Choice of appropriate channel of distribution is a very important marketing decision, which affects the performance of an organisation. Important factors affecting the choice of channels of distribution by the manufacturer are:
1) Product Related Factors: The choice of channels of distribution depends upon the factors related to the product. Products can be perishable or nonperishable, industrial or consumer product, depends upon the value of product and the degree of complexity of the product. Industrial products require short channels, where Consumer products can be better distributed by long network of channels. Perishable products like fruits, vegetables, and dairy products are best sold through short channels, while non-perishable products like toiletry and fabrics require longer channels to reach wide spread consumers. If the unit value of a product is low, long channels are preferred while in case of high value products, shorter channels may be used. In case of complex products, short channels are preferred but if the product is a non-complex one, it is sold through long channels.

2) Characteristics of company: The important company characteristics affecting the choice of channels of distribution include the financial strength of the company and the degree of control it wants to hold. Direct selling involves lot of funds to be invested, whereas Indirect selling through intermediary does not need huge funds to be invested. Thus, if the firm has plenty of funds it may go for direct distribution otherwise, indirect channels. Similarly if the management wants to have greater control on the channel members, short channels are used otherwise, it can go in for longer channel.

3) Competitive Factors: The choice of channel is also affected by the channel selected by competitors. The decision on choice of channel of distribution is made depending upon the policy of the firm, whether it wants to go with the competitors or be different from them.

4) Market Factors: Market factors like size of market, population of potential buyers and quantity purchased determines choice of distribution channel. If number of buyers is small, short channels are used otherwise longer are used. If the buyers are concentrated in a small place, short channels may be used, otherwise a longer channels. Similarly if the size of order is small large number of intermediaries may be used. But if the size of order is large, direct channels is preferable.

The major differences between selling and marketing are listed as below:
(i) Selling is merely a part of marketing. Selling is a narrow term which comes is a process of marketing. It is concerned with promoting and transferring possession and ownership of goods from the seller to the buyer. Marketing is a wider term which starts with an identification of the customer’s needs and ends with a delighted customer.
(ii) Selling focus on transfer of title and possession from buyer to seller, whereas marketing focus on satisfying customer needs.
(iii) All selling activities are directed at sales and profit maximisation. Marketing activities are directed at customer satisfaction and there by long run profit.
(iv) Start and End of the Activities: Selling activities start after the product has been developed and end with its sales. Whereas marketing activities start much before the product is produced and continue even after the product has been sold.
(v) In selling, the emphasis is on bending the customer according to the product while in marketing, the attempt is to develop the product and other strategies as per the customer needs.

Brand Name is a part of a brand consisting of words, letters and group of words or letters comprising a name which is intended to identify the goods or services of a seller or a group of sellers and to differentiate them from those of competitors. Example, Promise tooth paste, Safola, Maggie, Lifebuoy, Dunlop, and Rexona are the brand names.

Characteristics of Good Brand Name:
Following are the characteristics of a good brand name.
i) The brand name should be short, easy to pronounce, spell, recognise and remember e.g., lux, VIP, Rin, Vim, etc.
ii) A brand should suggest the product’s benefits and qualities. It should be appropriate to the product’s function. e.g. Trust me, Promise, Fair and lovely and Boost.
iii) A brand name should be distinctive e.g., Liril, Sprit, Zodiac.
iv) The brand name should be adaptable to packing or labelling requirements, to different advertising media and to different languages.
v) The brand name should be sufficiently versatile to accommodate new products, which are added to the product line e.g., Maggie, Colgate.
Vi) It should be capable of being registered and protected legally.

Consumer products are those products which are purchased by the ultimate consumer for satisfying their personal needs and desires. On the basis of the extent of shopping efforts involved, consumer products are of three types:

1. Convenience Products: Those consumer products, which are purchased frequently, immediately and with least time and efforts are referred to as convenience goods. Examples of such products are soap, eggs, match stick etc. These products have low unit-value and are bought in small qualities.

Some of the important characteristics of such products are:
(a) These products are purchased at convenient locations, with least efforts and time;
(b) They have a regular and continuous demand, as these generally come under the category of essential products;
(c) These products have small unit of purchase and low prices.

2. Shopping Products: Shopping products are those consumer goods, in the purchase of which buyers devote considerable time, to compare the quality, price, style, suitability, etc, before making final purchase. Example of shopping products are clothes, shoes, jewellery, furniture, radio, television, etc.

The important characteristics of shopping products are:
(a) Shopping goods are of durable nature.
(b) The unit price as well as profit margin of shopping products is generally high.
(c) As these products have high unit price, customers compare the products of different companies before making selection

3. Speciality Products: Speciality products are those consumer goods which have certain special features because of which people make special efforts in their purchase. These products are such, which have reached a brand loyalty of the highest order, with a significant number of buyers. The buyers spend a lot of time and efforts on the purchase of such products. Example, rare collection of artwork or of antiques.

Important characteristics of the speciality products are:
(a) The demand for speciality products is limited as relatively small number of people buy these products.
(b) These products are generally costly and their unit price is very high;
(c) These products are available for sale at few places as the number of customers is small and are willing to take extra efforts in the purchase of these products.

1. Gathering and Analysing Market Information: One of the important functions of marketing is to gather and analyse market information. It helps to identify the needs of the customers and take various decisions for the successful marketing of the products and services. It also helps to analyse various opportunities and threats as well as strengths and weaknesses of the organization.

2. Marketing Planning: Another important activity of a marketer is to develop suitable marketing plans so that the marketing objectives of the organisation can be achieved.