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1. List and explain the impacts of the three major factors impacting the selection of a company's distribution mix.

One way to define the distribution mix is the combination of five major components of effective distribution of goods, namely (1) inventory, (2) warehousing, (3) communications, (4) packaging, and (5) transport (http://www.businessdictionary.com(/definition/distribution-mix.html).

The three factors impacting the selection of a company's distribution mix include:

(1) The type of product ir service. The type of product/service involves different decisions As well, some products are not tangible, and are intangible instead--like the travel industry (see example at the end of this response) meaning the above five components differs. Products disribution mix includes five components: inventory, warehousing communications, packaging and transport decisions. Services, such as travel services has a different mix:

a. Direct distribution: the organization assumes total responsibility for promoting, reserving, and providing services to customers.

b. Indirect distribution: part of the responsibility for promoting, reserving, and providing services to customers is given to one or more other hospitality and travel organization (http://209.85.173.132/search?q=cache:EtBOiEZulOsJ:www.delmarlearning.com/companions/content/0766816052/powerpoints/slides/htmch13thirded.ppt+distribution+mix+is+determined+by&cd=6&hl=en&ct=clnk&gl=ca&client=firefox-a)

(2) The type of Industry. The type of industry impacts the company's distribution mix. The travel industry differs from the retail selling of books (http://multichannelmerchant.com/opsandfulfillment/warehouse/fulfillment_natural_selection_2/) (see example at the end of this response)

(3) Type of channels of distribution and intermediaries available for the specific product and industry.

For example, the channels are the means used to transfer merchandise from the manufacturer to the end user. These need to be considered when determining the distribution mix. ...

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