Discuss various channels that are used in physical distribution of goods. Also explain the factors influencing choice of channel.

Channels Used in Physical Distribution of Goods

1. Direct Sales: Direct sales involve selling goods directly to consumers without the need for intermediaries. This can be done through company-owned stores, e-commerce websites, or direct sales representatives.

2. Retailers: Retailers are businesses that sell goods directly to consumers. They can include department stores, specialty stores, discount stores, and online retailers. Retailers play a crucial role in the physical distribution of goods by providing a convenient and accessible channel for consumers to purchase products.

3. Wholesalers: Wholesalers are businesses that purchase goods in bulk from manufacturers and sell them to retailers or other businesses. Wholesalers help manufacturers reach a wider market and reduce the costs associated with selling directly to retailers or consumers.

4. Distributors: Distributors are businesses that purchase goods from manufacturers and sell them to retailers or end customers. Distributors often specialize in specific industries or product categories and can help manufacturers reach new markets or customers.

5. Agents and Brokers: Agents and brokers act as intermediaries between buyers and sellers. They do not take ownership of the goods but facilitate the sale process for a commission. Agents and brokers can help manufacturers reach new markets or customers without the need for a physical presence in those markets.

Factors Influencing Choice of Channel

1. Product Characteristics: The nature of the product, such as its size, weight, perishability, and value, can influence the choice of distribution channel. For example, bulky or perishable products may require a direct distribution channel to ensure timely delivery and proper handling.

2. Market Characteristics: The characteristics of the target market, such as its size, location, and purchasing behavior, can influence the choice of distribution channel. For example, a geographically dispersed market may require a combination of direct and indirect distribution channels to reach customers effectively.

3. Company Resources: The resources available to the company, such as financial resources, infrastructure, and personnel, can influence the choice of distribution channel. For example, a company with limited resources may choose to use wholesalers or distributors to reach customers more efficiently.

4. Competitive Environment: The competitive environment, including the actions of competitors and the availability of alternative distribution channels, can influence the choice of distribution channel. For example, if competitors are using direct sales channels, a company may choose to do the same to remain competitive.

5. Channel Control: The level of control the company wants to maintain over the distribution process can influence the choice of distribution channel. For example, a company may choose to use direct sales channels to have more control over pricing, promotion, and customer service.

Conclusion:
The choice of distribution channel is a critical decision that can impact the success of a company's physical distribution strategy. By considering factors such as product characteristics, market characteristics, company resources, competitive environment, and channel control, companies can select the most appropriate distribution channels to reach their target customers effectively.