How Competitive Factors Determining Choice of Channels? - QS Study
QS Study

Competitive Factors:

The choice of channel is also affected by the channel selected by competitors in the similar industry. If the competitors have chosen an exacting channel to say Chemist shops for the sale of toiletry products like hair oil, the other firm may also like to select the related channel. In some cases, producers may want to avoid the channels used by competitors. For example, if other cosmetic producers have chosen big retail stores for the sale of their products, an exacting firm may like to assume door to door selling. Thus, it will depend upon the policy of the firm – whether it wants to go with the competitors or be different from them.

The nature and extent of competition prevalent in an industry is another detrimental consideration in selecting a distribution channel. Different manufacturers producing related products may utilize the same channels of distribution. The changing global marketing environment has lead to the adoption of newer channels.