CBSE Class 12 Business Studies 2017 Outside Delhi set 1

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Medi Instruments Ltd., is a company dealing in the distribution of medical instruments. The company recently imported 15,000 units of sugar testing machines to test the sugar levels without taking blood samples. For deciding the marketing strategy, the Chief Executive Officer of the company called a meeting of the marketing heads of different zones.
In the meeting, Sanjay, the North Zone Marketing Head, suggested that since the machines were sophisticated they need to visit hospitals personally to explain its working to the hospital staff who would be using the machines. He also suggested that additional trained people may be recruited for the same. Hitesh, another Zonal Head, added that since lots of money had been spent on the import of the machines, the company was short of funds to pay the additional staff, as suggested by Sanjay.
Revansh, a newly appointed Zonal Head of South Zone, suggested that since the size of the order was not large, a detailed study of the factors determining the choice of channels of distribution was required before making the right choice.
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Question : 31
Total: 32
Identify the factors influencing the choice of channels of distribution which were discussed in the meeting.
Solution:  
In the meeting of Medi Instruments Ltd., regarding marketing strategies. Following factors that affect choice of channels of distribution are discussed below:
(i) Product related factors.
(ii) Company related factors.
(iii) Market related factors.
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