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What factors should enterprises consider when choosing distribution channels?
The main factors that enterprises should consider when choosing distribution channels are market factors, product factors, enterprises' own factors, middlemen factors and environmental factors. Details are as follows:

1, market factors

Including target market scope, customer's purchase quantity, purchase frequency, seasonality of consumption and competition.

2. Product factors

Including physical and chemical properties, price, fashion, standardization and technical complexity. Products with large volume, heavy weight, perishable and easy loss are suitable for short channels, direct sales channels or special channels; High-priced industrial products and durable consumer goods are suitable for short and narrow channels; Products with high fashion are suitable for short channels; Products with high standardization and versatility are suitable for long and wide channels.

3, the enterprise's own factors

Including financial ability, channel management ability and desire to control channels. Enterprises with strong financial resources have the ability to choose short channels, while enterprises with weak financial resources can only rely on middlemen; Enterprises with rich channel management ability and experience are suitable for short channels, while enterprises with low management ability are suitable for long channels; Strong desire to control channels, often choose short and narrow channels; If the desire is not strong, choose a long and wide channel.

4, the middleman factor

Including the possibility of cooperation, cost and service. If the middlemen are unwilling to cooperate, they can only choose short and narrow canals; The cost of using middlemen for distribution is very high, and only short and narrow channels can be used; The service provided by middlemen is of high quality, and enterprises adopt long and wide channels, but only choose short and narrow channels.

5. Environmental factors

Including the economic situation and relevant laws and regulations. When the economy is depressed, enterprises often adopt short channels; The economic situation is good, and long channels can be considered. In addition, we need to consider relevant laws and regulations, such as monopoly system, import and export regulations, anti-monopoly law, tax law and so on.

Extended data:

The essence of distribution channel evaluation is to choose the scheme that best meets the long-term goal of the enterprise from those seemingly reasonable but mutually exclusive schemes. Therefore, enterprises must evaluate various possible channel selection schemes. There are three evaluation criteria, namely economy, controllability and adaptability.

Economic standard is the most important standard and the basic starting point of enterprise marketing. In the evaluation of distribution channels, we should first compare the possible increase in sales revenue brought by the decision-making of distribution channels with the cost of implementing this channel scheme to evaluate the rationality of the decision-making of distribution channels.

2. The design and selection of distribution channels for enterprises should not only consider economic benefits, but also consider whether enterprises can effectively control their own distribution channels. Because the stability of distribution channels is very important for enterprises to maintain market share and achieve long-term goals.

3. When evaluating various channel schemes, there is another criterion to be considered, that is, whether the distribution channel has the adaptability of region, time and middlemen.

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